MeetMe announces positive Q3 financial results – boosted by increase in mobile user engagement
MeetMe, the maker of the MeetMe and Skout mobile apps and mobile monetisation firm, just announced a total revenue rise of 20% to $17.2m year-on-year. Third quarter mobile revenues rose 39% to $16m.
MeetMe announces positive Q3 results
Geoff Cook, Chief Executive Officer of MeetMe commented that the strong quarter results followed the company’s solid growth in mobile user engagement. Mobile daily active users for Q3 2016 rose 18% the year over. The firm’s mobile monthly active users increased by 32%. He adds:
“We made tremendous progress during the quarter on multiple fronts. We completed our acquisition of Skout on October 3rd and have begun executing against our integration plan. With our new Discuss platform, we increased comments and likes on topical posts by 70%. Our innovative team also made strides toward the launch of an exciting new mobile video product that is currently planned for the first quarter of 2017. Combined with Skout, MeetMe now has more than eight million monthly active users and one of the largest mobile user bases of millennials, and we remain focused on continuing to capitalize on this significant mobile opportunity.”
David Clark, Chief Financial Officer of MeetMe, added that mobile revenue for Q3 was largely driven by the rise in mobile user engagement and the growth of the mobile ad industry which hiked ad rates across mobile devices. He adds:
“Adjusted EBITDA increased 31% to $6.9 million for the quarter with a 40% adjusted EBITDA margin. We internally funded $5 million of stock buybacks which occurred in September and October, as well as the cash portion of our acquisition of Skout, which closed on October 3rd. Currently we have more than $14 million in cash on our balance sheet.”
Following the announcement, MeetMe shares soared 16% on Monday whilst stocks were up 5.1%.