Takeaways From Call With MEET Management; Mobile Prospects Remain Bright
Yesterday, we hosted a call with MEET’s CEO and CFO and remain positive on the Company’s mobile prospects. We believe the Company is quickly closing the gap between its web and mobile monetization, through higher CPM rates, driven by strength seen in its newly launched native feed advertising. More importantly, MEET has a material opportunity in the next six to twelve months to significantly grow its mobile revenue stream as it launches native feed advertisements into new areas of its mobile application, namely its “Messages” and “Profile” sections, which represent a significantly larger opportunity than “Live Feeds”. Management expects to expand native feed advertising (projected late July launch) to new areas of its mobile application, which could increase mobile ad inventory by 3x to as much as 10x going forward, which in turn should act as a catalyst for the Company’s top line mobile growth, and as such, operating leverage, as each new dollar of mobile revenue contributes a substantial amount of incremental EBITDA.