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NYSE MKT: MEET Fall 2012 Investor Presentation
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Page 1: Ir.q2.8.ex.appendix

NYSE MKT: MEET

Fall 2012 Investor Presentation

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© 2012 MEET 2

Cautionary Note Regarding Forward Looking Statements Certain statements in this presentation and responses to various questions includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained herein, including statements regarding mobile monetization, the launch of our mobile application in Latin America, the potential of mobile advertising, expectations regarding the internationalization of the platform including additional available languages, global momentum and opportunities, and anticipated new products are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include issues that affect the functionality and effectiveness of our mobile application on smartphones and tablets, the acceptance of our new brand in Latin America and globally, the risk that unanticipated events affect the internationalization of the platform including anticipated release date of additional languages, unanticipated events which affect our mobile applications status on Google Play and in the Apple App Store. Further information on our risk factors is contained in our filings with the SEC, including our Form 10-K for the year ended December 31, 2011. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Regulation G – Non-GAAP Financial Measures This presentation includes a discussion of Quepasa and myYearbook combined company results and adjusted EBITDA from continuing operations which are non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided on the Investor Relations section of the MeetMe corporate website at http://www.meetmecorp.com/investors/non-gaap/.

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Stock Price Information, as of September 5, 2012

© 2012 MEET 3

Symbol MEET Insider Ownership 44.5%

Exchange NYSE MKT Shares Short (millions) 4.18

Short % of Float 16.8%

Price $ 2.45

Shares Outstanding (millions) 36.37

Market Capitalization (millions) $ 89.11

52-Week Range $ 1.55 - $ 5.47

Stock information source: Yahoo! Finance, September 5, 2012.

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Investment Highlights

#1 most visited social network for meeting new people in the US.1

#1 Top Grossing Social App on Android.2

Fast-growing audience. 24% growth in MAU in August vs. Q2 average.

46% growth in revenue in Q2 2012 to $13.1 million. Positive adjusted EBITDA (non-GAAP). 3

Differentiated revenue streams with fast-growing mobile virtual currency.

Addressable market of over 1 billion people globally.

Trades at significant revenue-multiple discount to peer social networks.

MEET 4© 2012

1comScore US, July 2012. myYearbook vs. Tagged and Badoo.2Android Market Top Grossing Social Apps on 9/05/2012.3Reconciliation to the most comparable GAAP financial measure is available at http://www.meetmecorp.com/investors/non-gaap/.

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© 2012 MEET 5

Our mission is to build the leading social network for meeting new people.

We are the digital coffeehouse, a re-imagination of the bar, a social gathering place. We intend to transform the way people meet in a mobile-first world.

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Pioneering the Next Category of Social Networking: Social Discovery

© 2012 MEET 6

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Creating the Best Place to Meet New People

© 2012 MEET 7

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Category-Leading Engagement

Source: comScore US,August 2012. Bubbles denote Avg. Min per Visitor per Month for MeetMe compared to other properties.

Source: comScore US, August 2012 (web) and internal Flurry analytics, average of June - August 2012 (iPhone, iPad, and Android).

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Strong Traffic Growth Post Rebrand (MeetMe Platform)(August 2012 vs. Q2 average)

© 2012 MEET 9

Total Mobile

DAU 1,115,647 9% 689,630 14%

MAU 3,950,473 24% 2,000,508 20%

Registrations 1,417,397 82% 491,951 60%

Note: DAU, MAU and Registration statistics represent the August results from MeetMe Platform (MeetMe website and mobile app).

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Dramatic Mobile Growth

© 2012 MEET 10

Note: MAU and DAU charts refer to total MAU and DAU of MeetMe, previously myYearbook. MeetMe results presented above include data from prior to the merger with myYearbook on November 10, 2011, and is presented on a combined pro-forma basis.

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Addressable Market of Over 1.2 Billion PeopleNumber of people aged 15-25 worldwide

© 2012 MEET 11

Source: United States census data for 2012 (www.census.gov).

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Poised for International Expansion

© 2012 MEET 12

1comScore Dec. 2011. “It’s a Social World.” Reflects social networking now reaches 1.2 billion users, 82% of the online population.2comScore Feb. 2012. Analysis of Unique Visitors.

Increasing addressable market by more than 500% by year end through launch in additional languages.

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Revenue and Adjusted EBITDA

© 2012 MEET 13

Note: Q4 2011 results reflect myYearbook beginning in November 2011. Adjusted EBITDA is a non-GAAP financial measure.

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Web Mobile

Differentiated Revenue Streams (MeetMe Platform)

© 2012 MEET 14

Note: Virtual Currency and Advertising Revenue refer to revenue generated from the MeetMe Platform (MeetMe website and mobile app).

