MeetMe, Inc. (MEET) Stock | Positive Preliminary Q3 Results

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MeetMe, Inc.   (NASDAQ: MEET)

 

MeetMe, Inc. (MEET), a social network company announced yesterday positive preliminary third quarter 2015 financial results.

 

MeetMe, Inc.  Earnings and Outlook

Total revenue is expected to be approximately $14.2 million, an increase of approximately 22% from the third quarter of 2014, and above the Company’s previously released guidance range of $12.5 million to $13 million for the third quarter of 2015.  Adjusted EBITDA is expected to be approximately $5.1 million, an increase of approximately 134% from the prior year third quarter and above the previously released guidance range of $2 million to $3 million for the third quarter of 2015. Business Wire

 

MeetMe, Inc. CFO Comments

David Clark, Chief Financial Officer of MeetMe, said,

We believe our quarterly revenue growth in excess of 20% year over year reflects continued growth in mobile engagement and the effective management of mobile advertising inventory. We significantly increased adjusted EBITDA year over year largely as a result of mobile revenue growth and prudent cost controls. During the quarter, we determined it was necessary to write-off the accounts receivable owed by our previous outsourced inventory management provider, Beanstock Media. This bad debt write-off is a one-time event that falls well outside our normal range of bad debt expense of less than 1% of revenue and should not impact our ability to deliver substantial EBITDA margins going forward. Furthermore, we successfully completed our transition to in-house management in the second quarter at little or no additional cost, and since then have continued to grow both revenue and adjusted EBITDA. We do intend to vigorously pursue repayment of these amounts despite this write-off.”  Business Wire

MEET Technical Analysis

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MEET gapped up in price yesterday to $1.84, up from the prior day’s close of $1.66, which is an 11% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on July 31st when the stock closed at $1.88. Taking a further look back on the daily chart we can notice a double top for the stock at the $1.90 – $2.00 price level reached on June 24th and July 31st. With today’s gap up we will be testing that price level again. It will be interesting to see if this resistance level can be broken and form as a new support level for the stock.  The stock does have a relatively low float of 32.86 million shares and traded on more than 4 times the normal daily trading volume.  The stock did reach pre market highs of $2.10, which means that it gave back $0.26 at the open, or equivalent to 12%. For trading purposes, my entry point would have been $1.85 looking for a run through $2.00. My stop loss would have been $1.75 fearing anything below that and the move up in the stock would have stalled.

 

Company Profile

MeetMe, Inc. owns and operates a social network for meeting new people on the Web and on mobile platforms in the United States. The company operates MeetMe.com that provides users with access to various multilingual menu of resources, which promote social interaction, information sharing, and other topics of interest. It offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The company was formerly known as Quepasa Corporation and changed its name to MeetMe, Inc. in June 2012. MeetMe, Inc. was founded in 1997 and is headquartered in New Hope, Pennsylvania.  Yahoo Finance

 

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