Breaking News

Tweet TWEET

Millennial Media Reports 2012 Fourth Quarter and Full Year Financial Results

  Millennial Media Reports 2012 Fourth Quarter and Full Year Financial Results

            Fast Growth And Q4 Profitability Marks Milestone Year

Business Wire

BALTIMORE -- February 19, 2013

Millennial Media, Inc. (NYSE: MM), the independent leader in mobile
advertising, today reported financial results for the fourth quarter and full
year ended December 31, 2012.

Financial Results and Business Highlights for the Fourth Quarter of 2012

Revenue: For the fourth quarter of 2012, revenue increased to $58.0 million
from $34.5 million for the fourth quarter of 2011, a year over year increase
of 67.8%.

Gross Margin: For the fourth quarter of 2012, gross margin improved to 41.2%
from gross margin of 39.0% for the fourth quarter of 2011.

Net Income (Loss): For the fourth quarter of 2012, net income attributable to
common stockholders, on a GAAP basis, was $2.6million, compared to net loss
attributable to common stockholders of $(1.2) million for the fourth quarter
of 2011.

Adjusted EBITDA: For the fourth 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 $5.6
million compared to adjusted EBITDA of $1.2million for the fourth quarter of
2011.

Net Income (Loss) per Share: For the fourth quarter of 2012, on a GAAP basis,
basic and diluted net income per common share was $0.03, compared to basic and
diluted net loss per common share of $(0.07) for the fourth quarter of 2011.

Other Business Metrics: As of December 31, 2012, Millennial Media reached over
400 million monthly unique users globally, including approximately 160 million
monthly unique users in the United States alone. As of December 31, 2012, more
than 39,000 apps were enabled by mobile app developers to operate on
Millennial Media’s platform, and there were more than 350 million proprietary,
anonymous user profiles developed.

Financial Results for the Full Year 2012

Revenue: For the full year 2012, revenue increased to $177.7 million from
$103.7 million for the full year 2011, an increase of 71.4%.

Gross Margin: For the full year 2012, gross margin improved to 40.5% from
gross margin of 38.7% for the full year 2011.

Net Loss: For the full year 2012, net loss attributable to common
stockholders, on a GAAP basis, was $(6.8) million, compared to a net loss
attributable to common stockholders of $(5.3) million for the full year 2011.

Adjusted EBITDA: For the full year 2012, adjusted EBITDA increased to $4.5
million from $1.8million for the full year 2011.

Net Loss per Share: For the full year 2012, on a GAAP basis, basic and diluted
net loss per common share narrowed to $(0.11), from $(0.32) for the full year
2011.

“Our success in 2012 speaks to the effectiveness of our platform model in
delivering highly targeted and compelling mobile advertising solutions. We
delivered 68% revenue growth with record profitability in the fourth quarter,”
stated Paul Palmieri, co-founder, President and CEO of Millennial Media.
“Mobile advertising is still in its early stages of development, and we
believe its tremendous growth potential will transform digital advertising. As
a native mobile company, we are excited about our leadership position in the
market and our business prospects in 2013.”

Outlook

Based on information available as of today, Millennial Media expects total
revenue for the first quarter of 2013 to be in the range of $48 million to $50
million and adjusted EBITDA to be between ($1.0) million and ($1.5) million.
For the full year 2013, Millennial Media expects revenue to be in the range of
$270 million to $280 million and adjusted EBITDA to be between $17.0 million
and $18.0 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.

Fourth Quarter and Full Year 2012 Financial Results Conference Call:
Millennial Media will host a conference call today at 5:00 p.m. ET to discuss
its fourth quarter and full year 2012 financial results, developments in its
business and the Company’s expectations for the first quarter and full year
2013. 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 866-202-3048 (U.S.) or 617-213-8843
(international) using passcode 78816830. If you are unable to listen to the
live conference call, a replay will be available through February 26, 2013,
and can be accessed by dialing 888-286-8010 (U.S.) or 617-801-6888
(international) using passcode 22920854. 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 first quarter and full year of 2013, our growth and our continued
expansion as the leading mobile advertising platform company, as well as the
growth of the mobile advertising industry. 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 Annual Report on Form 10-K that
will be filed for the year ended December 31, 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,
                                                      2012       2011    
                                                                   
Assets
Current assets:
Cash and cash equivalents                            $ 137,439     $ 16,707
Accounts receivable, net of allowances of $2,673
and $1,216 as of December 31, 2012 and December        59,179        34,986
31, 2011, respectively
Prepaid expenses and other current assets             1,966       1,417   
Total current assets                                   198,584       53,110
                                                                   
