New CEO, New Story At Millennial Media
Millennial Media Jumps Back Into A Promising Ad Tech
Stone Fox Capital • 17 Comments
Stone Fox Capital • 17 Comments
Millennial Media: Is This Company's Piece Of The Mobile Advertising Pie Too Small?
James Sands • 30 Comments
James Sands • 30 Comments
Sep. 3, 2015, 12:45 PM
Sep. 3, 2015, 9:15 AM
- Less than two months after TechCrunch reported a deal could happen, Verizon-owned (NYSE:VZ) AOL has announced it's acquiring mobile ad network owner Millennial Media (NYSE:MM) for $1.75/share, or $248M. The price represents a 30.6% premium to Millennial's Wednesday close, but is still well below a 52-week high of $2.40, and over 90% below Millennial's 2012 highs.
- The deal expands AOL's supply-side (publisher-facing) mobile ad footprint, including within international markets. Millennial claims over 65K apps are on its platform, and that it has over 800M "proprietary, anonymous user profiles" for ad targeting. It follows AOL's display ad deal with Microsoft, and comes ahead of the launch of Verizon's Go90 mobile video service.
- For Millennial, the deal provides an exit for a company that has been losing mobile ad share to the likes of Google, Facebook, Apple, and Twitter. It's expected to close this fall.
- MM +30% to $1.74.
Sep. 3, 2015, 9:12 AM
Aug. 10, 2015, 4:43 PM
- In addition to missing Q2 revenue estimates (while slightly beating on EPS), Millennial Media (NYSE:MM) is guiding for Q3 revenue of $63M-$66M (below an $84M consensus) and full-year revenue of $267M-$280M (below a $326.9M consensus and prior guidance of $311M-$342M).
- Full-year gross billings guidance (doesn't back out ad partner payments) has been cut to $344M-$360M from $435M-$459M. Q3 billings guidance is at $80M-$84M. Direct and indirect mobile ad competition from the likes of Google, Facebook, Twitter, and Apple has been a major headwind for some time.
- CEO Michael Barrett: "[R]evenue is ramping more slowly than we had hoped. We are evaluating strategic opportunities to maximize the value of our capabilities in this rapidly evolving ecosystem." TechCrunch reported in July AOL/Verizon is interested in acquiring Millennial.
- Financials: Gross margin rose 370 bps Y/Y to 43.9% (lifted EPS), and GAAP costs/expenses rose by $2.1M to $44.2M. Millennial ended Q2 with $34.6M in cash (down from $49.5M at the end of 2014), and $5M in short-term borrowings.
- Shares have tumbled to $1.45 in AH trading.
- Q2 results, PR
Jul. 9, 2015, 12:50 PM
Jul. 9, 2015, 9:18 AM
May 13, 2015, 1:53 PM
- Like fellow online ad plays Rocket Fuel and The Rubicon Project, Millennial Media (MM +4.5%) has rallied after Verizon announced it's buying AOL for $4.4B, a deal that's widely seen as being ad-focused.
- Millennial, hit hard by competition from Google, Facebook, and Apple's mobile ad platforms, wouldn't be too hard for a tech or telecom giant to digest: Its market cap is currently $237M. The company has occasionally popped up in M&A speculation over the last 3 years.
May 5, 2015, 6:41 PM
- Though it beat Q1 estimates, Millennial Media (NYSE:MM) is guiding for Q2 revenue of $68M-$71M, below a 3-analyst $73.9M consensus. However, full-year sales guidance of $311M-$342M - $275M-$290M Managed Media, $160M-$169M Platform - has been reiterated (consensus is at $322.7M).
- Q1 gross billings (doesn't back out developer payments) totaled $75.4M, beating guidance of $69M-$72M. Q2 billings guidance is at $86M-$89M, and full-year guidance is still at $435M-$459M.
- Millennial claims to have reached 670M monthly unique users at the end of Q1 (175M in the U.S.), up from 650M at the end of Q4. 65K apps supported Millennial's mobile ad platform, up 5K Q/Q. Anonymous user profiles (used for ad targeting) rose by 50M Q/Q to 750M+.
- Millennial's beaten-down shares have risen to $1.53 AH.
- Q1 results, PR
May 5, 2015, 4:09 PM
- Millennial Media (NYSE:MM): Q1 EPS of -$0.09 beats by $0.03.
- Revenue of $63.17M (-13.0% Y/Y) beats by $5.86M.
- Shares +3.47%.
Apr. 22, 2015, 3:18 PM
- Today's notable tech gainers include mobile game developer Glu Mobile (GLUU +8.2%), Chinese mobile app developer Cheetah Mobile (CMCM +8.1%), pico projector module developer MicroVision (MVIS +7.6%), Chinese analog/mixed-signal chipmaker Vimicro (VIMC +11.5%), IT services firm WidePoint (WYY +6.2%), mobile ad network owner Millennial Media (MM +5.6%), data discovery software vendor Datawatch (DWCH +15.7%), and RF backhaul hardware vendor Ceragon (CRNT +11.3%). The Nasdaq is up 0.4%.
- Notable decliners include Chinese solar module vendor/project developer Yingli (YGE -5.1%) and U.S. solar installer Solar Power, Inc. (OTCQB:SOPW -5.1%). Most solar peers are higher.
