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CST: 20/04/2019 13:42:31   

Mobivity Reports 35% Revenue Growth for 2018

4 Days ago

Annual recurring revenue run rate at December 31, 2018 increased over 42%

PHOENIX, April 15, 2019 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB: MFON), creators of the award-winning customer personalization platform, Recurrency, today announced financial results for the fourth quarter and full year ending December 31, 2018.

2018 Key Performance Metrics (comparison for full year 2018 versus 2017)

  • Annual recurring revenue grew to $12.2 million at the end of 2018 marking an increase of 42% from 2017 full-year revenues of $8.6 million

  • Number of total locations served increased to more than 36,000

  • Consumers engaged through Mobivity powered mobile engagement programs grew to more than 17 million

  • Average annual recurring revenue per location from recently signed contracts grew 41% to $980 per location per year

  • Total value of contracts booked increased 49% to $29.0 million from $19.5 million

Dennis Becker, Mobivity Chairman and CEO, commented, “2018 was an exciting and productive year of transformation for Mobivity. We launched a partnership with a leading global brand, and this new sales channel actively facilitated engagements with several new national restaurant chains in 2018. We acquired Belly, a leading digital loyalty solution, which has proven to be a catalyst to our business, as evidenced by the selection of Belly’s loyalty solution for a network of 5,000+ dealers nationwide of a global brand at the end of last year. We exited 2018 in a stronger competitive position and saw significant improvements in key metrics year over year, reinforcing our confidence in continued rapid growth. Our proven and quantifiable return on investment for our customers is enabling us to extend our contracts, with recent engagements spanning five years and increasingly larger minimum financial commitments. Average Annual Revenue, both from existing and new customers, showed significant improvement this year.”

Mr. Becker continued, “Looking ahead to 2019, Mobivity is well positioned to ride the growing wave of marketing spend shifting to a data-driven, personalized, one-to-one engagement between brands and consumers. The key objectives we plan to work towards in 2019 are continuing the international expansion of locations with our largest customer, rolling out the platform to new customers coming in through our new channel partnerships, and expanding our average annual revenue per location through additional product features. Mobivity services are currently deployed in almost 40,000 restaurants, a small percentage of the total base of U.S. restaurants. With thousands of locations, including international deployments, bringing millions of consumers into our database, and billions of point of sale transactions collected, we have attracted several large technology partnerships that we can leverage to build our digital future. These partnerships are exposing Mobivity to brands that are comprised of hundreds of thousands of locations where we only need modest penetration to achieve accelerated revenue scale. We also plan to further leverage the Belly acquisition into these partnerships, as well as our existing customer base, to drive our annual recurring revenue per location well above $1,000 per location per year. I look forward to an exciting year as we work to expand our presence in the market, continue to evolve our platform, and leverage the brand power we have built.”

Consolidated Financial Summaries

Fourth Quarter

(In thousands) Three months ended December 31,
    2018     2017   Change
Revenue $ 1,936   $ 2,156   -10 %
Revenue excluding ASC 606 $ 2,874   $ 2,156   33 %
Gross profit $ 574   $ 1,307   -56 %
Gross margin   30 %   61 %  
Goodwill Impairment $ 2,288     --    
Operating Expense $ 4,774   $ 3,034   57 %
Income (loss) from Operations $ (4,199 ) $ (1,727 ) 143 %
Net income (loss) $ (4,217 ) $ (1,779 ) 137 %
                 

Full Year

(In thousands) Twelve months ended December 31,
    2018     2017   Change
Revenue $ 11,557   $ 8,592   35 %
Revenue excluding ASC 606 $ 8,864   $ 8,592   31 %
Gross profit $ 7,624   $ 5,799   41 %
Gross margin   66 %   67 %  
Goodwill Impairment $ 2,288     --    
Operating Expense $ 14,617   $ 11,577   26 %
Income (loss) from Operations $ (6,993 ) $ (5,778 ) -21 %
Net income (loss) $ (7,216 ) $ (5,946 ) -21 %
                 

Adjustment for One-time Non-cash Goodwill Impairment

(In thousands) Three months ended December 31, Twelve months ended December 31,
    2018     2017   Change   2018     2017   Change
Operating Expense $ 4,774   $ 3,034   57 % $ 14,617   $ 11,577   26 %
Goodwill Impairment $ 2,288     --     $ 2,288     --    
Adjusted Operating Expense $ 2,485   $ 3,034   -18 % $ 12,329   $ 11,577   6 %
Net income (loss) $ (1,929 ) $ (1,779 ) 8 % $ (4,928 ) $ (5,946 ) -17 %
                                 

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 point-of-sale 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 15th, 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.

