Company Quick10K Filing
Meet Group
Price3.31 EPS0
Shares78 P/E24
MCap258 P/FCF10
Net Debt8 EBIT14
TEV265 TEV/EBIT19
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-05-06
10-K 2019-12-31 Filed 2020-03-12
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-08
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-07
10-K 2017-12-31 Filed 2018-03-16
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-03-09
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-03-08
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-04
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-03-13
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-15
10-K 2013-12-31 Filed 2014-03-25
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-14
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-08
10-K 2011-12-31 Filed 2012-03-14
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-Q 2011-03-31 Filed 2011-05-11
10-K 2010-12-31 Filed 2011-02-07
10-Q 2010-09-30 Filed 2010-11-12
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-17
10-K 2009-12-31 Filed 2010-03-05
8-K 2020-09-04 Leave Agreement, M&A, Shareholder Rights, Control, Officers, Amend Bylaw, Other Events
8-K 2020-08-06 Earnings, Regulation FD
8-K 2020-06-26 Other Events
8-K 2020-06-26 Other Events
8-K 2020-06-04
8-K 2020-05-06
8-K 2020-03-11
8-K 2020-03-05
8-K 2019-12-17
8-K 2019-11-07
8-K 2019-10-25
8-K 2019-10-04
8-K 2019-10-03
8-K 2019-09-04
8-K 2019-08-13
8-K 2019-07-31
8-K 2019-06-14
8-K 2019-06-12
8-K 2019-05-08
8-K 2019-03-06
8-K 2019-01-08
8-K 2018-11-07
8-K 2018-11-07
8-K 2018-07-27
8-K 2018-07-18
8-K 2018-06-01
8-K 2018-05-02
8-K 2018-03-12
8-K 2018-03-07
8-K 2018-03-07
8-K 2018-01-09

MEET 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1 - Description of Business, Basis of Presentation and Summary of Significant Accounting Policies
Note 2 - Credit Risk and Allowance for Credit Losses
Note 3 - Prepaid Expenses and Other Current Assets
Note 4 - Property and Equipment, Net
Note 5 - Leases
Note 6 - Intangible Assets, Net
Note 7 - Goodwill
Note 8 - Accrued Liabilities
Note 9 - Debt
Note 10 - Commitments and Contingencies
Note 11 - Stockholders' Equity
Note 12 - Derivatives and Hedging Activities
Note 13 - Revenue
Note 14 - Net Income per Share
Note 15 - Retirement Plan
Note 16 - Income Taxes
Note 17 - Fair Value Measurements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 exhibit311-q22020.htm
EX-31.2 exhibit312-q22020.htm
EX-32.1 exhibit321-q22020.htm
EX-32.2 exhibit322-q22020.htm

Meet Group Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
2802241681125602012201420172020
Assets, Equity
55305-20-45-702012201420172020
Rev, G Profit, Net Income
55317-17-41-652012201420172020
Ops, Inv, Fin

