New Hope-based Quepasa Corporation (NYSEAMEX:QPSA), the entity that acquired myYearbook late last year and is set to rebrand as MeetMe later in the year, announced its first results as a combined company for a full quarter yesterday.
First Quarter revenue of $10.8 million represented a 30% increase over the combined total of what the two companies reported separately for the same period last year. Quepasa reported a net loss of $1.9 million and a non-GAAP measure of "Adjusted EBITDA" of $673,00. I had some difficulty reconciling all elements of cash flow from Quepasa's financial statements (maybe my fault), but cash & cash equivalents of just over $8,000,000 at the end of the quarter were down about $250,00 from year end.
The company said during its earnings conference call it had launched its mobile virtual currency across its iPhone and Android platforms during the quarter, and that early adoption looks promising. Monetizing mobile users is seen as being very important because a majority of Quepasa visits now come from mobile devices and the company feels users will be more likely to make purchases from the mobile apps because the transaction is simpler to complete. Mobile revenue now accounts for 14% of revenue and is growing rapidly. Monthly active users during the quarter totaled 3.2 million, up 62% from a year ago, the company says, although that is a fairly small percentage of the 81.5 million registered users reported. During the first quarter of 2012, a "Locals" feature was also introduced on the myYearbook mobile apps and web site, which encourages more connections between users on a local basis.
Quepasa says its plans to rebrand as MeetMe and transition both myYearbook and Quepasa to a common platform, which I reported on when they were announced last month, are on track, with myYearbook's switchover scheduled for July and Quepasa's later in the year. Quepasa also says it expects to be available in six languages by year end, versus the three I believe they are currently available in.
The company said it believed it is too early for them to start providing guidance, since they are still working to complete the integration process. Quepasa's current market cap is $138 million, and its share price is largely unchanged since yesterday's earnings announcement.