Mobile ad network Millennial Media on Monday reported that revenue increased 18.1% to $67.3 million in the second quarter.
It posted an adjusted loss of $15.1 million -- or 14 cents a share -- compared to a loss of $3.1 million, or 4 cents a share in the year-earlier period. Analysts, on average, had expected the company to report a loss of 12 cents a share on revenue of $73. 2 million.
Millennial Media has struggled to contend with the growing mobile advertising clout of Google and Facebook. Google alone this year is expected to capture half of mobile ad spending globally, with Facebook accounting for 22.3%, according to eMarketer. Millennial, by contrast, will see its market share continue to slip, to an estimated 0.4%.
In its earnings release, the company said it reached 650 million unique users monthly, including 170 million in the U.S. It also served ads across about 60,000 apps and mobile sites.
“As the mobile ad industry continues to shift and evolve, we too must grow and expand our unique assets,” stated Millennial CEO Michael Barrett. “We will continue to strengthen our mobile network foundation, while accelerating our programmatic exchange and open platform to further define our place in the market and reinvigorate revenue growth.”
To that end, the company last month announced a partnership with programmatic ad-buying platform Turn to make mobile inventory available to Turn customers from the Millennial Media Exchange (MMX). A year ago, Millennial acquired rival mobile ad network Jumptap to enhance its expertise in real-time bidding on ads and expand its reach.
But the merger hasn’t helped it gain ground on the Internet’s biggest players, like Google and Facebook, which increasingly focused on mobile to drive ad growth. In the last 12 months, Millennial’s stock has fallen from a high of $9.38 to $2.95, as of Monday’s close. Shares were down almost 10% in after-hours trading.
For the current quarter, Millennial said it expects total revenue to fall in the range of $65 million to $70 million. To help bolster its fortunes, the company in June brought on Marc Theermann, formerly head of mobile platform sales at Google, as its vice president of business strategy.