Nevada
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001-33105
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86-0879433
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(State or other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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324 Datura Street, Ste. 114
West Palm Beach, FL
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33401
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(Address of principal executive offices)
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(Zip Code)
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(Former name or former address if changed since last report.)
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QUEPASA CORPORATION
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Date: November 14, 2011
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By:
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/s/ Michael Matte | |
Name: | Michael Matte | ||
Title: | Chief Financial Officer |
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Quepasa revenue for the third quarter was $1.5 million, down 46% from the $2.7 million recorded in the same period in 2010. Quepasa year-to-date revenue through the third quarter was $5.6 million, up 32% from the $4.2 million for the same period in 2010.
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Quepasa net loss for the quarter was $3.5 million, an increase of $3.2 million from a loss of $0.3 million in the same period in 2010. Quepasa EBITDA loss for the third quarter of 2011, excluding transaction costs of $0.7 million, was $1.5 million, a $2.9 million decrease from the $1.4 million of EBITDA, for the same period in 2010.
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Quepasa registered users grew to 39.5 million, up 90.1% from the 20.7 million reported in the third quarter of 2010.
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Quepasa active social networking users (MAU) averaged 1.6 million for the third quarter of 2011, down 32% from the 2.4 million recorded for the same period in 2010 (excludes Quepasa Games).
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Quepasa Games monthly active users averaged 2.7 million during the third quarter of 2011, an increase of 42% over the 1.9 million MAU reported in the second quarter of 2011. Quepasa Games total installs grew to 5.1 million, up 141% over the second quarter of 2011.
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Combined Quepasa and myYearbook registered users grew to 74.2 million, up 50% from the 49.4 million reported in the third quarter of 2010.
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Quepasa and myYearbook combined MAU averaged 4.5 million for the third quarter of 2011, down 2% from the 4.6 million for the same period of 2010.
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Quepasa recorded 579 million page views in the third quarter of 2011, an increase of 29% over the 450 million recorded in the same period of 2010.
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Quepasa announced the signing of a global publishing contract with long-time partner Viximo to manage the localization, marketing and publishing of Wonderful City across Viximo’s 15 social networking platforms, serving 150 million monthly unique visitors.
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In the third quarter, myYearbook was recognized as the #1 company on the Deloitte Greater Philadelphia region Fast 50 list and #26 on the Deloitte Fast 500 for the United States. It was also recognized as #394 on the Inc. 500 list of fastest growing technology companies in the United States. Geoff Cook, Quepasa COO and President, Consumer Internet Division was also honored as the recipient of the Ernst & Young Greater Philadelphia region Entrepreneur of the Year for 2011.
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Quepasa
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myYearbook
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3Q11 Financial Highlights (millions)
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Revenue – Advertising
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$ | 0.9 | $ | 7.0 | ||||||||
Revenue – Virtual Currency
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0.6 | 1.0 | ||||||||||
Revenue – Total
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1.5 | 8.0 | ||||||||||
Net Income(Loss)
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(3.5 | ) | 0.3 | |||||||||
EBITDA
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(2.1 | ) | 1.2 | |||||||||
EBITDA (excluding transaction expense)
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(1.5 | ) | 1.6 | |||||||||
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YTD 2011 Financial Highlights (millions)
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Revenue – Advertising
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$ | 4.7 | $ | 18.2 | ||||||||
Revenue – Virtual Currency
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0.9 | 3.2 | ||||||||||
Revenue – Total
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5.6 | 21.4 | ||||||||||
Net Loss
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(7.3 | ) | (0.1 | ) | ||||||||
EBITDA
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(3.5 | ) | 2.6 | |||||||||
EBITDA (excluding transaction costs)
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(2.4 | ) | 3.2 | |||||||||
Q3 Web and Mobile Metrics (millions)
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Combined
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Registered Users – New in Q311
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3.3 | 1.4 | 1.9 | |||||||||
Registered Users – Cumulative
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74.2 | 39.5 | 34.7 | |||||||||
Monthly Active Users (MAU) - Average
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4.5 | 1.6 | 2.9 | |||||||||
Visits
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290.9 | 30.2 | 260.7 | |||||||||
Page Views
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7,711.4 | 578.7 | 7,132.7 | |||||||||
Quepasa Games Metrics (millions)
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Wonderful City Installs – New
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3.0 | 3.0 | n/a | |||||||||
Wonderful City Installs – Cumulative
