August 11, 2015 Last Updated 7:20 am

Mobile ad company Millennial Media reports lower revenue, higher losses in Q2 earnings report

“Clearly however, revenue is ramping more slowly than we had hoped,” the company’s president and CEO said

BALTIMORE, Maryland – August 10, 2015 — Millennial Media, Inc., the leading independent mobile ad marketplace, today reported financial results for the second quarter ended June 30, 2015.

Financial Results and Business Highlights for the Second Quarter of 2015

MM-logo-330Revenue: For the second quarter of 2015, revenue was $65.8 million compared to $67.3 million in the second quarter of 2014. Revenue for the second quarter of 2015 was comprised of $57.1 million for Managed Media and $8.7 million for Platform.

Gross Billings: For the second quarter of 2015, gross billings, a non-GAAP financial measure, were $80.9 million comprised of $57.1 million for Managed Media and $23.8 million for Platform. (See explanation of Gross Billings in our Outlook Section below).

Gross Margin: For the second quarter of 2015, gross margin was 43.9% compared with gross margin of 40.2% for the second quarter of 2014.

Net Income (Loss): For the second quarter of 2015, on a GAAP basis, net loss was ($15.5) million, compared to net loss of ($15.1) million for the second quarter of 2014.

Adjusted EBITDA: For the second quarter of 2015, Adjusted EBITDA, a non-GAAP financial measure (see definition below), was a loss of ($6.9) million, compared to Adjusted EBITDA loss of ($6.1) million for the second quarter of 2014.

Net Income (Loss) per Share: For the second quarter of 2015, on a GAAP basis, basic and diluted net loss per share was ($0.11), compared to basic and diluted net loss per share of ($0.14) for the second quarter of 2014.

Non-GAAP Net Income (Loss) Per Share: For the second quarter of 2015, non-GAAP net loss per share (see definition below) was ($0.05), compared to non-GAAP net loss per share of ($0.06) for the second quarter of 2014.

Other Business Metrics: As of June 30, 2015, Millennial Media reached over 700 million monthly unique users globally, including approximately 190 million monthly unique users in the United States alone. As of June 30, 2015, approximately 65,000 apps were enabled by mobile app developers to operate on Millennial Media’s platform, and Millennial Media had more than 800 million proprietary, anonymous user profiles used for delivering the most relevant ads to consumers.

“We have built a strong, comprehensive mobile ad marketplace, with what we believe are the right tools and talent to help meet the needs of our dynamic market,” said Michael Barrett, President & CEO of Millennial Media. “Clearly however, revenue is ramping more slowly than we had hoped. We are evaluating strategic opportunities to maximize the value of our capabilities in this rapidly evolving ecosystem.”

Outlook

For the third quarter of 2015, Millennial Media currently expects total gross billings to be in the range of $80 million to $84 million, consisting of $55 million to $57 million for its Managed Media business and $25 million to $27 million for its Platform business.

Millennial Media expects total GAAP revenue for the third quarter of 2015 to be in the range of $63 million to $66 million, comprised of Managed Media GAAP revenue between $55 million to $57 million and Platform GAAP revenue between $8 million to $9 million. We expect Adjusted EBITDA for the third quarter of 2015 to be in the range of a loss of ($7) million to ($8) million.

Millennial Media is revising guidance for the full year ending December 31, 2015. Based on information we have today, Millennial Media expects total gross billings for the full year ending December 31, 2015 to be in the range of $344 million to $360 million, consisting of $232 million to $242 million for its Managed Media business and $112 million to $118 million for its Platform business. Millennial Media expects total GAAP revenue for the full year 2015 to be in the range of $267 million to $280 million, consisting of Managed Media GAAP revenue between $232 million to $242 million and Platform GAAP revenue between $35 million to $38 million.

MM-q2-2015

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