Exhibit 99.1

 

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August 12, 2022

 

FOR IMMEDIATE RELEASE

 

Mobivity Announces Second Quarter 2022 Financial Results

 

PHOENIX, AZ – August 15, 2022 – 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 $1.90 million compared to $2.8 million in Q2 2021.

 

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 to $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 totaled $1.1 million compared to $1.8 million in Q2 of 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

Mobivity will host a conference call at 4:30 p.m. ET on August 15, 2022.

 

Date:

Monday, August 15, 2021

Time:  4:30 P.M. Eastern Time (ET)
U.S. Callers: 1-855-327-6837
International Callers: 1-631-891-4304
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 May 13, 2021 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 21994184. The replay will also be available on the Company’s website under the investor relations section.

 

 


3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

 

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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

 

 


3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

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June 30,

   

December 31,

 
   

2022

   

2021

 
   

(Unaudited)

   

(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  

 

 


3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

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Three Months Ended

   

Six Months Ended

 
   

June 30,

   

June 30,

 
   

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 )     (3,884,833 )     (3,126,319 )

Income tax expense

                       

Net loss per share:

    (1,951,734 )     (1,432,546 )     (3,884,833 )     (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 )   $ (3,885,467 )   $ (3,145,238 )

Net loss per share:

                               

Basic and Diluted

  $ (0.03 )   $ (0.03 )   $ (0.07 )   $ (0.06 )

Diluted

    (0.03 )     (0.03 )     (0.07 )     (0.07 )

Basic and Diluted

    58,602,319       55,410,695       57,921,596       55,410,695  

Diluted

    69,318,348       41,435,084       57,921,596       46,500,353  

 

 


3133 West Frye Road, Suite 215, Chandler, AZ 85226