Exhibit 99-1

 

 

November 9, 2020

 

FOR IMMEDIATE RELEASE

 

Mobivity Announces Positive GAAP Net Income for Q3 2020

 

PHOENIX, AZ – November 9, 2020 – 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 restaurants, retail and personal care brands, today announced financial results for the third quarter (“Q3”) ending September 30, 2020.

 

Q3 2020 Highlights

  Revenues increased 28% to $3.2 million compared to $2.5 million in Q3 2019.
  Gross margins increased to 70% in Q3 of 2020 versus 36% during the same period last year.
  Gross profit rose 150% to $2.2 million in Q3 2020 from $896,000 in Q3 2019.
  Net income was $39,000, an improvement of $2.0 million to a net loss of $(1.9) million in Q3 2019.
  Cash used in operations for the first nine months 2020 fell to just $500,000 compared to $3.8 million during the first nine months of 2019.

 

Dennis Becker, Mobivity Chairman and CEO, commented, “For the third quarter, we reached a pivotal point in our company with bottom-line net profitability, and our year-to-date revenue exceeds gross revenue generated for all of last year. Our solutions have played a critical role for our customers as they race to transform their businesses with digital solutions that meet the increasing need for low to no contact commerce and provide a quick and quantifiable return on investment. Importantly, our cash used in operations improved by nearly 90% through the first nine months of the year reflecting the operating leverage in our business model as we continue to grow and leverage the investments we have made in our award-winning technology platform.”

 

Becker continued, “We’re also excited to report that our partnership with a major snack and beverage brand is already yielding wins, adding new logos to our roster and significantly expanding our addressable market. We have begun promoting our Recurrency platform to their 50,000 customers, and we have trained approximately 400 sales reps on the benefits of our Recurrency platform for restaurant operators. We believe that additional growth is achievable as this partnership accelerates and are looking forward to finishing the year strong.”

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

Consolidated Financial Summaries

 

(In thousands)  Three months ended September 30,   Nine months ended September 30, 
   Q3 2020   Q3 2019   $$   %   2020   2019   $$   % 
Revenue  $3,180   $2,482   $698    28%  $10,497   $7,333   $3,163    43%
Gross profit  $2,237   $896   $1,341    150%  $6,754   $2,948   $3,806    129%
Gross margin   70%   36%        95%   64%   40%        60%
Operating Expenses  $2,132   $2,554   $(422)   -17%  $8,243   $8,888   $(645)   -7%
Income (loss) from Operations  $105   $(1,659)  $1,764    106%  $(1,489)  $(5,940)  $4,451    75%
Net income (loss)  $39   $(1,915)  $1,955    102%  $(1,702)  $(6,328)  $4,626    73%
Adjusted EBITDA *  $464   $(1,581)  $2,045    129%  $(451)  $(4,879)  $4,428    91%

 

* Non-GAAP measures

 

Conference Call

Mobivity will host a conference call at 4:30 p.m. ET on November 9, 2020.

 

Date: Monday, November 9, 2020

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: 10011730

 

The call will also be accompanied live by webcast over the Internet and accessible at

 

A replay will be available for two weeks starting on November 9, 2020 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 10011730. The replay will also be available on the Company’s website under the investor relations section.

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

Mobivity Holdings Corp.

Condensed Consolidated Balance Sheets

 

   September 30,   December 31, 
   2020   2019 
   (Unaudited)   (Audited) 
ASSETS          
Current assets          
Cash  $505,512   $273,599 
Accounts receivable, net of allowance for doubtful accounts of $14,589 and $88,071, respectively   1,178,915    614,726 
Contracts receivable, current   943,904    526,948 
Right to use lease assets   98,027    - 
Other current assets   178,811    601,749 
Total current assets   2,905,169    2,017,022 
Goodwill   496,352    496,352 
Right to use lease assets   18,083    260,645 
Intangible assets, net   1,448,967    1,762,211 
Contracts receivable, long term   1,651,832    1,260,371 
Other assets   54,418    67,787 
TOTAL ASSETS  $6,574,821   $5,864,388 
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current liabilities          
Accounts payable  $3,544,692   $3,256,888 
Accrued interest   182,258    35,292 
Accrued and deferred personnel compensation   274,647    244,953 
Deferred revenue and customer deposits   639,876    440,309 
Related party notes payable   80,000    140,700 
Notes payable, net - current maturities   564,021    540,576 
Operating lease liability   126,318    258,343 
Other current liabilities   525,945    308,465 
Total current liabilities   5,937,757    5,225,526 
           
