Mobivity Announces Third Quarter 2012 Financial Results, Projects 60% Annual Revenue Growth Over 2011
PHOENIX, AZ -- (Marketwire) -- 11/15/12 -- Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, announced today third quarter financial results for the three-month period ending September 30, 2012.
- Revenues for the nine months ended September 30, 2012 were $3,028,866, an increase of $1,492,236, or 97% compared to the nine months ended September 30, 2011.
- Gross profit for the nine months ended September 30, 2012 was $2,021,578, an increase of $1,055,553, or 109%, compared to the nine months ended September 30, 2011.
- Q3, 2012 revenue increased to $1,006,262 from $842,885 in Q3, 2011, a 19% increase.
- Q3, 2012 gross profit increased 32% to $699,201, vs. $531,168 in Q3 2011.
- Gross profit as a percentage of revenue increased to 69% from 63% in the third quarter of 2011.
- Projected 2012 revenues of $4M, a 60% increase over 2011 annual revenues.
Dennis Becker, President & CEO, was quoted as saying -- "On the heels of ingesting additional working capital from our May, 2012 financing, we have increased our investments in sales and marketing substantially. In fact, our marketing budget during the third quarter of this year increased over 400% over the second quarter. New investments in sales and marketing, coupled with recent product enhancements, are expected to drive quarterly sequential growth that will begin to manifest throughout the fourth quarter and beyond. We've also continued to drive down our service delivery costs through further consolidation of operating resources from our acquisitions during 2011. The Company also believes there are additional inorganic growth opportunities, such as acquisitions, that could escalate our increasing market position from the more than 5,000 Local Advertisers already using our technology. We believe the fourth quarter will yield a growth quarter for the Company, and we're highly enthusiastic of furthering our mission to lead the market in delivering mobile marketing solutions to the millions of Local Advertisers across North America."
Business Update
The Company has continued to further its penetration of the Local Advertising market by delivering its Software as a Service (SaaS) platform to more than 5,000 locations nationwide. In addition, the following key business development milestones have been achieved that provide additional access for the Company to the Local Advertiser market;
- Contract with a major family recreation association providing access to more than 4,000 facilities nationwide.
- Corporate contract with a major beverage retailer to enable mobile marketing services to its more than 750 locations operating in 26 states.
- Nationwide deployment of services for a major Quick Serve Restaurant has increased our provision of services for this restaurant chain and now yields in excess of $1M in annualized revenues commencing as of November of this year.
Mobivity has also continued to see success from the Sports and Entertainment industry with several notable wins including;
- Three year contract with the Los Angeles Clippers.
- Partnership with the Arizona Cardinals for the 2012 season.
- Three year contract with the Minnesota Wild.
- Partnership with the Circuit of Americas, home of the United States Grand Prix.
In the last twelve months, Local Advertiser use of Mobivity's patented technology has grown significantly. Consumer membership of Mobivity's Local Advertiser programs has grown more than 300%. The total number of SMS and other interactions facilitated by Mobivity's platform between Local Advertisers and consumers' mobile phones has also grown more than 900% in October of this year when compared to October, 2011.
Financial Summary
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Three months ended September 30,
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$000s ex-EPS 2012 2011 Chg.
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Net Revenues $1,006 $842 19%
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Gross Profits $699 $531 32%
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GAAP Net Income (loss) ($2,356) ($1,574) 50%
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Adjusted Net Income (loss) ($396) ($314) 26%
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GAAP EPS (Diluted) ($0.10) ($0.07) 42%
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Adjusted EPS (Diluted) ($0.02) ($0.01) 20%
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Diluted Shares O/S 23,215 22,049 5%
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(1) Please see non-GAAP reconciliation table below
Non-GAAP reconciliations:
Three months ended September 30,
2012 2011
GAAP Net Income (Loss) $ (2,356,398) $ (1,573,640)
Depreciation and amortization $ 130,579 $ 191,783
Change in FMV of derivatives $ (213,089) $ 401,710
Non-cash stock comp expenses $ 104,561 $ 533,388
Gain on contingent considerations 157,943 --
Interest expense, net $ 1,780,873 $ 133,055
Non-GAAP adjusted net income $ (395,531) $ (313,704)
Weighted avg. diluted shares 23,215,481 22,048,802
Non-GAAP adjusted EPS $ (.02) $ (.01)
About Mobivity:
Mobivity (http://www.mobivity.com) is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers across multiple channels. The only system of its kind, C4 is a cloud-based solution, which provides broad mobile communications and extensive CRM features to clients. C4 is integrated with multiple tier-one PSTN/IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Additionally, Mobivity offers a unique graphical system through its patented Display Technology, which allows fans to interact with their mobile phones and high definition video boards and screens in real time. Mobivity's past and current clients include CNN, Disney, NFL, Sony Pictures, AT&T, USTA, Chick-fil-A, the Golf Channel, NBC Universal, numerous professional sports teams, and many others.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted net income and adjusted earnings per share. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our "recurring core business operating results." We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
Cautionary Statement Regarding Forward-Looking Information
This press release contains certain "forward-looking statements" relating to the business of Mobivity Holdings Corp. All statements, other than statements of historical fact included herein, are "forward-looking statements" including statements regarding the impact of the proceeds from the private placement on the Company's short term business and operations; the Company's revenue projections for 2012; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, and involve known and unknown risks and uncertainties, including the risk that the fourth quarter revenue relied on for the Company's 2012 revenue projections may not be realized; the Company's inability to identify or successfully conclude any additional growth oriented acquisitions; the Company's ability to obtain additional working capital as and when needed; the Company's ability to successfully refinance or restructure its 10% secured promissory notes, in the aggregate principal amount of $4.3 million, which come due on April 15, 213 and those other risks set forth in the Company's 2011 annual report on Form 10-K filed with the SEC on April 16, 2012 and subsequently filed SEC reports. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may not be realized. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors described above. All forward-looking statements attributable to the Company or persons acting on its behalf months are expressly qualified in their entirety by these factors. In addition, the Company does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by the federal securities laws.
For additional information, contact: Investor Contacts: MDM Worldwide Investor Relations Mobivity (646) 403-3554
Source: Mobivity Holdings Corp.
Released November 15, 2012
