Welcome!

News Feed Item

Millennial Media Reports 2014 First Quarter Financial Results

Millennial Media, Inc. (NYSE: MM), the leading independent mobile advertising platform company, today reported financial results for the first quarter ended March 31, 2014.

Financial Results and Business Highlights for the First Quarter of 2014

Revenue: For the first quarter of 2014, revenue increased to $72.6 million from $49.4 million on a GAAP basis, a year over year increase of 46.9%. Revenue increased from $64.6 million on a pro forma combined basis, a year over year increase of 12.4%. Pro forma combined revenue is calculated as the sum of Millennial Media and Jumptap revenue for the entire first quarter of last year.

Gross Margin: Gross margin was 41.2% for the first quarter of 2014 on a GAAP basis and 41.2% for the first quarter of 2013 on a pro forma combined basis. For the first quarter of 2013, gross margin was 41.6% on a GAAP basis.

Net Income (Loss): For the first quarter of 2014, net loss was $(12.9) million, compared to net loss of $(3.8) million for the first quarter of 2013.

Adjusted EBITDA: For the first quarter of 2014, Adjusted EBITDA, a non-GAAP financial measure (see definition below), was $(4.7) million, compared to pro forma combined Adjusted EBITDA of $(4.8) million for the first quarter of 2013.

Net Income (Loss) per Share: For the first quarter of 2014, basic and diluted net loss per common share was $(0.12), compared to basic and diluted net loss per common share of $(0.05) for the first quarter of 2013.

Non-GAAP Net Income (Loss) Per Common Share: For the first quarter of 2014, non-GAAP net loss per common share was $(0.04), compared to non-GAAP net loss per common share of $(0.01) for the first quarter of 2013.

Other Business Metrics: As of March 31, 2014, Millennial Media reached over 650 million monthly unique users globally, including approximately 170 million monthly unique users in the United States alone. As of March 31, 2014, approximately 60,000 apps and mobile sites were enabled by mobile app developers to operate on Millennial Media’s platform, and Millennial Media had more than 650 million proprietary, anonymous active user profiles used for delivering the most relevant ads to consumers.

Outlook

Based on information available as of today, Millennial Media expects total revenue for the second quarter of 2014 to be in the range of $70 million to $75 million and Adjusted EBITDA to be a loss between $(5) million and $(6) million.

“Now into my first full quarter, I am pleased with my decision to join Millennial Media and drive this Company to the next level,” said Michael Barrett, President and CEO, Millennial Media. “While I would have liked to have seen stronger performance in the quarter, we have developed an aggressive strategy and I have high confidence that we can execute and capitalize on the growth and promise of mobile.”

EVP and CFO Michael Avon Steps Down

In addition, the Company today announced that Michael Avon, Executive Vice President and Chief Financial Officer, will step down from his position at the end of the second quarter of 2014 to pursue other career interests. Mr. Avon began his relationship with Millennial Media as a venture investor at Columbia Capital, where he led the Company’s first round of financing in 2006. As the Company began to grow, he joined as EVP & CFO in the fall of 2009 and remained in that role for the last four and a half years. He will continue to serve Millennial Media in an advisory role for a transitional period after he steps down as CFO.

The Company has begun a search for a permanent replacement to fill this role.

"I want to thank Michael for his many contributions to Millennial Media over the nearly eight years he has been involved with the Company," said Barrett. "Michael has been a key contributor to Millennial Media’s success. He was instrumental in the Company's initial public offering in 2012, and led numerous important strategic projects and acquisitions during his tenure. On behalf of Millennial Media, I wish him all the best for the future."

"I’ve very much appreciated the opportunity to serve in my roles at Millennial Media during such an exciting time in our Company’s history, in addition to the mobile industry as a whole, and I am very proud of what we’ve accomplished," said Mr. Avon. "After nearly eight successful years with the Company, first as an investor, and then as CFO, I’ve decided now is the time to move back to my entrepreneurial roots. I look forward to watching Millennial Media continue to grow, and have confidence the Company will thrive under the leadership of our new President & CEO and the strong and capable management team in place."

