Mobivity Announces Fourth Quarter and Full Year 2021 Financial Results

PHOENIX, March 30, 2022 (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 brands, today announced financial results for the fourth quarter (“Q4”) and full year ending December 31, 2021.

Dennis Becker, Mobivity Chairman and CEO, commented, “2021 was a year of change in the digital marketing industry with the implementation of stringent privacy regulations, particularly with regards to tracking advertising to mobile phones. At Mobivity, we are uniquely positioned to take advantage of these changes and expand to exciting new verticals where the value we can drive results in far higher transactional revenues and margins than our legacy model delivering simple SMS text messages from brands to consumer phones. These efforts got underway in the fourth quarter and in the past few months we’ve already forged partnerships with gaming operators reaching millions of gamers across mobile, PC and console platforms – all of which are now counting on Mobivity to help bring those gamers to the food and convenience brands they love and vice versa! We believe we are powering a whole new approach to advertising, and we’re excited to play a key role in building a valuable intersection between online and offline audiences. Together with our partners we are pioneering a revolutionary way to connect digital with brick-and-mortar consumers in an environment of privacy protected commerce. We’ve never been more energized by the expanded opportunities to grow our business and improve our financial results that this shift in our focus represents.”

Full Year 2021 Financial Highlights

Revenues of $8.2 million in 2021 compared to $13.3 million in 2020.
Gross margin of 47% compared to 64% in 2020.
Operating expenses for 2021 increased by 22% to $12.8 million compared to $10.5 million in 2020.
Net loss was $8.3 million compared to $3.0 million in 2020.
Cash and cash equivalents totalled $735,000 compared to $3.3 million at December 31, 2020.

Consolidated Financial Summaries

(In thousands)	Three months ended December 31,									12 months ended December 31,
	2021		2020			$$		%		2021			2020			$$		%
Revenue	$613		$2,759			($2,146	)	(77.8	%)	$8,175			$13,256			($5,081	)	(38.3	%)
Gross profit	($367	)	$1,753			($2,120	)	(120.9	%)	$3,873			$8,507			($4,635	)	(54.5	%)
Gross margin	N/M			63.5	%	N/A		N/M			47.4	%		64.2	%	N/A		(1,680) bps
Operating Expenses	$3,658		$2,216			$1,441		+65.0	%	$12,746			$10,463			$2,283		+21.8	%
Income (loss) from Operations	($4,024	)	($463		)	($3,561	)	(768.9	%)	($8.873		)	($1,956		)	($6,918	)	(353.7	%)
Net income (loss)	($4,150	)	($1,213		)	($2,937	)	(242.1	%)	($8,260		)	($2,918		)	($5,341	)	(183.0	%)
Adjusted EBITDA *	($3,618	)	($733		)	($2,885	)	(393.6	%)	($6,287		)	($1,184		)	($5,104	)	(431.0	%)

Conference Call
Date: Wednesday, March 30, 2022
Time: 4:30 P.M. Eastern Time (ET)
Dial in Number for U.S. Callers: 1-877-407-0789
Dial in Number for International Callers: 1-201-689-8562
Please Reference Conference ID: 13727854

The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1536240&tp_key=79df0bd073.

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 March 30, 2022 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 13727854. The replay will also be available on the Company’s website under the investor relations section.

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, 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
brett@haydenir.com • (646) 536-7331

Mobivity Holdings Corp.
Condensed Consolidated Balance Sheets


	December 31,			December 31,
	2021			2020
ASSETS
Current assets
Cash	$	735,424		$	3,282,820
Accounts receivable, net of allowance for doubtful accounts of $56,340 and $33,848, respectively		578,303			305,693
Contracts receivable, current		—			943,904
Other current assets		227,458			272,736
Total current assets		1,541,185			4,805,153
Goodwill		411,183			496,352
Right to use lease assets		1,187,537			57,482
Intangible assets, net		1,124,720			1,368,329
Contracts receivable, long term		—			1,415,856
Other assets		173,325			25,230
TOTAL ASSETS	$	4,437,950		$	8,168,402
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	3,823,909		$	1,935,411
Accrued interest		172,239			47,316
Accrued and deferred personnel compensation		495,533			224,881
Deferred revenue and customer deposits		377,170			606,597
Related party notes payable, net - current maturities		819,531			80,000
Notes payable, net - current maturities		69,052			561,676
Operating lease liability		229,240			58,173
Other current liabilities		9,071			566,303
Total current liabilities		5,995,745			4,080,357

