Dallas, Texas 06/25/2015 (Financialstrend) – MeetMe Inc (NASDAQ:MEET) raised its EBITDA and revenue guidance for the second quarter. And as a result the company stock has spiked in a phenomenal way. Shares gained nearly 28.5% while large number of stock being traded in this week of June.
MeetMe Inc (NASDAQ:MEET) issued a statement in which it said that it expects revenue growth in the second quarter. According to company source, the revenue is expected to be around $10.5 million in the second quarter. This is an increase from its earlier guidance of $9 million for the same quarter.
If the EBITDA guidance is looked at, one can easily observe the huge difference between the earlier guidance and the updated guidance. The EBITDA guidance range, as estimated earlier, was of $250,000 to $750,000. Now, the ranged has been raised to that of $1.5 million to $2 million.
The company accounts this upgrade for the success it got in transitioning its management to the in-house advertising inventory. According to Geoff Cook, the CEO of the company, management of advertising inventory has allowed for stronger rates. As a result, the daily revenue of mobile app advertising was raised 23% compared to May average.
The Stock Market Analysis
The earnings per share for MeetMe Inc (NASDAQ:MEET) has improved. The company has also registered a higher than average industry revenue growth. The debt to equity ratio is also higher than the industry average which needs attention. Though the gross profit of MeetMe Inc (NASDAQ:MEET) has increased significantly than previous year, the net profit margin is lower than the industry average.
While the current surge of stock market might just be the regular ebb and flow for analysts and the company it may be a ray of hope in the competitive environment. For now, it has created a buzz in the market.