Millennial Media's losses widened significantly in the fourth quarter of 2014 and for the full year, but its stock price rose slightly in after-hours trading as sales exceeded what Wall Street analysts had predicted, despite intense competition from Facebook and Google for advertising dollars.
The Canton-based mobile advertising company lost $11.6 million in the last three months of 2014, compared with a loss of $3.7 million in the last quarter of 2013, according to its earnings report released after the stock market closedMonday afternoon.
Its revenue for the quarter was $86.4 million, down from $96.7 million in the same quarter of 2013 but above the $73 million in sales analysts had projected.
Across all of 2014, Millennial lost $148.8 million, or $1.36 per share, compared with a loss of $15.1 million in 2013. The annual loss included a $93 million write-down of goodwill.
Also for the year revenue increased to $296.2 million, from $259.2 million in 2013. Analysts had predicted sales of $283 million.
CEO Michael Barrett said in a statement the company "ended 2014 on a high note," closing a deal to buy mobile advertising technology company Nexage for $108 million and predicting more revenue growth in 2015.
Millennial shares closed up a nickel at $1.59 on the New York Stock Exchange on Monday then rose to $1.70 early in after-hours trading after it announced earnings.
Founded in 2006, Millennial pioneered mobile advertising, seeking to help app developers make money from their games, tools and other creations, and to help advertisers reach the smaller screens increasingly found in pockets and purses. But since selling stock to the public in 2012, Millennial has struggled in the face of surging competition from tech heavyweights, Facebook and Google in particular, who rushed into the space as mobile advertising soared.