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MeetMe (NASDAQ:MEET)

Q4 2012 Earnings Call

March 07, 2013 4:30 pm ET

Executives

E. Brian Harvey - Vice President of Capital Markets & Investor Relations

John C. Abbott - Chairman, Chief Executive Officer, Member of Executive Committee and Member of Standards Committee

Geoffrey Cook - Chief Operating Officer, Director and President of Consumer Internet Division

Michael Matte

Analysts

Darren Aftahi - Northland Capital Markets, Research Division

Justin Ruiss - Sidoti & Company, LLC

Rob Tinkham

Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the MeetMe, Inc. Fourth Quarter and Fiscal Year 2012 Earnings Conference Call. [Operator Instructions] This conference is being recorded today, Thursday, March 7, 2013.

I would now like to turn the conference over to Brian Harvey, Vice President of Capital Markets and Investor Relations. Please go ahead.

E. Brian Harvey

Thank you, Katia. Good afternoon, and welcome to MeetMe, Inc.'s Fourth Quarter and Full Year 2012 Financial Results Conference Call. I'm joined this afternoon by Chief Executive Officer, John Abbott; Chief Financial Officer, Mike Matte; and Chief Operating Officer, Geoff Cook. Before we begin, I would like to take this opportunity to remind you that during the course of this call, management will make forward-looking statements that are subject to various risks and uncertainties. These include statements relating to continued growth, including growth in mobile traffic, mobile monetization, including expectations from virtual currency, expectations from our rebrand, opportunities from internationalization, including accelerating mobile and virtual currency usage, expected number of languages on our platform, and revenue and adjusted EBITDA growth.

Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. A discussion of the risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission, particularly the section entitled Risk Factors in our quarterly and annual reports, and we refer you to these filings.

Also I'd like to remind you that during the course of this call, we will discuss the combined revenues of Quepasa and myYearbook premerger and adjusted EBITDA, both of which are non-GAAP measures.

And talking about the company's performance. Reconciliation to the most directly comparable GAAP financial measures are provided in the tables in the press release issued by the company today in the Investor Relations section of the MeetMe corporate website at www.meetmecorp.com/investors/non-GAAP. A replay of this conference call will be available for 1 year at the Investor Relations section of the MeetMe corporate website at www.meetmecorp.com.

Finally, for additional information and news, you can follow us on Twitter @meetmecorp.

I will now turn the call over to MeetMe's Chief Executive Officer, John Abbott.

John C. Abbott

Thanks, Brian. Good afternoon, and thank you for joining MeetMe's fourth quarter and full year earnings call.

2012 was a foundational year for the company. This time last year, we were announcing results from myYearbook and Quepasa for the very first time, having closed the merger midway through fourth quarter of 2011. We had taken our first steps towards consolidating the 2 companies at our headquarters in New Hope, and we presented a plan to combine the 2 products over the course of 2011, in order to lay the groundwork for long-term growth.

I'm happy to say that every aspect of that plan was completed on schedule. In June, the company itself was renamed MeetMe, Inc. to reflect our mission to become the leading global service for meeting new people. And also in June, our flagship platform, myYearbook was renamed MeetMe, a major user-facing change that generated no discernible member churn.

In August, MeetMe launched in Spanish and Portuguese, which fast-facilitated the October transition of Quepasa.com users onto the MeetMe platform.

Finally, in December we launched French, Italian and German, bringing our total to 6 available languages and significantly expanding our addressable market.

The company transformed from $10.7 million in revenue and 202 people in 2011, to $46.7 million in revenue and 154 people in 2012, representing revenue growth of 330% year-over-year.

Today, we are tremendously excited about the opportunity we have to build the global leader in social discovery.

With the merger integration now complete, out of this most recent quarter, and the former myYearbook platform now the focus of the business, I have concluded that now is the right time to hand the reins to our Chief Operating Officer and President, Geoff Cook. Geoff will assume the title of Chief Executive Officer. As a former myYearbook co-founder and CEO, Geoff is a pioneer in social discovery and a product visionary, who capitalized on the promise of mobile early and who, I believe, is best-equipped to lead MeetMe in a mobile-first world.

