Millennial Media Reports 2013 First Quarter Results

  Millennial Media Reports 2013 First Quarter Results

Business Wire

BALTIMORE -- May 08, 2013

Millennial Media, Inc. (NYSE: MM), the independent leader in mobile
advertising, today reported financial results for the first quarter ended
March 31, 2013.

Financial Results and Business Highlights for the First Quarter of 2013

Revenue: For the first quarter of 2013, revenue increased to $49.4 million
from $32.9 million for the first quarter of 2012, a year over year increase of
50.1%.

Gross Margin: For the first quarter of 2013, gross margin improved to 41.6%
from gross margin of 39.5% for the first quarter of 2012.

Net Income (Loss): For the first quarter of 2013, net income (loss), on a GAAP
basis, was $(3.8)million, compared to net income (loss) of $(4.0) million for
the first quarter of 2012.

Adjusted EBITDA: For the first quarter of 2013, adjusted EBITDA, a non-GAAP
financial measure, was $(0.8) million compared to adjusted EBITDA of
$(2.4)million for the first quarter of 2012.

Net Income (Loss) Per Share Attributable to Common Stockholders: For the first
quarter of 2013, on a GAAP basis, basic and diluted net income (loss) per
share attributable to common stockholders was $(0.05), compared to basic and
diluted net income (loss) per share attributable to common stockholders of
$(0.32) for the first quarter of 2012.

Non-GAAP Net Income (Loss) Per Common Share: For the first quarter of 2013,
non-GAAP net income (loss) per common share basic and diluted was $(0.01),
compared to non-GAAP net income (loss) per common share basic and diluted of
$(0.15) for the first quarter of 2012.

Other Business Metrics: As of March 31, 2013, Millennial Media reached over
420 million monthly unique users globally, including approximately 160 million
monthly unique users in the United States alone. As of March 31, 2013, more
than 42,000 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.

“We’ve gotten off to a solid start this year, with good growth and continued
innovation,” said Paul Palmieri, Millennial Media’s President and CEO. “Usage
of our platform continued to grow, with strong margins. We delivered a major
new release of our SDKs, we closed on our acquisition in the programmatic
mobile space, and we delivered financial performance consistent with or ahead
of our prior guidance.”

Outlook

Based on information available as of today, Millennial Media expects total
revenue for the second quarter of 2013 to be in the range of $58 million to
$60 million and adjusted EBITDA to be between a loss of $(0.5) million and
$(1.5) million in the second quarter. For the full year 2013, Millennial Media
reiterates its previous guidance that it 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 and non-GAAP net income
(loss) per common share basic and diluted, which are non-GAAP financial
measures. We define adjusted EBITDA as net income (loss) before interest,
income 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 accrual of
retention payments that represent contingent compensation to be recognized as
expense over a requisite service period. We define non-GAAP net income (loss)
per common share as adjusted EBITDA divided by 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, 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 measures included in this press release have
been reconciled to the nearest GAAP measure in the table following the
financial statements attached to this press release.

First Quarter 2013 Financial Results Conference Call: Millennial Media will
host a conference call today at 5:00 p.m. ET to discuss its first quarter 2013
financial results, developments in its business and the Company’s expectations
for the second 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
877-703-6108 (U.S.) or 857-244-7307 (international) using passcode 19120374.
If you are unable to listen to the live conference call, a replay will be
available through May 15, 2013, and can be accessed by dialing 888-286-8010
(U.S.) or 617-801-6888 (international) using passcode 42003319. 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 second quarter and full year of 2013. 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 March 31, 2013 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)
                                                                             
                                                  March 31,       December 31,
                                                  2013            2012
                                                  (unaudited)
Assets
Current assets:
Cash and cash equivalents                         $ 133,496       $  137,439
Accounts receivable, net of allowances of
$3,078 and $2,673 as of March 31,
2013 and December 31, 2012, respectively          53,981          59,179
Prepaid expenses and other current assets         1,675          1,966
Total current assets                              189,152         198,584
                                                                             
Long-term assets:
Property and equipment, net                       7,808           6,850
Goodwill                                          1,348           1,348
Intangible assets, net                            847             913
Other assets                                      687            754
Total long-term assets                            10,690         9,865
Total assets                                      $ 199,842      $  208,449
                                                                             
