Millennial Media Loss Widens, Stock Tanks - Update

(RTTNews) - Mobile advertising solutions provider Millennial Media Inc. (MM), Wednesday reported a wider loss for the third quarter, hurt by lower margins. Excluding items, the company posted breakeven earnings that fell short of Wall Street estimates, as did revenues.

Following the announcement, Millennial shares tanked 15 percent in after-hours trade on the New York Stock Exchange.

Baltimore, Maryland-based Millennial Media posted third-quarter net loss attributable to common stockholders of $4.6 million or $0.06 per share, compared with $1.8 million or $0.02 per share last year.

Excluding items, the company reported breakeven earnings, compared with $0.03 per share a year ago.

On average, six analysts polled by Thomson Reuters expected earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Meanwhile, revenue for the quarter climbed to $56 million from $47.4 million in the prior year, but missed analysts' expectations of $67.75 million.

Operating expenses for the quarter increased to $26.8 million from $21 million a year ago.

As of September 2013, Millennial Media on a standalone basis reached over 500 million monthly unique users, including about 170 million users in the US.

Recently, Millennium Media closed the acquisition of Jumptap, a privately-held, Boston-based mobile advertising platform.

Including Jumptap results, Millennial Media expects fourth-quarter proforma combined revenue of $95 million to $100 million.

Analysts currently estimate $87.81 million for the quarter.

The company's stock closed Wednesday at $7.18, up $0.41 or 6.06%, on a volume of 2.6 million shares on the NYSE. In after hours, the stock dropped $1.08 or 15.04% at $6.10.