Non-current liabilities          
Related party notes payable, net - long term   1,200,000    1,000,000 
Notes payable, net - long term   1,118,040    567,529 
Operating lease liability   23,075    45,460 
Other long term liabilities   970,123    740,218 
Total non-current liabilities   3,311,238    2,353,207 
Total liabilities   9,248,995    7,578,733 
Commitments and Contingencies Stockholders’ deficit          
Common stock, $0.001 par value; 100,000,000 shares authorized; 51,615,469 and 51,380,969, shares issued and outstanding   51,631    51,381 
Equity payable   100,862    100,862 
Additional paid-in capital   95,532,402    94,781,738 
Accumulated other comprehensive income   (292)   8,780 
Accumulated deficit   (98,358,777)   (96,657,106)
Total stockholders’ equity   (2,674,174)   (1,714,345)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $6,574,821   $5,864,388 

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

Mobivity Holdings Corp.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

 

   Three Months Ended   Nine Months Ended 
  

September 30,

(unaudited)

  

September 30,

(unaudited)

 
   2020   2019   2020   2019 
Revenues                    
Revenues  $3,180,173   $2,481,986   $10,496,827   $7,333,407 
Cost of revenues   943,292    1,586,411    3,742,615    4,385,106 
Gross profit   2,236,881    895,575    6,754,212    2,948,301 
                     
Operating expenses                    
General and administrative   889,032    1,381,361    3,138,744    4,101,340 
Sales and marketing   445,273    636,757    1,748,892    2,025,055 
Engineering, research, and development   621,442    380,539    2,820,525    2,298,405 
Depreciation and amortization   176,127    155,598    534,972    463,086 
Total operating expenses   2,131,874    2,554,255    8,243,133    8,887,886 
Income (loss) from operations   105,007    (1,658,680)   (1,488,921)   (5,939,585)
Other income/(expense)                    
Interest income   309    26,636    1,220    26,654 
Interest expense   (62,621)   (57,569)   (207,899)   (188,451)
Loss on conversion of debt   -    (232,462)   -    (232,462)
Impairment of intangible asset   (3,481)   -    (3,481)   - 
Loss on disposal of fixed assets   -    -    (3,935)   - 
Foreign currency (loss) gain   247    6,642    1,345    5,740 
Total other income/(expense)   (65,546)   (256,753)   (212,750)   (388,519)
Income (loss) before income taxes   39,461    (1,915,433)   (1,701,671)   (6,328,104)
Income tax expense   -    -    -    - 
Net Income (loss)   39,461    (1,915,433)   (1,701,671)   (6,328,104)
Other comprehensive income (loss), net of income tax                    
Foreign currency translation adjustments   30,145    35,252    (9,072)   12,939 
Comprehensive income (loss)  $69,606   $(1,880,181)  $(1,710,743)  $(6,315,165)
Net income (loss) per share:                    
Basic  $-   $(0.04)  $(0.03)  $(0.14)
Diluted  $-   $(0.04)  $(0.03)  $(0.14)
Weighted average number of shares:                    
Basic   51,617,612    47,488,574    51,555,837    46,500,353 
Diluted   61,106,633    47,488,574    51,555,837    46,500,353 
                     
Reconciliation of net (loss) to adjusted EBITDA                    
Net (loss)   39,461    (1,915,433)   (1,701,671)   (6,328,104)
Stock based compensation   186,457    147,749    509,214    824,303 
Depreciation and amortization   176,127    155,598    534,972    463,086 
Interest expense, net   62,312    30,933    206,679    161,797 
Adjusted EBITDA  $464,357   $(1,581,153)  $(450,806)  $(4,878,918)

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

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, 2019 filed with the SEC on March 30, 2020 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:

Lynn Tiscareno • Chief Financial Officer, Mobivity

(877) 282-7660

 

Brett Maas • Managing Partner, Hayden IR

brett@haydenir.com • (646) 536-7331

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225