Long-term assets:
Property and equipment, net                            6,850         3,688
Goodwill                                               1,348         1,348
Intangible assets, net                                 913           1,179
Deferred offering costs                                —             1,985
Other assets                                          754         575     
Total long-term assets                                9,865       8,775   
Total assets                                         $ 208,449    $ 61,885  
Liabilities, redeemable convertible preferred
stock and stockholders’ equity (deficit)
Current liabilities:
Accounts payable and accrued expenses                $ 3,788       $ 2,883
Accrued cost of revenue                                34,430        20,963
Accrued payroll and payroll related expenses           6,038         5,153
Deferred revenue                                      169         157     
Total current liabilities                              44,425        29,156
Series B warrant outstanding                           —             183
Other long-term liabilities                           243         299     
Total liabilities                                      44,668        29,638
                                                                   
Commitments and contingencies
                                                                   
Redeemable convertible preferred stock:
Series A-1 preferred stock, $0.001 par value, 0
and 6,341,465 shares authorized, issued and            —             1,880
outstanding as of December 31, 2012 and 2011,
respectively
Series A-2 preferred stock, $0.001 par value, 0
and 9,448,220 shares authorized, issued and            —             7,033
outstanding as of December 31, 2012 and 2011,
respectively
Series B preferred stock, $0.001 par value, 0 and
12,737,605 shares authorized, 0 and 12,686,855         —             19,882
issued and outstanding as of December 31, 2012 and
2011, respectively
Series C preferred stock, $0.001 par value, 0 and
10,759,630 shares authorized, issued and               —             18,441
outstanding, as of December 31, 2012 and 2011,
respectively
Series D preferred stock, $0.001 par value, 0 and
8,442,833 shares authorized, issued and               —           29,432  
outstanding as of December 31, 2012 and 2011,
respectively
Total redeemable convertible preferred stock           —             76,668
Stockholders’ equity (deficit):
Preferred stock, $0.001 par value, 5,000,000 and 0
shares authorized, no shares issued
and outstanding as of December 31, 2012 and 2011,      —             —
respectively
Common stock, $0.001 par value, 250,000,000 shares
authorized, 79,182,913 and 18,011,035 shares           79            17
issued and outstanding, as of December 31, 2012
and 2011, respectively
Additional paid-in capital                             213,823       —
Accumulated other comprehensive loss                   (78     )     (25     )
Accumulated deficit                                   (50,043 )    (44,413 )
Total stockholders’ equity (deficit)                  163,781     (44,421 )
Total liabilities, redeemable convertible            $ 208,449    $ 61,885  
preferred stock and stockholders’ equity (deficit)

Millennial Media,Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

                                      Three Months Ended  Year Ended
                                      December 31,         December 31,
                                      2012     2011       2012      2011
                                                
Revenue                               $57,960   $34,549    $177,667   $103,678
Cost of revenue                       34,057    21,058     105,739    63,595
Gross profit                          23,903    13,491     71,928     40,083
Operating expenses:
Sales and marketing                   7,256     4,077      23,816     14,255
Technology and development            3,535     1,865      13,620     5,181
General and administrative            10,525    7,375      38,954     21,321
Total operating expenses              21,316    13,317     76,390     40,757
Income (loss) from operations         2,587     174        (4,462)    (674)
Interest and other expense:
Interest expense                      (13)      (19)       (64)       (21)
Other expense                         —         (16)       (834)      (78)
Total interest and other expense      (13)      (35)       (898)      (99)
Income (loss) before income taxes     2,574     139        (5,360)    (773)
Income tax (expense) benefit          (24)      (9)        (70)       486
Net income (loss)                     2,550     130        (5,430)    (287)
Accretion of dividends on redeemable  —         (1,294)    (1,328)    (5,022)
convertible preferred stock
Net income (loss) attributable to     $2,550    $(1,164)   $(6,758)   $(5,309)
common stockholders
Net income (loss) per share:
Basic and diluted                     $0.03     $(0.07)    $(0.11)    $(0.32)
                                                                      
Stock-based compensation expense
included above:
Sales and marketing                   $593      $18        $1,003     $130
Technology and development            879       386        3,768      1,007
General and administrative            729       324        2,703      695

Millennial Media, Inc.



Reconciliation of GAAP Net Income (loss) to Non-GAAP Adjusted EBITDA
                                                                             
                                      Three Months Ended  Year Ended
                                      December 31,         December 31,
                                      2012      2011      2012      2011
                                                                             
Net income (loss)                     $2,550     $130      $(5,430)   $(287)
Adjustments:
Interest expense, net                 13         19        64         21
Income tax expense (benefit)          24         9         70         (486)
Depreciation and amortization expense 772        303       2,365      759
Stock-based compensation expense      2,201      728       7,474      1,832
Total net adjustments                 3,010      1,059     9,973      2,126
Adjusted EBITDA                       $5,560     $1,189    $4,543     $1,839

Contact:

Millennial Media, Inc.
Investor Relations
Jonathan Schaffer, 212-871-3953
IR@millennialmedia.com
or
Matthew Lindberg, 203-682-8214
press@millennialmedia.com
 
Press spacebar to pause and continue. Press esc to stop.