, Inc. (NYSE MKT: MEET), the public market leader for social discovery, today announced that it is now expecting second quarter revenue of approximately $9.0 million, up approximately 15% on a sequential basis. The company previously indicated that it expected revenues to be flat on a sequential basis.
Mobile advertising revenue is expected to be approximately $2.5 million, a new quarterly record, compared to $1.9 million in the first quarter, up approximately 30% sequentially and 90% year over year. The previous quarterly record for mobile revenue was $2.2 million, set in the seasonally-strong fourth quarter of 2012.
The company believes the projected improvement in second quarter revenue is being driven by strong advertiser acceptance of new MeetMe advertising products for the mobile environment. Subscribers are clicking on mobile advertisements at a rate of more than 100,000 clicks per day and viewing more than 1.5 billion mobile advertising impressions per month.
As noted earlier this month, MeetMe has observed its native feed advertisements commanding CPMs over 150% higher than its traditional mobile banners. These results are nearly on par with the CPMs achieved on the web, signaling a path toward the expected convergence of mobile and web monetization rates. In addition, mobile users are clicking on advertisements at a rate that is currently 40% higher than the click-through rate for online advertisements. In addition, the company believes that its online business has stabilized considerably in Q2.
Geoff Cook, Chief Executive Officer, stated, “With the second quarter revenue trends, we are demonstrating that the new mobile advertising products we have introduced are gaining strong acceptance from both advertisers and our subscribers alike. As we continue to monetize our mobile business, we expect the MeetMe service to continue to be a powerful tool for people to connect with each other as well as the brands that they respect. At the same time, we are pleased that our online business is projected to stabilize considerably in the second quarter.”