SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

Mobivity Announces Q1 2019 Results, Recurring Revenue Accelerates
[May 15, 2019]

Mobivity Announces Q1 2019 Results, Recurring Revenue Accelerates


PHOENIX, May 15, 2019 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB: MFON), creators of the award-winning customer personalization platform, Recurrency, today announced financial results for the first quarter ending March 31, 2019 (“Q1 2019”).

Q1 2019 Highlights

  • Recurring revenues climbed to more than $2.54 million for the quarter, a 24% increase compared to $2 million for Q1, 2018

  • Executed a five-year contract to power digital offer management solutions to a multi-billion-dollar brand

  • Added several new brands to an accelerating sales pipeline totalling more than $10 million in annually recurring revenue

  • Closed partnership deals with two multi-billion-dollar Consumer Packaged Goods (“CPG”) brands to resell Recurrency and the newly acquired Belly loyalty platform

  • Entered into a new partnership with a large technology investment bank to begin market trials in thousands of locations across Japan

  • Net loss increased 21% to $1.8 million, from $1.5 million

  • Adjusted EBITDA loss decreased 31% from $1.8 million to $1.2 million

Dennis Becker, Mobivity Chairman and CEO, commented, “Overall market demand is increasing for the full suite of Mobivity solutions as evidenced by the continued acceleration of our recurring revenue from new and existing customers. We’re also seeing great progress towards our goal of hundreds of thousands of locations licensing our solutions on per location annual terms. In the first quarter we added more than $10 million in annual recurring revenues to our sales pipeline, an important indicator of our future revenue growth potential. This pipeline includes more than 10,000 locations across several well-known brands. The exceptional acceleration in our sales pipeline is the direct result of our partnerships with two key CPG brands. Additionally, our team did an amazing job winning a five-year deal with one of our largest customers to power digital offer management, putting us on track to achieve our third straight year of double-digit growth in recurring licensing fees. 2019 is shaping up to be an inflection point for Mobivity. Our focus for the remainder of the year is to convert a significant percentage of our sales pipeline to new revenue, continue building our pipeline, increase contract terms to five years where possible, and leveraging our growing list of logos through our global CPG partnerships. I’m pleased with our continued progress towards our goal of reaching 100,000 locations producing average annual revenue of $1,500.”

Consolidated Financial Summaries

   
First Quarter 2019  
   
(In thousands)Three months ended March 31,
  2019  2018 
Revenue$  2,417 $  3,693 
Revenue excluding ASC 606 *$   2,543  $   2,045  
Gross profit$  1,245 $  2,900 
Gross margin 52% 79%
Operating Expenses$  3,024 $  4,338 
Income (loss) from Operations$  (1,780)$  (1,439)
Net income (loss)$  (1,822)$  (1,504)
Adjusted EBITDA *$   (1,254)$   (1,810)
* Non-GAAP measures  
 

 

td style="vertical-align: bottom ; "> 
 
Mobivity Holdings Corp.
Consolidated Balance Sheets
       
  March 31, December 31,
  2019
 2018
ASSETS      
Current assets      
Cash $  283,411  $  554,255 
Accounts receivable, net of allowance for doubtful accounts of $8,122 and $10,104, respectively    1,072,985     601,658 
Contracts receivable, current    941,154     578,869 
Other current assets    834,344     736,309 
Total current assets    3,131,894     2,471,091 
Goodwill    537,550     537,550 
Right to use lease assets    480,370     - 
Intangible assets, net    1,771,976     1,781,448 
Contracts receivable, long term    1,625,201     2,113,823 
Other assets    396,397     527,146 
TOTAL ASSETS $  7,943,388   $  7,431,058  
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities      
Accounts payable $  2,375,059  $  1,731,628 
Accrued interest    22,792     9,167 
Accrued and deferred personnel compensation    238,823     350,311 
Deferred revenue and customer deposits    1,743,532     1,956,938 
Notes payable, net - current maturities    617,140     1,279,590 
Other current liabilities    705,570     723,636 
Total current liabilities    5,702,916     6,051,270 
       
Non-current liabilities      
Notes payable, net - long term    772,985     194,328 
Notes payable, net - long term - related party    1,580,000    
Other long term liabilities    1,231,874     860,500 
Total non-current liabilities    3,584,859     1,054,828 
Total liabilities    9,287,775     7,106,098 
Commitments and Contingencies      
Stockholders' equity      
Common stock, $0.001 par value; 100,000,000 shares authorized; 45,998,053 and 45,998,053, shares issued and outstanding     45,998     45,998 
Equity payable    100,862     100,862 
Additional paid-in capital    88,189,222     88,008,473 
Accumulated other comprehensive loss    (23,690)    4,759 
Accumulated deficit    (89,656,779)    (87,835,132)
Total stockholders' equity    (1,344,387)    324,960 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $  7,943,388   $  7,431,058  
       



 

       
Mobivity Holdings Corp.
Consolidated Statements of Operations
      
  Three Months Ended
   March 31, 
  2019
 2018
Revenues      
Revenues     2,416,617      3,693,328 
Cost of revenues     1,171,909      793,389 
Gross profit     1,244,708      2,899,939 
Operating expenses      
General and administrative     1,323,935      1,248,343 
Sales and marketing     838,567      1,461,580 
Engineering, research, and development     577,733      1,531,598 
Depreciation and amortization     284,094      96,970 
Total operating expenses     3,024,329      4,338,491 
Income (loss) from operations     (1,779,621)     (1,438,552)
Other income/(expense)      
Interest income     17      456 
Interest expense     (41,905)     (57,489)
Gain on sale of fixed assets     -       (8,722)
Foreign currency (loss) gain     (138)     330 
Total other income/(expense)     (42,026)     (65,425)
Income (loss) before income taxes     (1,821,647)     (1,503,977)
Income tax expense     -       -  
Net Income (loss)     (1,821,647)     (1,503,977)
Other comprehensive income (loss), net of income tax      
Foreign currency translation adjustments     (28,449)     (12,615)
Comprehensive income (loss) $   (1,850,096) $   (1,516,592)
Net income (loss) per share:      
Basic $   (0.04) $   (0.04)
Weighted average number of shares:      
Basic     45,998,053       38,018,733  
       
 Reconciliation of net (loss) to adjusted EBITDA       
 Net (loss)   $  (1,821,647)  $  (1,503,977)
 Impact of ASC606      60,583      (713,568)
 Stock based compensation      180,750      252,842 
 Depreciation and amortization      284,094      96,970 
 Interest expense      41,905      57,489 
 Adjusted EBITDA   $  (1,254,315)  $  (1,810,244)
           

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.

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 15, 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.

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.

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

Primary Logo


[ Back To TMCnet.com's Homepage ]









Technology Marketing Corporation

35 Nutmeg Drive Suite 340, Trumbull, Connecticut 06611 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2019 Technology Marketing Corporation. All rights reserved | Privacy Policy