PHOENIX, May 16, 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 first quarter (“Q1”) ending March 31, 2022.
First Quarter 2022 Financial Highlights
Revenues of $2.0 million compared to $2.5 million in Q1 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 42.1% compared to 57.6% in Q1 2021. The decrease in gross margin was primarily due to the restructuring of the aforementioned large customer contract.
Net loss was $1.9 million compared to $1.7 million in Q1 2021.
Cash and cash equivalents totalled $1.5 million compared to $735,000 at December 31, 2021.
Sequentially, revenue for the first quarter of 2022 was up 8% over the fourth quarter of 2021 on a comparative basis, excluding accounting deductions taken in the fourth quarter.
Adjusted EBITDA, excluding certain non-cash expenses, was $1.3M for Q1, 2022.
First Quarter 2022 Business Highlights
Launched innovative in-game rewards programs with leading QSR and convenience store brands across several popular mobile games.
Executed the QSR industry’s first mobile game promotion uniquely combining SMS text message marketing and digital coupon codes.
Developed three partnerships in the gaming industry spanning both mobile and console-based gaming platforms.
Dennis Becker, Mobivity Chairman and CEO, commented, “During the first quarter, our team successfully executed several programs targeting the massive market opportunity to connect millions of consumers with everyday retail food and convenience brands through the gaming, streaming and other digital activities they are already engaged in. We are encouraged by the early results of these programs, which importantly, are scalable, leverage our existing products and technologies and are characterized by a highly attractive economic model. Demand for real-world incentives for digital activities is robust, and we have a healthy pipeline of new gaming partners, game titles and foodservice and convenience brands that we believe can mutually benefit from our technologies. Our platform can serve as a critical bridge between the digital and real worlds for consumers and merchants highlighting the exciting potential for our business.”
Consolidated Financial Summaries
(In thousands)
Three months ended March 31,
2022
2021
$$
%
Revenue
$
2,030
$
2,458
$
(428
)
(17.4
%)
Gross profit
$
855
$
1,416
$
(561
)
(39.6
%)
Gross margin
42.1
%
57.6
%
(1,550) bps
Operating Expenses
$
2,631
$
2,918
$
(287
)
(26.9
%)
Loss from Operations
$
(1,777
)
$
(1,661
)
$
116
(16.0
%)
Net loss
$
(1,946
)
$
(1,703
)
$
(243
)
(8.4
%)
Adjusted EBITDA *
$
(1,314
)
$
(1,339
)
$
25
1.9
%
Conference Call Date: Monday, May 16, 2022 Time: 4:30 P.M. Eastern Time (ET) Dial in Number for U.S. Callers: 1-877-407-0789 Dial in Number for International Callers: 1-201-689-8562 Please Reference Conference ID: 13729704
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 May 16, 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 13729704. 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.
