Mobile ad network Millennial Media has failed to deliver the big quarter it needed to turn around the problems experienced during the first three months of 2014.
Net income, or loss in this case, was up from $12.9 million in Q1 2014 to $15.1 million in the most recent quarter. Year-on-year, Millennial’s loss increased by $12 million from $3.1 million in Q1 2013.
While generally accepted accounting principles (GAAP) revenue fared better, improving from $57 million to $67.3 million in the second quarter of 2014, pro forma revenue was less than satisfactory.
Taking into account the combined revenue of Millennial Media and the recently acquired Jumptap, pro forma revenue gave way to a fall of 17.2% from $81.3 million.
Drop in EBITDA
There was little in the way of good news in Millennial’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) either, which dropped from a 0.4$ million net loss in the second quarter of 2013 to $6.1 million in 2014.
Millennial’s not doing too badly in other areas though. Global monthly unique users stand at 650 million, with 170 million in just the US and as of late June, 60,000 apps and mobile sites were supported by its ad platform.
Despite its struggles Millennial believes revenue for Q3 2014 will fall between $65 million and $70 million, whereas its net loss figure for adjusted EBITDA will lie inside of the $7 million to $8 million mark.
Programmatic on the horizon
Having only taken Millennial’s reins in January, CEO Michael Barrett laid out how he intends to turn Millennials fortunes around by adopting some of advertising’s more contemporary technologies.
“As the mobile ad industry continues to shift and evolve, we too must grow and expand our unique assets,” he explained.
“We will continue to strengthen our mobile network foundation, while accelerating our programmatic exchange and open platform to further define our place in the market and reinvigorate revenue growth.”
In the hours since Millennial announced its financials, shares plummeted by 12% to $2.95. The company’s IPO share valuation of $13 will seem like a distant memory to investors.