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5.1 | 5.1 | n/a | |||||||||
Wonderful City – MAU Average
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2.7 | 2.7 | n/a |
For the Three Months Ended
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For the Three Months Ended
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For the Three Months Ended
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September 30,
2011
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Per Basic and Diluted Share
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September 30,
2010
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Per Basic Share
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Per Diluted Share
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June 30,
2011
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Per Basic and Diluted Share
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Net Income (Loss) Allocable to Common Shareholders
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$ | (3,512,812 | ) | $ | (0.21 | ) | $ | (346,048 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (2,319,439 | ) | $ | (0.14 | ) | |||||||
Interest expense
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151,780 | 0.01 | 151,500 | 0.01 | $ | 0.01 | 151,219 | 0.01 | ||||||||||||||||||||
Depreciation and amortization of property and equipment
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139,637 | 0.01 | 62,310 | 0.00 | $ | 0.00 | 218,740 | 0.01 | ||||||||||||||||||||
Amortization of stock based compensation
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1,040,657 | 0.06 | 1,580,590 | 0.12 | $ | 0.08 | 964,610 | 0.06 | ||||||||||||||||||||
EBITDA (loss)
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$ | (2,180,738 | ) | $ | (0.13 | ) | $ | 1,448,352 | $ | 0.11 | $ | 0.08 | $ | (984,870 | ) | $ | (0.06 | ) | ||||||||||
Acquisition Expenses
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727,590 | 0.04 | - | - | - | 67,160 | 0.00 | |||||||||||||||||||||
EBITDA (loss)excluding transaction costs
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$ | (1,453,148 | ) | $ | (0.09 | ) | $ | 1,448,352 | $ | 0.11 | $ | 0.08 | $ | (917,710 | ) | $ | (0.06 | ) | ||||||||||
Weighted Average Number of Shares Outstanding, Basic
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16,665,781 | 12,982,326 | 16,037,343 | |||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted
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16,665,781 | 18,614,946 | 16,037,343 |
For the Nine Months Ended
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For the Nine Months Ended
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September 30,
2011
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Per Basic and Diluted Share
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September 30,
2010
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Per Basic and Diluted Share
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Per Diluted
Share
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Net Income (Loss) Allocable to Common Shareholders
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$ | (7,349,252 | ) | $ | (0.45 | ) | $ | (4,948,962 | ) | $ | (0.38 | ) | $ | (0.27 | ) | |||||
Interest expense
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452,985 | 0.03 | 452,104 | 0.03 | $ | 0.02 | ||||||||||||||
Depreciation and amortization of property and equipment
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494,837 | 0.03 | 255,153 | 0.02 | ||||||||||||||||
Amortization of stock based compensation
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2,878,501 | 0.18 | 4,704,693 | 0.36 | $ | 0.25 | ||||||||||||||
EBITDA (loss)
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$ | (3,522,929 | ) | $ | (0.22 | ) | $ | 462,988 | $ | 0.04 | $ | 0.02 | ||||||||
Acquisition Expenses
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1,170,360 | 0.07 | - | - | - | |||||||||||||||
EBITDA (loss)excluding transaction costs
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$ | (2,352,569 | ) | $ | (0.14 | ) | $ | 462,988 | $ | 0.04 | $ | 0.02 | ||||||||
Weighted Average Number of Shares Outstanding, Basic
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16,248,978 | 12,951,513 | ||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted
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16,248,978 | 18,643,195 |
September 30,
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December 31,
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2011
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2010
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ASSETS
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(Unaudited)
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 14,448,947 | $ | 13,546,572 | ||||
Accounts receivable, net of allowance of $11,800 and $16,000, at September 30, 2011 and December 31, 2010, respectively
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3,197,202 | 1,361,024 | ||||||
Notes receivable - current portion, including $15,455 and $3,633 of accrued interest, at September 30, 2011 and December 31, 2010, respectively
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469,199 | 314,221 | ||||||
Restricted cash
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275,000 | 275,000 | ||||||
Other current assets
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193,010 | 113,841 | ||||||
Total current assets
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18,583,358 | 15,610,658 | ||||||
Goodwill
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3,887,974 | - | ||||||
Property and equipment, net
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621,829 | 645,728 | ||||||
Notes receivable - long-term portion
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- | 156,079 | ||||||
Other assets, net of accumulated amortization of $173,437 and $0, at September 30, 2011 and December 31, 2010, respectively
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157,149 | 40,324 | ||||||
Total assets
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$ | 23,250,310 | $ | 16,452,789 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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Accounts payable, includes $216,480 and $0 due to Techfront at September 30, 2011 and December 31, 2010, respectively
