Delaware
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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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280 Union Square Drive
New Hope, Pennsylvania
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18938
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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: March 1, 2012
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By:
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/s/ Michael Matte | |
Name: | Michael Matte | ||
Title: | Chief Financial Officer |
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Record 2011 revenue of $11.9 million, up 96% year-over-year
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Combined 2011 revenue of $36.8 million, a non-GAAP financial measure
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Record 4Q revenue of $6.3 million, up 240% year-over-year
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Combined 4Q revenue of $9.8 million, a non-GAAP financial measure
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Completion of myYearbook merger creates the public-market leader in social discovery
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Record visits, page views, and mobile traffic
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Revenue: Quepasa revenue for the fourth quarter, which included the benefit of just over seven weeks of contributions from myYearbook, was $6.3 million, up 240% from the $1.9 million recorded in the same period in 2010.
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Net Loss: Quepasa net loss allocable to common shareholders for the fourth quarter was $5.5 million or $0.20 per share, an increase from a net loss allocable to common shareholders of $1.8 million or $0.13 per share in the same period in 2010. Quepasa’s adjusted EBITDA loss for the fourth quarter of 2011 was $1.0 million or $0.04 per share, a $0.6 million increase from the $0.4 million loss, or $0.03 per share, for the same period in 2010. (See the important discussion about the presentation of EBITDA and adjusted EBITDA loss, non-GAAP financial measures, and a reconciliation to the most directly comparable GAAP financial measure, below.)
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Revenue: Quepasa 2011 revenues totaled $11.9 million, up 96% from the $6.1 million reported for 2010. (See Important Disclosures below regarding revenue sources.)
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Net Loss: Quepasa reported a net loss allocable to common shareholders of $12.8 million or $0.67 per share for fiscal 2011, up from $6.8 million or $0.52 per share reported in fiscal 2010. Quepasa’s adjusted EBITDA loss totaled $3.3 million or $0.18 per share, a decline from the $0.0 million or $0.00 per share adjusted EBITDA profit reported in fiscal year 2010. (See the important discussion about the presentation of EBITDA and adjusted EBITDA loss, non-GAAP financial measures, and a reconciliation to the most directly comparable GAAP financial measure, below.)
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Balance Sheet: Quepasa cash and cash equivalents totaled $8.3 million at December 31, 2011, down from $13.5 million at December 31, 2010. The year-over-year decline is predominantly the result of proceeds used for the cash component of the myYearbook merger and cash investments in Quepasa Games, which were partially offset by the sale of preferred and common stock in connection with the closing of the merger.
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As of December 31, 2011 registered users increased to 78.1 million, up from the 27.3 million reported at the end of the fourth quarter of 2010.
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Monthly Active Users (MAU) on our web properties totaled 4.1 million on average per month in the fourth quarter of 2011, up from the 2.8 million MAU in the same period in 2010. Web MAU were up sequentially from 1.6 million in the third quarter of 2011. Quepasa Games, which launched in May 2011, added an additional 2.1 million MAU (6.2 million total for all properties) to the fourth quarter total.
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Page views totaled 5.43 billion in the fourth quarter of 2011, up from the 521 million page views in the same period of 2010. Sequentially, page views were up in the fourth quarter of 2011 from the 0.58 billion in the third quarter of 2011.
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Visits totaled 192.5 million in the fourth quarter of 2011, up from the 63.6 million visits in the same period of 2010. Visits were up sequentially as well, from the 30.2 million in the third quarter of 2011.
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Quepasa completed its merger with myYearbook, creating the public market leader for social discovery.
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During the fourth quarter, Quepasa enhanced its management team with the additions of Fred Beckley as General Counsel and Executive Vice President of Business Affairs, and Robin Shallow as Executive Vice President of Communications and Public Relations.
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myYearbook surpassed 50% of its traffic accessing on mobile devices, and launched the tablet application myYearbook for iPad, which is now available in the iTunes App Store.
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myYearbook launched credits on the web in December, and on mobile devices in February 2012.
