MeetMe Inc (NASDAQ:MEET) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 08:30 am ET
Ladies and gentlemen thank you for standing by and welcome to the Meet Group's Third Quarter of 2019 Earnings Conference Call. [Operator Instructions)
Thank you. Now I would like to hand the conference over to your first speaker today Ms. Leslie Arena Vice President of Investor Relations. Ma'am you may begin.
Thank you. Good morning and welcome to Meet Group's Third Quarter 2019 Earnings Conference Call. With me today are Geoff Cook our CEO; and Jim Bugden our CFO. At the conclusion of our prepared remarks we'll be happy to take your questions. As a reminder today's discussion will include statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. More information about those risks and uncertainties is contained in our SEC filings. We caution you against placing undue reliance on these statements and disclaim any intent or obligation to update them. In addition as we refer to earnings we also will refer to adjusted EBITDA which we define as earnings or loss from operations before interest expense; benefit or provision for income taxes depreciation and amortization stock-based compensation nonrecurring acquisition restructuring or other expenses; gain or loss on disposal of assets; gain or loss on foreign currency transactions; bad debt expense outside the normal range; free will and long-lived asset impairment charges.
We also refer to free cash flow which we define as net cash provided by or used in our operating activities minus purchases of property and equipment as shown in our consolidated statements of free cash flow. Adjusted EBITDA and free cash flow are non-GAAP financial measures and you can find a reconciliation to GAAP in our earnings release which is posted on the IR section of our website. We believe that use of these measures provides additional insight for investors to use in evaluation of operating results and trends. However they should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP.
I would now like to turn the call over to Geoff.
Good morning and thank you for joining us on the call. We had a strong third quarter. Enabled by our product strategy and execution we grew revenue 15% year-over-year to $52.6 million and adjusted EBITDA to $11 million an increase of 27% from last year's third quarter. Both revenue and adjusted EBITDA exceeds the prereleased estimates we issued on October 3. We grew video revenue for the quarter by approximately 85% year-over-year to $20.3 million. The fourth quarter is off to a good start with video revenue on our MeetMe app in October for instance growing to the highest level of any month since May. Total video revenue in October exceeded video revenue in every month of the third quarter. Furthermore the company expects November and December video revenue to continue to increase from October. We expect video revenue in the fourth