Millennial Media Reports Strong Preliminary Third Quarter Financial Results Ahead of Prior Outlook

  Millennial Media Reports Strong Preliminary Third Quarter Financial Results
  Ahead of Prior Outlook

Business Wire

BALTIMORE -- October 15, 2012

Millennial Media, Inc. (NYSE: MM), the independent leader in mobile
advertising, today announced preliminary financial results that exceeded the
Company’s previously announced expectations for the third quarter ended
September 30, 2012. In a separate release today, the Company announced a
proposed follow-on offering.

Third Quarter Preliminary Financial Results and Business Highlights

Total Revenue: Total revenue for the 2012 third quarter is expected to be in
the range of $46.5 million to $47.0 million versus the Company’s prior outlook
for the third quarter of revenue in the range of $43.5 million to $45.0

Gross Margin: Gross margin for the 2012 third quarter is expected to be in the
range of 40.5% to 40.8%.

Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, defined as net
income or net loss before interest, taxes, depreciation and amortization, and
non-cash stock-based compensation, is expected to be in the range of $1.5
million to $2.0 million versus the Company’s prior outlook for the third
quarter of an adjusted EBITDA loss in the range of $(0.6) million to $(0.8)

Net Loss: Net loss for the third quarter is expected to be in the range of
$(1.9) million to $(2.4) million.

“Our third quarter revenue growth of approximately 85% year-over-year
represents an acceleration from our second quarter growth rate of 76% and
speaks to our continued success as the leading independent mobile advertising
and data platform,” stated Paul Palmieri, President and CEO of Millennial
Media. “We are delivering greater value to our advertising customers and
developer partners through the use of technology and data which, in turn, is
driving increased demand for our services and enhanced gross margin
performance. The fact that we were able to accelerate revenue growth while
generating positive adjusted EBITDA during the quarter demonstrates the
leverage in our business model.”

Preliminary and Unaudited Results

The financial results presented above are preliminary and subject to
completion. Millennial Media’s expectations with respect to these unaudited
results are based upon management estimates and information available at this
time. As a result, these preliminary results may be different from the actual
results that will be reflected in Millennial Media’s consolidated financial
statements for the quarter when they are released.

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. The Company uses this non-GAAP financial measure for
financial and operational decision making and as a means to evaluate
period-to-period comparisons. The Company believes that the measure provides
useful information about operating results, enhances the overall understanding
of past financial performance and future prospects, and allows 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 non-GAAP financial measure included in this press release has
been reconciled to the nearest GAAP measure.

About Millennial Media

Millennial Media is the leading independent mobile advertising platform
company. Our technology, tools and services help app developers and mobile
website publishers to maximize their advertising revenue, acquire users for
their apps and gain insight about their users. We offer advertisers
significant audience reach, sophisticated targeting capabilities and the
ability to deliver rich and engaging ad experiences to consumers on their
mobile connected devices.

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 third quarter of 2012. 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; and 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.Further information on these and other factors that could affect our
results is included in our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2012, filed with the Securities and Exchange Commission (the “SEC”)
on August 9, 2012, our Registration Statement on Form S-1, filed with the SEC
on October 15, 2012, 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


Millennial Media, Inc.
Investor Relations:
Jonathan Schaffer, 212-871-3953
Media Relations:
Matthew Lindberg, 203-682-8214
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