Mobivity Announces Q1 2019 Results, Recurring Revenue Accelerates

Annual recurring revenue climbs 24% compared to Q1, 2018

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    


Mobivity Holdings Corp.
Consolidated Balance Sheets
    March 31,   December 31,
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  
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, 
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 or call (877) 282-7660.

Media Contacts

Jennifer Handshew • Marketing Communications, Mobivity • (917) 359-8838

Dennis Becker • Chairman and Chief Executive Officer, Mobivity
(877) 282-7660

Investor Relations Contacts

Brett Maas • Managing Partner, Hayden IR • (646) 536-7331

Jeff Stanlis • Partner and Vice President, Communications, Hayden IR • (602) 476-1821

Charles Mathews • Chief Financial Officer, Mobivity
(877) 282-7660


Source: Mobivity Holdings Corp.