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CST: 22/08/2019 00:24:36   

Mobivity Announces 78% Revenue Growth in Q2 2019

7 Days ago

Annual recurring revenue climbs 71% compared to Q2 2018

PHOENIX, Ariz., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB:MFON), creators of the award-winning customer personalization platform, Recurrency, today announced financial results for the second quarter ending June 30, 2019 (“Q2 2019”).

Q2 2019 Highlights

  • Revenue for the second quarter of 2019 increased 78% to $2.4 million compared to $1.4 million in the second quarter of 2018

  • Recurring revenues climbed to more than $2.7 million for the quarter, a 71% increase compared to $1.57 million for Q2 2018

  • Began deployment of the largest scannable offer management solution in North America

  • Raised $5.7 million in new financing

  • Net loss for Q2, 2019 increased 63% to ($2.6 million), from ($1.6 million)

  • On an adjusted EBITDA basis, when backing out non-recurring and non-cash charges, Q2 2019 net loss was relatively flat with a loss of ($1.2 million) compared to an adjusted net loss of ($1.1 million) in Q2 2018.

Dennis Becker, Mobivity Chairman and CEO, commented, “This was a milestone quarter for Mobivity as we advanced our sales channel initiatives with our largest partner in preparation for a widespread launch in the coming months. Mobivity also made great strides in growing its recurring revenue base, both from existing and new customers. Annual license fees per location for our Recurrency platform are now exceeding $1,000 per location per year, and we are continually expanding our network in large part due to the strengthening sales channel we have built with leading partners. We have also completed the production of all marketing collateral to fully arm our largest partner’s sales organization and we are completing final reviews now. We expect a widespread launch of our co-marketing efforts with this partner in the coming weeks followed by intensive training sessions for the rest of the year. The opportunity with this partner’s customers is significant and we look forward to a mutually beneficial relationship.”

“Additionally, we began a large-scale deployment during the second quarter with our largest customer that will expand our services beyond SMS text messaging and receipt advertising to all other promotional channels such as print, email, and smartphone applications,” added Mr. Becker. “It is a testament to our unique offering that we are partnered with world-class brands and we are making great strides in our efforts to build a leading position in the $1.8 trillion digital transformation market.”

Consolidated Financial Summaries

Second Quarter 2019        
         
(In thousands) Three months ended June 30, Six months ended June 30,
    2019     2018     2019     2018  
Revenue $   2,435   $   1,366   $   4,851   $   5,060  
Revenue excluding ASC 606 * $   2,697   $   1,572   $   5,240   $   3,617  
Gross profit $   808   $   610   $   2,053   $   3,510  
Gross margin   33 %   45 %   42 %   69 %
Operating Expenses $   3,293   $   2,084   $   6,333   $   6,423  
Opex excluding ASC 606 * $   3,415   $   2,187   $   6,530   $   5,591  
Income (loss) from Operations $   (2,485 ) $   (1,474 ) $   (4,280 ) $   (2,913 )
Net income (loss) $   (2,575 ) $    (1,585 ) $   (4,412 ) $   (3,090 )
Adjusted EBITDA * $   (1,700 ) $   (1,068 ) $   (3,106 ) $   (3,264 )
* Non-GAAP measures        


Mobivity Holdings Corp.
Consolidated Balance Sheets
             
             
    June 30,   December 31,
    2019    2018 
ASSETS            
Current assets            
Cash   $   154,825     $   554,255  
Accounts receivable, net of allowance for doubtful accounts of $48,038 and $10,104, respectively       427,801         601,658  
Contracts receivable, current       791,724         578,869  
Other current assets       797,371         736,309  
Total current assets       2,171,721         2,471,091  
Goodwill       537,550         537,550  
Right to use lease assets       421,032         -  
Intangible assets, net       1,741,092         1,781,448  
Contracts receivable, long term       1,512,445         2,113,823  
Other assets       266,777         527,146  
TOTAL ASSETS   $   6,650,617     $   7,431,058  
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities            
Accounts payable   $   2,729,110     $   1,731,628  
Accrued interest       96,033         9,167  
Accrued and deferred personnel compensation       223,573         350,311  
Deferred revenue and customer deposits       1,183,311         1,956,938  
Related party notes payable, net - current maturities       127,954         131,392  
Notes payable, net - current maturities       721,577         1,148,198  
Other current liabilities       729,596         723,636  
Total current liabilities       5,811,154         6,051,270  
             
Non-current liabilities            
Related party notes payable, net - long term       2,500,000         -  
Notes payable, net - long term       667,059         194,328  
Other long term liabilities       1,100,091         860,500  
Total non-current liabilities       4,267,150         1,054,828  
Total liabilities       10,078,304         7,106,098  
Commitments and Contingencies            
Stockholders' equity            
Common stock, $0.001 par value; 100,000,000 shares authorized; 45,998,053 and 45,998,053, shares issued and outstanding       45,998         45,998  
Equity payable       100,862         100,862  
Additional paid-in capital       88,685,027         88,008,473  
Accumulated other comprehensive loss       (12,795 )       4,759  
Accumulated deficit       (92,246,779 )      (87,835,132 )
Total stockholders' equity       (3,427,687 )       324,960  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $   6,650,617     $   7,431,058  


