Mobivity Announces 78% Revenue Growth in Q2 2019
Annual recurring revenue climbs 71% compared to Q2 2018
PHOENIX, Ariz., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB:MFON), creators of the award-winning customer personalization platform, Recurrency, today announced financial results for the second quarter ending June 30, 2019 (“Q2 2019”).
Q2 2019 Highlights
- Revenue for the second quarter of 2019 increased 78% to $2.4 million compared to $1.4 million in the second quarter of 2018
- Recurring revenues climbed to more than $2.7 million for the quarter, a 71% increase compared to $1.57 million for Q2 2018
- Began deployment of the largest scannable offer management solution in North America
- Raised $5.7 million in new financing
- Net loss for Q2, 2019 increased 63% to ($2.6 million), from ($1.6 million)
- On an adjusted EBITDA basis, when backing out non-recurring and non-cash charges, Q2 2019 net loss was relatively flat with a loss of ($1.2 million) compared to an adjusted net loss of ($1.1 million) in Q2 2018.
Dennis Becker, Mobivity Chairman and CEO, commented, “This was a milestone quarter for Mobivity as we advanced our sales channel initiatives with our largest partner in preparation for a widespread launch in the coming months. Mobivity also made great strides in growing its recurring revenue base, both from existing and new customers. Annual license fees per location for our Recurrency platform are now exceeding $1,000 per location per year, and we are continually expanding our network in large part due to the strengthening sales channel we have built with leading partners. We have also completed the production of all marketing collateral to fully arm our largest partner’s sales organization and we are completing final reviews now. We expect a widespread launch of our co-marketing efforts with this partner in the coming weeks followed by intensive training sessions for the rest of the year. The opportunity with this partner’s customers is significant and we look forward to a mutually beneficial relationship.”
“Additionally, we began a large-scale deployment during the second quarter with our largest customer that will expand our services beyond SMS text messaging and receipt advertising to all other promotional channels such as print, email, and smartphone applications,” added Mr. Becker. “It is a testament to our unique offering that we are partnered with world-class brands and we are making great strides in our efforts to build a leading position in the $1.8 trillion digital transformation market.”
Consolidated Financial Summaries
| Second Quarter 2019 | ||||||||||||
| (In thousands) | Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| Revenue | $ | 2,435 | $ | 1,366 | $ | 4,851 | $ | 5,060 | ||||
| Revenue excluding ASC 606 * | $ | 2,697 | $ | 1,572 | $ | 5,240 | $ | 3,617 | ||||
| Gross profit | $ | 808 | $ | 610 | $ | 2,053 | $ | 3,510 | ||||
| Gross margin | 33 | % | 45 | % | 42 | % | 69 | % | ||||
| Operating Expenses | $ | 3,293 | $ | 2,084 | $ | 6,333 | $ | 6,423 | ||||
| Opex excluding ASC 606 * | $ | 3,415 | $ | 2,187 | $ | 6,530 | $ | 5,591 | ||||
| Income (loss) from Operations | $ | (2,485 | ) | $ | (1,474 | ) | $ | (4,280 | ) | $ | (2,913 | ) |
| Net income (loss) | $ | (2,575 | ) | $ | (1,585 | ) | $ | (4,412 | ) | $ | (3,090 | ) |
| Adjusted EBITDA * | $ | (1,700 | ) | $ | (1,068 | ) | $ | (3,106 | ) | $ | (3,264 | ) |
| * Non-GAAP measures | ||||||||||||
| Mobivity Holdings Corp. | ||||||||
| Consolidated Balance Sheets | ||||||||
| June 30, | December 31, | |||||||
| 2019 | 2018 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 154,825 | $ | 554,255 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $48,038 and $10,104, respectively | 427,801 | 601,658 | ||||||
| Contracts receivable, current | 791,724 | 578,869 | ||||||
| Other current assets | 797,371 | 736,309 | ||||||
| Total current assets | 2,171,721 | 2,471,091 | ||||||
| Goodwill | 537,550 | 537,550 | ||||||
| Right to use lease assets | 421,032 | - | ||||||
| Intangible assets, net | 1,741,092 | 1,781,448 | ||||||
| Contracts receivable, long term | 1,512,445 | 2,113,823 | ||||||
| Other assets | 266,777 | 527,146 | ||||||
| TOTAL ASSETS | $ | 6,650,617 | $ | 7,431,058 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2,729,110 | $ | 1,731,628 | ||||
| Accrued interest | 96,033 | 9,167 | ||||||
| Accrued and deferred personnel compensation | 223,573 | 350,311 | ||||||