Non-current liabilities
Related party notes payable, net - long-term		2,498,711			500,000
Notes payable, net - long-term		39,086			999,001
Operating lease liability		1,188,589			13,296
Other long-term liabilities		—			831,535
Total non-current liabilities		3,726,386			2,343,832
Total liabilities		9,722,131			6,424,189
Commitments and Contingencies (See Note 13)
Stockholders' equity (deficit)
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		102,446,921			101,186,889
Accumulated other comprehensive income (loss)		(52,088	)		(23,446	)
Accumulated deficit		(107,835,287	)		(99,575,503	)
Total stockholders' equity (deficit)		(5,284,181	)		1,744,213
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	4,437,950		$	8,168,402

Mobivity Holdings Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)


	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020
Revenues
Revenues	$	612,918		$	2,759,060		$	8,174,884		$	13,255,887
Cost of revenues		979,731			1,005,835			4,302,370			4,748,444
Gross profit		(366,813	)		1,753,225			3,872,514			8,507,443

Operating expenses
General and administrative		952,347			778,963			4,444,202			3,917,935
Sales and marketing		1,015,154			576,821			4,002,565			2,325,709
Engineering, research, and development		1,507,579			715,261			3,583,773			3,535,742
Intangible asset impairment		-			5,405			8,286			8,886
Depreciation and amortization		182,599			139,960			707,073			674,942
Total operating expenses		3,657,679			2,216,410			12,745,899			10,463,214
Income (loss) from operations		(4,024,492	)		(463,185	)		(8,873,385	)		(1,955,771	)
Other income/(expense)
Interest income		-			(1	)		5			1,221
Gain on Extinguisment of Debt		-			-			891,103			-
Interest expense		(123,252	)		(78,998	)		(267,966	)		(286,896	)
Impairment of Intangibles		-			3,481			-			-
Loss on disposal of fixed assets		-			(4,873	)		(880	)		(8,808	)
Loss on settlement of debt		-			(668,260	)		-			(668,260	)
Foreign currency (loss) gain		(2,084	)		(1,233	)		(8,661	)		117
Total other income/(expense)		(125,336	)		(749,884	)		613,601			(962,626	)
Income (loss) before income taxes		(4,149,828	)		(1,213,069	)		(8,259,784	)		(2,918,397	)
Income tax expense		-			-			-			-
Net Income (loss)		(4,149,828	)		(1,213,069	)		(8,259,784	)		(2,918,397	)
Other comprehensive income (loss), net of income tax
Foreign currency translation adjustments		3,427			(23,154	)		(28,642	)		(32,226	)
Comprehensive income (loss)	$	(4,146,401	)	$	(1,236,223	)	$	(8,288,426	)	$	(2,950,623	)
Net income (loss) per share:
Basic	$	(0.07	)	$	(0.02	)	$	(0.15	)	$	(0.06	)
Diluted	$	(0.07	)	$	(0.02	)	$	(0.15	)	$	(0.06	)
Weighted average number of shares:
Basic		55,410,695			51,575,454			55,410,695			51,575,454
Diluted		55,410,695			51,575,454			55,410,695			51,575,454


Reconciliation of net (loss) to adjusted EBITDA
Net (loss)	$	(4,149,828	)	$	(1,216,550	)	$	(8,259,784	)	$	(2,918,397	)
Stock based compensation		226,417			264,725			997,274			773,938
Depreciation and amortization		182,599			139,960			707,073			674,942
Interest expense, net		123,252			78,999			267,961			285,675
Adjusted EBITDA	$	(3,617,560	)	$	(732,866	)	$	(6,287,476	)	$	(1,183,842	)

Source: Mobivity Holdings Corp.

Released March 30, 2022

Mobivity Announces Fourth Quarter and Full Year 2021 Financial Results

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