In addition to the CEO transition, David Clark will be joining MeetMe as Chief Financial Officer on April 2. David will be joining us from Nutrisystem, where he has served as Executive Vice President and CFO since 2007. David was previously a co-founder and CFO of SunCom Wireless. As CFO at SunCom, David helped lead the company's growth to over $800 million in revenues and oversaw its IPO in 1999. David has been a public company CFO for over a decade and brings a great depth of experience with companies competing for subscribers in mobile and digital environments.

I'd like to turn the call over to Geoff to elaborate on our operating results and some of our plans for 2013.

Geoffrey Cook

Thanks, John. Our future success will be attributable to the groundwork we laid under your leadership, and I look forward to your continued contributions as Chairman. I also look forward to partnering with David, as we execute on our mission to build a global brand for meeting new people.

I expect a challenging but exciting road ahead, as we continue to embrace and navigate the shift of our audience from Web to mobile.

Today, we are a mobile company with 60% of our daily audience now mobile. The speed of the transformation has been stunning. In Q4 2011, mobile accounted for only 5.8% of our MeetMe platform revenue. Just 1 year later, mobile now accounts for 22% of our MeetMe platform revenue. Mobile really is what a MeetMe people service wants to be. Where our members can discover the people around them, while they're out and about, because so much of the MeetMe product is built around location and photos, mobile plays to our strengths with GPS and camera on every device. At scale, we envision MeetMe will be the conduit to discovering the people around you, whether you are standing on the subway platform or waiting in line at Starbucks.

Our conviction is that the winner of our category will be the company that wins on mobile. And this is where we have placed and are placing all of our attention.

In Q4, 45% of our mobile users were mobile-only users. This compares to just 23% of Facebook's mobile users, who were mobile-only users in Q4. We believe this indicates that meeting new people is an activity people are more likely to do on mobile devices than on the Web and speaks to the power of MeetMe as a compelling mobile product.

Traffic on the MeetMe platform increased by a healthy margin in Q4. MeetMe Daily Active Users, DAU, increased 14% over the Q3 average to 1.261 million, while mobile DAU increased 13% to just over 765,000. Overall Monthly Active Users, MAU, increased 40% versus the Q3 average, driven in part by the onetime consolidation with the Quepasa platform in October, but also by our international expansion efforts in general, while our mobile MAUs increased 9%, breaking 2 million average MAUs for the first time. Meanwhile, new registration has leaped 59% overall to 95.8 million, again, mostly in new international markets, while mobile registrations were close to flat versus Q3.

Our shift from Web to mobile is our opportunity and our future. It is also our biggest challenge. With our users increasingly opting to use our mobile applications, we are focused on improving the rate at which we monetize our mobile traffic. While our total traffic remains at or near all-time highs, this growth is largely driven by our mobile audience, which currently constitutes the majority of our page views in DAU, and which we currently monetize at much lower rates than our Web audience.

For example, in Q4, we earned approximately $0.13 for each Daily Active User on the Web compared to just over $0.03 for each mobile DAU. We see a tremendous opportunity in closing this gap. At current usage levels, each additional $0.01 of revenue generated for mobile DAU drives an additional $2.5 million in annualized revenue.

As users shift from Web to mobile, webpage views have decreased in every quarter of 2012, from 3.5 billion in Q1 2012 to 2.7 billion in Q4 of 2012.

In the near term, the challenges associated with the shift of our users to mobile will affect operating results until the monetization of mobile expands sufficiently. This headwind further underscores the importance of mobile monetization to the company.

To that end, we have successfully expanded our mobile average revenue per Daily Active User, ARPDAU, by 160% to $0.032 in Q4 '12 from $0.012 in Q4 2011, while also expanding our mobile revenue by 350% during the same period, to $2.2 million from $487,000. We believe our ability to continue to grow our mobile audience and our mobile monetization at a faster pace than the decline in our Web traffic will determine the performance of our business in 2013 and beyond.