Document
false--12-31Q22020000107809937750000341540004000000.0010.00110000000010000000070756013727925717075601372792571200000400000050000336000183000272000106000240000227000460000.0010.0010.0010.00150000002000000500000020000000000000P3YP3Y0.330.330.330.33000 0001078099 2020-01-01 2020-06-30 0001078099 2020-08-03 0001078099 2019-12-31 0001078099 2020-06-30 0001078099 us-gaap:SeriesAPreferredStockMember 2019-12-31 0001078099 us-gaap:SeriesAPreferredStockMember 2020-06-30 0001078099 2019-04-01 2019-06-30 0001078099 2020-04-01 2020-06-30 0001078099 2019-01-01 2019-06-30 0001078099 us-gaap:RetainedEarningsMember 2020-06-30 0001078099 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001078099 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001078099 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0001078099 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001078099 us-gaap:CommonStockMember 2020-06-30 0001078099 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001078099 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001078099 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001078099 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001078099 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001078099 2018-12-31 0001078099 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001078099 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001078099 us-gaap:CommonStockMember 2019-06-30 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0001078099 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001078099 us-gaap:CommonStockMember 2018-12-31 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001078099 us-gaap:RetainedEarningsMember 2019-03-31 0001078099 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001078099 us-gaap:RetainedEarningsMember 2019-06-30 0001078099 2019-06-30 0001078099 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001078099 us-gaap:RetainedEarningsMember 2020-03-31 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001078099 us-gaap:CommonStockMember 2019-03-31 0001078099 us-gaap:CommonStockMember 2020-03-31 0001078099 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001078099 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001078099 us-gaap:RetainedEarningsMember 2018-12-31 0001078099 us-gaap:CommonStockMember 2019-12-31 0001078099 us-gaap:RetainedEarningsMember 2019-12-31 0001078099 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001078099 2019-03-31 0001078099 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0001078099 2020-03-31 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001078099 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2019-12-31 0001078099 us-gaap:AccountingStandardsUpdate201613Member 2019-12-31 0001078099 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001078099 us-gaap:AccountingStandardsUpdate201613Member 2020-01-01 0001078099 meet:ThreeCustomersMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001078099 meet:ThreeCustomersMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001078099 us-gaap:ComputerEquipmentMember 2020-06-30 0001078099 us-gaap:LeaseholdImprovementsMember 2019-12-31 0001078099 us-gaap:OfficeEquipmentMember 2020-06-30 0001078099 us-gaap:LeaseholdImprovementsMember 2020-06-30 0001078099 us-gaap:OfficeEquipmentMember 2019-12-31 0001078099 us-gaap:ComputerEquipmentMember 2019-12-31 0001078099 us-gaap:TrademarksAndTradeNamesMember 2019-12-31 0001078099 us-gaap:ComputerSoftwareIntangibleAssetMember 2019-12-31 0001078099 us-gaap:CustomerRelationshipsMember 2019-12-31 0001078099 us-gaap:TrademarksAndTradeNamesMember 2020-06-30 0001078099 us-gaap:CustomerRelationshipsMember 2020-06-30 0001078099 us-gaap:ComputerSoftwareIntangibleAssetMember 2020-06-30 0001078099 meet:TheTermLoanFacilityMember 2019-12-31 0001078099 meet:TheTermLoanFacilityMember 2020-06-30 0001078099 meet:TheNewTermLoanFacilityMember 2020-06-30 0001078099 meet:TheNewRevolvingCreditFacilityMember 2020-06-30 0001078099 meet:TheNewRevolvingCreditFacilityMember 2020-01-01 2020-06-30 0001078099 meet:TheNewRevolvingCreditFacilityMember 2019-12-31 0001078099 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0001078099 meet:ProductDevelopmentAndContentMember 2020-01-01 2020-06-30 0001078099 us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0001078099 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-06-30 0001078099 us-gaap:GeneralAndAdministrativeExpenseMember 2020-04-01 2020-06-30 0001078099 meet:ProductDevelopmentAndContentMember 2020-04-01 2020-06-30 0001078099 us-gaap:SellingAndMarketingExpenseMember 2019-04-01 2019-06-30 0001078099 meet:ProductDevelopmentAndContentMember 2019-01-01 2019-06-30 0001078099 us-gaap:SellingAndMarketingExpenseMember 2020-01-01 2020-06-30 0001078099 meet:ProductDevelopmentAndContentMember 2019-04-01 2019-06-30 0001078099 us-gaap:SellingAndMarketingExpenseMember 2019-01-01 2019-06-30 0001078099 us-gaap:SellingAndMarketingExpenseMember 2020-04-01 2020-06-30 0001078099 us-gaap:PerformanceSharesMember 2020-06-30 0001078099 us-gaap:RestrictedStockMember 2020-01-01 2020-06-30 0001078099 srt:MinimumMember us-gaap:PerformanceSharesMember 2020-01-01 2020-06-30 0001078099 srt:MaximumMember us-gaap:PerformanceSharesMember 2020-01-01 2020-06-30 0001078099 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0001078099 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2020-01-01 2020-06-30 0001078099 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0001078099 us-gaap:PerformanceSharesMember 2020-01-01 2020-06-30 0001078099 us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0001078099 us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0001078099 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001078099 us-gaap:PerformanceSharesMember 2019-01-01 2019-06-30 0001078099 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0001078099 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001078099 us-gaap:EmployeeStockOptionMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2020-01-01 2020-06-30 0001078099 us-gaap:PerformanceSharesMember 2020-04-01 2020-06-30 0001078099 us-gaap:RestrictedStockMember 2020-06-30 0001078099 us-gaap:PerformanceSharesMember 2019-12-31 0001078099 us-gaap:RestrictedStockMember 2019-12-31 0001078099 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2020-01-01 2020-06-30 0001078099 us-gaap:EmployeeStockOptionMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2020-01-01 2020-06-30 0001078099 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2020-01-01 2020-06-30 0001078099 