Maven Reports Rapid Growth in Monthly Organic Users and Reports Q3 Results

SEATTLE--(BUSINESS WIRE)-- Maven (ticker symbol:MVEN) today announced that its monthly traffic is climbing at an accelerated rate – from 900,000 unique users in September to 3.6 million in October, with the trend line continuing in November. In addition, third quarter expenses tracked with internal forecasts as the company transitions from the research and development phase to the operational phase.

This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171117005205/en/

Monthly Unique Visitors (Graphic: Business Wire)

“For more than a year, we’ve been focused on platform development and securing our founding Mavens,” said CEO James Heckman. “September’s launch out of beta certainly was encouraging at every level, from the quality of our content partners, the instant uplift in engagement from our platform, and the significant growth – all organic traffic.”

Heckman cited four key drivers for Maven’s success:

  • More than 80 signed and 30 live channel partners with more coming weekly
  • Significant increase in audience engagement (71% increase, post migration)
  • Launch of version 1.0 of the technology platform, featuring tightly integrated publishing, video, mobile, social, paid membership and advertising features
  • Organic growth from 164,000 to 529,000 to 900,000 monthly unique visitors during the three months of Q3, which then quadrupled to 3.6 million during October, utilizing no paid traffic acquisition

“I can’t emphasize this point enough,” said Heckman. “Most ‘traffic’ press releases by Internet companies are meaningless, if not misleading, as they generally buy their traffic through referral from major social platforms. We believe a digital media company is best valued by the number of organic (unpaid) monthly unique visitors, because that metric is what drives profitable content transactions.”

“As our authentic scale continues to grow, we look forward to bringing our elite network of Mavens to the advertising community,” Heckman added. “We think the combination of high engagement, consistent professionalism and our efficient platform with be an attractive environment for quality brands and marketers.”

Key performance indicators for assessing Maven’s progress going forward include:

  • Number of channels signed – currently 82, with goal of 1,000
  • Number of channels live on Maven – currently at 30 with 40+ expected by EOY
  • Average Monthly Users per live channel – currently 124,000, beating goal of 100k
  • Total organic unique users (UU) – 3.6 million in October
  • Total revenue (per channel and network)
  • Audience engagement

Q3 2017 Strategic Initiatives

Maven, during the third quarter of 2017, focused on three key strategic initiatives: (1) developing our technology platform, (2) business development to sign new Mavens to our network and (3) launching operations with certain Mavens.

Since the company’s founding, July 2016, the primary focus of its software engineering team has been building the world-class publishing and social media technology platform. Since inception, Maven has invested over $2.6 million in the technology platform. We expect that we will continue to invest over $800,000 each quarter as we continue to deploy features and functions for all three form factors: mobile devices, tablets and desktop computers.

Q3 Financial Results

In the third quarter of 2017, the company moved the first 25 channel partners out of beta stage. In beta we had very limited monetization activities since we were testing content systems and ad serving integration; as such, we generated no material revenue in the third quarter. In October, our monthly unique users (UU) grew to 3.6 million and we expect to be above 6 million at the end of November. However, we do not expect to generate significant revenue until early 2018. We need to first aggregate the audience base of users and we believe effective monetization of that audience base will begin in early 2018.

The company incurred a net loss of $1,778,000, or $0.11 per share for the three months ending September 30, 2017. For the nine months ending September 30, 2017, we incurred a net loss of $4,371,000 or $0.33 per share. Traffic was 100% unpaid, organic traffic with zero expense for traffic acquisition costs.

As presented in the Statement of Cash Flows, for the nine months ending September 30, 2017, net cash used in operating activities was $2,655,000. Third quarter expenses tracked with internal forecast as the company transitions from the research and development phase to the operational phase. These expenditures were primarily used to build initial network of channels and for administrative functions. In addition, Maven invested $1,513,000 of cash in website development and fixed assets. During 2017, the company completed two private placements of common stock: one that closed in April raising $3.5 million in net proceeds, and one that closed in October raising $2.7 million in net proceeds, of which $1.75 million was received prior to September 30, 2017. Cash balance at the end of September was approximately $1.7 million.

Maven’s complete third quarter financial statements (Statement of Operations; Balance Sheet; Statement of Cash Flow) on Form 10-Q Quarterly Report can be found HERE: https://www.themaven.net/the-maven/investors/sec-filings-e6Tq9qeDGESem_9IuDqTzQ

theMaven, Inc. and Subsidiary
Consolidated Balance Sheets

September 30,

December 31,

Current assets:
Cash $ 1,699,061 $ 598,294
Accounts receivable 3,482 -
Deferred contract costs 15,986 -
Prepayments and other current assets 102,265 121,587
Total current assets 1,820,794 719,881
Fixed assets, net 2,515,930 547,804
Intangible assets 20,000 20,000
Total assets $ 4,356,724 $ 1,287,685
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 51,568 $ 154,361
Accrued expenses 442,061 54,789
Deferred revenue 31,634 -
Conversion feature liability 130,238 137,177
Total current liabilities 655,501 346,327
Commitments and contingencies
Redeemable convertible preferred stock, $0.01 par value, 1,000,000 shares authorized; 168 shares issued and outstanding ($168,496 aggregate liquidation value) 168,496 168,496
Stockholders’ equity:
Common stock, $0.01 par value, 100,000,000 shares authorized; 26,005,140 and 22,047,531 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 260,051 220,475
Common stock to be issued in private placement 1,566,000 9,375
Additional paid-in capital 8,265,925 2,730,770
Accumulated deficit (6,559,249 ) (2,187,758 )
Total stockholders’ equity 3,532,727 772,862
Total liabilities and stockholders’ equity $ 4,356,724 $ 1,287,685
theMaven, Inc. and Subsidiary
Consolidated Statements of Operations
Three Months Ended Nine Months Ended

