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Third Quarter 2012 Earnings Call November 7, 2012
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Page 1: Meet Q3

Third Quarter 2012 Earnings Call November 7, 2012

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Cautionary Note Regarding Forward Looking Statements Certain statements in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding international growth, mobile monetization, expanding from three languages to 13 over the next five months and our plans regarding launching new products and the effectiveness of these products. All statements other than statements of historical facts contained herein, including statements regarding the continued growth in our core platform, 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: the risk that unanticipated events affect the internationalization of our mobile products, the acceptance of our new brand internationally, issues that affect the functionality of our mobile application with popular mobile operating systems, any changes in such operating systems that degrade our mobile application’s functionality and other unexpected issues which could adversely affect usage on mobile devices, the effectiveness of our mobile software on smartphones and tablets, the willingness of our users to purchase virtual credits on their mobile devices, the willingness of users to try new product offerings and the willingness of Quepasa.com users to change to the MeetMe.com brand. Further information on our risk factors is contained in our filings with the SEC, including the 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 revenues 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/. © 2012, MeetMe, Inc.

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Q3 Traffic Sets All-Time Records(Q3 average vs. Q2 average)

Total Mobile

DAU 1,107,853 8% 677,906 12%

MAU 3,935,970 24% 1,947,439 17%

Registrations 4,203,517 80% 1,346,117 46%

DAU, MAU and Registration statistics represent the Q3 results from MeetMe Platform (MeetMe website and mobile app).

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Internationalization Presents Enormous OpportunityAddressable Market of Over 1.5 Billion People Aged 18-30 Worldwide

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

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Strong Progress On International Growth

MAU statistics represent a comparison of the September and June 2012 results from MeetMe Platform (MeetMe website and mobile app) , based on internal data sources. Location was determined based on IP address.

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International MAU Increases 147%, from 543K in June to 1.34M in SeptemberToday 1 out of every 2 new registrations is international.

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Android App Rising Through the RanksBreaking into Top 40 Social Apps in Key Countries

Source: http://www.appannie.com

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Photoboard Launches On Mobile and in US Bars

Average hours spent calculated using total hours spent divided by MeetMe Platform MAU (September 2012). Source: Google Analytics for Web. Flurry for Android, iPhone and iPad.

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What’s Next? – Close the Mobile Monetization Gap Mobile App Revenue

– Launching new subscription-based product in Q1’13

– Two new freemium products launching: one in Q4 and one in Q1’13

– Mobile users are 3x More likely to pay for virtual currency than a web user

Mobile Ad Revenue– Roll out feed advertising in Q1’13– Testing new ad units as mobile ad

market continues to mature

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Avg. Revenue per Daily Active User (ARPDAU) represents MeetMe Platform web and mobile revenue divided by average daily active users (DAUs) for web and mobile. Results presented above include data from prior to the merger of Quepasa with myYearbook on November 10, 2011.

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What’s Next? – Expedite Global LaunchesAvailable in More than a Dozen Languages in Q1’13

Added Spanish and Portuguese in Q3

3 Additional Languages Launching Q4

7 Additional Languages Launching in Q1’13

Total: 13 Languages by the end of Q1’13

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Source: Facebook share of international audience obtained from Facebook’s Q3 2012 earnings presentation. MeetMe share of international audience is based IP address and represents September 2012 results for MeetMe Platform (MeetMe website and mobile app).

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Total Revenue from Continuing Operations

Q4 2011 results reflect myYearbook as of the merger date of November 10, 2011.

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MeetMe-Platform Revenue

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.

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MeetMe-Platform Revenue Composition

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

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Cross-Platform Revenue

Cross-Platform revenue includes SocialTheater 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.

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Adjusted EBITDA from Continuing Operations

Q4 2011 results reflect myYearbook as of the merger date of November 10, 2011. Adjusted EBITDA is a non-GAAP financial measure.

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Cash & Accounts Receivable

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Cash $ 5,476,042

Accounts Receivable $ 14,914,123

Total Cash & A/R $ 20,390,165

Source: MeetMe, Inc. Q3 2012 Financial Results

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AppendixAppendix

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MeetMe-Platform DAU

DAU charts refer to total DAU of MeetMe, previously myYearbook. MeetMe results presented above include data from prior to the merger of Quepasa and myYearbook on November 10, 2011.

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MeetMe-Platform MAU

MAU charts refer to total MAU of MeetMe, previously myYearbook. MeetMe results presented above include data from prior to the merger of Quepasa and myYearbook on November 10, 2011.

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Traffic Metrics (All Platforms)

Registered Users, Visits, and Page Views refer to total traffic to both MeetMe-Platform (MeetMe website and mobile app) and Quepasa website. Visits and page views excludes iOS application and device metrics.

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Mobile Registrations

MeetMe mobile results presented above include data from prior to the merger of Quepasa and myYearbook on November 10, 2011.

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MeetMe-Platform Average Revenue Per User (ARPU)

ARPU represents the Average Revenue per User. This is calculated by dividing quarterly 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 of Quepasa and myYearbook on November 10, 2011.

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MeetMe-Platform Average Revenue Per Daily User (ARPDAU)

ARPDAU represents the Average Revenue per Daily Active User. This is calculated by dividing average daily MeetMe web and mobile revenue by the average daily active users (DAUs) for web and mobile. Results presented above include data from prior to the merger of Quepasa with myYearbook on November 10, 2011.