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$ | 619,860 | $ | 286,990 | ||||
Accrued expenses
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881,098 | 414,249 | ||||||
Deferred revenue
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185,768 | - | ||||||
Accrued dividends
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219,455 | 278,750 | ||||||
Unearned grant income
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9,838 | 12,364 | ||||||
Total current liabilities
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1,916,019 | 992,353 | ||||||
Notes payable and accrued interest, net of unamortized discount of $1,428,847 and $1,643,241, at September 30, 2011 and December 31, 2010, respectively
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6,721,087 | 6,272,545 | ||||||
Total liabilities
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8,637,106 | 7,264,898 | ||||||
COMMITMENTS AND CONTINGENCIES (see Note 7)
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STOCKHOLDERS’ EQUITY :
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Preferred stock, $.001 par value; 5,000,000 shares authorized; 1,000,000 and 25,000 shares of Series A convertible preferred stock issued and outstanding at September 30, 2011 and December 31, 2010
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1,000 | 25 | ||||||
Common stock, $.001 par value; authorized - 50,000,000 shares; 16,670,781, shares issued and outstanding at September 30, 2011 and 15,287,280 shares issued and outstanding at December 31, 2010
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16,672 | 15,287 | ||||||
Additional paid-in capital
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188,444,951 | 175,276,319 | ||||||
Accumulated deficit
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(173,446,141 | ) | (166,096,889 | ) | ||||
Accumulated other comprehensive income
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(403,278 | ) | (6,851 | ) | ||||
Total stockholders’ equity
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14,613,204 | 9,187,891 | ||||||
Total liabilities and stockholders’ equity
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$ | 23,250,310 | $ | 16,452,789 |
For the Three Months Ended
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For the Nine Months Ended
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September 30,
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September 30,
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2011
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2010
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2011
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2010
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REVENUES
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$ | 1,469,100 | $ | 2,721,760 | $ | 5,554,310 | $ | 4,199,846 | ||||||||
OPERATING EXPENSES:
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Sales and marketing
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302,401 | 221,311 | 877,498 | 602,205 | ||||||||||||
Product development and content
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1,744,062 | 977,788 | 5,398,556 | 2,832,005 | ||||||||||||
Games expenses
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676,978 | - | 969,197 | - | ||||||||||||
General and administrative
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1,983,028 | 1,628,488 | 4,720,962 | 4,926,641 | ||||||||||||
Depreciation and amortization
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139,637 | 62,310 | 494,837 | 255,153 | ||||||||||||
TOTAL OPERATING EXPENSES
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4,846,106 | 2,889,897 | 12,461,050 | 8,616,004 | ||||||||||||
LOSS FROM OPERATIONS
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(3,377,006 | ) | (168,137 | ) | (6,906,740 | ) | (4,416,158 | ) | ||||||||
OTHER INCOME (EXPENSE):
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Interest income
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15,426 | 940 | 49,460 | 1,342 | ||||||||||||
Interest expense
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(151,780 | ) | (151,500 | ) | (452,985 | ) | (452,104 | ) | ||||||||
Other income
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548 | 524 | 1,718 | 1,583 | ||||||||||||
TOTAL OTHER INCOME (EXPENSE)
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(135,806 | ) | (150,036 | ) | (401,807 | ) | (449,179 | ) | ||||||||
LOSS BEFORE INCOME TAXES
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(3,512,812 | ) | (318,173 | ) | (7,308,547 | ) | (4,865,337 | ) | ||||||||
Income taxes
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- | - | - | - | ||||||||||||
NET LOSS
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$ | (3,512,812 | ) | $ | (318,173 | ) | $ | (7,308,547 | ) | $ | (4,865,337 | ) | ||||
Preferred stock dividends
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- | (27,875 | ) | (40,705 | ) | (83,625 | ) | |||||||||
NET LOSS ALLOCABLE TO COMMON SHAREHOLDERS
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$ | (3,512,812 | ) | $ | (346,048 | ) | $ | (7,349,252 | ) | $ | (4,948,962 | ) | ||||
NET LOSS PER COMMON SHARE ALLOCABLE TO COMMON SHAREHOLDERS
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BASIC AND DILUTED
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$ | (0.21 | ) | $ | (0.03 | ) | $ | (0.45 | ) | $ | (0.38 | ) | ||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
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BASIC AND DILUTED
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16,665,781 | 12,963,227 | 16,248,978 | 12,951,513 | ||||||||||||
NET LOSS
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$ | (3,512,812 | ) | $ | (318,173 | ) | $ | (7,308,547 | ) | $ | (4,865,337 | ) | ||||
Foreign currency translation adjustment
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(427,901 | ) | (924 | ) | (396,427 | ) | (513 | ) | ||||||||
COMPREHENSIVE LOSS
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$ | (3,940,713 | ) | $ | (319,097 | ) | $ | (7,704,974 | ) | $ | (4,865,850 | ) |
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Approximately 48% of Quepasa’s revenues for the three months ended September 30, 2011 came from one company of which a director of Quepasa is an officer or director.
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