We have 2 key initiatives that we believe will continue the rapid improvement in mobile monetization. The first, a premium subscription product called MeetMe Plus. It takes advantage of the fact that mobile is not just a screen but a payment platform because it makes payments so frictionless. Virtually every user of our iPhone application has a credit card on file with Apple, which makes even a first-time purchase within our application, a simple matter of 2 taps.

In contrast, on the Web, a first-time purchaser of a virtual currency or subscription product must enter a credit card number manually. A significant source of friction, which leads a lower percentage of Web users to buy in comparison to mobile users.

In fact, in recent months, we've seen Android users be over 5x as likely to buy virtual currency as our Web users, with iPhone users 10x as likely. Because of metrics like these and mobile's privileged position as a payment platform, we believe, in the long run, mobile will emerge as the better monetizing platform, better than even the Web today.

We anticipate MeetMe Plus will continue our leadership of social app monetization.

Today, our Android app is the top-grossing application in the social category of the Google Play store, while our iPhone app is the top 10 top-grossing apps in the social category of the app store. By launching our first mobile subscription service, we anticipate expanding our leadership.

MeetMe Plus will launch in 3 phases, with the first phase expected at the end of March. The premium benefits available for MeetMe Plus subscribers were selected through a combination of member feedback, employee ideation sessions and competitor analysis, and the many possible options were then embedded through member surveys to determine the final list. This first phase will contain 4 key benefits for subscribers: the suppression of ads within our mobile applications; bonus virtual currency every month; discounts on any subsequent virtual currency purchases; and most importantly, the ability to see which other users viewed their photos and which photos they viewed. Historically, our users, not unlike LinkedIn users, have been very interested in seeing just who exactly is viewing their profiles.

We see the photo views component of MeetMe Plus as a logical, premium extension that taps into 2 phenomena. One, the overwhelming curiosity users have to know who's interested in them; and two, the increasing likelihood on mobile devices that the photo, not the profile, is the initial engagement point. Photo views will also be available on a freemium basis for users who want to spend virtual currency to take a sneak peek at their photo viewers, rather than subscribing for unlimited access. So we expect to see an incremental increase in demand for virtual currency as well.

Regarding phases 2 and 3 of MeetMe Plus, we're tremendously excited about the features we'll be adding. Two of which will be available as both as subscriber benefits and freemium purchases. We see significant value in maintaining a drumbeat of new MeetMe Plus features to help maintain buzz while broadening demand for our premium services throughout the year.

The second mobile monetization initiative we're focused on is a new native feed advertising placement, which takes advantage of the strong demand and limited inventory currently available for mobile app install and mobile video advertising. Facebook has reported strong uptake of a similar advertising product they launched in late 2012, with 20% of the top 100 top-grossing iOs apps using that channel to acquire users.

In the first phase, expect to launch with MeetMe Plus in late March. We'll be working with a single partner to bring app install ads to our mobile live feed product. Rather than a standard banner advertisement, which is generally set apart from our app content, this new type of advertising is woven into the main content area, with lots of care taken to ensure that the ads are both relevant to our users and effective for our advertising partners.

A single tap sends the user to iTunes or the Google Play store, to download the app we suggested for them. Over the course of Q2 and the rest of 2013, we'll be working with additional partners and additional types of advertising, including mobile video ads, to find the combination of partners and ads that resonates with our users and maximizes revenue from this new native advertising placement.

While the top priority for the company is mobile monetization, we are also continuing to work on growing our domestic user base, and expanding internationally. Late in Q4, we took a significant step toward internationalization, by launching in French, Italian and German, languages spoken by upwards of 30% of European Internet users, and some of the most affluent. Just last month, we expanded into Russia, which accounts for over 13% of European Internet users by itself, and made our first foray into East Asia, with launches in Japanese and traditional Chinese. These languages and these markets are still very new to us and we see these launches as foundational long-term investments rather than short-term needle movers. It is always a challenge to break into new markets and especially so for a social product that relies, in part, on network effects from engagement and growth. We are actively working on cracking the nut of international user growth and we expect to be doing so for the foreseeable future.

