Millennial Media's losses widened five-fold in the second quarter of the year, missing Wall Street estimates and sending shares down 9 percent in after-hours trading.
That was despite an 18 percent increase in sales, to $67.3 million in the three months ended June 30 from $57 million in the same period of 2013. Losses grew to $15.1 million in the second quarter, from $3.1 million in the second quarter of last year.
The Canton-based mobile advertising company's loss amounted to 14 cents per share, two cents below Wall Street analysts' predictions of a 12-cent loss per share. Shares were down by as much as 9 percent after markets closed, dropping to around $2.80 apiece.
CEO Michael Barrett said on a conference call with investors that the company plans to focus on processing more sales with small and midsize advertisers as it battles larger companies for major brand advertiser accounts. Facebook has moved quickly into mobile advertising in recent months, taking share of a market that also includes Google and Apple.
"We have work to do and we will continue to see challenges in the future," Barrett said on the call.