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses             $ 4,415         $  3,788
Accrued cost of revenue                           29,537          34,430
Accrued payroll and payroll related expenses      3,753           6,038
Deferred revenue                                  267            169
Total current liabilities                         37,972          44,425
                                                                             
Other long-term liabilities                       277            243
Total liabilities                                 38,249          44,668
                                                                             
Commitments and contingencies
                                                                             
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000
shares authorized, no shares
issued and outstanding as of March 31, 2013       —               —
and December 31, 2012
Common stock, $0.001 par value, 250,000,000
shares authorized,
79,460,901 and 79,182,913 shares issued and
outstanding as of March
31, 2013 and December 31, 2012, respectively      79              79
Additional paid-in capital                        215,421         213,823
Accumulated other comprehensive loss              (111      )     (78        )
Accumulated deficit                               (53,796   )     (50,043    )
Total stockholders’ equity                        161,593        163,781
Total liabilities and stockholders’ equity        $ 199,842      $  208,449
                                                                             

                                               
Millennial Media,Inc.

Unaudited Consolidated Statements of Operations

(in thousands, except per share data)
                                                                             
                                                  Three Months Ended March 31,
                                                  2013            2012
                                                                             
Revenue                                           $  49,438         $ 32,930
Cost of revenue                                   28,874           19,916
Gross profit                                      20,564            13,014
Operating expenses:
Sales and marketing                               8,141             4,646
Technology and development                        4,193             2,649
General and administrative                        11,956           8,710
Total operating expenses                          24,290           16,005
Loss from operations                              (3,726     )      (2,991   )
Interest and other expense:
Interest expense, net                             (11        )      (20      )
Other expense                                     —                (957     )
Total interest and other expense                  (11        )      (977     )
Loss before income taxes                          (3,737     )      (3,968   )
Income tax expense                                (16        )      (5       )
Net loss                                          (3,753     )      (3,973   )
Accretion of dividends on redeemable              —                (1,328   )
convertible preferred stock
Net loss attributable to common stockholders      $  (3,753  )      $ (5,301 )
                                                                             
Net loss per share attributable to common

stockholders:
Basic and diluted                                 $  (0.05   )      $ (0.32  )
                                                                             
Weighted average common shares outstanding:
Basic and diluted                                 78,917            16,683
                                                                             
Stock-based compensation expense included
above:
Sales and marketing                               $  219            $ 46
Technology and development                        855               384
General and administrative                        583               654
                                                                             

                                       
Millennial Media,Inc.

Reconciliation of GAAP net loss to non-GAAP adjusted EBITDA
                                          
                                          Three Months Ended
                                          March 31,
                                          2013         2012
                                          (in thousands)
Net loss                                  $ (3,753 )     $ (3,973 )
Adjustments:
Interest expense, net                     11             20
Income tax expense                        16             5
Depreciation and amortization expense     941            440
Stock-based compensation expense          1,657          1,084
Acquisition-related expense *             361           —        
Total net adjustments                     2,986         1,549    
Adjusted EBITDA                           $ (767   )     $ (2,424 )
                                                                  

                                                    
Reconciliation of GAAP Net loss per share attributable to common
stockholders to non-GAAP net loss per common share
                                                       
                                                       Three Months Ended
                                                       March 31,
                                                       2013        2012
                                                       
Net loss per share attributable to common              $ (0.05 )     $ (0.32 )
stockholders
Adjustments:
Accretion of dividends on redeemable convertible       —             0.08
preferred stock
Interest expense, net                                  0.00          0.00
Income tax expense                                     0.00          0.00
Depreciation and amortization expense                  0.01          0.03
Stock-based compensation expense                       0.02          0.06
Acquisition-related expense *                          0.01         —       
Total net adjustments                                  0.04         0.17    
Non-GAAP net loss per common share                     $ (0.01 )     $ (0.15 )
                                                                             

*Includes costs for services of lawyers, investment bankers, accountants, and
other third parties and accrual of retention payments that represent
contingent compensation to be recognized as expense over a requisite service
period.

Contact:

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