Millennial Media reports strong increase in advertising revenue for Q3
Company records net income loss of $4.8 million for the quarter, versus a loss of $1.8 million a year ago
BALTIMORE, Maryland – November 13, 2013 — Millennial Media, Inc., the independent leader in mobile advertising, today reported financial results for the third quarter ended September 30, 2013.
Financial Results and Business Highlights for the Third Quarter of 2013
Revenue: For the third quarter of 2013, pro forma combined revenue increased to $86.3 million – above the high end of our guidance – from $62.0 million for the third quarter of 2012 on a comparable basis, a year over year increase of 39.2%. For 3Q 2013 the $86.3 million pro forma combined revenue is comprised of $56.1 million from Millennial Media standalone and $30.2 million from Jumptap, and for 3Q 2012 is comprised of $47.4 million from Millennial Media and $14.6 million from Jumptap. Jumptap results for 3Q 2013 are preliminary.
Gross Margin: For the third quarter of 2013, pro forma combined gross margin was 38.6% compared to a pro forma combined gross margin of 40.3% for the third quarter of 2012. For 3Q 2013, Millennial Media’s standalone gross margin was 39.6% and Jumptap’s was 36.4%, and standalone gross margin for 3Q 2012 for Millennial Media was 40.9% and 38.3% for Jumptap.
Adjusted EBITDA: For the third quarter of 2013, adjusted EBITDA, a non-GAAP financial measure, was $808 thousand on a pro forma combined basis, also above our guidance, compared to adjusted EBITDA (loss) of $(548) thousand pro forma combined for the third quarter of 2012 on a comparable basis. For 3Q 2013 the $808 thousand pro forma combined adjusted EBITDA is comprised of $220 thousand from Millennial Media standalone and $588 thousand from Jumptap.
Net Income (Loss) Per Share Attributable to Common Stockholders: For the third quarter of 2013, on a standalone GAAP basis, basic and diluted net income (loss) per share attributable to common stockholders was $(0.06), compared to basic and diluted net income (loss) per share attributable to common stockholders of $(0.02) for the third quarter of 2012.
Non-GAAP Net Income (Loss) Per Common Share: For the third quarter of 2013, standalone non-GAAP net income (loss) per common share was $0.00, compared to non-GAAP net income (loss) per common share of $0.03 for the third quarter of 2012.
Other Business Metrics: As of September 30, 2013, Millennial Media on a standalone basis reached over 500 million monthly unique users globally, including approximately 170 million monthly unique users in the United States alone. As of September 30, 2013, more than 49,000 apps were enabled by mobile app developers to operate on Millennial Media’s platform, and there were more than 480 million proprietary, anonymous user profiles developed.
“We’ve made substantial progress building and strengthening our full-stack mobile advertising platform this year,” said Paul Palmieri, Millennial Media’s President and CEO. “Through our acquisition of Jumptap, the global launch of MMX, our mobile ad exchange, and the introduction of our Omni Measurement suite, we are uniquely positioned to be the partner of choice to the world’s largest advertisers and agencies.”
“In the third quarter we generated $86 million in combined pro forma revenues driven by strong brand and international results and growth in programmatic performance revenues via the newly acquired Jumptap capabilities. Our integration is going well and we are very enthusiastic about bringing our combined capabilities to the global mobile advertising market.”
Based on information available as of the date of this release, Millennial Media expects total pro forma combined revenue for the fourth quarter of 2013 to be in the range of $95 million to $100 million and expects pro forma combined adjusted EBITDA to be between breakeven and $2 million in the fourth quarter. Pro forma combined revenue and adjusted EBITDA are calculated as the sum of the expected Millennial Media and Jumptap results for the entire fourth quarter, with an adjustment for any expected intercompany revenue. For GAAP purposes, we began to combine revenue for the fourth quarter as of November 7, 2013.