However, we are seeing some encouraging early signs. In June of 2012, for example, just 16.7% of our Monthly Active Users came from outside the U.S. and Canada. By December, this number had increased to 44%. However, growth in international DAU has been more gradual, reflecting the challenge of turning monthly visitors into engaged Daily Active Users in new markets, where we haven't yet achieved the same level of profile density as we have domestically. We're in the early stages of MeetMe's international expansion, and our long-term success will depend on our ability to find profitable user acquisition channels outside the U.S., engineer organic virility into the product for international users and engage our international users at the level at which we've historically engaged our U.S. users.

As we head into 2013, we believe we're well positioned to capitalize on the culture-wide shift of traffic from Web to mobile and will soon be even more so. We fully embrace the mobile-first mindset that we believe is necessary for a long-term viability, and in 2013, we're focused on monetizing our mobile traffic more effectively, continuing to expand internationally and as always, improving the core product for our dedicated, highly engaged user base.

To that end, in the second half of the year, you should start to see some exciting new features in our mobile apps, that will bring our slant on meeting new people to a deeper level and help forge more meaningful friendships between users.

We'll have more to share on that topic in a future call. I am eager to tackle the opportunities and challenges that lie ahead and enthusiastic at the chance to continue to work with our talented team to revolutionize the way people meet in a mobile-first world, to make MeetMe the mass-market brand, fulfilling the basic human need of making new friends.

We are excited to continue to seize upon our great momentum in mobile and our global footprint, and drive continued mobile growth and long-term shareholder value.

I'll now turn it over to Mike to provide the financial overview. Mike?

Michael Matte

Thanks, Geoff. Our results for the fourth quarter and full year 2012 were reported in our press release issued this afternoon, and we plan to file our Form 10-K for the year ended December 31, 2012, with the SEC by the required filing date. This filing will also be available on our corporate website.

Before discussing our results, I want to remind everyone that when comparing the reported 2012 results to the prior year, MeetMe.com reported revenues for 2011 includes myYearbook revenues from the acquisition date, November 10, 2011. We present combined data in the following slides for 2011, which includes the myYearbook operations as if the acquisition took place January 1, 2011, for selected non-GAAP comparison of combined revenue growth.

As you can see on Slide 6, total revenues from continuing operations for the fourth quarter 2012 were approximately $11.6 million, an increase of approximately $5.7 million or 96% compared to approximately $5.9 million for the fourth quarter of 2011. This increase is primarily the result of a full quarter in 2012 of combined operations since the acquisition of myYearbook.

Revenues from continuing operations were $11.6 million and $9.5 million on a combined basis for the fourth quarters of 2012 and 2011, respectively, an increase of $2.1 million or 23%. The increase on a combined basis is primarily due to the growth in the MeetMe platform revenues of $1.5 million or 18%, and cross-platform revenues of $600,000 or 56% over the comparable period a year ago.

For the year ended December 31, 2012, reported revenues from continuing operations were $46.7 million compared to $10.7 million for the same period in 2011, an increase of $35.9 million or 336%. Again, the reported revenue increase is primarily the result of a full year of combined operations since the acquisition of myYearbook.

On a combined basis for the year ended December 31, 2012, revenues of $46.7 million increased $11 million or 31% from $35.6 million in 2011. The increase in combined revenues is due primarily to the growth during 2012 of the MeetMe platform revenues, and cross-platform revenues of $5.6 million or 20% and $5.4 million or 77%, respectively, over the comparable period a year ago.

Slides 7 and 8 reflect revenues generated from MeetMe.com platforms and excludes revenues generated from across-platform products, which are revenues primarily from our social peer product and revenues from the Quepasa.com platform. MeetMe reported revenues were approximately $9.9 million in the quarter ended December 31, 2012 as compared to revenues of $5.1 million for the same period in the prior year, representing an increase of $4.8 million, year-over-year.

