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Section 1: 8-K (8-K)

Document
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2019

The Meet Group, Inc.
(Exact name of registrant as specified in its charter)



Delaware
 
001-33105
 
86-0879433
(State or other Jurisdiction of Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)

100 Union Square Drive
New Hope, Pennsylvania
 
 
18938
(Address of principal executive offices)
 
(Zip Code)

Registrant’s telephone number, including area code: (215) 862-1162

Not Applicable
(Former name or former address if changed since last report.)

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock
 
MEET
 
NASDAQ

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


 


Item 2.02    Results of Operations and Financial Condition.
 
On July 31, 2019, the Company issued a press release announcing, among other things, its financial results for the quarter ended June 30, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Current Report”) and incorporated herein by reference.

Item 7.01    Regulation FD Disclosure.
 
As discussed in Item 2.02 above, the Company issued a press release, dated July 31, 2019, announcing, among other things, its financial results for the quarter ended June 30, 2019, the text of which is incorporated by reference into this “Item 7.01. Regulation FD Disclosure.” In addition, as discussed in the press release dated July 31, 2019, the Company is making presentation materials available on its website.

The information in Item 2.02 and Item 7.01 of this Current Report is being furnished and shall not be considered “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of such section, nor shall it be incorporated by reference into future filings by the Company under the Securities Act of 1933, as amended, or under the Exchange Act, unless the Company expressly sets forth in such future filing that such information is to be considered “filed” or incorporated by reference therein. This information shall not be deemed an admission as to the materiality of such information that is required to be disclosed solely by Regulation FD.

Item 9.01
 
Financial Statements and Exhibits.
 
 
 
 
(d) Exhibits
 
 
 
 
 
 
Exhibit No.
Description
 
 
 
 
The Meet Group, Inc. press release, dated
July 31, 2019.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
THE MEET GROUP, INC.
 
 
 
 
 
 
Date:
July 31, 2019
By: /s/ Geoff Cook
 
 
Name: Geoff Cook
Title: Chief Executive Officer


(Back To Top)

Section 2: EX-99.1 (EARNINGS RELEASE)

Exhibit


Exhibit 99.1

The Meet Group Reports Second Quarter 2019 Financial Results

NEW HOPE, Pa., July 31, 2019 – The Meet Group, Inc. (NASDAQ: MEET), a leading provider of interactive livestreaming solutions, today reported financial results for its second quarter ended June 30, 2019.

Second Quarter 2019 Financial Highlights
Total revenue of $52.0 million, up 22% from the prior year quarter.
GAAP net income of $2.2 million, or $0.03 per diluted share, compared to a GAAP net loss of $0.2 million or $0.00 per diluted share in the prior year quarter.
Adjusted EBITDA of $9.8 million, compared to Adjusted EBITDA of $7.6 million in the prior year quarter.
Non-GAAP net income of $8.8 million, or $0.11 per diluted share, compared to $6.4 million, or $0.08 per diluted share, in the prior year quarter.

(See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most direct comparable GAAP financial measures, below.)

“Strong execution in video continued to drive our business growth,” said Geoff Cook, Chief Executive Officer of The Meet Group. “We grew revenue 22% from the prior year quarter to a new record high fueled by video revenue growth of 150% over the same period. We increased adjusted EBITDA by 29% and we generated $10.2 million in free cash flow – the highest quarterly free cash flow in our history.

“Our video results in the quarter were solid,” continued Cook. “We grew daily active video users (“vDAU”) on our platform to 892,000, or roughly 21% of users on our apps where Live is available. Average video revenue per daily active video user (“vARPDAU”) was $0.26 in the quarter, up from $0.15 for the prior year quarter and flat sequentially on higher video daily active users.

“During the quarter we completed the development of several new products including Levels and 1x1 video chat, and we launched those products on our MeetMe app earlier this month. We also further strengthened user safety on our platform with the introduction of industry-first safety practices including: prominent abuse reporting; an ongoing safety education pledge; and more stringent content moderation standards. We now require streamers to review and acknowledge our standards prior to initiating every new stream, and we are developing a comprehensive safety pledge system to educate users on dating and livestreaming safety.

“We believe these enhancements will set the foundation for the successful launch of our first livestreaming dating game in the fourth quarter of this year. We believe that continuous improvements in our safety practices will provide a solid foundation on which we can grow video revenue over the long term, although we note that in the short-run we expect some pressure to video revenue as we educate our community on our updated processes.  