us-gaap:EmployeeStockOptionMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2020-01-01 2020-06-30 0001078099 us-gaap:PerformanceSharesMember 2019-04-01 2019-06-30 0001078099 us-gaap:ForeignCurrencyGainLossMember 2019-04-01 2019-06-30 0001078099 us-gaap:ForeignCurrencyGainLossMember 2020-04-01 2020-06-30 0001078099 us-gaap:ForeignCurrencyGainLossMember 2020-01-01 2020-06-30 0001078099 us-gaap:ForeignCurrencyGainLossMember 2019-01-01 2019-06-30 0001078099 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001078099 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2019-12-31 0001078099 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001078099 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2020-06-30 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NondesignatedMember 2019-12-31 0001078099 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NondesignatedMember 2019-12-31 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2019-12-31 0001078099 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NondesignatedMember 2020-06-30 0001078099 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001078099 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NondesignatedMember 2020-06-30 0001078099 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2020-06-30 0001078099 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001078099 meet:DerivativeLiabilityNoncurrentMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001078099 us-gaap:CashFlowHedgingMember 2020-04-01 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember 2019-01-01 2019-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember 2019-04-01 2019-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2019-04-01 2019-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember 2020-04-01 2020-06-30 0001078099 us-gaap:CashFlowHedgingMember 2019-01-01 2019-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2020-04-01 2020-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2020-01-01 2020-06-30 0001078099 us-gaap:CashFlowHedgingMember 2019-04-01 2019-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember 2020-01-01 2020-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2019-01-01 2019-06-30 0001078099 us-gaap:CashFlowHedgingMember 2020-01-01 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:ShortMember 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:LongMember 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember 2020-01-01 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember 2020-06-30 0001078099 us-gaap:InterestRateCapMember 2020-06-30 0001078099 us-gaap:InterestRateSwapMember 2020-06-30 0001078099 us-gaap:InterestRateSwapMember 2020-01-01 2020-06-30 0001078099 us-gaap:InterestRateCapMember 2020-01-01 2020-06-30 0001078099 us-gaap:InterestExpenseMember 2019-01-01 2019-06-30 0001078099 us-gaap:InterestExpenseMember 2019-04-01 2019-06-30 0001078099 us-gaap:InterestExpenseMember 2020-04-01 2020-06-30 0001078099 us-gaap:InterestExpenseMember 2020-01-01 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-04-01 2019-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2020-04-01 2020-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-01-01 2019-06-30 0001078099 us-gaap:CashFlowHedgingMember us-gaap:ForeignCurrencyGainLossMember 2019-01-01 2019-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2020-01-01 2020-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-04-01 2019-06-30 0001078099 us-gaap:CashFlowHedgingMember us-gaap:ForeignCurrencyGainLossMember 2019-04-01 2019-06-30 0001078099 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2020-01-01 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2020-04-01 2020-06-30 0001078099 us-gaap:CashFlowHedgingMember us-gaap:ForeignCurrencyGainLossMember 2020-01-01 2020-06-30 0001078099 us-gaap:CashFlowHedgingMember us-gaap:ForeignCurrencyGainLossMember 2020-04-01 2020-06-30 0001078099 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-01-01 2019-06-30 0001078099 us-gaap:AdvertisingMember 2019-04-01 2019-06-30 0001078099 meet:SubscriptionAndOtherInappProductsMember 2020-01-01 2020-06-30 0001078099 meet:VideoMember 2019-01-01 2019-06-30 0001078099 us-gaap:AdvertisingMember 2020-01-01 2020-06-30 0001078099 us-gaap:AdvertisingMember 2020-04-01 2020-06-30 0001078099 meet:SubscriptionAndOtherInappProductsMember 2019-04-01 2019-06-30 0001078099 meet:VideoMember 2020-01-01 2020-06-30 0001078099 meet:UserPayRevenueMember 2020-04-01 2020-06-30 0001078099 meet:UserPayRevenueMember 2019-01-01 2019-06-30 0001078099 meet:SubscriptionAndOtherInappProductsMember 2019-01-01 2019-06-30 0001078099 us-gaap:AdvertisingMember 2019-01-01 2019-06-30 0001078099 meet:VideoMember 2019-04-01 2019-06-30 0001078099 meet:VideoMember 2020-04-01 2020-06-30 0001078099 meet:UserPayRevenueMember 2020-01-01 2020-06-30 0001078099 meet:UserPayRevenueMember 2019-04-01 2019-06-30 0001078099 meet:SubscriptionAndOtherInappProductsMember 2020-04-01 2020-06-30 0001078099 meet:TwoCustomersMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-06-30 0001078099 meet:ThreeCustomersMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001078099 meet:InitechLLCMember meet:ContingentConsiderationMember 2020-06-30 0001078099 meet:InitechLLCMember meet:ContingentConsiderationMember 2019-12-31 0001078099 meet:InitechLLCMember meet:ContingentConsiderationMember 2020-01-01 2020-06-30 0001078099 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001078099 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001078099 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001078099 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001078099 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001078099 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001078099 us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001078099 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 0001078099 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-06-30 0001078099 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 0001078099 us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001078099 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-06-30 0001078099 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-06-30 0001078099 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 0001078099 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-06-30 0001078099 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 meet:derivative_instrument xbrli:pure iso4217:USD xbrli:shares xbrli:shares iso4217:USD iso4217:EUR
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 001-33105