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2010
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2011
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Change
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4Q Financial Highlights (millions)
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Revenue – Advertising
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$ | 1.8 | $ | 5.1 | 175.2 | % | ||||||
Revenue – Virtual Currency
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$ | 0.0 | $ | 1.2 | 20584 | % | ||||||
Revenue – Total
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$ | 1.9 | $ | 6.3 | 240 | % | ||||||
Net Loss Allocable To Common Shareholders
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$ | (1.8 | ) | $ | (5.5 | ) | 205 | % | ||||
EBITDA (Loss)
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$ | (0.4 | ) | $ | (3.2 | ) | 621.2 | % | ||||
Adjusted EBITDA (Loss)
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$ | (0.4 | ) | $ | (1.0 | ) | 124.9 | % | ||||
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Full Year Financial Highlights (millions)
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Revenue – Advertising
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$ | 6.0 | $ | 9.9 | 62.9 | % | ||||||
Revenue – Virtual Currency
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$ | 0.0 | $ | 2.0 | 34026 | % | ||||||
Revenue – Total
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$ | 6.1 | $ | 11.9 | 96 | % | ||||||
Net Loss Allocable To Common Shareholders
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$ | (6.8 | ) | $ | (12.8 | ) | 92 | % | ||||
EBITDA
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$ | 0.0 | $ | (6.7 | ) | n/a | ||||||
Adjusted EBITDA (Loss)
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$ | 0.0 | $ | (3.3 | ) | n/a | ||||||
Q4 Web and Mobile Metrics (millions)
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4Q 2010 | 4Q 2011 |
Change
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Registered Users – New in Q4
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6.5 | 2.7 | -58 | % | ||||||||
Registered Users – Cumulative
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27.3 | 78.1 | 187 | % | ||||||||
Monthly Active Users (MAU) – Average
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2.8 | 4.1 | 49 | % | ||||||||
Total Visits (2)
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63.6 | 192.5 | 202 | % | ||||||||
Total Page Views (2)
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520.9 | 5,431.6 | 943 | % | ||||||||
Quepasa Games Metrics (millions)
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Wonderful City Installs – New
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n/a | 1.3 | n/a | |||||||||
Wonderful City Installs – Cumulative
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n/a | 6.5 | n/a | |||||||||
Wonderful City – MAU Average
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n/a | 2.1 | n/a | |||||||||
Reconciliation of Combined Revenue (mm)(3)
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4Q 2011 |
Full Year 2011
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Quepasa Corporation - As Reported
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$ | 6.3 | $ | 11.9 | ||||||||
myYearbook – pre-merger
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$ | 3.5 | $ | 24.9 | ||||||||
Combined Revenue
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$ | 9.8 | $ | 36.8 |
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(1)
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Reflects contributions from myYearbook from the date of the merger and figures may not total due to rounding
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(2)
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Excludes iOS application and device metrics
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(3)
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See Use of Non-GAAP Financial Information below for important disclosure on combined revenue
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December 31,
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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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Current Assets
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Cash and cash equivalents
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$ | 8,271,787 | $ | 13,546,572 | ||||
Accounts receivable, net of allowance of $270,210 and $16,000, at December 31, 2011 and 2010, respectively
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10,436,067 | 1,361,024 | ||||||
Notes receivable - current portion, including $559 and $3,633 of accrued interest, at December 31, 2011 and 2010, respectively
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169,955 | 314,221 | ||||||
Prepaid expenses and other current assets
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1,089,665 | 113,841 | ||||||
Restricted cash
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275,000 | 275,000 | ||||||
Total current assets
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20,242,474 | 15,610,658 | ||||||
Goodwill, net
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73,048,084 | - | ||||||
Intangible assets, net
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8,568,170 | - | ||||||
Property and equipment, net
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4,408,694 | 645,728 | ||||||
Notes receivable - long-term portion