“Looking to the opportunity ahead in video, we continue to execute against our long-term plan to generate $200 million of annualized video revenue by year end 2021. We believe we can grow vDAU share to 25% and beyond by early 2020 on the back of the successful launch of our livestreaming dating game and that we will continue to grow vARPDAU with our recent launch of Levels and VIP badges. As such, we expect to aggressively buyback our stock throughout the second half of this year per our recently instituted $30 million share repurchase authorization.”








Second Quarter Financial Results

For the second quarter of 2019, the Company reported revenue of $52.0 million, an increase of $9.2 million, or 22%, from $42.8 million in the second quarter of 2018. GAAP net income for the second quarter of 2019 was $2.2 million, or $0.03 per diluted share, compared to a GAAP net loss of $0.2 million or $0.00 per diluted share in the second quarter of 2018. Adjusted EBITDA for the second quarter of 2019 was $9.8 million, compared to $7.6 million in the second quarter of 2018. Non-GAAP net income for the second quarter of 2019 was $8.8 million, or $0.11 per diluted share, compared to $6.4 million, or $0.08 per diluted share, in the second quarter of 2018.


The Company ended the quarter with $26.1 million in cash and cash equivalents.


Company Outlook

The Company is providing the following outlook for the third quarter and full year 2019.

Third quarter 2019:
Revenue in the range of $50.5 million to $51.0 million
Adjusted EBITDA in the range of $9.3 million to $9.5 million

Full year 2019:
Revenue to be within the lower end of the previously issued range of $210.0 million to $215.0 million
Adjusted EBITDA to continue to be in the range of previously issued guidance of $39.0 million to $42.0 million







THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 
June 30,
2019
 
December 31,
2018
ASSETS
 
 
 
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
26,052,704

 
$
28,365,725

Accounts receivable, net of allowance of $1,363,319 and $383,579 at June 30, 2019 and December 31, 2018, respectively
24,347,153

 
27,148,484

Prepaid expenses and other current assets
6,063,452

 
4,911,057

Total current assets
56,463,309

 
60,425,266

Goodwill
157,388,320

 
148,132,873

Property and equipment, net
4,027,033

 
4,633,764

Operating lease right-of-use assets, net
5,498,822

 

Intangible assets, net
34,648,534

 
36,558,439

Deferred taxes
15,318,336

 
15,648,572

Other assets
1,584,348

 
2,453,255

Total assets
$
274,928,702

 
$
267,852,169

LIABILITIES AND STOCKHOLDERSEQUITY
 
 
 
CURRENT LIABILITIES:
 
 
 
Accounts payable
$
5,402,910

 
$
9,071,193

Accrued liabilities
19,030,861

 
19,112,303

Current portion of long-term debt
15,000,000

 
18,566,584

Current portion of capital lease obligations
101,446

 
134,067

Current portion of operating lease liabilities
2,203,055

 

Deferred revenue
4,677,161

 
4,620,690

Total current liabilities
46,415,433

 
51,504,837

Long-term capital lease obligations, less current portion
12,005

 
58,683

Long-term debt, less current portion, net
17,681,962

 
18,087,956

Long-term operating lease liabilities, less current portion
3,341,631

 

Long-term derivative liability
231,092

 
940,216

Other liabilities
848,334

 
39,651

Total liabilities
68,530,457

 
70,631,343

STOCKHOLDERS EQUITY:
 
 
 
Preferred stock, $.001 par value; authorized - 5,000,000 shares; no shares issued and outstanding at June 30, 2019 and December 31, 2018

 

Common stock, $.001 par value; authorized - 100,000,000 shares; 76,227,583 and 74,697,526 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively
76,228

 
74,700

Additional paid-in capital
425,075,744

 
419,455,818

Accumulated deficit
(216,814,600
)
 
(220,276,025
)
Accumulated other comprehensive loss
(1,939,127
)
 
(2,033,667
)
Total stockholders equity
206,398,245

 
197,220,826

Total liabilities and stockholders equity
$
274,928,702

 
$
267,852,169






THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Revenues
$
52,000,104

 
$
42,801,745

 
$
101,513,341

 
$
80,439,538

Operating costs and expenses:
 
 
 
 
 
 
 
Sales and marketing
9,059,530

 
7,753,486

 
16,900,396

 
14,801,479

Product development and content
30,149,797

 
24,411,288

 
61,273,172

 
46,512,825

General and administrative
5,892,437

 
5,154,103

 
10,820,219

 
10,623,281

Depreciation and amortization
3,430,018

 
3,505,180

 
6,628,122

 
7,134,783

Acquisition and restructuring
25,454

 
1,036,602

 
504,449

 
4,386,553

Total operating costs and expenses
48,557,236

 
41,860,659

 
96,126,358

 
83,458,921

Income (loss) from operations
3,442,868

 
941,086

 
5,386,983

 
(3,019,383
)
Other income (expense):
 