tmglogoa02.jpg
The Meet Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware
86-0879433
(State or Other Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification No.)
 
 
100 Union Square Drive, New Hope, Pennsylvania 18938
(Address of Principal Executive Office)

Registrant’s Telephone Number: (215) 862-1162
Securities registered pursuant to Section 12(b) of the Exchange Act
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock
 
MEET
 
NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer    ☐    Accelerated filer    ☑    Non-accelerated filer    
Smaller reporting company        Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for comply with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes      No
Class
 
Outstanding as of August 3, 2020
Common Stock, $0.001 par value per share
 
72,854,749
 





THE MEET GROUP, INC. AND SUBSIDIARIES
TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II. OTHER INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2




PART I. FINANCIAL INFORMATION 

ITEM 1. FINANCIAL STATEMENTS

THE MEET GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
 
(Unaudited)
 
 
 
June 30, 2020
 
December 31, 2019
Assets:
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
47,644

 
$
27,241

Accounts receivable, net
33,230

 
25,234

Prepaid expenses and other current assets
6,464

 
6,062

Total current assets
87,338

 
58,537

Deferred tax assets
13,616

 
16,233

Property and equipment, net
2,701

 
3,625

Operating lease right-of-use assets
6,550

 
7,034

Intangible assets, net
24,947

 
29,305

Goodwill
156,749

 
156,687

Other assets
700

 
1,300

Total assets
$
292,601

 
$
272,721

Liabilities and stockholders' equity:
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
8,610

 
$
5,346

Accrued liabilities
24,806

 
20,090

Current portion of long-term debt
3,500

 
3,500

Current portion of operating lease liabilities
2,464

 
2,081

Current portion of finance lease obligations
9

 
10

Deferred revenue
3,720

 
3,884

Total current liabilities
43,109

 
34,911

Long-term debt, net
28,672

 
30,375

Long-term operating lease liabilities
4,204

 
5,024

Long-term finance lease obligations
46

 
53

Long-term derivative liabilities
913

 
1,451

Deferred tax liabilities
2,616

 
2,773

Other liabilities

 
894

Total liabilities
79,560

 
75,481

Commitments and contingencies


 


Stockholders' equity:
 
 
 
Preferred stock, $0.001 par value; authorized - 5,000,000 shares; no shares issued and outstanding as of June 30, 2020 and December 31, 2019

 

Series A junior participating preferred stock, $0.001 par value; authorized - 200,000 shares; no shares issued and outstanding as of June 30, 2020 and December 31, 2019

 

Common stock, $0.001 par value; authorized - 100,000,000 shares; 72,792,571 and 70,756,013 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively
73

 
71

Additional paid-in capital
438,345

 
430,959

Accumulated deficit
(223,694
)
 
(231,441
)
Accumulated other comprehensive loss
(1,683
)
 
(2,349
)
Total stockholders equity
213,041

 
197,240

Total liabilities and stockholders equity
$
292,601

 
$
272,721


See notes to consolidated financial statements.

3




THE MEET GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share and per share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Revenue
$
90,332

 
$
52,000

 
$
145,398

 
$
101,513

Operating costs and expenses:
 
 
 
 
 
 
 
Sales and marketing
8,089

 
9,060

 
15,803

 
16,900

Product development and content
57,627

 
30,151

 
95,298

 
61,273

General and administrative
6,663

 
5,892

 
11,693

 
10,820

Depreciation and amortization
2,689

 
3,430

 
5,509

 
6,628

Acquisition, restructuring and other
1,335

 
25

 
4,705

 
504

Total operating costs and expenses
76,403

 
48,558

 
133,008

 
96,125

Income from operations
13,929

 
3,442

 
12,390

 
5,388

Other income (expense):
 
 
 
 
 
 
 
Interest income
7

 
28

 
20

 
60

Interest expense
(554
)
 
(328
)
 
(950
)
 
(731
)
Gain (loss) on foreign currency transactions
3

 
(2
)
 
(4
)
 
(68
)
Loss on disposal of assets

 

 
(108
)
 

Other items of (expense) income, net

 
(1
)
 
2

 
3

Total other expense
(544
)
 
(303
)
 
(1,040
)
 
(736
)
Income before income tax expense
13,385

 
3,139

 
11,350

 
4,652

Income tax expense
(3,006
)
 
(935
)
 
(3,379
)
 
(1,190
)
Net income
$
10,379

 
$
2,204

 
$
7,971

 
$
3,462

 
 
 
 
 
 
 
 
Basic and diluted net income per share:
 
 
 
 
 
 
 
Basic net income per share
$
0.14

 
$
0.03

 
$
0.11

 
$
0.05

Diluted net income per share
$
0.14

 
$
0.03

 
$
0.10

 
$
0.04

 
 
 
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
 
 
 
Basic
72,030,143

 
75,648,621

 
71,516,532

 
75,250,562

Diluted
76,225,180

 
78,508,559

 
76,073,893

 
78,656,115

 
 
 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
Net income
$
10,379

 
$
2,204

 
$
7,971

 
$
3,462

Other comprehensive income:
 
 
 
 
 
 
 
Reclassification of loss (gain) on derivatives, net of tax of $227, $106, $46 and $240, respectively
813

 
232

 
216

 
(544
)
Unrealized (loss) gain on derivatives, net of tax of $183, $50, $272 and $336, respectively
(401
)
 
(131
)
 
421

 
697

Foreign currency translation adjustment
436

 
263

 
29

 
(58
)
Other comprehensive income
848

 
364

 
666

 
95

Comprehensive income
$
11,227

 
$
2,568

 
$
8,637

 
$
3,557


See notes to consolidated financial statements.

