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Mobivity Announces Second Quarter 2022 Financial Results

·9 min read
Mobivity Holdings Corp.
Mobivity Holdings Corp.

PHOENIX, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB:MFON), maker of the award-winning Recurrency platform that increases customer engagement through mobile messaging and personalized digital offers, and drives digital transformation for brands, today announced financial results for the second quarter (“Q2”) ending June 30, 2022.

Second Quarter 2022 Financial Highlights

  • Revenues of $1.9 million compared to $2.8 million in Q2 2021. The year-over-year decrease in revenue was primarily due to the restructuring of a large customer contract due to COVID related changes in their business.

  • Gross margin of 36% compared to 54% in Q2 2021. The decrease in gross margin was primarily due to the restructuring of the aforementioned large customer contract.

  • Operating expenses reduced 16% to $2.4 million versus $2.9 million in Q2 2021.

  • Net loss was $2.0 million compared to a net loss of $1.4 million in Q2 2021.

  • Cash and cash equivalents totalled $1.1 million compared to $1.9 million at June 30, 2021.

  • Adjusted EBITDA, excluding certain non-cash expenses, was ($1.1) million compared to ($950,000) in Q2 2021.

Second Quarter 2022 Business Highlights

  • Appointed veteran digital media executive, Ben Weinberger, to Board of Directors.

  • Launched new Connected Rewards solution including an industry first gamer acquisition campaign through SMS text messaging.

  • Began partnership to expand reach to over 65,000 fuel locations for Connected Reward programs.

  • Expanded gaming partner pipeline including two leading advertising networks and two additional game publishers.

  • Selected by United Dairy Farmers to launch its text club across all locations to engage with guests and increase enrollment of its U-Drive loyalty program.

Dennis Becker, Mobivity Chairman and CEO, commented, “During the second quarter we advanced our new solution, ‘Connected Rewards’ with the addition of several new restaurant brands and grew our pipeline of additional restaurants and convenience brands that are scheduled to launch in the third quarter. In addition, we are attracting new partnerships with advertising networks focused on the gaming industry that will leverage our platform to build new campaigns and deliver rewards to consumers. Several of these partners will be launching campaigns in the third quarter. Our business model is centered around leveraging the network effect of our platform. We are increasingly encouraged by the opportunities we are pursuing and believe that the impact of our efforts will become increasingly evident in our top line as we launch new and scale existing Connected Rewards programs.”

Consolidated Financial Summaries

(In thousands)

Three months ended June 30,

Six months ended June 30,

 

 

2022

 

 

2021

 

$$

%

 

2022

 

 

2021

 

$$

%

Revenue

$

1,867

 

$

2,793

 

$

(926

)

-33

%

$

3,897

 

$

5,250

 

$

(1,354

)

-26

%

Gross profit

$

664

 

$

1,521

 

$

(856

)

-56

%

$

1,519

 

$

2,936

 

$

(1,417

)

-48

%

Gross margin

 

36

%

 

54

%

 

-35

%

 

39

%

 

56

%

 

-30

%

Operating Expenses

$

2,448

 

$

2,927

 

$

(479

)

-16

%

$

5,080

 

$

6,003

 

$

(924

)

-15

%

Income (loss) from Operations

$

(1,784

)

$

(1,406

)

$

(378

)

-27

%

$

(3,561

)

$

(3,067

)

$

(494

)

-16

%

Net income (loss)

$

(1,951

)

$

(1,433

)

$

(519

)

-36

%

$

(3,885

)

$

(3,126

)

$

(759

)

-24

%

Adjusted EBITDA *

$

(1,145

)

$

(950

)

$

(195

)

-21

%

$

(2,509

)

$

(2,224

)

$

(285

)

-13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conference Call
Date: Monday, August 15, 2022
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: 10020050

The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1563367&tp_key=a86ddc2cea.

Participating on the call will be Mobivity’s Chairman and Chief Executive Officer, Dennis Becker, and Chief Financial Officer, Lisa Brennan. To join the live conference call, please dial in to the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time.

A replay will be available for two weeks starting on August 15, 2022 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 10020050. The replay will also be available on the Company’s website under the investor relations section.

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 data, 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, 2020 filed with the SEC on March 30, 2021 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:
Lisa Brennan • Chief Financial Officer, Mobivity
(877) 282-7660

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

Mobivity Holdings Corp.
Condensed Consolidated Balance Sheets

 

 

June 30,
2022
(Unaudited)

 

December 31,
2021
(Audited)

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

$

1,091,460

 

$

735,424

 

Accounts receivable, net of allowance for doubtful accounts of $46,512 and $56,340, respectively

 

828,170

 

 

578,303

 

Other current assets

 

353,694

 

 

227,458

 

Total current assets

 

2,273,324

 

 

1,541,185

 

Goodwill

 

411,183

 

 

411,183

 

Right to use lease assets

 

1,081,388

 

 

1,187,537

 

Intangible assets, net

 

907,982

 

 

1,124,720

 

Other assets

 

153,572

 

 

173,325

 

TOTAL ASSETS

$

4,827,449

 

$

4,437,950

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

Current liabilities

 

 