 
 
 
 
 
 
Interest income
27,605

 
2,742

 
59,994

 
9,950

Interest expense
(328,196
)
 
(671,294
)
 
(731,060
)
 
(1,278,980
)
Gain (loss) on foreign currency transactions
(2,380
)
 
4,216

 
(67,589
)
 
107,259

Other
(787
)
 
28,571

 
2,762

 
21,627

Total other expense
(303,758
)
 
(635,765
)
 
(735,893
)
 
(1,140,144
)
Income (loss) before income tax expense
3,139,110

 
305,321

 
4,651,090

 
(4,159,527
)
Income tax expense
(935,284
)
 
(540,593
)
 
(1,189,665
)
 
(288,406
)
Net income (loss)
$
2,203,826

 
$
(235,272
)
 
$
3,461,425

 
$
(4,447,933
)
 
 
 
 
 
 
 
 
Basic and diluted net income (loss) per common stockholder:
 
 
 
 
 
 
 
Basic net income (loss) per common stockholder
$
0.03

 
$

 
$
0.05

 
$
(0.06
)
Diluted net income (loss) per common stockholder
$
0.03

 
$

 
$
0.04

 
$
(0.06
)
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
75,648,621

 
72,753,487

 
75,250,562

 
72,369,619

Diluted
78,508,559

 
72,753,487

 
78,656,115

 
72,369,619







THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 
Six Months Ended June 30,
 
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income (loss)
$
3,461,425

 
$
(4,447,933
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Depreciation and amortization
6,628,122

 
7,134,783

Amortization right-of-use assets
1,293,657

 

Stock-based compensation expense
5,290,053

 
4,259,795

Deferred taxes
268,015

 
(441,417
)
(Gain) loss on foreign currency transactions
67,589

 
(107,259
)
Bad debt expense
909,140

 
290,426

Amortization of loan origination costs
94,006

 
164,313

Change in contingent consideration obligations
63,667

 

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
2,414,200

 
2,141,980

Prepaid expenses, other current assets and other assets
(483,916
)
 
(2,426,711
)
Accounts payable and accrued liabilities
(6,019,870
)
 
2,344,109

Deferred revenue
(19,276
)
 
686,332

Net cash provided by operating activities
13,966,812

 
9,598,418

Cash flows from investing activities:
 
 
 
Purchase of property and equipment
(687,725
)
 
(256,391
)
Acquisition of business, net of cash acquired
(11,807,925
)
 

Net cash used in investing activities
(12,495,650
)
 
(256,391
)
Cash flows from financing activities:
 
 
 
Proceeds from exercise of stock options
702,717

 
232,416

Payments of capital leases
(77,507
)
 
(142,043
)
Proceeds from borrowings of debt
7,000,000

 

Payments for restricted stock awards withheld for taxes
(371,316
)
 
(306,120
)
Payments of contingent consideration

 
(5,000,000
)
Payments on long-term debt
(11,066,584
)
 
(7,500,000
)
Net cash used in financing activities
(3,812,690
)
 
(12,715,747
)
Change in cash and cash equivalents prior to effects of foreign currency exchange rate
(2,341,528
)
 
(3,373,720
)
Effect of foreign currency exchange rate (translation)
28,507

 
(256,818
)
Net decrease in cash and cash equivalents
(2,313,021
)
 
(3,630,538
)
Cash and cash equivalents at beginning of period
28,365,725

 
25,052,995

Cash and cash equivalents at end of period
$
26,052,704

 
$
21,422,457

Supplemental disclosure of cash flow information:
 
 
 
Cash paid for interest
$
630,130

 
$
1,110,448







THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF TOTAL REVENUE
(UNAUDITED)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
%
 
$
 
%
 
$
 
%
 
$
 
%
User pay revenue
$
36,921,301

 
71.0
%
 
$
25,570,553

 
59.7
%
 
$
72,746,410

 
71.7
%
 
$
47,976,083

 
59.6
%
Advertising
15,078,803

 
29.0
%
 
17,231,192

 
40.3
%
 
28,766,931

 
28.3
%
 
32,463,455

 
40.4
%
Total revenue
$
52,000,104

 
100.0
%
 
$
42,801,745

 
100.0
%
 
$
101,513,341

 
100.0
%
 
$
80,439,538

 
100.0
%





THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(UNAUDITED)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net income (loss)
$
2,203,826