- Cheetah Mobile and Vimicro have joined several other Chinese tech firms in surging following an overnight rally in Shanghai. Glu's gains come ahead of the company's April 29 Q1 report. Datawatch's gains come after the company posted nearly in-line FQ2 results and stated has laid off almost 15% of its workforce; shares had tumbled in January thanks to an FQ1 warning.
- Previously covered: SolarCity, ASML, Cree, Broadcom, Angie's List, Yelp, Adtran, Novatel, SuperCom, Tremor Video, Dolby, Procera, Castlight, Zhone, CalAmp
Mar. 9, 2015, 4:46 PM
- Millennial Media (NYSE:MM) expects Q1 revenue of $55M-$58M, below a sole analyst estimate of $66M. However, full-year revenue guidance of $311M-$342M is in-line with a $321.2M 2-analyst consensus, and going over well in light of Millennial's recent woes.
- Q1 and full-year billings guidance is respectively at $69M-$72M and $435M-$459M. Between them, Millennial and recently-acquired supply-side mobile ad platform Nexage had 2014 revenue of $302.5M and billings of $348.3M.
- Nexage, which Millennial finished acquiring on Dec. 4, had Q4 revenue of $3.6M and billings of $18.5M. Overall, Millennial reached 650M+ users globally (175M in the U.S.) at the end of Q4, and supported ~60K apps on its ad platform; both figures are flat Q/Q for the second straight quarter (previous).
- Gross margin was 38.3% vs. 37.8% in Q3 and 38.7% a year ago. Millennial/Nexage's combined pro forma operating expenses totaled $42.6M; Millennial's year-ago GAAP operating expenses totaled $41.2M.
- Adjusted EBITDA was -$1.8M. Millennial is guiding for Q1 adjusted EBITDA of -$14M to -$15M. Full-year adjusted EBITDA is simply expected to be "positive."
- Shares have risen to $1.72 AH.
- Q4 results, PR
Mar. 9, 2015, 4:11 PM
- Millennial Media (NYSE:MM): Q4 EPS of -$0.02 beats by $0.05.
- Revenue of $86.4M (-10.6% Y/Y) beats by $13.13M.
- Shares +6.9%.
Mar. 4, 2015, 11:37 AM
- Bloomberg reports Facebook (FB +0.8%) is working on a mobile ad platform for 3rd-party apps that would compete against Twitter's (TWTR -2%) popular MoPub mobile ad server/exchange platform for publishers. Twitter is lower following the news.
- Bloomberg adds Facebook could unveil the offering at its annual f8 developer's conference (March 25-26), and might also make several other ad announcements at the time.
- Facebook used last year's f8 conference to launch its Audience Network, which allows advertisers to sell ads on 3rd-party apps while leveraging Facebook data and targeting tools. The company later launched a revamped version of its Atlas ad-serving/measurement platform that links measurement of both Facebook and non-Facebook ads to user profiles.
- Whereas Audience Network provides a set of Facebook ad units for publishers and advertisers, MoPub is a publisher-centric (i.e. supply-side) platform that gives developers a variety of tools (and access to many ad-buying platforms) for monetizing their ad inventory. Thus, creating a MoPub rival would represent an expansion of Facebook's efforts to act as an ad partner for app publishers.
- Google's (NASDAQ:GOOG) AdMob is a major player in this space. Millennial Media (MM -0.9%) remains a notable independent player, in spite of its recent struggles.
Dec. 16, 2014, 10:50 AM
Dec. 9, 2014, 1:25 PM
- Mobile ad network owner Millennial Media (MM +8.4%), programmatic ad-buying platform Rocket Fuel (FUEL +5.3%), and video ad tech platforms Tremor Video (TRMR +6.4%) and TubeMogul (TUBE +8.5%) are among the day's standouts.
- The Rubicon Project (RUBI +1.9%), Criteo (CRTO +2.1%), and Sizmek (SZMK +2%) are up more moderately, but still outperforming. The Nasdaq is up 0.1%.
- With the exceptions of TubeMogul and Criteo, the group has had a rough year. Yesterday, Strategy Analytics published an analysis of the online media ops of 44 publicly-traded companies (inc. giants such as Google, Facebook, and Amazon) in which its estimated the companies' online ad sales collectively rose 24% Y/Y in 1H14.
Nov. 13, 2014, 9:50 AM
- Millennial Media (NYSE:MM) has formed a one-year partnership with ad giant Interpublic (NYSE:IPG). The deal covers all of Interpublic's "creative, digital, marketing services and media agencies."
- Interpublic's Cadreon ad-buying platform will be integrated with Millennial's programmatic (automated) ad offerings. The companies declare "IPG agencies and their clients will be eligible for greater efficiencies, custom research, access to Millennial Media's robust and scalable mobile data capabilities, and a first look at the mobile advertising platform's new products."
- Millennial is adding to the gains it saw last week after beating Q3 estimates and providing weak Q4 guidance.
Millennial Media Inc is an independent mobile advertising platform company. It offers advertisers solutions to reach and connect with target audiences across screens from smartphones, tablets and other mobile devices to PCs.
Industry: Marketing Services
Country: United States
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