For the year ended December 31, 2012, MeetMe reported revenues were $34.3 million, an increase of $29.1 million over the year ended December 31, 2011. When you compare the combined MeetMe platform revenues for the quarter and year ended December 31, 2011 of $8.4 million and $28.7 million, revenues increased $1.5 million for the quarter ended and $5.6 million for the year ended December 31, 2012.

The charts on the right side of Slide 7 and 8 represent the mobile product revenues. Mobile revenues were $2.2 million for the quarter ended and $6.1 million for the year ended December 31, 2012, an increase of $1.8 million and $5.8 million from mobile revenues of $335,000 in the quarter and year ended December 31, 2011.

Mobile revenues increased by $400,000 or 25%, when you look at the quarter's sequential growth for Q4 as compared to Q3 of 2012. We continue to see strong growth in our mobile traffic and we are very pleased with the success we're having in our ability to monetize that traffic, primarily through advertising and virtual currency. Our business faces the challenge of ramping up mobile monetization to offset declining Web revenues, as users continue to increase their mobile access.

This may produce potential revenue gaps in the short term, as mobile monetization continues to mature.

Slide 9 reflects the MeetMe.com breakdown of revenues from advertising and virtual currency, both Web and mobile. The chart on the left provides a breakdown of total revenues from the MeetMe.com platform by advertising in virtual currency for the Web.

For the quarter ended December 31, 2012, 71% of our total MeetMe.com Web revenue was generated from advertising and 29% as a result of virtual currency transaction.

For the year ended December 31, 2012, over 75% of our total MeetMe.com Web revenues was generated from advertising and 25% from virtual currency transaction.

The chart on the right side of Slide 9 reflects the percentage of mobile revenues currently generated by virtual currency and advertising. For the quarter and year ended December 31, 2012, advertising represents over 59% and virtual currency was 41% of total mobile revenues.

In Q4 of 2012, mobile advertising revenue increased approximately $326,000, which is a 33% quarterly sequential increase, and mobile virtual currency revenue increased by $115,000 or 14% from Q3. The increase in mobile advertising revenue is a function of a 33.6% increase in CPMs.

Mobile revenue as a percentage of MeetMe platform revenues is an all-time high and now stands at just shy of 22% and 17.8%, for the quarter and year ended December 31, 2012, respectively.

Slide 10 and 11 represent MeetMe.com cross-platform revenues or $1.7 million in the fourth quarter of 2012 compared to $766,000 in the fourth quarter of 2011, an increase of $934,000 or 122%. For the year ended December 31, 2012, revenues were $12.4 million as compared to $5.6 million for the same period in 2011, representing an increase of $6.8 million or 123%.

We are extremely pleased with the growth and continued demand we see in the market by our pipeline of business as we head into 2013.

If you look at the charts on the right side of these slides, we have excluded all affiliated revenues that have been generated for the social period of the product, in order to reflect the actual organic growth of the business without the influence of affiliated transaction.

Turning to slide 12. Our adjusted EBITDA from continuing operations was approximately $3.9 million or $0.11 per share for the year ended December 31, 2012, as compared to a loss of $1.3 million or $0.07 per share in the comparable period in 2011. Our adjusted EBITDA from continuing operations was approximately $987,000 or $0.03 per share for the 3 months ended December 31, 2012, as compared to a loss of $346,000 or $0.01 per share in the comparable period in 2011.

Adjusted EBITDA for the year ended December 31, 2012 from continuing operations excludes approximately $3.9 million of stock-based compensation, $3.9 million of depreciation and amortization, $1.3 million of interest expense, $1 million loss contingency for trademark dispute related to the rebranding and $422,000 for restructuring cost.

With respect to guidance, we will not be giving guidance at this time. We are pleased with the growth and progress we have made since the merger of the 2 companies just over a year ago. We will continue to evaluate our progress and consider providing guidance in the future.

I'll now turn the call back over to John for closing comments.