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- | 156,079 | ||||||
Other assets
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537,274 | 40,324 | ||||||
Total assets
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$ | 106,804,696 | $ | 16,452,789 | ||||
Liabilities and Stockholders' Equity
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Current Liabilities:
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Accounts payable
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$ | 2,054,851 | $ | 286,990 | ||||
Accrued expenses and other liabilities
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2,018,730 | 414,249 | ||||||
Deferred revenue
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246,347 | |||||||
Accrued dividends
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169,455 | 278,750 | ||||||
Unearned grant income
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9,040 | 12,364 | ||||||
Current portion of long-term debt
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2,405,191 | - | ||||||
Total current liabilities
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6,903,614 | 992,353 | ||||||
Notes and loans payable, net of discount
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9,255,508 | 6,272,545 | ||||||
Total liabilities
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16,159,122 | 7,264,898 | ||||||
Commitments and Contingencies
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Stockholders' Equity (Deficit):
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Preferred stock, $.001 par value, authorized 5,000,000 shares:
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Convertible preferred stock Series A, $.001 par value; authorized - 1,000,000 shares; 25,000 shares issued and outstanding at December 31, 2010, Liquidation preference of $2,500,000
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- | 25 | ||||||
Convertible preferred stock Series A-1, $.001 par value; authorized - 5,000,000 shares; 1,000,000 shares issued and outstanding at December 31, 2011. Liquidation preference 1,479,949 common shares
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1,000 | - | ||||||
Common stock, $.001 par value; authorized - 100,000,000 shares; 36,145,084 and 15,287,280 shares issued and outstanding at December 31, 2011 and 2010, respectively
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36,146 | 15,287 | ||||||
Additional paid-in capital
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269,974,789 | 175,276,319 | ||||||
Accumulated deficit
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(178,903,412 | ) | (166,096,889 | ) | ||||
Accumulated other comprehensive loss
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(462,949 | ) | (6,851 | ) | ||||
Total stockholders’ equity
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90,645,574 | 9,187,891 | ||||||
Total liabilities and stockholders’ equity
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$ | 106,804,696 | $ | 16,452,789 |
For the Three Months Ended
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For the Years Ended
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December 31,
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December 31,
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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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$ | 6,296,541 | $ | 1,854,295 | $ | 11,850,852 | $ | 6,054,141 | ||||||||
Operating Costs and Expenses:
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Sales and marketing
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1,008,500 | 289,775 | 1,885,998 | 891,980 | ||||||||||||
Product development and content
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4,126,512 | 1,966,284 | 9,525,068 | 4,774,694 | ||||||||||||
Games expenses
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584,253 | - | 1,553,450 | - | ||||||||||||
General and administrative
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3,047,048 | 1,177,034 | 6,599,020 | 6,123,083 | ||||||||||||
Depreciation and amortization
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603,030 | 64,626 | 1,097,867 | 319,779 | ||||||||||||
Acquisition and restructuring costs
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779,441 | - | 1,948,432 | - | ||||||||||||
Loss on impairment of goodwill
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1,409,127 | - | 1,409,127 | - | ||||||||||||
Total Operating Costs and Expenses
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11,557,911 | 3,497,719 | 24,018,962 | 12,109,536 | ||||||||||||
Loss from Operations
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(5,261,370 | ) | (1,643,424 | ) | (12,168,110 | ) | (6,055,395 | ) | ||||||||
Other Income (Expense):
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Interest income
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7,805 | 4,887 | 57,265 | 6,229 | ||||||||||||
Interest expense
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(204,199 | ) | (151,505 | ) | (657,184 | ) | (603,609 | ) | ||||||||
Other income (expense), net
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493 | 543 | 2,211 | 2,125 | ||||||||||||
Total Other Income (Expense)
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(195,901 | ) | (146,075 | ) | (597,708 | ) | (595,255 | ) | ||||||||
Loss Before Income Taxes
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(5,457,271 | ) | (1,789,499 | ) | (12,765,818 | ) | (6,650,650 | ) | ||||||||