First Quarter 2014 Financial Results Conference Call: Millennial Media will host a conference call today at 5:00 p.m. ET to discuss its first quarter financial results, developments in its business, and the Company’s expectations for the second quarter of 2014. A live webcast of the event will be available on the Investor Relations page of the Millennial Media website at http://investors.millennialmedia.com. A live domestic dial-in is available at 800-706-7745 (U.S.) or 617-614-3472 (international) using passcode 57784757. If you are unable to listen to the live conference call, a replay will be available through May 14, 2014, and can be accessed by dialing 888-286-8010 (U.S.) or 617-801-6888 (international) using passcode 96286770. An archived version of the webcast will also be available at http://investors.millennialmedia.com.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Millennial Media reports Adjusted EBITDA, which is a non-GAAP financial measure defined as net income or net loss before interest, taxes, depreciation, amortization, non-cash stock-based compensation and expenses related to acquisitions, such as costs for services of lawyers, investment bankers, accountants and other third parties and acquisition related severance costs, bonuses and retention bonuses and accrual of retention payments that represent contingent compensation to be recognized over a requisite period. We define non-GAAP net income (loss) per common share as Adjusted EBITDA divided by diluted weighted average common shares outstanding. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-GAAP financial measures should be considered in addition to results and guidance prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

The Company also presents Adjusted EBITDA on a pro forma combined basis. Pro forma combined Adjusted EBITDA includes results of the Company’s Jumptap, Inc. subsidiary for the entire period. A reconciliation of historical Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for each of Millennial Media and Jumptap and on a pro forma combined basis, is set forth in the tables following this release.

About Millennial Media

Millennial Media is the leading independent mobile advertising platform company, supporting the world’s top brands and mobile content providers. The Company's unique data and technology assets enable its clients to connect with their target audiences as they move across screens, media, and moments. Millennial Media drives meaningful results at scale through a diverse suite of products fueled by innovation and the industry's smartest minds. For more information, visit www.millennialmedia.com.

Forward-Looking Statements

The statements in this press release that are not historical facts constitute “forward-looking statements” that involve risks and uncertainties and are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements include expectations regarding financial results for the second quarter of 2014. The achievement or success of the matters covered by such forward-looking statements involve risks, uncertainties and assumptions, and if any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. These risks and uncertainties include, but are not limited to, risks associated with our ability to continue to accelerate growth and provide enhanced gross margin performance; our ability to expand our developer and advertiser base and increase demand for our services; our ability to keep pace with technological and market developments and remain competitive against larger companies in our industry as well as potential new entrants into our markets; and our recent acquisition of Jumptap, including our ability to integrate the two businesses and realize the expected benefits from the acquisition. Further information on these and other factors that could affect our results is included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2014 and other filings we make with the SEC from time to time. These documents are available on the ‘SEC Filings’ section of the Investor Relations page of our website at http://investors.millennialmedia.com.

The statements made in this release are based on information available to us as of the date of this release, and we assume no obligation and do not intend to update these forward-looking statements, except as required by law.

   
Millennial Media, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
 
March 31, December 31,
2014 2013
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 98,039 $ 99,237
Restricted cash 464 320
Accounts receivable, net of allowances of $4,642 and $4,773 as of March 31, 2014
and December 31, 2013, respectively 79,918 109,056
Prepaid expenses and other current assets   3,793     4,243  
Total current assets 182,214 212,856
 
Long-term assets:
Property and equipment, net 15,032 12,663
Restricted cash 350 515
Goodwill 135,518 135,489
Intangible assets, net 55,433 57,706
Other assets   233     375  
Total long-term assets   206,566     206,748  
Total assets $ 388,780   $ 419,604  
 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses $ 10,272 $ 7,617
Accrued cost of revenue 42,189 65,053
Accrued payroll and payroll related expenses 6,673 8,767
Deferred revenue   890     868  
Total current liabilities 60,024 82,305
 