John C. Abbott

Thanks, Mike. Before turning the call over to Q&A, I'd like to take the opportunity to thank Mike for his contributions to MeetMe. Mike played a key role in restarting Quepasa in 2008 and in driving the company towards its 2011 merger with myYearbook. We wish Mike continued success as he now focuses on opportunities in his home state of Florida. I'd like to welcome David to the MeetMe team. David is a proven leader with a keen understanding of how to scale rapidly growing businesses. And as I transition from my day-to-day responsibilities, I'd like to thank Geoff and the entire MeetMe team for their outstanding execution during a challenging integration of 2 companies and 2 consumer properties. We have a fantastic team that is wholly committed toward our mission of building the leading social network for meeting new people, and I'm looking forward towards continuing to work on behalf of MeetMe as nonexecutive Chairman.

I will now open the call for Q&A. Operator?

Question-and-Answer Session

Operator

[Operator Instructions] Our first question comes from the line of Darren Aftahi with Northland Securities.

Darren Aftahi - Northland Capital Markets, Research Division

I guess, I have some congratulations and good lucks are in order. I just have a couple of questions. There's a lot of facts reeled off pretty quickly. I just want to kind of validate some things. First, so did you say that MeetMe platform revenue was $10 million in the quarter?

Geoffrey Cook

Yes. This is Geoff. Darren, $9.9 million.

Darren Aftahi - Northland Capital Markets, Research Division

Fair enough. And then on mobile MAU and DAU, I think I caught 765,000 for mobile and then MAU, was that 2.1 million?

Geoffrey Cook

Yes, that's correct. And all these details will be in the appendix, as well, of the presentation, which will be up on the site.

Darren Aftahi - Northland Capital Markets, Research Division

Sure. And then of those, I guess mobile numbers, what, if any, are you seeing from international and specifically, some of the new markets you launched in the fourth quarter?

Geoffrey Cook

Yes, so we're not yet splitting out our traffic around by region. Speaking to it in broad terms, I think roughly half of the new registration that we're seeing are international, in terms of the total registration number, relatively fewer than that are -- in terms of the percentage are for mobile. And so I think our mobile growth is still very concentrated on U.S., Canada, U.K., Australia and essentially, English-speaking markets.

Darren Aftahi - Northland Capital Markets, Research Division

And then, a couple more, if I could, and I'll jump back in the queue. So in terms of the advertising feed, is that going to be a global launch when it happens? Or is it going to be sparsed out by geography?

Geoffrey Cook

It's going to be an English-speaking launch when it happens, which is the predominant portion of the mobile traffic. And then we're going to be expanding the partners that we're sourcing our inventory from over the course of the next few months to broaden both the types of units, starting potentially with non-incented transitioning to incented, adding [indiscernible] video, and so -- and then also adding international.

Darren Aftahi - Northland Capital Markets, Research Division

So when you say English-speaking as a delineator, are you referring beyond say, just North America, parts of Europe as well? Or should I just assume, North America?

Geoffrey Cook

When we say English-speaking, it's really U.S., Canada, Australia and the U.K.

Darren Aftahi - Northland Capital Markets, Research Division

Got you, fair enough. And then and last one. Just on the, some of the stuff you're doing with the warrants and the promissory notes. So if I'm understanding this correctly, you've basically wiped out roughly $6.2 million in ARs, and how much in terms of net debt is left over from capital leases? Just so I understand this, as of March 5?

Geoffrey Cook

About $4 million in total debt is left over. And in terms of capital leases, it's about $2 million.

Operator

Our next question comes from the line of Justin Ruiss with Sidoti.

Justin Ruiss - Sidoti & Company, LLC

Just 2 questions. I see mobile is continuing to grow as a percentage of revenue. Where do you see is a comfortable level for mobile to be as a percent of revenue? Would you like it to be half as opposed to where it is now? Or larger?

Geoffrey Cook

Yes, and so this is Geoff. I think in the long run, this is fundamentally a mobile business, I mean, it's essentially that today, with 60% of our traffic. So kind of at the highest level, if all mobile did was track the Web, you'd expect 60% of our revenue to come from mobile. I think over time, you're going to see that number even increase further. So 5 years out, 10 years out, in some future case, I think in the long run, it's roughly 100% of our revenues coming from mobile. And it's that shift in mobile that we're really concentrated on right now.

