MeetMe (MEET) Stock Spikes on Higher Second Quarter Guidance

NEW YORK (TheStreet) -- Shares of MeetMe (MEET) were gaining 28.5% to $1.85 on heavy trading volume Wednesday after the social network raised its revenue and EBITDA guidance for the second quarter.

MeetMe said it 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.

"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."

About 2.3 million shares of MeetMe were traded by 10:18 a.m. Wednesday, above the company's average trading volume of about 262,000 shares a day.

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."

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