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Millennial Media Reports 2012 Third Quarter Financial Results



  Millennial Media Reports 2012 Third Quarter Financial Results

       Revenue of $47.4 Million Representing 88% Year-Over-Year Growth

Business Wire

BALTIMORE -- November 05, 2012

Millennial Media, Inc. (NYSE: MM), the independent leader in mobile
advertising, today reported financial results for the third quarter ended
September 30, 2012 that exceeded its preliminary results reported on October
15, 2012.

Financial Results and Business Highlights

Revenue: For the third quarter of 2012, revenue was $47.4 million, an 88.0%
year-over-year increase from revenue of $25.2 million for the third quarter of
2011.

Gross Margin: For the third quarter of 2012, gross margin improved to 40.9%,
compared to 39.3% for the third quarter of 2011.

Adjusted EBITDA: For the third quarter of 2012, adjusted EBITDA, a non-GAAP
financial measure that we define as net income (loss) before interest, taxes,
depreciation and amortization, and non-cash stock-based compensation, was $2.1
million compared to adjusted EBITDA of $0.6 million for the third quarter of
2011. Adjusted EBITDA for the second quarter of 2012 was $(0.7) million.

Net Loss: For the third quarter of 2012, net loss, on a GAAP basis, was $(1.8)
million, compared to a net loss of $(0.2) million for the third quarter of
2011 and a net loss of $(2.2) million for the second quarter of 2012.

Net Loss per Share: For the third quarter of 2012, on a GAAP basis, basic and
diluted net loss per share was $(0.02), compared to basic and diluted net loss
per share of $(0.09) for the third quarter of 2011 and $(0.03) for the second
quarter of 2012.

Other Business Metrics: As of September 30, 2012, Millennial Media reached
over 380 million monthly unique users globally, including approximately 150
million monthly unique users in the United States alone. More than 38,000 apps
were enabled by mobile app developers to operate on Millennial Media’s
platform as of September 30, 2012. As of September 30, 2012, Millennial Media
has developed more than 300 million proprietary user profiles.

“As previously announced, we delivered accelerated revenue growth for the
third quarter along with strong gross margin performance,” stated Paul
Palmieri, co-founder, President and CEO of Millennial Media. “Our
comprehensive suite of advertising solutions continues to be sought after by
more and more brand advertisers looking to use a proven mobile platform to
achieve their marketing objectives. During the quarter, we also continued to
build on our leadership position with investments in technology and other
resources as well as in the expansion of our international operations to
accommodate both global and more regional demand for our platform.”

Outlook

Millennial Media expects revenue for the fourth quarter of 2012 to be in the
range of $61.5 million to $63.0 million and adjusted EBITDA to be between $3.0
million and $3.5 million. For the full year 2012, Millennial Media expects
revenue to be in the range of $181.0 million to $182.5 million and adjusted
EBITDA to be between $2.0 million and $2.5 million.

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 this 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 in the table following the
financial statements attached to this press release.

Third Quarter Financial Results Conference Call: Millennial Media will host a
conference call today at 5:00 p.m. ET to discuss the third quarter 2012
financial results, developments in its business and the Company’s expectations
for the remainder of 2012. 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
866-202-0886 (U.S.) or 617-213-8841 (international), using passcode 66975658.
If you are unable to listen to the live conference call, a replay will be
available through November 12, 2012, and can be accessed by dialing
888-286-8010 (U.S.) or 617-801-6888 (international) using passcode 68327444.
An archived version of the webcast will also be available at
http://investors.millennialmedia.com.

About Millennial Media

Millennial Media is the leading independent mobile advertising and data
platform. Our technology, tools and services help app developers and mobile
website publishers maximize their advertising revenue, acquire users and
gain audience insights. Our platform also enables us to offer advertisers
powerful Mobile Audience Solutions (MAS) that utilize our significant scale,
sophisticated targeting and uniquely engaging creative capabilities to deliver
meaningful results.

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 fourth quarter and full year of 2012, our growth and that of the
mobile app economy, and our continued expansion as the leading mobile
advertising platform company. 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 expand our developer and advertiser base, 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 that will be filed
for the quarter ended September 30, 2012 and other filings we make with the
Securities and Exchange Commission 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)
                                                                  
                                                  December 31,   September 30,
                                                  2011           2012
Assets                                                           (unaudited)
Current assets:
Cash and cash equivalents                         $  16,707      $  122,404
Accounts receivable, net of allowances of
$1,216 and $2,217
as of December 31, 2011 and September 30,            34,986         51,176
2012, respectively
Prepaid expenses and other current assets            1,417          2,119     
Total current assets                                 53,110         175,699
                                                                  
Property and equipment, net                          3,688          5,777
Goodwill                                             1,348          1,348
Intangible assets, net                               1,179          980
Deferred offering costs                              1,985          –
Other assets                                         575            634       
Total assets                                      $  61,885      $  184,438   
                                                                  
Liabilities, redeemable convertible preferred
stock and stockholders’ (deficit) equity
Current liabilities:
Accounts payable and accrued expenses             $  2,883       $  3,176
Accrued cost of revenue                              20,963         28,227
Accrued payroll and payroll related expenses         5,153          6,431
Deferred revenue                                     157            219       
Total current liabilities                            29,156         38,053
                                                                  