Justin Ruiss - Sidoti & Company, LLC

Okay. And then with the premium subscription that you had mentioned before, MeetMe Plus, has there been any prices set for that? Do you know what you'll be charging?

Geoffrey Cook

Yes. We haven't yet announced our pricing, but I think a couple of data points that we took into account: the average revenue per paying user for MeetMe is in the average of -- or is in the neighborhood of $10 to $14, depending on whether or not you're looking at iPhone or Android for a mobile audience. And so it's in that general range.

Justin Ruiss - Sidoti & Company, LLC

Perfect. And then lastly, it's a little tough to look at any kind of metric to see how big the mobile user base is growing. Is there anything that you're looking at outside of how many subscribers you have coming on board that you can look at to kind of gauge how big the market's growing?

Geoffrey Cook

We look at a couple of different things. Obviously, internally, we're looking at the actual numbers in terms of DAU and MAU. Externally, there are services like App Annie, which tracks rankings in app stores, both in the U.S. and internationally, which I've seen some people look at.

Operator

[Operator Instructions] Our next question comes from the line of Rob Tinkham with Northland Securities.

Rob Tinkham

I just got a couple of questions. First, could you talk about at all, any impact or feedback you've gotten on the Photoboard product you guys launched?

Geoffrey Cook

Yes. So that is one of the top features in our mobile apps. If you take a look at the iPhone or Android, I think it's in position 1 or 2, which is kind of denoting its popularity in terms of the [indiscernible]. What I think Photoboard really reflects is [indiscernible] people around you through photos. And the kind of [indiscernible] enabling users to see who's viewing their photos. [indiscernible] and so as the MeetMe service becomes more about photo viewing than even profile viewing, we think that will be an important quality for our users.

Rob Tinkham

Got it. And then, so as you guys enter all these international markets, could you give us any sort of expectation of what you kind of think the cost, maximum cost would be to acquire subs on kind of a per sub basis?

Geoffrey Cook

Yes. So obviously, that does vary quite a bit, from market to market. And it can be anywhere from pennies to a few dollars, depending on if you're looking at Web or mobile or Latin America versus U.S., Canada. And so the way we think about that is to track the lifetime value of a given cohort of users and look to monetize -- or look to acquire users, anyway, at less than the net present value of the users -- of the user.

Rob Tinkham

Okay. And then my last one is the expectation still to have the platform translated into 13 languages by the end of the quarter?

Geoffrey Cook

Yes, I think we're in 9 languages today. We have 3 more launching soon. If it's not by the end of March, it will be by mid-April.

Operator

[Operator Instructions] And our next question is a follow-up question from Darren Aftahi from Northland Securities.

Darren Aftahi - Northland Capital Markets, Research Division

So maybe one for Geoff. So strategically, how are you like measuring -- so social discovery can be seen as sort of short-term or long-term in nature, if you think about the lifetime value of a subscriber, if you will, the stickiness of a subscription platform and cost per gross ad, et cetera. So a couple of things. Like how are you thinking -- is that the way you're thinking about the business model? And then for people that are perhaps, churning off, like how are you going about trying to get those users back?

Geoffrey Cook

Right. So one of the things that we found to be most successful in getting users back is interaction on that user by others. So we have various logic around resurfacing users who are churning or at least, risk churning out. We also have e-mail messaging, of course. And then the other thing that does matter quite a bit is just refreshing the product, launching new features, that also keeps users coming back and to try out the new build and see what's new. And so to that end, I think social discovery is in a very nascent place. Most of the connection is that services like ours facilitate around age, gender, location. Where we want to take this is to really increase the relevance of the connections that we facilitate. And so whether that's through interest data or other data, that's where we're focused the second half of this year. I would say, the first half of this year, we're predominantly focused on increasing the rate of our mobile monetization.

Operator

And I am showing no further questions in the queue at this time. Please continue.

E. Brian Harvey

Well, we appreciate everyone dialing in and spending the time on our call, and thank you very much.

Operator

Ladies and gentlemen, this does conclude our conference for today. Thank you for your participation. You may now disconnect.

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