Income taxes
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- | - | - | - | ||||||||||||
Net Loss
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$ | (5,457,271 | ) | $ | (1,789,499 | ) | $ | (12,765,818 | ) | $ | (6,650,650 | ) | ||||
Preferred stock dividends
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- | (27,875 | ) | (40,705 | ) | (111,500 | ) | |||||||||
Net Loss Allocable To Common Shareholders
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$ | (5,457,271 | ) | $ | (1,817,374 | ) | $ | (12,806,523 | ) | $ | (6,762,150 | ) | ||||
Net Loss Per Common Share Allocable To Common Shareholders, Basic and Diluted
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$ | (0.20 | ) | $ | (0.13 | ) | $ | (0.67 | ) | $ | (0.52 | ) | ||||
Weighted Average Number of Shares Oustanding, Basic and Diluted:
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27,770,127 | 13,609,609 | 19,092,121 | 13,117,845 | ||||||||||||
Net Loss
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$ | (5,457,271 | ) | $ | (1,789,499 | ) | $ | (12,765,818 | ) | $ | (6,650,650 | ) | ||||
Foreign currency translation adjustment
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(487,572 | ) | (1,207 | ) | (456,098 | ) | (796 | ) | ||||||||
Comprehensive Loss
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$ | (5,944,843 | ) | $ | (1,790,706 | ) | $ | (13,221,916 | ) | $ | (6,651,446 | ) |
For the Three Months Ended
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For the Three Months Ended
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December 31,
2011
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Per Basic and Diluted Share
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December 31, 2010
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Per Basic and Diluted Share
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Net Loss Allocable to Common Shareholders
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$ | (5,457,271 | ) | $ | (0.20 | ) | $ | (1,817,374 | ) | $ | (0.13 | ) | ||||
Interest expense
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204,199 | 0.01 | 151,505 | 0.01 | ||||||||||||
Depreciation and amortization of property and equipment and intangible assets
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603,030 | 0.02 | 64,626 | 0.00 | ||||||||||||
Amortization of stock based compensation
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1,469,637 | 0.05 | 1,160,278 | 0.09 | ||||||||||||
EBITDA (loss)
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$ | (3,180,405 | ) | $ | (0.11 | ) | $ | (440,965 | ) | $ | (0.03 | ) | ||||
Loss on impairment of goodwill
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1,409,127 | $ | 0.05 | - | - | |||||||||||
Acquisition and restructuring Costs
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779,441 | 0.03 | - | - | ||||||||||||
Adjusted EBITDA (loss)
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$ | (991,837 | ) | $ | (0.04 | ) | $ | (440,965 | ) | $ | (0.03 | ) | ||||
Weighted Average Number of Shares Outstanding, Basic and Dilutive
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27,770,127 | 13,609,609 |
For the Year Ended
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For the Year Ended
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December 31,
2011
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Per Basic and Diluted Share
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December 31, 2010
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Per Basic and Diluted Share
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Per Diluted Share
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Net Loss Allocable to Common Shareholders
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$ | (12,806,523 | ) | $ | (0.67 | ) | $ | (6,762,150 | ) | $ | (0.52 | ) | $ | (0.33 | ) | |||||
Interest expense
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657,184 | 0.03 | 603,609 | 0.05 | $ | 0.03 | ||||||||||||||
Depreciation and amortization of property and equipment and intangible assets
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1,097,867 | 0.06 | 319,779 | 0.02 | $ | 0.00 | ||||||||||||||
Amortization of stock based compensation
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4,348,139 | 0.23 | 5,864,969 | 0.45 | $ | 0.30 | ||||||||||||||
EBITDA (loss)
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$ | (6,703,333 | ) | $ | (0.35 | ) | $ | 26,207 | $ | 0.00 | $ | 0.00 | ||||||||
Loss on impairment of goodwill
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1,409,127 | $ | 0.07 | - | - | - | ||||||||||||||
Acquisition and restructuring Costs
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1,948,432 | 0.10 | - | - | - | |||||||||||||||
Adjusted EBITDA (loss)
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$ | (3,345,774 | ) | $ | (0.18 | ) | $ | 26,207 | $ | 0.00 | $ | 0.00 | ||||||||
Weighted Average Number of Shares Outstanding, Basic
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19,092,121 | 13,117,845 | ||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted
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19,559,264 |
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Approximately 36% and 0% of Quepasa’s revenues for the year ended and the three months ended December 31, 2011, respectively, came from one company of which a director of Quepasa is an officer or director.
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