September 30,

September 30,

September 30,

September 30,

(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue $ 6,064 $ - $ 6,064 $ -
Service Costs 449,567 - 641,606 -
Research and development 30,776 374,944 104,095 374,944
General and administrative 1,300,767 1,110,461 3,639,204 1,110,461
Loss from operations (1,775,046 ) (1,485,405 ) (4,378,841 ) (1,485,405 )
Other income (expense):
Interest and dividend income, net 61 - 411 -
Interest expense - (4,044 ) - (4,044 )
Change in fair value of conversion feature (3,311 ) - 6,939 -
Total other income (expense) (3,250 ) (4,044 ) 7,350 (4,044 )
Net loss $ (1,778,296 ) $ (1,489,449 ) (4,371,491 ) (1,489,449 )
Basic and diluted net loss per common share $ (0.11 ) $ (0.35 ) $ (0.33 ) $ (0.35 )
Weighted average number of shares outstanding – basic and diluted 16,367,424 4,243,607 13,091,231 4,243,607
theMaven, Inc. and Subsidiary
Consolidated Statement of Stockholders’ Equity (Unaudited)
Nine Months Ended September 30, 2017
Common Stock To Be Issued Paid-in Accumulated Stockholders'
Shares Amount Shares Amount Capital Deficit Equity
Balance at January 1, 2017 22,047,531 $ 220,475 8,929 $ 9,375 $ 2,730,770 $ (2,187,758 ) $ 772,862
Common stock to be issued in private placement, net of issuance costs - - 1,521,739 $ 1,566,000 - - $ 1,566,000
Common stock to be issued 8,929 89 (8,929 ) (9,375 ) 9,286 - -
Issuance of common stock, net of offering costs 3,765,000 37,650 - - 3,281,014 - 3,318,664
Shares issued for investment banking fees 162,000 1,620 - - 199,260 - 200,880
Exercise of stock options 21.680 217



Stock-based compensation - - - - 2,045,812 - 2,045,812
Net loss - - - - (4,371,491 ) (4,371,491 )
Balance at September 30, 2017 26,005,140 $ 260,051 1,521,739 $ 1,566,000 $ 8,265,925 $ (6,559,249 ) $ 3,532,727
theMaven, Inc. and Subsidiary
Consolidated Statement of Cash Flows
Nine Months Ended

September 30,

September 30,

(Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss $ (4,371,491 ) $ (1,489,449 )
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of conversion feature (6,939 ) -
Stock based compensation 1,357,510 935,058
Depreciation and amortization 233,990 -
Changes in operating assets and liabilities:
Prepayments and other current assets 19,322 (5,222 )
Accounts receivable (3,482 ) -
Deferred costs (15,986 ) -
Accounts payable (102,793 ) 30,600
Deferred revenue 31,634 -
Accrued expenses 203,271 36,992
Net cash used in operating activities (2,654,964 ) (492,021 )
Cash flows from investing activities:
Website development costs and fixed assets (1,513,813 ) -
Net cash used in investing activities (1,513,813 ) -
Cash flows from financing activities:
Proceeds from common stock to be issued in private placement 1,750,000 -
Proceeds from notes payable - 638,351
Net proceeds from issuance of common stock 3,519,544 2,952
Net cash provided by financing activities 5,269,544 641,303
Net increase in cash 1,100,767 149,282
Cash at beginning of period 598,294 -
Cash at end of period $ 1,699,061 $ 149,282
Supplemental disclosures of noncash investing and financing activities:
Reclassification of stock-based compensation to website development costs 688,302 -
Accrual of stock issuance costs 184,000 -
Shares issued for investment banking fees 200,880 -


Maven is an expert-driven, group media network, whose innovative platform serves, by invitation only, a coalition of professional, independent channel partners. By providing broader distribution, greater community engagement and efficient advertising and membership programs, Maven enables partners to focus on the key drivers of their business: creating, informing, sharing, discovering, leading and interacting with the communities and constituencies they serve.

Based in Seattle, Maven is publicly traded under the ticker symbol MVEN. The executive team and operational board members include digital media pioneers James Heckman and Josh Jacobs, and technology innovators Bill Sornsin and Ben Joldersma. For more insight, head to themaven.net.


This press release by theMaven, Inc. (“company”) contains “forward-looking statements.” Forward-looking statements relate to future events or future performance and include, without limitation, statements concerning the company’s business strategy, future revenues, market growth, capital requirements, product introductions and expansion plans, and the adequacy of the company’s funding. Other statements contained in this press release that are not historical facts are also forward-looking statements. The company has tried, wherever possible, to identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and other comparable terminology.

The company cautions investors that any forward-looking statements presented in this report, or that the company may make orally or in writing from time to time, are based on the beliefs of, assumptions made by, and information currently available to, the company. Such statements are based on assumptions, and the actual outcome will be affected by known and unknown risks, trends, uncertainties and factors that are beyond the company’s control or ability to predict. Although the company believes that its assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. As a result, the company’s actual future results can be expected to differ from its expectations, and those differences may be material. Accordingly, investors should use caution in relying on forward-looking statements, which are based only on known results and trends at the time they are made, to anticipate future results or trends.

This press release and all subsequent written and oral forward-looking statements attributable to the company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. The company does not undertake any obligation to release publicly any revisions to its forward-looking statements to reflect events or circumstances after the date of this press release. The information on the websites referenced in this press release are not incorporated herein by reference for any purpose.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171117005205/en/

theMaven Inc.
Investor Inquiries:
Martin Heimbigner, 206-947-2472
Chief Financial Officer
Media Inquiries:
Gretchen Bakamis, 206-715-6660

Source: theMaven Inc.