Mobivity Announces Positive GAAP Net Income for Q3 2020
PHOENIX, Nov. 09, 2020 (GLOBE NEWSWIRE) -- 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.”
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.
| 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 | ||||
| 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 | ) | |||||
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
Released November 9, 2020