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Millennial Media (Millennial Media) ROE % : -26.18% (As of Jun. 2015)


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What is Millennial Media ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Millennial Media's annualized net income for the quarter that ended in Jun. 2015 was $-61.8 Mil. Millennial Media's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was $236.2 Mil. Therefore, Millennial Media's annualized ROE % for the quarter that ended in Jun. 2015 was -26.18%.

The historical rank and industry rank for Millennial Media's ROE % or its related term are showing as below:

MM's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.38
* Ranked among companies with meaningful ROE % only.

Millennial Media ROE % Historical Data

The historical data trend for Millennial Media's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Millennial Media ROE % Chart

Millennial Media Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial - - -9.10 -6.05 -50.19

Millennial Media Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -18.78 -166.62 -19.85 -31.60 -26.18

Competitive Comparison of Millennial Media's ROE %

For the Advertising Agencies subindustry, Millennial Media's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Millennial Media's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Millennial Media's ROE % distribution charts can be found below:

* The bar in red indicates where Millennial Media's ROE % falls into.



Millennial Media ROE % Calculation

Millennial Media's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=-149.087/( (335.47+258.64)/ 2 )
=-149.087/297.055
=-50.19 %

Millennial Media's annualized ROE % for the quarter that ended in Jun. 2015 is calculated as

ROE %=Net Income (Q: Jun. 2015 )/( (Total Stockholders Equity (Q: Mar. 2015 )+Total Stockholders Equity (Q: Jun. 2015 ))/ count )
=-61.832/( (242.122+230.277)/ 2 )
=-61.832/236.1995
=-26.18 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2015) net income data. ROE % is displayed in the 30-year financial page.


Millennial Media  (NYSE:MM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2015 )
=Net Income/Total Stockholders Equity
=-61.832/236.1995
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-61.832 / 263.448)*(263.448 / 322.2025)*(322.2025 / 236.1995)
=Net Margin %*Asset Turnover*Equity Multiplier
=-23.47 %*0.8176*1.3641
=ROA %*Equity Multiplier
=-19.19 %*1.3641
=-26.18 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2015 )
=Net Income/Total Stockholders Equity
=-61.832/236.1995
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-61.832 / -61.572) * (-61.572 / -61.172) * (-61.172 / 263.448) * (263.448 / 322.2025) * (322.2025 / 236.1995)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0042 * 1.0065 * -23.22 % * 0.8176 * 1.3641
=-26.18 %

Note: The net income data used here is four times the quarterly (Jun. 2015) net income data. The Revenue data used here is four times the quarterly (Jun. 2015) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Millennial Media ROE % Related Terms

Thank you for viewing the detailed overview of Millennial Media's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Millennial Media (Millennial Media) Business Description

Traded in Other Exchanges
N/A
Address
Millennial Media Inc was incorporated under the laws of the State of Delaware on May 30, 2006. It is an independent mobile advertising platform company. It offers advertisers audience reach, targeting capabilities and deliver rich and engaging ad experiences to consumers on their mobile connected devices. The Company's proprietary technology and data platform, known as MYDAS, determines in real-time which ad to deliver, to whom and when, with the goal of optimizing the effectiveness of advertising campaigns regardless of device type or operating system. It helps developers and advertisers remove complexity from mobile advertising. It provides tools and services to developers that allow their apps to display banner ads, interactive rich media ads and video ads from its platform. By partnering with it, developers gain access to advertising campaigns from advertiser clients as well as smaller performance-based advertisers. Through its mMedia portal, developers can download and integrate its software development kits, or SDKs, into their apps at no cost to them. The Company offers developers sophisticated reporting and analytics through an integrated dashboard on its mMedia portal, which includes comprehensive ad revenue generation reports for their apps across all major mobile operating systems. It offers all developers support through its mMedia portal, as well as various webinars, blogs and, in some cases, support from account managers. It has 72 issued patents, including U.S. and international. The Company is subject to U.S. and foreign laws and regulations that are applicable to companies engaged in the business of advertising on mobile devices. The Company is also subject to privacy and data protection laws.
Executives
Lara Sweet officer: VP, Controller & Treasurer C/O SNAP INC., 2772 DONALD DOUGLAS LOOP NORTH, SANTA MONICA CA 90405
Robert Lord director, officer: President 506 SECOND AVENUE, 9TH FLOOR, SEATTLE WA 98104
Verizon Communications Inc 10 percent owner 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Robert P Goodman director 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Ho Shin officer: Gen. Counsel & Ch. Privacy Ofr 61 NINTH AVENUE, NEW YORK NY 10011
Michael G. Barrett director, officer: President and CEO C/O THE RUBICON PROJECT, INC., 12181 BLUFF CREEK DRIVE, 4TH FLOOR, PLAYA VISTA CA 90094
Wenda Harris Millard director C/O YAHOO INC, 701 FIRST AVE, SUNNYVALLE CA 94089
Ross Levinsohn director 701 FIRST AVENUE, SUNNYVALE CA 94089
Patrick J Kerins director
Thomas R Evans director 11760 US HIGHWAY ONE, SUITE 200, NORTH PALM BEACH FL 33408
Mary Spilman officer: EVP, Global Sales & Marketing C/O CRITEO LEGAL DEPT., 387 PARK AVENUE SOUTH, 12TH FLOOR, NEW YORK NY 10016
Bessemer Venture Partners Vi Institutional L.p. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10583
Bessemer Venture Partners Vi L.p. 10 percent owner 1865 PALMER AVENUE, LARCHMONT NY 10583
Deer Vi & Co. Llc 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10538
Bessemer Venture Partners Co-investment L.p. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10583

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