What: Shares of MeetMe (NASDAQ:MEET), a social network for meeting new people on the internet, soared as much as 16.5% Monday morning after the company reported better-than-expected second-quarter financial results. Shares are up about 14.5% at the time of this writing.
So what: MeetMe reported second-quarter revenue and adjusted EPS of $16.4 million and $0.09, respectively. Revenue was up 48% compared to the year-ago quarter, and adjusted EPS was up from $0.05 in the year-ago quarter. These results compares to a consensus analyst estimate for second-quarter revenue and EPS of $15.27 million and $0.05, respectively.
"Our record quarterly results reflect continued growth in our mobile user engagement," said MeetMe CEO Geoff Cook. "Our mobile traffic is at an all-time high, with mobile daily active users for the quarter increasing 15% year over year to 1.22 million and mobile monthly active users increasing 32% year over year to 4.84 million."
Also worth noting, the company's mobile revenue during the quarter increased 82%, and it now represents 92% of total revenue.
Now what: The current quarter is already off to a good start. Cook said the company achieved a new mobile daily active user record, surpassing 1.37 million users, last week. In addition, Cook believes its first-quarter launch of Discuss -- an interest-based group conversation platform -- is driving increased user engagement.
Going forward, Cook also said the company expects its recently announced acquisition of Skout, a mobile app for meeting and chatting with new people, to close in October. The acquisition will "provide greater scale for monetization and increased profitability for the combined company," Cook said.