Other long-term liabilities   1,911     1,829  
Total liabilities 61,935 84,134
 
 
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2014 and December 31, 2013
Common stock, $0.001 par value, 250,000,000 shares authorized, 106,837,523 and 106,314,909 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively 107 106
Additional paid-in capital 405,066 400,716
Accumulated other comprehensive loss (225 ) (196 )
Accumulated deficit   (78,103 )   (65,156 )
Total stockholders’ equity   326,845     335,470  
Total liabilities and stockholders’ equity $ 388,780   $ 419,604  
 
   
Millennial Media, Inc.
Unaudited Consolidated Statements of Operations
(in thousands, except per share data)
 
Three Months Ended March 31,
2014 2013
 
Revenue $ 72,620 $ 49,438
Cost of revenue   42,725     28,874  
Gross profit 29,895 20,564
Operating expenses:
Sales and marketing 13,537 8,141
Technology and development 7,509 4,193
General and administrative   21,751     11,956  
Total operating expenses   42,797     24,290  
Loss from operations (12,902 ) (3,726 )
Other income (expense)
Interest expense, net   (28 )   (11 )
Total other income (expense)   (28 )   (11 )
Loss before income taxes (12,930 ) (3,737 )
Income tax expense   (17 )   (16 )
Net loss $ (12,947 ) $ (3,753 )
 
Net loss per share:
Basic and diluted $ (0.12 ) $ (0.05 )
 
Weighted average common shares outstanding:
Basic and diluted 106,543 78,917
 
Stock-based compensation expense included above:
Sales and marketing $ 461 $ 219
Technology and development 170 855
General and administrative 3,141 583
 
     
Millennial Media, Inc.
Unaudited Pro Forma Combined Statement of Operations
(in thousands)
 
Three Months Ended March 31, 2013
Millennial Media Jumptap Combined
 
Revenue $ 49,438 $ 15,184 $ 64,622
Cost of revenue   28,874     9,115     37,989  
Gross profit 20,564 6,069 26,633
Operating expenses:
Sales and marketing 8,141 4,842 12,983
Technology and development 4,193 3,922 8,115
General and administrative   11,956     1,764     13,720  
Total operating expenses   24,290     10,528     34,818  
Loss from operations (3,726 ) (4,459 ) (8,185 )
Other income (expense)
Interest expense, net   (11 )   (61 )   (72 )
Total other income (expense)   (11 )   (61 )   (72 )
Loss before income taxes (3,737 ) (4,520 ) (8,257 )
Income tax expense   (16 )   -     (16 )
Net loss $ (3,753 ) $ (4,520 ) $ (8,273 )
 
 
Millennial Media, Inc.
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
(in thousands, except per share data)
         
GAAP Pro Forma Combined
Three Months Ended March 31, Three Months Ended March 31,
2014 2013 2013
Net loss $ (12,947 ) $ (3,753 ) $ (8,273 )
Adjustments:
Interest expense, net 28 11 210
Income tax expense 17 16 16
Depreciation and amortization expense 3,946 941 1,246
Acquisition-related costs 274 361 361
Deferred compensation 250 - -
Stock-based compensation expense 3,772 1,657 1,770
Jumptap warrant and derivative income   -     -     (138 )
Total net adjustments   8,287     2,986     3,465  
Adjusted EBITDA $ (4,660 ) $ (767 ) $ (4,808 )
 
 
Reconciliation of GAAP Net Loss per share to Non-GAAP Net Loss per share
 
 
Three Months Ended March 31,
2014 2013
Net loss per share $ (0.12 ) $ (0.05 )
Adjustments:
Interest expense, net - -
Income tax benefit - -
Depreciation and amortization expense 0.04 0.01
Acquisition-related costs - 0.01
Deferred compensation - -
Stock-based compensation expense   0.04     0.02  
Total net adjustments   0.08     0.04  
Non-GAAP net loss per share $ (0.04 ) $ (0.01 )
Weighted average common shares outstanding 106,543 78,917
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).