4




THE MEET GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
(UNAUDITED)
(in thousands, except share data)
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Loss
 
Total
Stockholders

Equity
 
Shares
 
Amount
 
 
 
 
Balance as of April 1, 2020
71,185,492

 
$
71

 
$
434,622

 
$
(234,073
)
 
$
(2,531
)
 
$
198,089

Stock-based compensation expense

 

 
2,850

 

 

 
2,850

Exercise of stock options
343,264

 

 
1,423

 

 

 
1,423

Issuance of common stock for vested restricted stock awards
1,263,815

 
2

 

 

 

 
2

Restricted stock awards withheld to cover taxes

 

 
(550
)
 

 

 
(550
)
Other comprehensive income

 

 

 

 
848

 
848

Net income

 

 

 
10,379

 

 
10,379

Balance as of June 30, 2020
72,792,571

 
$
73

 
$
438,345

 
$
(223,694
)
 
$
(1,683
)
 
$
213,041

 
 
 
 
 
 
 
 
 
 
 
 
Balance as of January 1, 2020
70,756,013

 
$
71

 
$
430,959

 
$
(231,441
)
 
$
(2,349
)
 
$
197,240

Accounting Standards Update No. 2016-13

 

 

 
(159
)
 

 
(159
)
Stock-based compensation expense

 

 
6,035

 

 

 
6,035

Exercise of stock options
506,105

 

 
1,987

 

 

 
1,987

Issuance of common stock for vested restricted stock awards
1,543,388

 
2

 

 

 

 
2

Restricted stock awards withheld to cover taxes

 

 
(636
)
 

 

 
(636
)
Repurchase and retirement of common stock
(12,935
)
 

 

 
(65
)
 

 
(65
)
Other comprehensive income

 

 

 

 
666

 
666

Net income

 

 

 
7,971

 

 
7,971

Balance as of June 30, 2020
72,792,571

 
$
73

 
$
438,345

 
$
(223,694
)
 
$
(1,683
)
 
$
213,041

 
 
 
 
 
 
 
 
 
 
 
 
Balance as of April 1, 2019
75,270,035

 
$
76

 
$
422,472

 
$
(219,018
)
 
$
(2,303
)
 
$
201,227

Stock-based compensation expense

 

 
2,865

 

 

 
2,865

Exercise of stock options
5,597

 

 
23

 

 

 
23

Issuance of common stock for vested restricted stock awards
951,951

 
1

 
(1
)
 

 

 

Restricted stock awards withheld to cover taxes

 

 
(283
)
 

 

 
(283
)
Other comprehensive income

 

 

 

 
364

 
364

Net income

 

 

 
2,204

 

 
2,204

Balance as of June 30, 2019
76,227,583

 
$
77

 
$
425,076

 
$
(216,814
)
 
$
(1,939
)
 
$
206,400

 
 
 
 
 
 
 
 
 
 
 
 
Balance as of January 1, 2019
74,697,526

 
$
75

 
$
419,456

 
$
(220,276
)
 
$
(2,034
)
 
$
197,221

Stock-based compensation expense

 

 
5,290

 

 

 
5,290

Exercise of stock options
157,334

 

 
703

 

 

 
703

Issuance of common stock for vested restricted stock awards
1,372,723

 
2

 
(2
)
 

 

 

Restricted stock awards withheld to cover taxes

 

 
(371
)
 

 

 
(371
)
Other comprehensive income

 

 

 

 
95

 
95

Net income

 

 

 
3,462

 

 
3,462

Balance as of June 30, 2019
76,227,583

 
$
77

 
$
425,076

 
$
(216,814
)
 
$
(1,939
)
 
$
206,400


See notes to consolidated financial statements.

