Market Overview

MeetMe Shares Respond To Another Preliminary Revenue Announcement

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MeetMe Shares Respond To Another Preliminary Revenue Announcement

Shares of MeetMe Inc (NASDAQ: MEET), a social media technology that offers a location-based social network for meeting new people, gained more than 1.5 percent on Thursday after the company reported preliminary results for its fourth quarter.

Stock Movement, Commentary

MeetMe said on Thursday its total revenue for the fourth quarter is expected to be $29.1 million.

"Mobile advertising rates in the United States increased to record levels in the fourth quarter, resulting in better than expected revenue performance from both our MeetMe and Skout brands," David Clark, chief financial officer of MeetMe, commented. "Each brand achieved its highest recorded revenue days ever in late December, and the two brands combined generated more than $400,000 in revenue in a single day for the first time in December, which they then repeated six more times before the year ended. Additionally, we started 2017 with a record 33 million chats sent on a single day on our MeetMe property."

Guidance

In early December, the company offered the following guidance:

Fourth-Quarter Guidance

  • Revenue to be between $27.5 million and $29.0 million, which represents a growth rate of 38 to 46 percent from a year ago.
  • Adjusted EBITDA for the quarter will be in the range of $11.5 to $13.5 million, representing a growth rate of 28 to 50 percent.

Full-Year Guidance

  • Revenue to be between $74.5 million and $76.0 million, which represents a growth rate of 31 to 34 percent from a year ago.
  • Adjusted EBITDA for the quarter will be in the range of $28.0 to $30.0 million, representing a growth rate of 38 to 48 percent.

MeetMe has established a history of updating investors with preliminary guidance over the past few quarters - even if the data is disappointing, as was the case in early October.

Posted-In: Meetme social mediaNews Guidance Previews Movers Tech Trading Ideas Best of Benzinga

 

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