We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MeetMe Set to Buy LOOVO, Expand International Customer Base
Read MoreHide Full Article
The MeetMe Group Inc formerly known as MeetMe Inc continues to drive on accretive acquisitions. The company recently announced an agreement to buy German dating App LOVOO for $70 million in cash, inclusive of a $5-million contingent earn out.
The latest deal follows the acquisitions of If(we) Inc (parent of Tagged) in April this year and Skout in October, 2016.
Acquisitions Improving Competitive Position
We note that the mobile meeting and dating app market is currently dominated by Match Group Inc (MTCH - Free Report) , parent of OkCupid and Tinder. Momo Inc (MOMO - Free Report) and Spark Networks Inc are other well known names. However, the addition of LOOVO along with If(We) and Skout significant improves the company’s competitive position.
Notably, both If(We) and Skout acquisitions helped in driving top-line growth in the last quarter. Revenues surged 91% year over year to $31.3 million. Most importantly, app engagement improved. In June, MeetMe set a new record for average daily chats at 30.5 million, driven by nearly 6 million minutes of video viewing time and 1.5 million minutes of broadcasting time per day.
MeetMe expects the LOOVO acquisition to provide significant scale to user base. LOOVO has almost 5 million monthly active users (MAUs) and 1.9 million daily active users (DAUs). Moreover, its popularity is evident from the fact that 47K new registrations are done every day on the app.
Post acquisition, MeetMe projects mobile MAUs and DAUs to surge 48% and 71% sequentially to 15.8 million and 4.6 million, respectively. Mobile chats sent per day are expected to jump 19.9% to 74.6 million. Mobile new users per day are projected to soar 32% sequentially to 193K.
LOOVO Expands International Footprint
LOOVO is the #1 dating app in German speaking countries (Germany, Switzerland and Austria) and one of the top #3 in Southern Europe (Italy, Spain and France). Hence, the addition of the app will definitely help in expanding MeetMe’s international footprint.
Further, LOOVO’s strong user base benefits top line, which was almost $32.4 million on a trailing 12-months basis. Subscriptions, In-app purchases and advertisements accounted for 48%, 24% and 28% of revenues, respectively.
MeetMe management now projects international mobile revenue and mobile non-advertising revenue to surge by 169% and 168%, respectively. Moreover, the acquisition is expected to be accretive to MeetMe’s earnings per share (EPS) in 2018 and beyond.
Although management expects second-half results to be softer due to weak CPM growth, we believe that the expanding international user base will boost MeetMe’s top-line growth. Moreover, the new video feature (launched in April), Tagged Live (launched in August) and the upcoming video product for Skout on both Android and iOS will further boost results in the remainder of 2017.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
Image: Bigstock
MeetMe Set to Buy LOOVO, Expand International Customer Base
The MeetMe Group Inc formerly known as MeetMe Inc continues to drive on accretive acquisitions. The company recently announced an agreement to buy German dating App LOVOO for $70 million in cash, inclusive of a $5-million contingent earn out.
The latest deal follows the acquisitions of If(we) Inc (parent of Tagged) in April this year and Skout in October, 2016.
Acquisitions Improving Competitive Position
We note that the mobile meeting and dating app market is currently dominated by Match Group Inc (MTCH - Free Report) , parent of OkCupid and Tinder. Momo Inc (MOMO - Free Report) and Spark Networks Inc are other well known names. However, the addition of LOOVO along with If(We) and Skout significant improves the company’s competitive position.
Notably, both If(We) and Skout acquisitions helped in driving top-line growth in the last quarter. Revenues surged 91% year over year to $31.3 million. Most importantly, app engagement improved. In June, MeetMe set a new record for average daily chats at 30.5 million, driven by nearly 6 million minutes of video viewing time and 1.5 million minutes of broadcasting time per day.
MeetMe expects the LOOVO acquisition to provide significant scale to user base. LOOVO has almost 5 million monthly active users (MAUs) and 1.9 million daily active users (DAUs). Moreover, its popularity is evident from the fact that 47K new registrations are done every day on the app.
Post acquisition, MeetMe projects mobile MAUs and DAUs to surge 48% and 71% sequentially to 15.8 million and 4.6 million, respectively. Mobile chats sent per day are expected to jump 19.9% to 74.6 million. Mobile new users per day are projected to soar 32% sequentially to 193K.
LOOVO Expands International Footprint
LOOVO is the #1 dating app in German speaking countries (Germany, Switzerland and Austria) and one of the top #3 in Southern Europe (Italy, Spain and France). Hence, the addition of the app will definitely help in expanding MeetMe’s international footprint.
Further, LOOVO’s strong user base benefits top line, which was almost $32.4 million on a trailing 12-months basis. Subscriptions, In-app purchases and advertisements accounted for 48%, 24% and 28% of revenues, respectively.
MeetMe management now projects international mobile revenue and mobile non-advertising revenue to surge by 169% and 168%, respectively. Moreover, the acquisition is expected to be accretive to MeetMe’s earnings per share (EPS) in 2018 and beyond.
Although management expects second-half results to be softer due to weak CPM growth, we believe that the expanding international user base will boost MeetMe’s top-line growth. Moreover, the new video feature (launched in April), Tagged Live (launched in August) and the upcoming video product for Skout on both Android and iOS will further boost results in the remainder of 2017.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide now>>