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Mobivity Announces Third Quarter 2022 Financial Results

Mobivity Holdings Corp.
Mobivity Holdings Corp.

PHOENIX, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB:MFON), a global provider of personalized reward solutions that drive customer acquisition, frequency, and spend, today announced financial results for the third quarter (“Q3”) ending September 30th, 2022.

Third Quarter 2022 Financial Highlights

  • Revenues of $1.9 million compared to $2.3 million in Q3 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 offset by increased Connected Rewards revenue.

  • Operating expenses decreased 11% to $2.7 million versus $3.1 million in Q3 2021.

  • Cash and cash equivalents totalled $1.0 million compared to $1.6 million at September 30th, 2021.

Third Quarter 2022 Business Highlights

  • Appointed veteran gaming and digital advertising executive, Kim Carlson, as Chief Revenue Officer to lead sales, marketing and customer success teams to accelerate growth.

  • Announced partnership with P97 Networks to expand reach to over 65,000 fuel locations for Connected Reward programs.

  • Signed four new regional convenience store brands and added three new restaurant brand customers operating approximately 1,000 locations collectively across the United States.

Dennis Becker, Mobivity Chairman and CEO, commented, “Over the past several years we have amassed a customer base spanning national and regional restaurant and convenience store brands reaching most of the US population. Furthermore, we’ve recently compounded our reach by adding large scale connectivity to more than 65,000 fuel stores. Mobivity now operates a one-of-a-kind “last mile” gateway to the point-of-sale, loyalty and promotional code platforms that power marketing and commerce for brands reaching most of the US population. In a matter of months, our team has done an amazing job leveraging these assets and innovating a new paradigm of advertising that uniquely addresses the disruption across the multi-billion dollar digital advertising industry. While it’s still early in the transformation of our business model, we are now set to scale beyond our legacy SMS text messaging business, and we expect Connected Rewards to become the majority of our revenue run rate over the course of the next year and beyond.”

Consolidated Financial Summaries:

(In thousands)

Three months ended September 30,

Nine months ended September 30,

 

2022

2021

$$

%

2022

2021

$$

%

Revenue

$1,890

$2,312

($421)

-18

%

$5,787

$7,562

($1,775)

-23

%

Gross profit

$84

$1,303

($1,218)

-94

%

$1,603

$4,239

($2,636)

-62

%

Gross margin

4%

56%

 

-92

%

28%

56%

 

-51

%

Operating Expenses

$2,739

$3,085

($346)

-11

%

$7,819

$9,088

($1,269)

-14

%

Income (loss) from Operations

($2,655)

($1,782)

($873)

-49

%

($6,216)

($4,849)

($1,367)

-28

%

Net income (loss)

($2,849)

($984)

($1,865)

-190

%

($6,734)

($4,110)

($2,624)

-64

%

Adjusted EBITDA *

($2,106)

($465)

($1,641)

-353

%

($4,484)

($2,689)

($1,795)

-67

%

 

 

 

 

 

 

 

 

 

 

 

Conference Call 
Date: Monday, November 14, 2022 
Time: 5 p.m. Eastern Time (ET) 
Dial in Number for U.S. Callers: 1-800-920-3365 
Dial in Number for International Callers: 1-312-281-2942 
Please Reference Conference ID: 22021275

The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1581046&tp_key=413d927874.

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 November 14, 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 22021275. 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, 2021 filed with the SEC on March 30, 2022 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

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Unaudited)

 

 

(Audited)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash

 

$

1,016,745

 

 

$

735,424

 

Accounts receivable, net of allowance for doubtful accounts $59,190 and $56,340, respectively

 

 

869,965

 

 

 

578,303

 

Other current assets

 

 

252,504

 

 

 

227,458

 

Total current assets

 

 

2,139,214

 

 

 

1,541,185

 

Goodwill

 

 

411,183

 

 

 

411,183

 

Right to use lease assets

 

 

1,032,132

 

 

 

1,187,537

 

Intangible assets, net

 

 

584,369

 

 

 

1,124,720

 

Other assets

 

 

153,756

 

 

 

173,325

 

TOTAL ASSETS

 

$

4,320,654

 

 

$

4,437,950

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,636,629

 

 

$

3,823,909

 

Accrued interest

 

 

443,448

 

 

 

172,239

 

Accrued and deferred personnel compensation

 

 

298,316

 

 

 

495,533

 

Deferred revenue and customer deposits

 

 

613,997

 

 

 

377,170

 

Related party notes payable, net - current maturities

 

 

1,812,500

 

 

 

819,531

 

