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CST: 07/12/2019 08:15:44   

Mobivity Announces Third Quarter Financial Results

22 Days ago

Annual recurring revenue climbs 15.7% compared to Q3 2018

PHOENIX, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB: MFON), creators of the award-winning customer personalization platform, Recurrency, today announced financial results for the third quarter ending September 30, 2019 (“Q3 2019”).

Q3 2019 Highlights

  • Revenue for the third quarter of 2019 decreased 46% to $2.5 million compared to $4.6 million in Q3 2018
  • Recurring revenues increased to $2.7 million for the quarter, a 15.7% increase compared to $2.4 million for Q3 2018
  • Net loss for Q3, 2019 was $(1.9) million compared to net income of $91,000 in Q3 2018
  • On an adjusted EBITDA basis, excluding non-recurring and non-cash charges, Q3 2019 net loss was ($1.2 million) compared to an adjusted net loss of ($529,000) in Q3 2018.
  • Checkers & Rally’s selected Mobivity to power its mobile customer engagement programs in over 875 of its U.S. locations. The programs will utilize Mobivity’s Reach to send timely, personalized mobile offers to Checkers & Rally’s customers via SMS text messaging. 
  • Launched a large-scale Offer and Promotions Management Platform and new recurring revenue stream with a large global brand.
  • The Company began initiatives to penetrate a second vertical, grocery stores, with its Recurrency platform.

Dennis Becker, Mobivity Chairman and CEO, commented, “We achieved meaningful progress in the third quarter, including growing our recurring revenue through both existing customers and incremental customer wins. Simultaneously, we continued to invest in our technology in collaboration with large customers and name-brand partners, further validating our business model and the upside potential in our financial performance. The recurring license revenue structure of our business provides us with strong operating leverage that we continue to believe will drive improving financial results, despite the revenue impact from our efforts taking longer than we had originally anticipated.”

Mr. Becker continued, “We are making steady progress in our efforts to expand our relationship with existing customers, which will significantly improve our growth rate. Additional revenue from an already onboarded customer disproportionally drops to the bottom line, driving gross margin and operating margin expansion and bringing us closer to cash flow break-even. Over the next few quarters, we expect this progress to become evident in our financial results as the dramatic ROI we provide to customers enables us to capture a greater share of their marketing budgets.”

“Increasingly, brands are recognizing the value of one-to-one marketing, especially compared to lower-value traditional marketing channels which are seeing diminishing ROIs,” added Mr. Becker. “Mobivity has the ability to prove a tangible ROI, as we drive increased frequency and higher spend, two incredibly valuable metrics for brands in today’s competitive environment. Increasingly, we are seeing this translate to a greater share of our customers’ marketing spend.”

Consolidated Financial Summaries

         
(In thousands) Three months ended Sept 30, Nine months ended Sept 30,
    2019     2018     2019     2018  
Revenue $   2,482   $   4,561   $   7,333   $   9,621  
Gross profit $   896   $   3,540   $   2,948   $   7,050  
Gross margin   36%     78%     40%     73%  
Operating Expenses $   2,554   $   3,421   $   8,888   $   9,844  
Income (loss) from Operations $   (1,658 ) $   119   $   (5,940 ) $   (2,794 )
Net income (loss) $   (1,915 ) $   91   $   (6,328 ) $   (2,998 )
Adjusted EBITDA * $   (1,155 ) $   (529 ) $   (4,262 ) $   (3,386 )
         
* Non-GAAP mearsures        
(In thousands) Three months ended Sept 30, Nine months ended Sept 30,
    2019     2018     2019     2018  
Revenue excluding ASC 606 * $   2,744   $   2,373   $   7,984   $   5,990  
Adjusted gross profit * $   1,158   $   1,352   $   3,599   $   3,419  
Adjusted gross margin *   42%     57%     45%     57%  
Opex excluding ASC 606 * $   2,676   $   2,117   $   9,207   $   7,708  
Income (loss) from operations excluding ASC 606 * $   (1,518 ) $   (766 ) $   (5,608 ) $   (4,289 )
* Non-GAAP mearsures        

Conference Call

Mobivity will host a conference call at 4:30 p.m. ET on November 14, 2019. Conference Call Information:

Date: Thursday, November 14, 2019
Time: 4:30 P.M. Eastern Time (ET)
Dial in Number for U.S. Callers: 1-855-327-6837
Dial in Number for International Callers: 1-631-891-4304
Please Reference Conference ID: 10008076

The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=136967.

A replay will be available for two weeks starting on November 14, 2019 at approximately 7:30 p.m. ET. To access the replay, please dial 1-844-512-2921 in the U.S. and 1-412-317-6671 for international callers. The conference ID# is 10008076. The replay will also be available on the Company’s website under the investor relations section.