 
$
(235,272
)
 
$
3,461,425

 
$
(4,447,933
)
 
 
 
 
 
 
 
 
Interest expense
328,196

 
671,294

 
731,060

 
1,278,980

Income tax expense
935,284

 
540,593

 
1,189,665

 
288,406

Depreciation and amortization
3,430,018

 
3,505,180

 
6,628,122

 
7,134,783

Stock-based compensation expense
2,865,336

 
2,090,870

 
5,290,053

 
4,259,795

Acquisition and restructuring
25,454

 
1,036,602

 
504,449

 
4,386,553

(Gain) loss on foreign currency transactions
2,380

 
(4,216
)
 
67,589

 
(107,259
)
Adjusted EBITDA
$
9,790,494

 
$
7,605,051

 
$
17,872,363

 
$
12,793,325

 
 
 
 
 
 
 
 
GAAP basic net income (loss) per common stockholder
$
0.03

 
$

 
$
0.05

 
$
(0.06
)
GAAP diluted net income (loss) per common stockholder
$
0.03

 
$

 
$
0.04

 
$
(0.06
)
Basic adjusted EBITDA per common stockholder
$
0.13

 
$
0.10

 
$
0.24

 
$
0.18

Diluted adjusted EBITDA per common stockholder
$
0.12

 
$
0.10

 
$
0.23

 
$
0.16

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
75,648,621

 
72,753,487

 
75,250,562

 
72,369,619

Diluted
78,508,559

 
78,240,935

 
78,656,115

 
77,574,279






THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(UNAUDITED)


 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
GAAP Net income (loss)
$
2,203,826

 
$
(235,272
)
 
$
3,461,425

 
$
(4,447,933
)
 
 
 
 
 
 
 
 
Stock-based compensation expense
2,865,336

 
2,090,870

 
5,290,053

 
4,259,795

Amortization of intangibles
2,777,661

 
2,954,485

 
5,339,564

 
6,011,094

Income tax expense
935,284

 
540,593

 
1,189,665

 
288,406

Acquisition and restructuring
25,454

 
1,036,602

 
504,449

 
4,386,553

Non-GAAP net income
$
8,807,561

 
$
6,387,278

 
$
15,785,156

 
$
10,497,915

 
 
 
 
 
 
 
 
GAAP basic net income (loss) per common stockholder
$
0.03

 
$

 
$
0.05

 
$
(0.06
)
GAAP diluted net income (loss) per common stockholder
$
0.03

 
$

 
$
0.04

 
$
(0.06
)
Basic Non-GAAP net income per common stockholder
$
0.12

 
$
0.09

 
$
0.21

 
$
0.15

Diluted Non-GAAP net income per common stockholder
$
0.11

 
$
0.08

 
$
0.20

 
$
0.14

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
75,648,621

 
72,753,487

 
75,250,562

 
72,369,619

Diluted
78,508,559

 
78,240,935

 
78,656,115

 
77,574,279







THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF OPERATING CASH FLOW TO FREE CASH FLOW
(UNAUDITED)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net cash provided by operating activities
$
10,603,897

 
$
2,162,946

 
$
13,966,812

 
$
9,598,418

Less: purchase of property and equipment
405,084

 
83,749

 
687,725

 
256,391

Free cash flow
$
10,198,813

 
$
2,079,197

 
$
13,279,087

 
$
9,342,027






Webcast and Conference Call Details

Management will host a webcast and conference call to discuss second quarter 2019 financial results today, July 31, 2019 at 8:30 a.m. Eastern time. To access the call dial 866-572-9351 (US and Canada) or 703-736-7482 (International) and when prompted provide the participant passcode 7712889 to the operator. An audio replay will be available at 855-859-2056 domestically or 404-537-3406 internationally, using passcode 7712889 through August 7,2019. In addition, a webcast of the conference call will be available live on the Investor Relations section of the Company’s website at www.themeetgroup.com and a replay of the webcast will be available for 90 days.

