Attached files
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| 8-K - 8-K - Meet Group, Inc. | investorpresentation8-k.htm |
NASDAQ: MEET
ROTH Investor Conference
March 2018
Cautionary Note Regarding Forward Looking Statements
Certain statements in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding whether video growth will accelerate as expected; whether user pay revenue will continue to grow and advertising revenue will continue to
decrease as expected; whether we will meet our 2018 Adjusted EBITDA expectations; whether and when we will meet our video revenue projections based on our
assumptions of continued vDAU and vARPDAU growth; whether and when we will launch Tagged Live with gifting and monetization and rewards; whether and
when we will launch Lovoo Live with gifting; whether and when we will launch 1x1 live video chat; and whether and when we will launch Battles. The words
“believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “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 (the “SEC”), including the Form 10-K for the year ended December 31, 2016 filed with the SEC on March 9, 2017 and our Quarterly Reports
on Form 10-Q for the quarters ended March 31, 2017, June 30, 2017 and September 30, 2017 filed with the SEC on May 10, 2017, August 4, 2017 and November
9, 2017. 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, vDAU, vARPDAU chats per day, and new users per day) to include mobile app
traffic for all properties and mobile web traffic for MeetMe and Skout.
The Company uses Adjusted EBITDA, which is not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), in
evaluating its financial and operational decision making and as a means to evaluate period-to period comparison. The Company uses this non-GAAP financial
measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company presents this non-GAAP financial
measure because it believes it 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.
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, warrant obligations, non-recurring acquisition, restructuring or other expenses, gain or loss on cumulative foreign currency
translation adjustment, gain on sale of asset, bad debt expense outside the normal range, and goodwill and long-lived asset impairment charges. The Company
excludes stock-based compensation because it is non-cash in nature.
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.
This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other
jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other
jurisdiction.
© 2018 The Meet Group, Inc. All trademarks and service marks are the property of their respective owners.
3
The Meet Group
Every day we help millions of users find meaningful connection
within our portfolio of mobile apps and services.
4.3M
daily active users
14.0M
monthly active users
MeetMe: #2 Top-
Grossing US Social
Android App
Lovoo: Leading
European Dating Brand
4
Create
Meaningful
Connections
Through
Live Video
5
Why Video?
We believe video strengthens our entertainment offerings while also
creating richer, more meaningful connections for our community
6
$57
$76
$124
$143
$0
$20
$40
$60
$80
$100
$120
$140
$160
2015 2016 2017 2018
Substantial and growing
video business
Video growth expected
to accelerate
Our rapidly growing user pay
revenue has overtaken our
advertising revenue
One of the largest social
entertainment platforms
in the world
1) Midpoint of company guidance provided on March 7, 2018
2) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and reconciliation to Net Income, please refer to the Investor Relations section of the
Company’s website at http://ir.themeetgroup.com
Company Highlights
Revenue
($ in Millions)
2018 Adjusted EBITDA1 expected in
the range of $20 million to $22 million
1
7
Substantial and growing video business
• Already a $19 million run-rate business (as of February 2018), growing 70% vs
Q4 average
• Only available to 40% of DAU. Expect to offer to 100% by year end
0
10000
20000
30000
40000
50000
60000
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 10
3
10
9
11
5
12
1
12
7
13
3
13
9
Total IAP Revenue
MeetMe In-App Purchase Revenue
October 2017 February 2018
8
$0
$200
$400
$600
$800
$1,000
$1,200
1 2 3 4 5 6
Large Video Revenue Opportunity
vARPDAU is average revenue per daily active video user
vDAU is video daily active users
$1 Billion Revenue Opportunity
@ $0.50 vARPDAU
Revenue
($ in Millions)
vDAU (in millions)
$1.1 Billion
9
Rapid Transition to User Pay Revenue
*Forecast
• Now majority user-pay by revenue: 6% to 60% in just 5 quarters
• Lessen historical dependence on advertising markets
• Believe video revenue is more sustainable, can grow faster, and more aligned
with quality of user experience
• Successfully managed a similar shift before – from desktop to mobile
Advertising User Pay
6% User Pay
94% Advertising
60% User Pay
40% Advertising
82% User Pay
18% Advertising
Q4 2020* Q1 2018* Q4 2016
10
Product launches expected to drive DAU and vARPDAU
MeetMe
Live
Lovoo Live
Rollout Begins
Skout
Live
MeetMe Live
Monetization
Skout Live
Monetization
Battles
1x1 Live
Video Chat
Tagged
Live
Talent Team
Launches
Q2
2017
Q3
2018
Q3
2017
Q4
2017
Q4
2018
Q2
2018
Q1
2018
11
• Expected launch Q4 2018
• #1 most requested feature
• Addresses our core use case
• Fully moderated
• Monetized via paid filters and gifts
• Expected launch Q4 2018
• Real-time competition
• Built-in monetization via paid votes
• Improves content discovery and
quality
• Expected launch in 1+ markets in Q3 2018
• Important European brand and our largest
platform
Product launches expected to drive DAU and vARPDAU
Battles 1x1 Video Chat Lovoo Live
12
Industry Landscape
Social
Entertainment
Utility
Casual /
Friendship
Serious/
Intimate
13
The Video Opportunity
We believe livestreaming video is the most compelling
product we have delivered in our company’s history
We have:
• An innovative differentiated product, with rapidly growing appeal
• Large engaged user base
• Scalable tech platform and comprehensive product roadmap
• Strong and talented team
• Proven model in Asian livestreaming apps
• Rapidly growing business that generates cash flow to fund product investment
Thank you.