Millennial Media (NYSE:MM), which operates a mobile ad network, had a huge IPO back in late March. The stock surged by 92% on its first day of trading. But since then, investors have taken on huge losses on MM, amounting to about 59%. Of course, this has been the case with other cutting-edge companies like Facebook (NASDAQ:FB), Zynga (NASDAQ:ZNGA) and Groupon (NASDAQ:GRPN).
But today Millennial Media’s shareholders got some good news: The company posted an encouraging second-quarter report. On the news, the shares are up about 23% in midday trading, to $12.60.
Revenues spiked by 75.6% to $39.4 million, and there was a net loss of $2.2 million, or 3 cents a share. The street was looking for revenues of $38 million and a net loss of 5 cents a share.
All in all, the Millennial Media platform’s continues to get stronger. There are now 35,000 apps, and the reach includes 350 million unique users around the globe. In fact, the company counts 75 of the Ad Age’s top 100 advertisers as its clients.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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