Series B warrant outstanding                         183            –
Other long-term liabilities                          299            267       
Total liabilities                                    29,638         38,320
                                                                  
Redeemable convertible preferred stock:
Series A-1 preferred stock, $0.001 par value,
6,341,465 and 0
shares authorized, issued and outstanding as
of December 31, 2011
and September 30, 2012, respectively                 1,880          –
Series A-2 preferred stock, $0.001 par value,
9,448,220 and 0
shares authorized, issued and outstanding as
of December 31, 2011
and September 30, 2012, respectively                 7,033          –
Series B preferred stock, $0.001 par value,
12,737,605 and 0
shares authorized, 12,686,855 and 0 issued
and outstanding
as of December 31, 2011 and September 30,            19,882         –
2012, respectively
Series C preferred stock, $0.001 par value,
10,759,630 and 0
shares authorized, issued and outstanding as
of December 31, 2011
and September 30, 2012, respectively                 18,441         –
Series D preferred stock, $0.001 par value,
8,442,833 and 0
shares authorized, issued and outstanding as
of December 31, 2011
and September 30, 2012, respectively                 29,432         –         
Total redeemable convertible preferred stock         76,668         –
                                                                  
Stockholders’ (deficit) equity:
Preferred stock, $0.001 par value, 5,000,000
shares authorized,
no shares issued and outstanding as of
December 31, 2011
and September 30, 2012                               –              –
Common stock, $0.001 par value, 250,000,000
shares authorized,
18,011,035 and 76,757,515 shares issued and
outstanding as of
December 31, 2011 and September 30, 2012,            17             75
respectively
Additional paid-in capital                           –              198,687
Accumulated other comprehensive loss                 (25     )      (52      )
Accumulated deficit                                  (44,413 )      (52,592  )
Total stockholders’ (deficit) equity                 (44,421 )      146,118   
Total liabilities, redeemable convertible
preferred stock and stockholders’ (deficit)       $  61,885      $  184,438   
equity
                                                                              

Millennial Media, Inc.
                                                                   
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share data)
                                                                     
                 Three Months Ended                Nine Months Ended
                 September 30,                     September 30,
                 2011             2012             2011             2012
                                                                     
Revenue          $ 25,189         $ 47,366         $ 69,129         $ 119,707
Cost of            15,293           28,005           42,536           71,683      
revenue
Gross profit       9,896            19,361           26,593           48,024
Operating
expenses:
Sales and          3,203            5,922            10,179           16,561
marketing
Technology and     1,518            4,667            3,316            10,084
development
General and        5,382            10,491           13,946           28,428      
administrative
Total
operating          10,103           21,080           27,441           55,073      
expenses
Loss from          (207       )     (1,719     )     (848       )     (7,049     )
operations
Interest and
other expense
Interest           (1         )     (14        )     (2         )     (52        )
expense
Other expense      (36        )     –                (62        )     (834       )
Total interest
and other          (37        )     (14        )     (64        )     (886       )
expense
Loss before        (244       )     (1,733     )     (912       )     (7,935     )
income taxes
Income tax
benefit            2                (36        )     495              (46        )
(expense)
Net loss           (242       )     (1,769     )     (417       )     (7,981     )
Accretion of
dividends on
redeemable         (1,259     )     -                (3,728     )     (1,328     )
convertible
preferred
stock
Net loss
attributable     $ (1,501     )   $ (1,769     )   $ (4,145     )   $ (9,309     )
to common
stockholders
                                                                     
Net loss per
share:
Basic and        $ (0.09      )   $ (0.02      )   $ (0.25      )   $ (0.17      )
diluted
                                                                     
Weighted
average common
shares
outstanding:
Basic and          16,400,211       75,498,564       16,336,295       55,146,195
diluted
                                                                     
Stock-based
compensation
expense
included
above:
Sales and        $ 49             $ 286            $ 112            $ 410
marketing
Technology and     385              2,037            621              2,889
development
General and        170              903              371              1,974
administrative
                                                                                  

Millennial Media, Inc.
 
Reconciliation of Unaudited GAAP Net Loss to Non-GAAP Adjusted EBITDA
                                                   
                               Three Months Ended
                               September 30,
                               2011                            2012           
                               (in thousands)
Net loss                       $    (242      )     $       (1,769      )
Adjustments:
  Interest expense, net             1                       14
  Income tax (benefit)              (2        )             36
  expense
  Depreciation and                  220                     631
  amortization expense
  Stock-based compensation          605                     3,226        
  expense
          Total net                 824                     3,907        
          adjustments
Adjusted EBITDA                $    582             $       2,138        
                                                     
                                                     
                               Three Months Ended
                               June 30, 2012
                               (in thousands)
Net loss                       $    (2,238    )
Adjustments:
  Interest (income)                 17
  expense, net
  Income tax (benefit)              5
  expense
  Depreciation and                  522
  amortization expense
  Stock-based compensation          963        
  expense
          Total net                 1,507      
          adjustments
Adjusted EBITDA                $    (731      )
                                                     

Contact:

Millennial Media, Inc.
Investor Relations
Jonathan Schaffer, 212-871-3953
IR@millennialmedia.com
or
Media Relations
Matthew Lindberg, 203-682-8214
press@millennialmedia.com
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