5




THE MEET GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
 
Six Months Ended June 30,
 
2020
 
2019
Cash flows from operating activities:
 
 
 
Net income
$
7,971

 
$
3,462

Adjustments to reconcile net income to net cash provided by operating activities:

 
 
Depreciation and amortization
5,509

 
6,628

Amortization of right-of-use assets
1,284

 
1,294

Stock-based compensation expense
6,035

 
5,290

Deferred tax expense
2,317

 
268

Loss on disposal of assets
108

 

Loss on foreign currency transactions
4

 
68

Provision for expected credit losses
989

 
909

Non-cash interest expense
452

 
94

Changes in derivatives
246

 

Changes in contingent consideration obligations
45

 
64

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(9,137
)
 
2,414

Prepaid expenses, other current assets and other assets
47

 
(484
)
Accounts payable and accrued liabilities
5,399

 
(6,021
)
Deferred revenue
(164
)
 
(19
)
Net cash provided by operating activities
21,105

 
13,967

Cash flows from investing activities:

 
 
Purchases of property and equipment
(233
)
 
(688
)
Acquisition of business, net of cash acquired

 
(11,808
)
Net cash used in investing activities
(233
)
 
(12,496
)
Cash flows from financing activities:
 
 
 
Proceeds from exercise of stock options
1,987

 
703

Repurchases of common stock
(65
)
 

Payments of finance leases
(7
)
 
(78
)
Proceeds from revolving loan

 
7,000

Payments for restricted stock awards withheld for taxes
(636
)
 
(371
)
Payments of term loan
(1,750
)
 
(11,067
)
Net cash used in financing activities
(471
)
 
(3,813
)
Change in cash and cash equivalents prior to effect of foreign currency exchange rate
20,401

 
(2,342
)
Effect of foreign currency exchange rate
2

 
29

Net increase (decrease) in cash and cash equivalents
20,403

 
(2,313
)
Cash and cash equivalents as of beginning of period
27,241

 
28,366

Cash and cash equivalents as of end of period
$
47,644

 
$
26,053

Supplemental disclosure of cash flow information:
 
 
 
Cash paid for interest
$
245

 
$
630

Cash paid for income taxes
$
1,375

 
$
1,320


See notes to consolidated financial statements.

6




THE MEET GROUP, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 — Description of Business, Basis of Presentation and Summary of Significant Accounting Policies 

Description of Business

The Meet Group, Inc. (“Company,” or “The Meet Group”) is a leading provider of interactive dating solutions designed to meet the universal need for human connection. The Company leverages a powerful live video platform (“Live”), empowering its global community to forge meaningful connections. The Company’s primary applications (“apps”) are MeetMe®, Skout®, Tagged®, LOVOO® and Growlr®.

The Company operates location-based social networks for meeting new people — primarily on mobile platforms, including on iPhone, Android, iPad and other tablets — that facilitate interactions among users and encourage users to connect, communicate and engage with each other.

The Company also offers online marketing capabilities, which enable marketers to display their advertisements on its apps.

Basis of Presentation 

The Company’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of all subsidiaries and affiliates in which the Company holds a controlling financial interest as of the date of the consolidated financial statements.

The consolidated financial statements include the accounts of The Meet Group and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

The unaudited consolidated financial statements have been prepared by the Company and reflect all normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the interim financial information. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited consolidated financial statements and notes included herein should be read in conjunction with the audited consolidated financial statements and notes included therein in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the SEC on March 12, 2020.

Merger Agreement

On March 5, 2020, the Company entered into a definitive agreement to be acquired by ProSiebenSat.1 Media SE’s and General Atlantic Coöperatief U.A.’s joint company, NCG – NUCOM GROUP SE, a European stock corporation (“NuCom”), through eHarmony Holding, Inc., a subsidiary of NuCom’s platform company Parship Group GmbH (“Buyer”). Pursuant to the Agreement and Plan of Merger (“Merger Agreement”), by and among the Company, Buyer, Holly Merger Sub, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Buyer (“Merger Sub”), and NuCom, solely for the purpose of guaranteeing Buyer’s obligations under the Merger Agreement, Merger Sub shall merge with and into the Company (“Merger”). As a result of the Merger, the separate corporate existence of Merger Sub shall cease, the Company shall continue as the surviving corporation in the Merger (“Surviving Corporation”) and the Surviving Corporation shall become a wholly-owned subsidiary of Buyer. The Company recorded $1.2 million and $4.3 million of acquisition, restructuring and other expenses related to the Merger Agreement during the three and six months ended June 30, 2020, respectively.

The Company expects the Merger to close by the end of 2020, subject to the satisfaction of all closing conditions.


7




Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are required in the determination of business combinations and contingent consideration arrangements, income taxes, the valuation of long-lived assets, including property and equipment, definite-lived intangible assets and goodwill and accounting for contingencies. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. The Company’s estimates are often based on complex judgments, probabilities and assumptions that it believes are reasonable but are inherently uncertain and unpredictable. For any given individual estimate or assumption made by the Company, there may also be other estimates or assumptions that are reasonable.

