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Millennial Media Reports 2012 Third Quarter Financial Results

Forward-Looking Statements

The statements in this press release that are not historical facts constitute “forward-looking statements” that involve risks and uncertainties and are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements include expectations regarding financial results for the fourth quarter and full year of 2012, our growth and that of the mobile app economy, and our continued expansion as the leading mobile advertising platform company. The achievement or success of the matters covered by such forward-looking statements involve risks, uncertainties and assumptions, and if any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. These risks and uncertainties include, but are not limited to risks associated with our ability to expand our developer and advertiser base, keep pace with technological and market developments and remain competitive against larger companies in our industry as well as potential new entrants into our markets. Further information on these and other factors that could affect our results is included in our Quarterly Report on Form 10-Q that will be filed for the quarter ended September 30, 2012 and other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the ‘SEC Filings’ section of the Investor Relations page of our website at http://investors.millennialmedia.com.

The statements made in this release are based on information available to us as of the date of this release, and we assume no obligation and do not intend to update these forward-looking statements, except as required by law.

Millennial Media, Inc.
     
Consolidated Balance Sheets
(in thousands, except share and per share data)
 
December 31, September 30,
2011 2012
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 16,707 $ 122,404
Accounts receivable, net of allowances of $1,216 and $2,217
as of December 31, 2011 and September 30, 2012, respectively 34,986 51,176
Prepaid expenses and other current assets   1,417     2,119  
Total current assets 53,110 175,699
 
Property and equipment, net 3,688 5,777
Goodwill 1,348 1,348
Intangible assets, net 1,179 980
Deferred offering costs 1,985
Other assets   575     634  
Total assets $ 61,885   $ 184,438  
 
Liabilities, redeemable convertible preferred stock and stockholders’ (deficit) equity
Current liabilities:
Accounts payable and accrued expenses $ 2,883 $ 3,176
Accrued cost of revenue 20,963 28,227
Accrued payroll and payroll related expenses 5,153 6,431
Deferred revenue   157     219  
Total current liabilities 29,156 38,053
 
Series B warrant outstanding 183
Other long-term liabilities   299     267  
Total liabilities 29,638 38,320
 
Redeemable convertible preferred stock:
Series A-1 preferred stock, $0.001 par value, 6,341,465 and 0
shares authorized, issued and outstanding as of December 31, 2011
and September 30, 2012, respectively 1,880
Series A-2 preferred stock, $0.001 par value, 9,448,220 and 0
shares authorized, issued and outstanding as of December 31, 2011
and September 30, 2012, respectively 7,033
Series B preferred stock, $0.001 par value, 12,737,605 and 0
shares authorized, 12,686,855 and 0 issued and outstanding
as of December 31, 2011 and September 30, 2012, respectively 19,882
Series C preferred stock, $0.001 par value, 10,759,630 and 0
shares authorized, issued and outstanding as of December 31, 2011
and September 30, 2012, respectively 18,441
Series D preferred stock, $0.001 par value, 8,442,833 and 0
shares authorized, issued and outstanding as of December 31, 2011
and September 30, 2012, respectively   29,432      
Total redeemable convertible preferred stock 76,668
 
Stockholders’ (deficit) equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized,
no shares issued and outstanding as of December 31, 2011
and September 30, 2012
Common stock, $0.001 par value, 250,000,000 shares authorized,
18,011,035 and 76,757,515 shares issued and outstanding as of
December 31, 2011 and September 30, 2012, respectively 17 75
Additional paid-in capital 198,687
Accumulated other comprehensive loss (25 ) (52 )
Accumulated deficit   (44,413 )   (52,592 )
Total stockholders’ (deficit) equity   (44,421 )   146,118  
Total liabilities, redeemable convertible preferred stock and stockholders’ (deficit) equity $ 61,885   $ 184,438  
 
Millennial Media, Inc.
       
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share data)
 
Three Months Ended Nine Months Ended
September 30, September 30,
2011 2012 2011 2012
 
Revenue $ 25,189 $ 47,366 $ 69,129 $ 119,707
Cost of revenue   15,293     28,005     42,536     71,683  
Gross profit 9,896 19,361 26,593 48,024
Operating expenses:
Sales and marketing 3,203 5,922 10,179 16,561
Technology and development 1,518 4,667 3,316 10,084
General and administrative   5,382     10,491     13,946     28,428  
Total operating expenses   10,103     21,080     27,441     55,073  
Loss from operations (207 ) (1,719 ) (848 ) (7,049 )
Interest and other expense
Interest expense (1 ) (14 ) (2 ) (52 )
Other expense   (36 )       (62 )   (834 )
Total interest and other expense   (37 )   (14 )   (64 )   (886 )
Loss before income taxes (244 ) (1,733 ) (912 ) (7,935 )
Income tax benefit (expense)   2     (36 )   495     (46 )
Net loss (242 ) (1,769 ) (417 ) (7,981 )
Accretion of dividends on redeemable convertible preferred stock   (1,259 )   -     (3,728 )   (1,328 )
Net loss attributable to common stockholders $ (1,501 ) $ (1,769 ) $ (4,145 ) $ (9,309 )
 
Net loss per share:
Basic and diluted $ (0.09 ) $ (0.02 ) $ (0.25 ) $ (0.17 )
 
Weighted average common shares outstanding:
Basic and diluted 16,400,211 75,498,564 16,336,295 55,146,195
 
Stock-based compensation expense included above:
Sales and marketing $ 49 $ 286 $ 112 $ 410
Technology and development 385 2,037 621 2,889
General and administrative 170 903 371 1,974
 

Millennial Media, Inc.

 

Reconciliation of Unaudited GAAP Net Loss to Non-GAAP Adjusted EBITDA

         
Three Months Ended
September 30,
2011

           2012           

(in thousands)
Net loss $ (242 ) $ (1,769 )
Adjustments:
Interest expense, net 1 14
Income tax (benefit) expense (2 ) 36
Depreciation and amortization expense 220 631
Stock-based compensation expense   605     3,226  
Total net adjustments   824     3,907  
Adjusted EBITDA $ 582   $ 2,138  
 
 
Three Months Ended
June 30, 2012
(in thousands)
Net loss $ (2,238 )
Adjustments:
Interest (income) expense, net 17
Income tax (benefit) expense 5
Depreciation and amortization expense 522
Stock-based compensation expense   963  
Total net adjustments   1,507  
Adjusted EBITDA $ (731 )
 




Stock quotes in this article: MM 

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