Mobivity Reports Financial Results for the Third Quarter of Fiscal 2013

PHOENIX, Nov. 14, 2013 /PRNewswire/ -- Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary and patented mobile marketing technologies and solutions, today announced financial results for the quarter ended September 30, 2013.

Third Quarter 2013 and Other Recent Business Highlights:

• Q3 2013 Net Revenues increased 3.0% to $1,036,000 from $1,006,000 in Q3 2012;
• Subscriber-based revenues increased 79% compared to the period a year ago;
• Year to date subscription-based revenues increased 260%;
• Q3 2013 Gross Margin increased 9.8% to $767,000 from $699,000 in Q3 2012;
• Newly acquired resellers channel revenues from the Front Door Insights (FDI) asset acquisition increased reseller revenues 36% compared to FDI's reseller revenue during Q2, 2013;
• Mobivity's Stampt smartphone loyalty app transactions grew 15% to more than 900,000 over Q2, 2013.

Dennis Becker, Chairman and Chief Executive Officer of Mobivity, commented "The third quarter of this year was focused on the preparation and implementation phase of our growth initiatives under the direction of our newly appointed management team. We have successfully completed the integration of the Front Door Insights assets into our operations and have recently begun to relaunch FDI resellers with both our enhanced SMS mobile marketing tools and Stampt smartphone loyalty application. There are now over 2,500 sales reps selling Mobivity's solutions both direct and indirectly across the United States. We have also begun to procure an increasing number of patent licensees acknowledging our intellectual property and its relevance to the mobile marketing industry. With management expansion, FDI integration, and reseller deployments behind us, we are anxious to transition to fully focusing on growth and expanding on our existing user-base of more than 11,000 local merchants."

Quarterly Results

Revenues for the third quarter of 2013 were $1,036,000, an increase of $30,000, or 3.0%, compared to the same period in 2012. The net increase is primarily attributable to an increase of 79% in revenues from subscriber-based licensing and approximately $69,000 in revenues from recent acquisitions. This increase was offset by the loss of several large project-based accounts that were not replaced with new sales in 2013, primarily due to increased focus on small businesses, and other minor factors.

Gross margins increased to 74.1% during the third quarter of 2013 as compared to 69.5% in the comparable period a year ago.  The improvement in gross margins is attributable to the company's focus on subscription-based licensing of its patented SMS mobile marketing solutions and Stampt loyalty app which inherently carry higher gross margins as opposed to project-based accounts that existed a year ago.

Operating expenses for the third quarter of 2013 were $3,119,000, an increase of $1,790,000, or 134.6% compared to the same period in 2012. The increase in operating expenses in primarily attributable to the investments in our management team and sales infrastructure to drive incremental growth going forward. Non-cash stock-based compensation expense was $1,140,000 during the quarter, as compared to $105,000 during the period a year ago.

Net loss during the quarter was $(2,404,000), or $(0.02) per basic and diluted share as compared to a net loss of $(2,356,000), or $(0.10) per basic and diluted share in the third quarter of 2012.

Adjusted EBITDA, a non-GAAP metric (see table 1) was $(1,122,000) during the third quarter of 2013 as compared to $(394,000) during the quarter a year ago.

Year to Date Results

Revenues year to date in 2013 were $3,150,000, an increase of $121,000, or 4.0%, compared to the same period in 2012. The net increase is primarily attributable to an increase of 260% in subscriber-based licensing and approximately $98,000 in revenues from recent acquisitions. This increase was offset by the loss of several large project-based accounts that were not replaced with new sales in 2013, primarily due to increased focus on small businesses, and other minor factors.

Net loss for the first nine months of 2013 was $(14,702,000), or $(0.28) per basic and diluted share as compared to a net loss of $(5,040,000), or $(0.22) per basic and diluted share in the comparable nine month period.

Adjusted EBITDA, a non-GAAP metric (see table 1) was $(1,679,000) during the first nine months of 2013 as compared to $(1,169,000) during the same period a year ago.

Balance Sheet

The company ended the third quarter with $3,500,000 in cash and equivalents and no long-term debt. In the second quarter, the company raised $12,711,000, comprised of $5,355,000 in debt and interest conversion and $7,356,000 in new working capital, of which $1,500,000 was used towards the FDI acquisition.

About Mobivity

Mobivity is an award-winning provider of a suite of patented mobile marketing technologies that drive sales, enhance customer engagement, and reward customer loyalty for local businesses and national brands. Its solutions, including an industry-leading text messaging product and innovative Stampt™ mobile loyalty application, enable businesses across the United States to drive incremental business and profitability by quickly and effectively communicating discounts and special offers to their most loyal customers. Additionally, Mobivity offers a unique, high definition graphical system platform that allows its clients to enhance customer or fan experience by interacting with their mobile phones and video boards or screens in real time. Mobivity's clients include national brands such as CNN, Disney, the NFL, Sony Pictures, AT&T, United States Tennis Association, Chick-fil-A, the Golf Channel, NBC Universal, and numerous professional sports teams, as well as thousands of small, local businesses across the U.S. For more information, visit www.mobivity.com.

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 expectations for the growth of the Company's operations, sales force and revenue; the advantages and growth prospects of the mobile marketing industry; and the expected contributions to the Company's success by its recent additions to management. 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, 2012 filed with the SEC on March 21, 2013 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.

SOURCE Mobivity Holdings Corp.