Shares of dating social network MeetMe (NASDAQ:MEET) soared as much as 16% on Monday after the company swung to a profit for its third quarter. The stock is up about 5.1% at the time of this writing.
MeetMe's third-quarter revenue and adjusted earnings per share (EPS) of $17.2 million and $0.10, respectively, were about exactly in line with the consensus estimate from analyst forecasts compiled by Thomson Reuters. The company's EPS by generally accepted accounting principles (GAAP) standards was notably solid, too. MeetMe reported GAAP EPS of $0.07, up from a loss of $0.04 in the same period last year.
Revenue from mobile, which increased 39%, was a key driver for the company's 20% year-over-year increase in overall revenue.
Management was particularly optimistic about increasing engagement on the platform, noting comments and likes on topical posts increased by 70%. Furthermore, MeetMe CEO Geoff Cook said its Skout and MeetMe social networks now boast over 8 million monthly active users combined, with "one of the largest mobile user bases of millennials."
Going forward, the company said it plans to launch an "exciting new mobile video product" during the first quarter of 2017.
Investors should continue to watch the trajectory of engagement, as measured by comments and likes and the company's monthly active user count. In addition, they should keep an eye out for this new mobile video product.