The Company regularly evaluates its estimates and assumptions using historical experience and other factors, including the economic environment. As future events and their effects cannot be determined with precision, the Company’s estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause it to change those estimates and assumptions. Market conditions, such as illiquid credit markets, volatile equity markets, dramatic fluctuations in foreign currency rates and economic downturn, can increase the uncertainty already inherent in its estimates and assumptions. The Company adjusts its estimates and assumptions when facts and circumstances indicate the need for change. Those changes generally will be reflected in the Company’s consolidated financial statements on a prospective basis unless they are required to be treated retrospectively under the relevant accounting standard. It is possible that other professionals, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts. The Company is also subject to other risks and uncertainties that may cause actual results to differ from estimated amounts, such as changes in competition, litigation, legislation and regulations.

Recently-issued Accounting Standards

Recently-adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”), which requires the measurement and recognition of expected credit losses for certain financial assets, including trade accounts receivable. ASU No. 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of relevant information, including an entity’s historical experience, current conditions and other reasonable and supportable forecasts that affect collectability over the life of a financial asset. The amendments in ASU No. 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted.

The Company adopted ASU No. 2016-13 on January 1, 2020, which resulted in an increase of $0.2 million to its allowance for credit losses that was recognized as a cumulative effect adjustment to its accumulated deficit under a modified retrospective transition method. The new standard did not materially impact the Company’s results of operations or cash flows.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”). This standard removes, modifies and makes certain additions to the disclosure requirements for fair value measurement. The amendments in ASU No. 2018-13 are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption was permitted. The Company adopted ASU No. 2018-13 on January 1, 2020, and it did not have a material impact to its consolidated financial statement disclosures.

Accounting Standards Issued and Not Yet Adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”). This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740, Income Taxes, and clarifies and amends certain existing guidance. The amendments in ASU No. 2019-12 are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this new standard will have on its financial position, results of operations and cash flows.


8




Impact of the 2019 Novel Coronavirus

The Company is closely monitoring the impact of the 2019 novel coronavirus (“COVID-19”) on all aspects of its business. COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020 and the U.S. President declared the COVID-19 outbreak a national emergency. While the Company’s total revenue increased significantly during the second quarter of 2020, the future impacts of the pandemic and any resulting economic impact are largely unknown and rapidly evolving. It is possible that the COVID-19 pandemic, the measures taken by the governments of countries affected and the resulting economic impact may negatively impact the Company’s results of operations, cash flows and financial position as well as its vendors, advertising partners and users.

Note 2 — Credit Risk and Allowance for Credit Losses

The Company is exposed to significant concentrations of credit risk for certain of its financial assets, including cash, cash equivalents and accounts receivable.

Cash and Cash Equivalents

Cash is carried on the Company’s consolidated balance sheets at amortized cost and consists primarily of U.S. dollars and euros held in insured depository accounts with major U.S. and international banks and financial institutions. The Company believes its risk of credit losses for cash is remote and, accordingly, its allowance for credit losses was insignificant as of June 30, 2020 and December 31, 2019. As of June 30, 2020 and December 31, 2019, $40.7 million and $19.7 million of cash exceeded depository insurance limits, respectively.

The Company invests certain of its cash in cash equivalents that are high-quality, liquid money market funds maintained by major U.S. and international banks and financial institutions, and it does not have a history of any losses on its cash and/or cash equivalents. The Company’s cash equivalents are measured at fair value on its consolidated balance sheets using Level 1 inputs of the fair value hierarchy.

Accounts Receivable, Net

Accounts receivable are carried on the Company’s consolidated balance sheets at amortized cost, net of an allowance for credit losses. The Company extends credit in the normal course of business to both U.S. and international customers on a non-collateralized basis under payment terms that typically range from 30 to 120 days. Accounts receivable are written-off in the period that management determines they are uncollectible.

The following table sets forth the composition of the Company’s accounts receivable, net as of June 30, 2020 and December 31, 2019:
(in thousands)
June 30, 2020
 
December 31, 2019
Accounts receivable
$
34,349

 
$
25,503

Less: Allowance for credit losses
(1,119
)
 
(269
)
Accounts receivable, net
$
33,230

 
$
25,234



The Company estimates an allowance for credit losses on its accounts receivable using historical information, current events and reasonable and supportable forecasts of future events. Such information includes, but is not limited to, the Company’s historical collections trends, its customers’ credit histories and other financial information, customer type, customer-specific circumstances, industry, peer and economic data. To estimate the allowance for credit losses, the Company uses an aging method that assigns a provision for expected credit losses to each aging category of accounts receivable, including current accounts, which increases as accounts age and/or extend past their due dates. The Company does not have a significant history of material losses from uncollectible accounts.


9




The following table sets forth a summary of the changes in the Company’s allowance for credit losses related to accounts receivable for the six months ended June 30, 2020 and 2019:
 
Six Months Ended June 30,
(in thousands)
2020
 
2019
Balance as of January 1
$
428

 
$
384

Provision for expected credit losses
989

 
909

(Write-offs) recoveries of accounts receivable
(298
)
 
70

Balance as of June 30
$
1,119

 
$
1,363



Concentration of Credit Risk

Three customers, which were advertising aggregators or payment processors representing thousands of customers, comprised 73% and 42% of the Company’s accounts receivable as of June 30, 2020 and December 31, 2019, respectively.

