Millennial Media, Inc. (NYSE: MM), the independent leader in mobile advertising, today announced preliminary financial results that exceeded the Company’s previously announced expectations for the third quarter ended September 30, 2012. In a separate release today, the Company announced a proposed follow-on offering.
Third Quarter Preliminary Financial Results and Business Highlights
Total Revenue: Total revenue for the 2012 third quarter is expected to be in the range of $46.5 million to $47.0 million versus the Company’s prior outlook for the third quarter of revenue in the range of $43.5 million to $45.0 million.
Gross Margin: Gross margin for the 2012 third quarter is expected to be in the range of 40.5% to 40.8%.Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, defined as net income or net loss before interest, taxes, depreciation and amortization, and non-cash stock-based compensation, is expected to be in the range of $1.5 million to $2.0 million versus the Company’s prior outlook for the third quarter of an adjusted EBITDA loss in the range of $(0.6) million to $(0.8) million. Net Loss: Net loss for the third quarter is expected to be in the range of $(1.9) million to $(2.4) million. “Our third quarter revenue growth of approximately 85% year-over-year represents an acceleration from our second quarter growth rate of 76% and speaks to our continued success as the leading independent mobile advertising and data platform,” stated Paul Palmieri, President and CEO of Millennial Media. “We are delivering greater value to our advertising customers and developer partners through the use of technology and data which, in turn, is driving increased demand for our services and enhanced gross margin performance. The fact that we were able to accelerate revenue growth while generating positive adjusted EBITDA during the quarter demonstrates the leverage in our business model.”