Notes payable, net - current maturities

 

 

35,875

 

 

 

69,052

 

Operating lease liability

 

 

245,816

 

 

 

229,240

 

Other current liabilities

 

 

142,238

 

 

 

9,071

 

Total current liabilities

 

 

7,228,819

 

 

 

5,995,745

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Related party notes payable, net - long term

 

 

2,315,607

 

 

 

2,498,711

 

Notes payable, net - long term

 

 

36,666

 

 

 

39,086

 

Operating lease liability

 

 

1,001,579

 

 

 

1,188,589

 

Total non-current liabilities

 

 

3,353,852

 

 

 

3,726,386

 

Total liabilities

 

 

10,582,671

 

 

 

9,722,131

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (deficit)

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 100,000,000 shares authorized; 61,311,155 and 55,410,695, shares issued and outstanding

 

 

61,311

 

 

 

55,411

 

Equity payable

 

 

100,862

 

 

 

100,862

 

Additional paid-in capital

 

 

108,273,597

 

 

 

102,446,921

 

Accumulated other comprehensive income (loss)

 

 

(128,950

)

 

 

(52,088

)

Accumulated deficit

 

 

(114,568,837

)

 

 

(107,835,287

)

Total stockholders' equity (deficit)

 

 

(6,262,017

)

 

 

(5,284,181

)

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

$

4,320,654

 

 

$

4,437,950

 


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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,890,437

 

 

$

2,311,548

 

 

$

5,787,168

 

 

$

7,561,966

 

Cost of revenues

 

 

1,806,022

 

 

 

1,008,703

 

 

$

4,183,719

 

 

 

3,322,639

 

Gross profit

 

 

84,415

 

 

 

1,302,845

 

 

 

1,603,449

 

 

 

4,239,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

983,428

 

 

 

1,245,085

 

 

 

3,088,588

 

 

 

3,491,855

 

Sales and marketing

 

 

614,600

 

 

 

978,968

 

 

 

1,778,371

 

 

 

2,987,411

 

Engineering, research, and development

 

 

784,804

 

 

 

678,209

 

 

 

2,360,863

 

 

 

2,076,194

 

Impairment of intangible asset

 

 

238,143

 

 

 

 

 

 

238,143

 

 

 

8,286

 

Depreciation and amortization

 

 

118,317

 

 

 

182,663

 

 

 

353,050

 

 

 

524,474

 

Total operating expenses

 

 

2,739,292

 

 

 

3,084,925

 

 

 

7,819,015

 

 

 

9,088,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(2,654,877

)

 

 

(1,782,080

)

 

 

(6,215,566

)

 

 

(4,848,893

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

5

 

Other Income

 

 

 

 

 

891,103

 

 

 

 

 

 

891,103

 

Interest expense

 

 

(193,501

)

 

 

(88,331

)

 

 

(520,454

)

 

 

(144,714

)

Loss on disposal of fixed assets

 

 

 

 

 

 

 

 

 

 

 

(880

)

Foreign currency gain (loss)

 

 

(339

)

 

 

(4,329

)

 

 

2,470

 

 

 

(6,577

)

Total other income/(expense)

 

 

(193,840

)

 

 

798,443

 

 

 

(517,984

)

 

 

738,937

 

Loss before income taxes

 

 

(2,848,717

)

 

 

(983,637

)

 

 

(6,733,550

)

 

 

(4,109,956

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(2,848,717

)

 

 

(983,637

)

 

 

(6,733,550

)

 

 

(4,109,956

)

Other comprehensive loss, net of income tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(76,228

)

 

 

(13,150

)

 

 

(76,862

)

 

 

(22,391

)

Comprehensive loss

 

$

(2,924,945

)

 

$

(996,787

)

 

$

(6,810,412

)

 

$

(4,132,347

)

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

(0.05

)

 

 

(0.02

)

 

 

(0.12

)

 

 

(0.07

)

Diluted

 

 

(0.05

)

 

 

(0.02

)

 

 

(0.12

)

 

 

(0.07

)

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

60,297,083

 

 

 

55,410,695

 

 

 

58,544,432

 

 

 

55,410,695

 


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

(In thousands)

Three months ended
September 30,

Nine Months ended
September 30,

 

2022

2021

2022

2021

Net Loss

($2,849)

($984)

($6,734)

($4,110)

Stock Based Compensation

$193

$248

$1,376

$752

Depreciation and Amortization

$356

$183

$353

$524

Interest Expenses Net

$194

$88

$520

$145

Adjusted EBITDA

($2,106)

($465)

($4,484)

($2,689)