Mobivity Holdings Corp.
Consolidated Balance Sheets
             
             
    September 30,   December 31,
    2019     2018  
ASSETS            
Current assets            
Cash   $ 975,669     $ 554,255  
Accounts receivable, net of allowance for doubtful accounts of $65,306 and $10,104, respectively     774,669       601,658  
Contracts receivable, current     655,574       578,869  
Other current assets     751,820       736,309  
Total current assets     3,157,732       2,471,091  
Goodwill     537,550       537,550  
Right to use lease assets     360,709       -  
Intangible assets, net     2,200,962       1,781,448  
Contracts receivable, long term     1,386,408       2,113,823  
Other assets     132,546       527,146  
TOTAL ASSETS   $   7,775,907     $   7,431,058  
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities            
Accounts payable   $ 2,739,522     $ 1,731,628  
Accrued interest     18,267       9,167  
Accrued and deferred personnel compensation     313,575       350,311  
Deferred revenue and customer deposits     1,375,408       1,956,938  
Related party notes payable, net - current maturities     90,461       131,392  
Notes payable, net - current maturities     528,331       1,148,198  
Other current liabilities     618,163       723,636  
Total current liabilities     5,683,727       6,051,270  
             
Non-current liabilities            
Notes payable, net - long term     702,072       194,328  
Other long term liabilities     940,632       860,500  
Total non-current liabilities     1,642,704       1,054,828  
Total liabilities     7,326,431       7,106,098  
Commitments and Contingencies            
Stockholders' equity            
Common stock, $0.001 par value; 100,000,000 shares authorized; 51,380,969 and 45,998,053, shares issued and outstanding     51,381       45,998  
Equity payable     100,862       100,862  
Additional paid-in capital     94,442,771       88,008,473  
Accumulated other comprehensive income     17,698       4,759  
Accumulated deficit     (94,163,236 )     (87,835,132 )
Total stockholders' equity     449,476       324,960  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $   7,775,907     $   7,431,058  
             


Mobivity Holdings Corp.
Consolidated Statements of Operations
                         
    Three Months Ended   Nine Months Ended
     Sept 30,    Sept 30,
    2019     2018     2019     2018  
Revenues                        
Revenues     2,481,986       4,561,368       7,333,407       9,620,935  
Cost of revenues     1,586,411       1,021,285       4,385,106       2,570,804  
Gross profit     895,575       3,540,083       2,948,301       7,050,131  
                         
Operating expenses                        
General and administrative     1,381,361       857,095       4,101,340       2,876,029  
Sales and marketing     636,757       792,678       2,025,055       3,046,521  
Engineering, research, and development     380,539       1,683,738       2,298,405       3,637,996  
Depreciation and amortization     155,598       87,526       463,086       283,224  
Total operating expenses     2,554,255       3,421,037       8,887,886       9,843,770  
Income (loss) from operations     (1,658,680 )     119,046       (5,939,585 )     (2,793,639 )
Other income/(expense)                        
Interest income     26,636       279       26,654       881  
Interest expense     (57,569 )     (25,913 )     (188,451 )     (193,036 )
Loss on conversion of debt     (232,462 )     -       (232,462 )     -  
Gain on sale of fixed assets     -       -       -       (8,722 )
Foreign currency (loss) gain     6,642       (2,106 )     5,740       (3,726 )
Total other income/(expense)     (256,753 )     (27,740 )     (388,519 )     (204,603 )
Income (loss) before income taxes     (1,915,433 )     91,306       (6,328,104 )     (2,998,242 )
Income tax expense     -       -       -       -  
Net Income (loss)     (1,915,433 )     91,306       (6,328,104 )     (2,998,242 )
Other comprehensive income (loss), net of income tax                        
Foreign currency translation adjustments     35,252       38,179       12,939       18,918  
Comprehensive income (loss)   $   (1,880,181 )   $   129,485     $   (6,315,165 )   $   (2,979,324 )
Net income (loss) per share:                        
Basic   $   (0.04 )   $   -     $   (0.14 )   $   (0.07 )
Diluted   $   (0.04 )   $   -     $   (0.14 )   $   (0.07 )
Weighted average number of shares:                        
Basic       47,488,574         45,719,664         46,500,353         41,325,443  
Diluted       47,488,574         53,394,242         46,500,353         41,325,443  


Reconciliation of net (loss) to adjusted EBITDA                
Net (loss)   $ (1,915,433 )   $ 91,306     $ (6,328,104 )   $ (2,998,242 )
Loss on conversion of debt   $ 232,462     $ -     $ 232,462     $ 41,903  
Impact of ASC606     140,484       (884,929 )     331,548       (1,495,135 )
Stock based compensation     147,749       150,510       824,303       588,800  
Depreciation and amortization     155,598       87,526       463,086       283,224  
Interest expense     84,205       26,192       215,105       193,917  
Adjusted EBITDA   $ (1,154,935 )   $ (529,395 )   $ (4,261,600 )   $ (3,385,533 )
                                 

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 platform 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 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 Contacts:

Lynn Tiscareno • Chief Financial Officer, Mobivity
(877) 282-7660

Brett Maas • Managing Partner, Hayden IR
brett@haydenir.com • (646) 536-7331

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