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Focus on Fastest-Growing Segment of Mobile Market

1http://www.forrester.com/Mobile+App+Internet+Recasts+The+Software+And+Services+Landscape/fulltext/-/E-RES58179?objectid=RES58179 and http://www.slideshare.net/avinash.raghava/forrester-8840580. Chart Source: http://allthingsd.com/20120530/mary-meekers-internet-trends-live-at-d10-slides/

Apps projected by Forrester to be $50 billion a year business by 20151

© 2012 MEET 15

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Catalysts

International Expansion & User Growth:– Migration of Quepasa Users to MeetMe (September)– Launch of mobile app in Latin America (October)– Global Expansion into 6 Languages (December)

Mobile Monetization: – Video ads on offer wall (September)– New uses of Credits (December)

Viral Products: – Leverage social and mobile viral loops– New products aimed at curating UGC

MEET 16© 2012

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Valuation Comparison – Social Networking Peers

Source: Yahoo! Finance, August 22, 2012. Note: MeetMe's 2011 Revenues reflect Combined Revenues for 2011, a non-GAAP measure.

© 2012 MEET 17

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Appendix

MEET 18© 2012

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Dramatic Potential in Mobile Advertising% of Time Spent in Media vs. % of Advertising Spending, USA 2011

Source: http://allthingsd.com/20120530/mary-meekers-internet-trends-live-at-d10-slides/

© 2012 MEET 19

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Competitive Landscape

© 2012 MEET 20

Source: comScore US July, 2012.Note: Bubbles denote US page views for the relevant property or media title, whichever is greater. Facebook at 1/11 scale. All others are true to scale.

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Twice as Large as Tagged and 4x Larger Than Badoo by Uniques

Source: comScore US, June 2012.

© 2012 MEET 21

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Social Discovery: A New Category of Social Service

Source: MeetMe Survey. May 2012. 4,975 responses.

Source: MeetMe Survey. June 2012. 6,754 responses.Survey looked at Zoosk, okCupid, Match.com, and eHarmony.

Source: MeetMe Survey. June 2012. 6,754 responses.

© 2012 MEET 22

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Disruptive to the $4 Billion1 Dating Industry

Source: comScore US. July 2012.Note: Bubbles denote US page views for the relevant Property or Media Title, whichever is larger.

Note: More than 60% of myYearbook members communicate for 1 month or more before meeting in person.Source: MeetMe Survey. June 2012. 6,754 responses.

1 http://www.telegraph.co.uk/relationships/online-dating/9160622/Internet-dating-We-just-clicked.html

© 2012 MEET 23

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Impact of Quepasa Games ShutdownNormalized Operations

QTD YTDJune 30, 2012 June 30, 2012

Games Revenues 432,739$ 840,190$

Operating Costs and Expense:

Games Expenses 496,285 1,032,366

Product and content development 349,601 552,563

Depreciation and amortization 7,087 16,102

Stock-based compensation (74,472) 151,508

Exit and closing costs 479,502 479,502

Loss on impairment of goodwill 2,288,776 2,288,776

Total Operating Costs and Expenses 3,546,779 4,520,817

Loss from Operations (3,114,040) (3,680,627)

Depreciation and amortization 7,087 16,102

Stock-based compensation (74,472) 151,508

Loss on impairment of goodwill 2,288,776 2,288,776

EBITDA from Discontinuing Operations (892,649) (1,224,241)

Exit and closing costs 479,502 479,502

Adjusted EBITDA from Discontinuing Operations (413,147)$ (744,739)$

© 2012 MEET 24

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A Leader in Social Monetization Per User

Note: ARPU represents the Average Revenue per User. This is calculated by dividing MeetMe web and mobile revenue by the average monthly active users (MAUs) for web and mobile. MeetMe results presented above include data from prior to the merger with myYearbook on November 10, 2011.

Facebook reported ARPU for Q2-2012 of $1.28 worldwide and $3.20 for US/Canada.

© 2012 MEET 25

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Non-Affiliated Revenue

Note: Non -Affiliated Revenue represents total combined proforma revenue, excluding revenue from affiliated organizations, such as AHMSA and MATT, Inc. Non-Affiliated includes revenue from prior to the merger of Quepasa with myYearbook on November 10, 2011, and is presented on a combined pro-forma basis.

© 2012 MEET 26

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MeetMe Platform Revenue

Note: Revenue charts refer to total Revenue of MeetMe, previously myYearbook. Mobile Revenue refers to mobile advertising and mobile virtual currency revenue on MeetMe’s mobile apps and mobile web site. MeetMe results presented above include data from prior to the merger of Quepasa with myYearbook on November 10, 2011.

© 2012 MEET 27

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Cross Platform Revenue

Note: Cross Platform revenue includes Social Theater on Facebook and other networks, including Quepasa. Cross Platform includes revenue from prior to the merger of Quepasa with myYearbook on November 10, 2011, and is presented on a combined pro-forma basis.

© 2012 MEET 28

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Cash and Accounts Receivable Balances, as of 6/30/12

MEET 29

Cash and Cash Equivalents $5,886,970

Account Receivable $14,696,770

Total Cash and Accounts Receivables $20,583,740

© 2012