Mobivity Announces First Quarter 2021 Financial Results

PHOENIX, May 13, 2021 (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 first quarter (“Q1”) ending March 31, 2021.

Summary of Fiscal 2021 First Quarter

  • Revenues of $2.5 million compared to $4.6 million in Q1 2020.
  • Gross margin of 58% compared to 65% in Q1 2020.
  • Operating expenses decreased to $3 million compared to $3.9 million during the same period reported in 2020.
  • Cash and cash equivalents totalled $1 million compared to $200,000 in Q1 of 2020.
  • Net loss was $1.7 million compared to a net loss of $1.0 million in Q1 2020.

2021 Business Highlights

  • Launched a nationwide SMS messaging program for the world’s second largest convenience store brand and grew their program over 480% since January, 2021
  • Sales pipeline growth of more than 500% since February 2021
  • Appointed Hypergrowth SaaS Veteran Al West as Chief Revenue Officer to accelerate Mobivity’s sales expansion
  • Signed a partnership with a leading cryptocurrency to enable digital payments across the Belly loyalty network of more than 5 million loyalty accounts

Dennis Becker, Mobivity Chairman and CEO, commented, “We continue to support our customers with creative, innovative digital solutions and services despite macro environment conditions that were an overhang on the first quarter when the pandemic reached its peak. Since that time, our sales pipeline has grown exponentially signaling improving market conditions and pent-up demand for our loyalty and messaging solutions as our customers seek ways to drive customer engagement and reinvigorate sales.”

“We are increasingly optimistic about the opportunities for our business, particularly in light of a recent Supreme Court decision that reduces the legal risk in operating SMS marketing programs and moves by technology leaders to protect consumers’ privacy from third party advertisers by limiting third-party cookies and device identifiers,” added Mr. Becker. “Each of these market developments significantly expands our addressable market and creates the opportunity for us to deliver a record setting year. We accelerated our sales and marketing operations in the first quarter in anticipation of these changes. These efforts increased awareness of our platforms and have driven more than a five-fold increase in our sales pipeline since February. We are working diligently to convert the pipeline and deliver stronger results in the coming quarters.”

Consolidated Financial Summaries

(In thousands) Three months ended March 31,
    2021     2020  
Revenue $ 2,458   $ 4,550  
Gross profit $ 1,416   $ 2,966  
Gross margin   58 %   65 %
Operating Expenses $ 3,077   $ 3,906  
Income (loss) from Operations $ (1,661 ) $ (941 )
Net income (loss) $ (1,694 ) $ (1,016 )
Adjusted EBITDA * $ (1,274 ) $ (566 )

* Non-GAAP measures

Conference Call
Mobivity will host a conference call at 4:30 p.m. ET on May 13, 2021.

Date: Thursday, May 13, 2021
Time: 4:30 P.M. Eastern Time (ET)
U.S. Callers: 1-800-954-0627
International Callers: 1-212-271-4657
Conference ID: 21994184

The call will also be accompanied live by webcast over the Internet and accessible at

Participating on the call will be Mobivity’s Chairman and Chief Executive Officer, Dennis Becker, and Chief Financial Officer, Lisa Brennan. To join the live conference call, please dial in to the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time.

A replay will be available for two weeks starting on May 13, 2021 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 21994184. The replay will also be available on the Company’s website under the investor relations section.

Mobivity Holdings Corp.
Consolidated Balance Sheets

  March 31,   December 31,
    2021       2020  
  (Unaudited)   (Audited)
Current assets          
Cash $ 1,027,208     $ 3,282,820  
Accounts receivable, net of allowance for doubtful accounts of $31,432 and $33,848, respectively   1,365,755       305,693  
Contracts receivable, current   943,904       943,904  
Right to use lease assets   218,161       47,038  
Other current assets   342,355       272,736  
Total current assets   3,897,383       4,852,191  
Goodwill   496,352       496,352  
Right to use lease assets   1,132,317       10,444  
Intangible assets, net   1,275,418       1,368,329  
Contracts receivable, long term   1,179,880       1,415,856  
Other assets   314,705       25,230  
TOTAL ASSETS $ 8,296,055     $ 8,168,402  
Current liabilities          
Accounts payable $ 2,243,811     $ 1,935,411  
Accrued interest   31,541       47,316  
Accrued and deferred personnel compensation   473,921       224,881  
Deferred revenue and customer deposits   640,181       606,597  
Related party notes payable   -       80,000  
Notes payable, net - current maturities   432,237       561,676  
Operating lease liability   125,670       58,173  
Other current liabilities   530,174       566,303  
Total current liabilities   4,477,535       4,080,357  
Non-current liabilities          
Related party notes payable, net - long term   500,000       -  
Notes payable, net - long term   990,759       1,499,001  
Operating lease liability   1,365,431       13,296  
Other long term liabilities   692,945       831,535  
Total non-current liabilities   3,549,135       2,343,832  
Total liabilities   8,026,670       6,424,189  
Commitments and Contingencies          
Stockholders' equity          
Common stock, $0.001 par value; 100,000,000 shares authorized; 55,410,695 and 55,410,695, shares issued and outstanding   55,411       55,411  
Equity payable   100,862       100,862  
Additional paid-in capital   101,415,512       101,186,889  
Accumulated other comprehensive income   (33,124 )     (23,446 )
Accumulated deficit   (101,269,276 )     (99,575,503 )
Total stockholders' equity   269,385       1,744,213  

Mobivity Holdings Corp.
Consolidated Statements of Operations

  Three Months Ended
  March 31
  2021     2020  
Revenues $ 2,457,590     $ 4,549,992  
Cost of revenues   1,041,795       1,584,402  
Gross profit   1,415,795       2,965,590  
Operating expenses          
General and administrative   1,289,370       1,246,794  
Sales and marketing   896,750       807,999  
Engineering, research, and development   723,950       1,677,442  
Impairment of intangible asset   8,286       -  
Depreciation and amortization   158,227       173,937  
Total operating expenses   3,076,583       3,906,172  
Income (loss) from operations   (1,660,788 )     (940,582 )
Other income/(expense)          
Interest income   5       837  
Interest expense   (32,516 )     (77,189 )
Foreign currency (loss) gain   (474 )     1,155  
Total other income/(expense)   (32,985 )     (75,197 )
Income (loss) before income taxes   (1,693,773 )     (1,015,779 )
Income tax expense   -       -  
Net Income (loss)   (1,693,773 )     (1,015,779 )
Other comprehensive income (loss), net of income tax          
Foreign currency translation adjustments   (9,678 )     (13,081 )
Comprehensive income (loss) $ (1,703,451 )   $ (1,028,860 )
Net income (loss) per share:          
Basic and Diluted $ (0.03 )   $ (0.02 )
Weighted average number of shares:          
Basic and Diluted   55,410,695       51,435,084  

Mobivity Holdings Corp.
Reconciliation of GAAP to Non-GAAP Measures

  Three Months Ended
  March 31
  2021     2020  
Reconciliation of net (loss) to adjusted EBITDA      
Net (loss)   (1,693,773 )     (1,015,779 )
Stock based compensation   228,623       199,212  
Depreciation and amortization   158,227       173,937  
Interest expense   32,511       76,352  
Adjusted EBITDA $ (1,274,412 )   $ (566,278 )

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 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, 2020 filed with the SEC on March 30, 2021 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:
Lisa Brennan • Chief Financial Officer, Mobivity
(877) 282-7660

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

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Source: Mobivity Holdings Corp.