Note 3 — Prepaid Expenses and Other Current Assets

The following table sets forth the composition of the Company’s prepaid expenses and other current assets as of June 30, 2020 and December 31, 2019:
(in thousands)
June 30, 2020
 
December 31, 2019
Value-added tax and income tax receivables
$
1,702

 
$
1,312

Fair value of derivative assets
566

 
583

Prepaid insurance
892

 
659

Prepaid support contracts
534

 
443

Prepaid service providers
1,384

 
1,765

Prepaid advertising
569

 
680

Other prepaid expenses and other current assets
817

 
620

Total prepaid expenses and other current assets
$
6,464

 
$
6,062



Note 4 — Property and Equipment, Net

The following table sets forth the composition of the Company’s property and equipment, net as of June 30, 2020 and December 31, 2019:
(in thousands)
June 30, 2020
 
December 31, 2019
Servers, computer equipment and software
$
15,014

 
$
14,901

Office furniture and equipment
889

 
863

Leasehold improvements
770

 
671

Total property and equipment
16,673

 
16,435

Less: Accumulated depreciation
(13,972
)
 
(12,810
)
Total property and equipment, net
$
2,701

 
$
3,625



Depreciation expense was $0.5 million and $0.7 million for the three months ended June 30, 2020 and 2019, respectively, and $1.2 million and $1.3 million for the six months ended June 30, 2020 and 2019, respectively.

Note 5 — Leases

The Company has operating leases for its operating facilities, data center storage facilities and certain data storage equipment in the U.S. and Germany, and finance leases for printers in its German offices. The Company's lease terms include options to extend or terminate the lease and the Company includes these options in the lease term when it is reasonably certain to exercise that option.


10




The following table sets forth the Company’s lease costs for the three and six months ended June 30, 2020 and 2019:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2020
 
2019
 
2020
 
2019
Lease costs:
 
 
 
 
 
 
 
Operating lease cost(1)
$
724

 
$
655

 
$
1,447

 
$
1,380

 
 
 
 
 
 
 
 
Finance lease cost:
 
 
 
 
 
 
 
Depreciation expense
$
5

 
$

 
$
10

 
$
2

Interest on lease liabilities
1

 
2

 
2

 
4

Total finance lease cost
$
6

 
$
2

 
$
12

 
$
6

(1) Short-term lease costs were immaterial.

The following table sets forth the supplemental cash flow information for the Company’s leases for the six months ended June 30, 2020 and 2019:
 
Six Months Ended June 30,
(in thousands)
2020
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
Operating cash flows for operating leases
$
1,402

 
$
1,373

Operating cash flows for finance leases
$
2

 
$
4

Financing cash flows for finance leases
$
7

 
$
78

 
 
 
 
Right-of-use assets obtained in exchange for lease obligations:
 
 
 
Operating leases
$
800

 
$
6,440



The following table sets forth the Company’s aggregate future lease payments for operating and finance leases as of June 30, 2020:
(in thousands)
 
Lease Payments
Years Ending December 31,
 
Operating Leases
 
Finance Leases
Remaining in 2020
 
$
1,453

 
$
6

2021
 
2,469

 
12

2022
 
1,119

 
12

2023
 
595

 
12

2024
 
559

 
12

Thereafter
 
1,184

 
9

Total minimum lease payments
 
7,379

 
63

Less: Amount representing interest
 
711

 
8

Present value of minimum lease payments
 
6,668

 
55

Less: Current portion
 
2,464

 
9

Long-term portion
 
$
4,204

 
$
46




11




The following table sets forth the Company’s weighted-average remaining lease terms and discount rates as of June 30, 2020:
 
Weighted-average Remaining Lease Terms and Discount Rates
Weighted-average remaining lease terms (years):
 
Operating leases
3.88

Finance leases
5.25

 
 
Weighted-average discount rates:
 
Operating leases
4.23
%
Finance leases
3.06
%


Note 6 — Intangible Assets, Net

The following table sets forth the composition of the Company’s intangible assets, net as of June 30, 2020 and December 31, 2019:
 
June 30, 2020
(in thousands)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Trademarks and domain names
$
35,615

 
$
(19,248
)
 
$
16,367

Customer relationships
15,251

 
(11,249
)
 
4,002

Software
19,563

 
(14,985
)
 
4,578

Total intangible assets, net
$
70,429

 
$
(45,482
)
 
$
24,947

 
December 31, 2019
(in thousands)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Trademarks and domain names
$
35,602

 
$
(17,423
)
 
$
18,179

Customer relationships
15,248

 
(10,081
)
 
5,167

Software
19,561

 
(13,602
)
 
5,959

Total intangible assets, net
$
70,411

 
$
(41,106
)
 
$
29,305