Mobivity Holdings Corp.
Consolidated Balance Sheets

  December 31,   December 31,
  2018   2017
ASSETS          
Current assets          
Cash $   554,255     $   460,059  
Accounts receivable, net of allowance for doubtful accounts of $9,828 and $2,280, respectively     601,658         885,743  
Contracts receivable, current     578,869         -  
Other current assets     736,309         209,536  
Total current assets     2,471,091         1,555,338  
Goodwill     537,550         803,118  
Intangible assets, net     1,781,448         676,436  
Contracts receivable, long term     2,113,823         -  
Other assets     527,146         88,916  
TOTAL ASSETS $   7,431,058     $   3,123,808  
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities          
Accounts payable $   1,731,628     $   1,096,003  
Accrued interest     9,167         1,168  
Accrued and deferred personnel compensation     350,311         590,500  
Deferred revenue and customer deposits     1,956,938         1,429,266  
Notes payable, net - current maturities     1,279,590         2,236,224  
Other current liabilities     723,636         226,355  
Total current liabilities     6,051,270         5,579,516  
           
Non-current liabilities          
Notes payable, net - long term     194,328         180,810  
Other long term liabilities     860,500         -  
Total non-current liabilities     1,054,828         180,810  
Total liabilities     7,106,098         5,760,326  
Commitments and Contingencies (See Note 9)          
Stockholders' equity          
Common stock, $0.001 par value; 100,000,000 shares authorized; 45,998,053 and 37,025,140, shares issued and outstanding     45,998         37,025  
Equity payable     100,862         100,862  
Additional paid-in capital     88,008,473         77,910,842  
Accumulated other comprehensive loss     4,759         (65,764 )
Accumulated deficit     (87,835,132 )       (80,619,483 )
Total stockholders' equity     324,960         (2,636,518 )
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   7,431,058     $   3,123,808  
               

Mobivity Holdings Corp.
Consolidated Statements of Operations

  Three Months Ended   Twelve Months Ended
   December 31,    December 31,
  2018   2017   2018   2017
Revenues                    
Revenues $   1,935,601     $   2,155,883     $     11,556,536     $     8,591,955  
Cost of revenues     1,361,530         849,204           3,932,334           2,792,738  
Gross profit     574,071         1,306,679           7,624,202           5,799,217  
Operating expenses                              
General and administrative     1,321,510         840,917           4,197,539           3,357,166  
Sales and marketing     884,948         958,640           3,931,469           3,631,727  
Engineering, research, and development     75,791         1,121,610           3,713,787           4,201,647  
Goodwill impairment     2,288,057         -           2,288,057           -  
Depreciation and amortization     203,031         112,588           486,255           386,304  
Total operating expenses     4,773,336         3,033,755           14,617,107           11,576,844  
Income (loss) from operations     (4,199,265 )       (1,727,076 )         (6,992,905 )         (5,777,627 )
Other income/(expense)                    
Interest income     3,264         1,759           4,145           4,637  
Interest expense     (17,386 )       (53,681 )         (210,422 )         (169,044 )
Gain on sale of fixed assets     -       -           (8,722 )         -  
Foreign currency (loss) gain     (4,019 )       142           (7,745 )         (3,978 )
Total other income/(expense)     (18,142 )       (51,780 )         (222,744 )         (168,385 )
Income (loss) before income taxes     (4,217,406 )       (1,778,856 )         (7,215,649 )         (5,946,012 )
Income tax expense   -       -           -           -  
Net Income (loss)     (4,217,406 )       (1,778,856 )         (7,215,649 )         (5,946,012 )
Other comprehensive income (loss), net of income tax                    
Foreign currency translation adjustments     51,605         3,393           70,523           (32,765 )
Comprehensive income (loss) $   (4,165,801 )   $   (1,775,463 )     $   (7,145,126 )     $   (5,978,777 )
Net income (loss) per share:                    
Basic $   (0.10 )   $   (0.05 )     $   (0.17 )     $   (0.16 )
Weighted average number of shares:                    
Basic     42,777,136         36,836,345           42,133,368           36,575,762  
                     
 Reconciliation of net (loss) to adjusted EBITDA                    
 Net (loss) $   (4,217,406 )   $   (1,778,856 )     $   (7,215,649 )     $   (5,946,012 )
 Impact of ASC606     285,467         -            (1,209,823 )         -   
 Goodwill impairment     2,288,057         -            2,288,057           -   
 Stock based compensation     406,907         1,130,297           965,161           1,130,297  
 Depreciation and amortization     203,031         386,304           425,247           386,304  
 Interest expense     17,386         169,044           210,422           169,044  
 Adjusted EBITDA $   (1,016,558 )   $   (93,211 )     $   (4,536,585 )     $   (4,260,367 )
                                   

Media Contacts

Jennifer Handshew • Marketing Communications, Mobivity
jennifer.handshew@mobivity.com • (917) 359-8838

Dennis Becker • Chairman and Chief Executive Officer, Mobivity
(877) 282-7660

Investor Relations Contacts

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

Jeff Stanlis • Partner and Vice President, Communications, Hayden IR
jeff@haydenir.com • (602) 476-1821

Charles Mathews • Chief Financial Officer, Mobivity
(877) 282-7660

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