BALTIMORE--(BUSINESS WIRE)--May. 14, 2012--
Millennial Media, Inc. (NYSE: MM), the independent leader in mobile
advertising, today announced financial results for the first quarter of
2012.
“Our first quarter performance exceeded expectations with strong year
over year revenue growth, as well as expansion in the numbers of unique
users and apps on the Millennial Media platform,” stated Paul Palmieri,
Co-Founder, President and CEO of Millennial Media.
Palmieri added, “We’re excited that we became a public company during
the first quarter, which significantly increased our market awareness
and resources to execute our long-term growth strategy and investments.
We are aggressively investing given we are still in the early stages of
a large and rapidly growing mobile advertising market. As a market
leader, we believe Millennial Media is well-positioned to drive the
business model of the worldwide app economy.”
Q1’12 Financial Results and Business Highlights
Total Revenue: For the first quarter of 2012, total revenue was
$32.9 million, a 53% year-over-year increase from total revenue of $21.5
million for the first quarter of 2011.
Gross Margin: For the first quarter of 2012, gross margin
improved to 39.5%, compared to 36.9% for the first quarter of 2011.
Net Loss: For the first quarter of 2012, net loss was $(4.0)
million, compared to $(23,000) for the first quarter of 2011.
Adjusted EBITDA: For the first quarter of 2012, adjusted EBITDA,
a non-GAAP financial measure, which we define as earnings before
interest, taxes, depreciation and amortization, and non-cash stock-based
compensation, was $(2.4) million, compared to $0.2 million for the first
quarter of 2011.
Net Loss per Share: For the first quarter of 2012, on a GAAP
basis, basic and diluted net loss per share was $(0.32), compared to
basic and diluted net loss per share of $(0.08) for the first quarter of
2011. Pro forma net loss per share for the first quarter of 2012, which
assumes the conversion of our outstanding shares of preferred stock into
common stock as of January 1, 2012 and the conversion of an outstanding
warrant to purchase preferred stock into a warrant to purchase common
stock as of January 1, 2012, was $(0.05).
Other Business Metrics: As of March 31, 2012, we had 300 million
monthly unique users worldwide, including approximately 140 million
unique users in the United States alone. More than 30,000 apps were
enabled by their developers to operate on our platform as of March 31,
2012.
Outlook
Based on information as of May 14, 2012, we expect total revenue for the
second quarter of 2012 to be in the range of $37 million to $38 million
and adjusted EBITDA, which excludes stock-based compensation, to be
between $(3.2) million and $(3.5) million. For the full year 2012, we
expect revenue to be in the range of $173 million to $176 million and
adjusted EBITDA, which excludes stock-based compensation, to be between
$(3.0) million and $(4.0) 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. We believe 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 in the table following the financial statements
attached to this press release.
Q1’12 Financial Results Conference Call: Millennial Media will
host a conference call today at 5 p.m. ET to discuss the first quarter
2012 financial results, developments in our business and our
expectations for the second quarter and 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 (800) 291-9234 or (617) 614-3923
internationally, using passcode 16264736. A domestic replay will be
available at (888) 286-8010 or (617) 801-6888 internationally, using
passcode 34100020, and available via webcast until May 21, 2012.
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.
"Safe harbor" Statement
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 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, the
possibility that the outlook for the second quarter and the full year
2012 could change, as well as 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, 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.
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Millennial Media, Inc.
