SEEKING ALPHA – July 6 – MEET is still trading at a 40-70% discount to peers with similar growth rates and EBITDA margins. The company's financial leverage is powerful; ~65% of incremental revenue dollars should convert to EBITDA in 2016, and ~85% of 2016 EBITDA converts to FCF. The acquisition has raised the ceiling on how big MeetMe can be multiple fold, and investors should want to own the company while management adopts best practices across both the MeetMe and Skout app to drive improved revenue and profitability growth. MEET is attractively positioned as a pure-play investment opportunity levered to the shift in advertising dollars towards mobile devices.
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Summarized by the Courtland Brooks team