NEW YORK (TheStreet) -- Shares of MeetMe (MEET) - Get Report were gaining 11.1% to $1.60 after-hours on Tuesday after the social network raised its revenue guidance for the second quarter.

MeetMe now expects to report revenue of $10.5 million to $10.7 million in the second quarter, up from its previous guidance of $9 million to $9.5 million for the quarter. Analysts expect the company to report revenue of $9.25 million for the second quarter.

The company also raised its adjusted EBITDA guidance for the second quarter to a range of $1.5 million to $2 million, up from a range of $250,000 to $750,000 for the quarter.

MeetMe said the upgrade was due to its progress made in successfully transitioning management of its advertising inventory in-house earlier in June.

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"Since resuming management of our advertising inventory, we have experienced stronger rates than we originally anticipated," CEO Geoff Cook said. "Our daily mobile app advertising revenue in the first three weeks of June has increased 23% versus the May average, and in the seven days ending June 21st, we have experienced 53% higher daily mobile app advertising revenue than the May average."

TheStreet Ratings team rates MEETME INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MEETME INC (MEET) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 22.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although MEET's debt-to-equity ratio of 0.04 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.49, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for MEETME INC is rather low; currently it is at 21.28%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, MEET's net profit margin of 6.20% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to -$0.95 million or 340.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: MEET Ratings Report