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Consolidated Balance Sheets
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(in thousands, except share data)
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March 31,
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December 31,
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March 31,
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2012
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2011
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2012
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Pro Forma (1)
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Assets
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(unaudited)
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(unaudited)
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Current assets:
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Cash and cash equivalents
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$
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16,707
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$
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9,138
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$
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128,506
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Accounts receivable, net of allowances of $1,216, $1,281 and $1,281
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as of December 31, 2011, March 31, 2012 and March 31, 2012 pro
forma, respectively
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34,986
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36,483
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36,483
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Prepaid expenses and other current assets
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1,417
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1,581
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1,581
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Total current assets
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53,110
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47,202
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166,570
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Property and equipment, net
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3,688
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3,903
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3,903
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Goodwill
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1,348
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1,348
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1,348
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Intangible assets, net
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1,179
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1,112
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1,112
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Deferred offering costs
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1,985
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3,920
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–
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Other assets and deferred financing fees
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575
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773
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773
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Total assets
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$
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61,885
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$
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58,258
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$
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173,706
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Liabilities, redeemable convertible preferred stock and
stockholders’ (deficit) equity
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Current liabilities:
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Accounts payable and accrued expenses
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$
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2,883
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$
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3,936
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$
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3,936
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Accrued cost of revenue
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20,963
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20,078
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20,078
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Accrued payroll and payroll related expenses
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5,153
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3,317
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3,317
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Deferred revenue
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157
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71
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71
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Total current liabilities
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29,156
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27,402
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27,402
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Series B warrant outstanding
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183
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1,140
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–
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Other long-term liabilities
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299
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|
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307
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307
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Total liabilities
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29,638
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28,849
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27,709
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Redeemable convertible preferred stock:
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Series A-1 preferred stock, $0.001 par value, 6,341,465 shares
authorized, issued and outstanding as of December 31, 2011 and March
31, 2012; no shares issued and outstanding pro forma; liquidation
preference of $1,912 as of March 31, 2012
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1,880
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1,912
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–
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Series A-2 preferred stock, $0.001 par value, 9,448,220 shares
authorized, issued and outstanding as of December 31, 2011 and March
31, 2012; no shares issued and outstanding pro forma; liquidation
preference of $7,153 as of March 31, 2012
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7,033
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7,153
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–
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Series B preferred stock, $0.001 par value, 12,737,605 shares
authorized, 12,686,855 issued and outstanding as of December 31,
2011 and March 31, 2012; no shares issued and outstanding pro forma;
liquidation preference of $20,231 as of March 31, 2012
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19,882
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20,226
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–
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Series C preferred stock, $0.001 par value, 10,759,630 shares
authorized, issued and outstanding as of December 31, 2011 and March
31, 2012; no shares issued and outstanding pro forma; liquidation
preference of $18,807 as of March 31, 2012
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18,441
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18,764
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–
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Series D preferred stock, $0.001 par value, 8,442,833 shares
authorized, issued and outstanding as of December 31, 2011 and
March 31, 2012; no shares issued and outstanding pro forma;
liquidation preference of $29,984 as of March 31, 2012
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29,432
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29,948
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–
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Total redeemable convertible preferred stock
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76,668
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78,003
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–
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Stockholders’ (deficit) equity:
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Common stock, $0.001 par value, 90,000,000 shares authorized,
18,011,035, 18,162,374, and 65,841,377 shares issued and outstanding
as of December 31, 2011, March 31, 2012 and March 31, 2012 pro
forma, respectively
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17
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17
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66
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Additional paid-in capital
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–
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–
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194,542
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Accumulated other comprehensive loss
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(25
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)
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(27
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)
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(27
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Accumulated deficit
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(44,413
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)
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(48,584
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)
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(48,584
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)
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Total stockholders’ (deficit) equity
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(44,421
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)
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(48,594
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)
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145,997
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Total liabilities, redeemable convertible preferred stock and
stockholders’ (deficit) equity
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$
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61,885
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$
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58,258
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$
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173,706
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(1) On April 3, 2012, Millennial Media closed the initial public
offering of its common stock (“IPO”). Upon closing of the IPO, all
of the redeemable convertible preferred stock outstanding
automatically converted into 47,679,003 shares of common stock,
based on the shares of redeemable convertible preferred stock
outstanding as of March 31, 2012. In addition, the outstanding
Series B warrant automatically converted into a warrant to
purchase common stock, and the preferred stock warrant liability
of $1.0 million as of April 3, 2012 was reclassified to additional
paid-in capital. Unaudited pro forma stockholders’ equity, as
adjusted for the assumed conversion of the redeemable convertible
preferred stock and the reclassification of the Series B warrant
liability, is set forth on the unaudited March 31, 2012 pro forma
balance sheet.