  Mobivity Holdings Corp.
Consolidated Statements of Operations
                       
                         
    Three Months Ended   Six Months Ended
     June 30,    June 30,
    2019     2018     2019     2018  
Revenues                        
Revenues       2,434,841         1,366,239         4,851,436         5,059,567  
Cost of revenues       1,626,823         756,130         2,798,649         1,549,519  
Gross profit       808,018         610,109         2,052,787         3,510,048  
                         
Operating expenses                        
General and administrative       1,581,266         770,591         2,726,502         2,018,934  
Sales and marketing       802,050         792,263         1,559,192         2,253,843  
Engineering, research, and development       761,320         422,660         1,739,428         1,954,258  
Depreciation and amortization       148,391         98,728         307,481         195,698  
Total operating expenses       3,293,027         2,084,242         6,332,603         6,422,733  
Income (loss) from operations     (2,485,009 )     (1,474,133 )     (4,279,816 )     (2,912,685 )
Other income/(expense)                        
Interest income       -         146         17         602  
Interest expense       (89,855 )       (109,635 )       (130,992 )       (167,124 )
Gain on sale of fixed assets       -         -         -         (8,722 )
Foreign currency (loss) gain       (35 )       (1,290 )       (856 )       (1,620 )
Total other income/(expense)       (89,890 )       (110,779 )       (131,831 )       (176,864 )
Income (loss) before income taxes     (2,574,899 )       (1,584,912 )     (4,411,647 )       (3,089,549 )
Income tax expense       -         -         -         -  
Net Income (loss)     (2,574,899 )     (1,584,912 )     (4,411,647 )       (3,089,549 )
Other comprehensive income (loss), net of income tax                      
Foreign currency translation adjustments       6,136         69,710         (17,554 )       57,097  
Comprehensive income (loss)   $ (2,568,763 )   $ (1,515,202 )   $ (4,429,201 )   $ (3,032,452 )
Net income (loss) per share:                        
Basic   $   (0.06 )   $   (0.04 )   $   (0.10 )   $   (0.08 )
Weighted average number of shares:                        
Basic     45,998,053       38,018,733       45,998,053       37,952,427  
                         
 Reconciliation of net (loss) to adjusted EBITDA                        
 Net (loss)   $  (2,574,899 )   $  (1,584,912 )   $  (4,411,647 )   $  (3,089,549 )
 Loss on conversion of debt       -         41,902         -         41,902  
 Impact of ASC606       140,484         103,362         191,065         (610,206 )
 Stock based compensation       495,805         163,604         676,554         30,546  
 Depreciation and amortization       148,391         98,728         307,481         195,698  
 Interest expense       89,855         109,781         131,009         167,726  
 Adjusted EBITDA   $ (1,700,364 )   $ (1,067,535 )   $ (3,105,538 )   $ (3,263,883 )

Non-GAAP Measurements

This press release includes certain financial information which constitutes "non-GAAP financial measures" as defined by the SEC. A full reconciliation of the non-GAAP measures to GAAP can be found in the tables of today's press release. Non-GAAP adjusted net income is supplemental to results presented under accounting principles generally accepted in the United States of America ("GAAP") and may not be comparable to similarly titled measures presented by other companies. These non-GAAP measures are used by management to facilitate period-to-period comparisons and analysis of Mobivity's operating performance and liquidity. Management believes these non-GAAP measures are useful to investors in trending, analyzing and benchmarking the performance and value of Mobivity's business. These non-GAAP measures should be considered in addition to, but not as a substitute for, other similar measures reported in accordance with GAAP.

About Mobivity

Brick and mortar stores struggle to manage customer connections in a digital world. Mobivity provides a platform to connect national restaurants, retailers, personal care brands and their partners with customers to increase retention, visits, and spend. Mobivity’s Recurrency suite of products increases customer engagement and frequency by capturing detailed POS transaction records, analyzing customer habits, and motivating customers and employees through data-driven messaging applications and rewards. For more information about Mobivity, visit www.mobivity.com or call (877) 282-7660.

Forward Looking Statement

This press release contains forward-looking statements concerning Mobivity Holdings Corp. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding the benefits of recent additions to the Company’s management team; the Company’s expectations for the growth of the Company's operations and revenue; and the advantages and growth prospects of the mobile marketing industry. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, our ability to successfully integrate our recent additions to management; our ability to develop the sales force required to achieve our development and revenue goals; our ability to raise additional working capital as and when needed; changes in the laws and regulations affecting the mobile marketing industry and those other risks set forth in Mobivity Holdings Corp.'s annual report on Form 10-K for the year ended December 31, 2018 filed with the SEC on April 1st, 2019 and subsequently filed quarterly reports on Form 10-Q. Mobivity Holdings Corp. cautions readers not to place undue reliance on any forward-looking statements. Mobivity Holdings Corp. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Investor Relations Contact:

Charles Mathews • Chief Financial Officer, Mobivity
charles.mathews@mobivity.com • (480) 588-2473

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