Though Millennial Media's (MM) Q3 revenue nominally beat a consensus of $67.8M, not all estimates take into account the company's recent merger with fellow mobile ad network Jumptap, which had Q3 revenue of $30.2M (up from $14.6M a year ago). Millennial proper had revenue of $56.1M, easily below consensus.
Millennial expects revenue in seasonally strong Q4 to grow to $95M-$100M from a Q3 level of $86.3M. Adjusted EBITDA is expected to be between breakeven and $2M; that suggests EPS will be below a $0.06 consensus.
With eMarketer having forecast global mobile ad sales will rise 89% in 2013, Millennial proper almost certainly lost share in Q3 (Google's AdMob unit is a likely culprit).
Millennial proper reached 500M+ monthly unique users in Q3, up from 450M+ in Q2. The number of apps on its network grew to 49K+ from 45K+.
Q3 results, PR