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Millennial Media believes that the unaudited pro forma balance
sheet provides material information to investors, as the
conversion of its redeemable convertible preferred stock to common
stock and the conversion of the Series B warrant to a common stock
warrant occurred upon the closing of the IPO, and therefore the
disclosure of pro forma stockholders’ equity provides a measure of
equity that is comparable to what will be reported by Millennial
Media in its financial statements for periods subsequent to April
3, 2012.
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Millennial Media, Inc.
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Unaudited Consolidated Statements of Operations
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(in thousands, except share and per share data)
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Three Months Ended March 31,
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2011
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2012
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Revenue
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$
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21,493
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$
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32,930
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Cost of revenue
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13,569
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19,916
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Gross profit
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7,924
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13,014
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Operating expenses:
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Sales and marketing
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3,392
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4,646
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Technology and development
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648
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2,649
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General and administrative
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3,907
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8,710
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Total operating expenses
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7,947
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16,005
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Loss from operations
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(23
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)
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(2,991
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)
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Other expense:
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Interest expense
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-
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(20
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)
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Other expense
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-
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(957
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)
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Total other expense
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-
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(977
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)
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Loss before income taxes
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(23
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)
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(3,968
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)
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Income tax expense
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–
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(5
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)
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Net loss
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(23
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)
|
|
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(3,973
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)
|
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Accretion of dividends on redeemable convertible preferred stock
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|
|
(1,228
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)
|
|
|
(1,328
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)
|
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Net loss attributable to common stockholders
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|
$
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(1,251
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)
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$
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(5,301
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)
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|
|
|
|
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Net loss per share:
|
|
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Basic and diluted
|
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$
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(0.08
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)
|
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$
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(0.32
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)
|
|
|
|
|
|
|
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Pro forma, basic and diluted (1)
|
|
|
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$
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(0.05
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)
|
|
|
|
|
|
|
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Weighted average common shares outstanding:
|
|
|
|
|
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Basic and diluted
|
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16,280,049
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|
|
|
16,683,087
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|
|
|
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Pro forma, basic and diluted (1)
|
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|
|
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64,362,090
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|
|
|
|
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Stock-based compensation expense included above:
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Sales and marketing
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$
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23
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$
|
46
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|
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Technology and development
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|
4
|
|
|
|
384
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General and administrative
|
|
|
75
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|
|
|
654
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(1) The unaudited pro forma net loss per share for the three months
ended March 31, 2012 assumes (i) the conversion of all outstanding
shares of redeemable convertible preferred stock into an aggregate
of 47,679,003 shares of common stock as of January 1, 2012, and (ii)
the conversion of the Series B warrant to a common stock warrant as
of January 1, 2012. The amounts recorded to reflect the accretion of
dividends on redeemable convertible preferred stock and to adjust
the Series B warrant to fair value have been added back to net loss
to arrive at pro forma net loss.
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Millennial Media believes that the unaudited pro forma net loss
per share provides material information to investors, as the
conversion of its redeemable convertible preferred stock to common
stock and the conversion of the Series B warrant to a common stock
warrant occurred upon the closing of the IPO, and therefore the
disclosure of pro forma net loss per share provides a measure of
net loss per share that is comparable to what will be reported by
Millennial Media in its financial statements for periods
subsequent to April 3, 2012.
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Millennial Media, Inc.
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The following table presents a reconciliation of adjusted EBITDA to
net loss for each of the periods indicated:
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Three Months Ended
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March 31,
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|
|
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|
|
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2011
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2012
|
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(in thousands)
|
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(in thousands)
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Net loss
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$
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(23
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)
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$
|
(3,973
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)
|
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Adjustments:
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|
|
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Interest (income) expense, net
|
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-
|
|
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20
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|
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Income tax expense
|
|
|
|
-
|
|
|
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5
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|
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Depreciation and amortization expense
|
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|
88
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|
|
|
440
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Stock-based compensation expense
|
|
|
102
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|
|
1,084
|
|
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Total net adjustments
|
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|
|
190
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|
|
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1,549
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Adjusted EBITDA
|
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$
|
167
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$
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(2,424
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)
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Source: Millennial Media, Inc.
Media Relations
Matthew Lindberg
press@millennialmedia.com
203-682-8214
or
Investor
Relations
Denise Garcia
IR@millennialmedia.com
203-682-8335
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