MeetMe tumbles following EPS miss

|By:, SA News Editor

A 7% Y/Y increase in R&D/content spend to $6.9M, and a 9% increase in sales/marketing spend to $2.2M, pressured MeetMe's (MEET -18.9%) bottom line in Q1. At the same time, G&A spend fell 20% to $1.9M.

Mobile revenue rose 144% Y/Y to $4.7M, offsetting a decline in Web revenue and allowing total revenue to grow 22% (slightly above consensus).

Mobile ARPU was $1.92, up sharply from the year-ago period's $0.82 but down from Q4's $2.01. MeetMe states its mobile daily active users (DAUs) have averaged 852K in recent weeks, up 10% from the Q1 average. DAUs for the company's core app were at 773K in Q4.

MeetMe ended Q1 with $5.8M in cash/equivalents, down from $6.3M at the end of Q4.

Q1 results, PR