| Deferred revenue and customer deposits | 1,183,311 | 1,956,938 | ||||||
| Related party notes payable, net - current maturities | 127,954 | 131,392 | ||||||
| Notes payable, net - current maturities | 721,577 | 1,148,198 | ||||||
| Other current liabilities | 729,596 | 723,636 | ||||||
| Total current liabilities | 5,811,154 | 6,051,270 | ||||||
| Non-current liabilities | ||||||||
| Related party notes payable, net - long term | 2,500,000 | - | ||||||
| Notes payable, net - long term | 667,059 | 194,328 | ||||||
| Other long term liabilities | 1,100,091 | 860,500 | ||||||
| Total non-current liabilities | 4,267,150 | 1,054,828 | ||||||
| Total liabilities | 10,078,304 | 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 | 88,685,027 | 88,008,473 | ||||||
| Accumulated other comprehensive loss | (12,795 | ) | 4,759 | |||||
| Accumulated deficit | (92,246,779 | ) | (87,835,132 | ) | ||||
| Total stockholders' equity | (3,427,687 | ) | 324,960 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,650,617 | $ | 7,431,058 | ||||
| Mobivity Holdings Corp. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenues | ||||||||||||||||
| Revenues | 2,434,841 | 1,366,239 | 4,851,436 | 5,059,567 | ||||||||||||
| Cost of revenues | 1,626,823 | 756,130 | 2,798,649 | 1,549,519 | ||||||||||||
| Gross profit | 808,018 | 610,109 | 2,052,787 | 3,510,048 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 1,581,266 | 770,591 | 2,726,502 | 2,018,934 | ||||||||||||
| Sales and marketing | 802,050 | 792,263 | 1,559,192 | 2,253,843 | ||||||||||||
| Engineering, research, and development | 761,320 | 422,660 | 1,739,428 | 1,954,258 | ||||||||||||
| Depreciation and amortization | 148,391 | 98,728 | 307,481 | 195,698 | ||||||||||||
| Total operating expenses | 3,293,027 | 2,084,242 | 6,332,603 | 6,422,733 | ||||||||||||
| Income (loss) from operations | (2,485,009 | ) | (1,474,133 | ) | (4,279,816 | ) | (2,912,685 | ) | ||||||||
| Other income/(expense) | ||||||||||||||||
| Interest income | - | 146 | 17 | 602 | ||||||||||||
| Interest expense | (89,855 | ) | (109,635 | ) | (130,992 | ) | (167,124 | ) | ||||||||
| Gain on sale of fixed assets | - | - | - | (8,722 | ) | |||||||||||
| Foreign currency (loss) gain | (35 | ) | (1,290 | ) | (856 | ) | (1,620 | ) | ||||||||
| Total other income/(expense) | (89,890 | ) | (110,779 | ) | (131,831 | ) | (176,864 | ) | ||||||||
| Income (loss) before income taxes | (2,574,899 | ) | (1,584,912 | ) | (4,411,647 | ) | (3,089,549 | ) | ||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| Net Income (loss) | (2,574,899 | ) | (1,584,912 | ) | (4,411,647 | ) | (3,089,549 | ) | ||||||||
| Other comprehensive income (loss), net of income tax | ||||||||||||||||
| Foreign currency translation adjustments | 6,136 | 69,710 | (17,554 | ) | 57,097 | |||||||||||
| Comprehensive income (loss) | $ | (2,568,763 | ) | $ | (1,515,202 | ) | $ | (4,429,201 | ) | $ | (3,032,452 | ) | ||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.08 | ) | ||||
| Weighted average number of shares: | ||||||||||||||||
| Basic | 45,998,053 | 38,018,733 | 45,998,053 | 37,952,427 | ||||||||||||
| Reconciliation of net (loss) to adjusted EBITDA | ||||||||||||||||
| Net (loss) | $ | (2,574,899 | ) | $ | (1,584,912 | ) | $ | (4,411,647 | ) | $ | (3,089,549 | ) | ||||
| Loss on conversion of debt | - | 41,902 | - | 41,902 | ||||||||||||
| Impact of ASC606 | 140,484 | 103,362 | 191,065 | (610,206 | ) | |||||||||||
| Stock based compensation | 495,805 | 163,604 | 676,554 | 30,546 | ||||||||||||
| Depreciation and amortization | 148,391 | 98,728 | 307,481 | 195,698 | ||||||||||||
| Interest expense | 89,855 | 109,781 | 131,009 | 167,726 | ||||||||||||
| Adjusted EBITDA | $ | (1,700,364 | ) | $ | (1,067,535 | ) | $ | (3,105,538 | ) | $ | (3,263,883 | ) | ||||
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 suite of products increases customer engagement and frequency by capturing detailed POS transaction records, analyzing customer habits, and motivating customers and employees through data-driven messaging applications and rewards. For more information about Mobivity, visit www.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, 2018 filed with the SEC on April 1st, 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.
Investor Relations Contact:
Charles Mathews • Chief Financial Officer, Mobivity
charles.mathews@mobivity.com • (480) 588-2473
Released August 14, 2019