About The Meet Group

The Meet Group (NASDAQ: MEET) is a leading provider of interactive livestreaming solutions designed to meet the universal need for human connection. Our ecosystem of livestreaming apps enables users around the world to interact through one-to-many livestreaming broadcasts and text-based conversations. Our top apps, MeetMe®, LOVOO®, Skout®, Tagged® and Growlr®, deliver live interactions and meaningful connections to millions of users daily. Headquartered in New Hope, PA, we have offices in Philadelphia, San Francisco, Dresden, and Berlin. The Meet Group is committed to safety. You can find a description of current safety practices here: https://www.themeetgroup.com/safety-practices/. For more information, visit themeetgroup.com, and follow us on FacebookTwitter or LinkedIn.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including whether third quarter 2019 and full year 2019 revenue and Adjusted EBITDA will be in the projected outlook ranges; whether strong execution in video will continue to drive our business growth; whether we will continue to require streamers to review and acknowledge our standards prior to initiating every new stream; whether we will develop a comprehensive safety pledge system to educate users on dating and livestreaming safety as anticipated; whether our safety enhancements will set the foundation for the successful launch of our first livestreaming dating game; whether we will launch our livestreaming dating game in the fourth quarter as anticipated; whether our safety enhancements will set the foundation for the successful launch of our first livestreaming dating game in the fourth quarter of this year; whether we will launch our livestreaming dating game in the fourth quarter of this year; whether we will continuously improve our safety practices as anticipated and whether such improvements will provide a solid foundation on which we can grow video revenue over the long term; whether in the short-term there will be there will be pressure to video revenue as we educate our community on our updated processes; whether we will generate $200 million of annualized video revenue by year end 2021; whether we will grow vDAU share to 25% and beyond by early 2020 on the back of the successful launch of our dating game; whether we will continue to grow vARPDAU with Levels and 1x1 video chat; and whether we will aggressively buyback our stock throughout the second half of this year as anticipated. All statements other than statements of historical facts contained herein are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “project,” “outlook,” “is likely,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the risk that our applications will not function easily or otherwise as anticipated, the risk that we will not launch additional features and upgrades as anticipated, the risk that unanticipated events affect the functionality of our applications with popular mobile operating systems, any changes in such operating systems that degrade our mobile applications’ functionality and other unexpected issues which could adversely affect usage on mobile devices. Further information on our risk factors is contained in our filings with the Securities and Exchange Commission (“SEC”),




including the Form 10-K for the year ended December 31, 2018 filed with the SEC on March 8, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 filed with the SEC on May 9, 2019. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.




Regulation G – Non-GAAP Measures

The Company defines mobile traffic and engagement metrics (including MAU, DAU, chats per day, and new users per day) to include mobile app traffic for all properties and mobile web traffic for MeetMe, Skout and LOVOO. The Company defines Video Daily Active User (vDAU) as a registered user of one of our platforms who has logged in and visited the Live feature, either as a broadcaster or viewer, on the day of measurement. The Company defines Average Video Revenue per Daily Active User (vARPDAU) as the average daily revenue per vDAU. The Company uses these user metrics for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company presents user metrics because it believes them to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry and because it believes that these metrics provide useful information to investors regarding the Company’s financial condition and results of operations. There is no directly comparable U.S. generally accepted accounting principles (GAAP) measure to vARPDAU provided in the Company’s financial statements and therefore no reconciliation is provided.

The Company uses Adjusted EBITDA and Non-GAAP Net Income, which are not calculated and presented in accordance with GAAP, in evaluating its financial and operational decision making and as a means to evaluate period-to period comparison. 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 presents these non-GAAP financial measures because it believes them to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We refer you to the reconciliations below for these historical non-GAAP financial measures to their directly comparable GAAP financial measures.  Information reconciling forward-looking Adjusted EBITDA to GAAP financial measures is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. The Company provides a range for its adjusted EBITDA outlook that it believes will be achieved, however it cannot accurately predict all the components of the Adjusted EBITDA calculation.

The Company defines Adjusted EBITDA as earnings (or loss) from operations before interest expense, benefit or provision for income taxes, depreciation and amortization, stock-based compensation, changes in warrant obligations, nonrecurring acquisition, restructuring or other expenses, gain or loss on disposal of assets, gain or loss on foreign currency adjustment, and goodwill and long-lived asset impairment charges, if any. The Company excludes stock-based compensation because it is non-cash in nature. The Company defines Non-GAAP Net Income as earnings (or loss) before benefit or provision for income taxes, amortization on intangibles, non-recurring acquisition and restructuring costs, goodwill and long-lived asset impairment charges and non-cash stock-based compensation.

Non-GAAP financial measures should not be considered as an alternative to net income, operating income, cash flow from operating activities, as a measure of liquidity or any other financial measure. They may not be indicative of the historical operating results of the Company nor is it intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.




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Investor Contact:
Leslie Arena
[email protected]
267 714 6418
 
Media Contact:
Brandyn Bissinger
[email protected]
267 446 7010



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