Accounts payable

$

3,604,508

 

$

3,823,909

 

Accrued interest

 

444,135

 

 

172,239

 

Accrued and deferred personnel compensation

 

178,210

 

 

495,533

 

Deferred revenue and customer deposits

 

302,979

 

 

377,170

 

Related party notes payable

 

1,181,250

 

 

819,531

 

Notes payable, net - current maturities

 

41,560

 

 

69,052

 

Operating lease liability

 

240,064

 

 

229,240

 

Other current liabilities

 

 

 

9,071

 

Total current liabilities

 

5,992,706

 

 

5,995,745

 

 

 

 

Non-current liabilities

 

 

Related party notes payable, net - long term

 

2,633,032

 

 

2,498,711

 

Notes payable, net - long term

 

49,373

 

 

39,086

 

Operating lease liability

 

1,065,155

 

 

1,188,589

 

Total non-current liabilities

 

3,747,560

 

 

3,726,386

 

Total liabilities

 

9,740,266

 

 

9,722,131

 

 

 

 

Stockholders' equity (deficit)

 

 

Common stock, $0.001 par value; 100,000,000 shares authorized; 59,661,385 and 55,410,695, shares issued and
outstanding

 

59,661

 

 

55,411

 

Equity payable

 

100,862

 

 

100,862

 

Additional paid-in capital

 

106,699,502

 

 

102,446,921

 

Accumulated other comprehensive income (loss)

 

(52,722

)

 

(52,088

)

Accumulated deficit

 

(111,720,120

)

 

(107,835,287

)

Total stockholders' equity (deficit)

 

(4,912,817

)

 

(5,284,181

)

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$

4,827,449

 

$

4,437,950

 

 

 

 

 

 

 

 

Mobivity Holdings Corp.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues

 

 

 

 

Revenues

$

1,867,162

 

$

2,792,828

 

$

3,896,731

 

$

5,250,418

 

Cost of revenues

 

1,202,749

 

 

1,272,141

 

$

2,377,697

 

 

2,313,936

 

Gross profit

 

664,413

 

 

1,520,687

 

 

1,519,034

 

 

2,936,482

 

 

 

 

 

 

Operating expenses

 

 

 

 

General and administrative

 

897,984

 

 

957,400

 

 

2,105,160

 

 

2,246,770

 

Sales and marketing

 

566,270

 

 

1,111,693

 

 

1,163,771

 

 

2,008,443

 

Engineering, research, and development

 

873,836

 

 

674,035

 

 

1,576,059

 

 

1,397,985

 

Goodwill impairment

 

 

 

 

 

 

 

 

Impairment of intangible asset

 

 

 

 

 

 

 

8,286

 

Depreciation and amortization

 

110,421

 

 

183,584

 

 

234,733

 

 

341,811

 

Total operating expenses

 

2,448,511

 

 

2,926,712

 

 

5,079,723

 

 

6,003,295

 

 

 

 

 

 

Loss from operations

 

(1,784,098

)

 

(1,406,025

)

 

(3,560,689

)

 

(3,066,813

)

 

 

 

 

 

Other income/(expense)

 

 

 

 

Interest income

 

 

 

 

 

 

 

5

 

Interest expense

 

(167,126

)

 

(23,867

)

 

(326,953

)

 

(56,383

)

Loss on disposal of fixed assets

 

 

 

(880

)

 

 

 

(880

)

Foreign currency gain (loss)

 

(510

)

 

(1,774

)

 

2,809

 

 

(2,248

)

Total other income/(expense)

 

(167,636

)

 

(26,521

)

 

(324,144

)

 

(59,506

)

Loss before income taxes

 

(1,951,734

)

 

(1,432,546

)

 

(3,884,834

)

 

(3,126,319

)

Income tax expense

 

 

 

 

 

 

 

 

Net loss per share:

 

(1,951,734

)

 

(1,432,546

)

 

(3,884,834

)

 

(3,126,319

)

Other comprehensive loss, net of income tax

 

 

 

 

Foreign currency translation adjustments

 

12,261

 

 

(9,241

)

 

(634

)

 

(18,919

)

Comprehensive loss

$

(1,939,473

)

$

(1,441,787

)

$

(3,885,468

)

$

(3,145,238

)

Net loss per share:

 

 

 

 

Basic and Diluted

$

(0.03

)

$

(0.03

)

$

(0.07

)

$

(0.06

)

Weighted average number of shares:

 

 

 

 

Basic and Diluted

 

58,602,319

 

 

55,410,695

 

 

57,921,596

 

 

55,410,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobivity Holdings Corp.
Reconciliation of GAAP Measure to Non-GAAP Measure

(In thousands)

Three months ended June 30,

Six Months ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net Loss

$

(1,951

)

$

(1,433

)

$

(3,885

)

$

(3,126

)

Stock Based Compensation

$

529

 

$

275

 

$

814

 

$

504

 

Depreciation and Amortization

$

110

 

$

184

 

$

235

 

$

342

 

Interest Expenses Net

$

167

 

$

24

 

$

327

 

$

56

 

Adjusted EBITDA

$

(1,145

)

$

(950

)

$

(2,509

)

$

(2,224

)