August 11, 2014 Last Updated 3:40 pm

Millennial Media reports sharply higher ad revenue, up 18%

But net income falls, as company loses $15 million in quarter versus a loss of $3 million in the same quarter last year

Press Release:

BALTIMORE, MD – August 11, 2014 — Millennial Media, Inc., the leading independent mobile advertising platform company, today reported financial results for the second quarter ended June 30, 2014.

Financial Results and Business Highlights for the Second Quarter of 2014

Revenue: For the second quarter of 2014, revenue increased to $67.3 million from $57.0 million on a GAAP basis, a year over year increase of 18.1%. Revenue decreased from $81.3 million on a pro forma combined basis, a year over year decrease of 17.2%. Pro forma combined revenue is calculated as the sum of Millennial Media and Jumptap revenue for the entire second quarter of last year.

Gross Margin: Gross margin was 40.2% for the second quarter of 2014 on a GAAP basis and 40.6% for the second quarter of 2013 on a pro forma combined basis. For the second quarter of 2013, gross margin was 42.4% on a GAAP basis.

Net Income (Loss): For the second quarter of 2014, net loss was $(15.1) million, compared to net loss of $(3.1) million for the second quarter of 2013.

Adjusted EBITDA: For the second quarter of 2014, Adjusted EBITDA, a non-GAAP financial measure (see definition below), was $(6.1) million, compared to pro forma combined Adjusted EBITDA of $(0.4) million for the second quarter of 2013.

Net Income (Loss) per Share: For the second quarter of 2014, basic and diluted net loss per common share was $(0.14), compared to basic and diluted net loss per common share of $(0.04) for the second quarter of 2013.

Non-GAAP Net Income (Loss) Per Common Share: For the second quarter of 2014, non-GAAP net loss per common share was $(0.06), compared to non-GAAP net income per common share of $0.02 for the second quarter of 2013.

Other Business Metrics: As of June 30, 2014, Millennial Media reached over 650 million monthly unique users globally, including approximately 170 million monthly unique users in the United States alone. As of June 30, 2014, approximately 60,000 apps and mobile sites were enabled by mobile app developers to operate on Millennial Media’s platform, and Millennial Media had more than 650 million proprietary, anonymous active user profiles used for delivering the most relevant ads to consumers.

Outlook

Based on information available as of today, Millennial Media expects total revenue for the third quarter of 2014 to be in the range of $65 million to $70 million and Adjusted EBITDA to be a loss between $(7) million and $(8) million.

“As the mobile ad industry continues to shift and evolve, we too must grow and expand our unique assets,” said Michael Barrett, President and CEO, Millennial Media. “We will continue to strengthen our mobile network foundation, while accelerating our programmatic exchange and open platform to further define our place in the market and reinvigorate revenue growth.”

MM-Q2-2014

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