Form: 8-K

Current report filing

November 9, 2020

 

Exhibit 99-1

 

 

November 9, 2020

 

FOR IMMEDIATE RELEASE

 

Mobivity Announces Positive GAAP Net Income for Q3 2020

 

PHOENIX, AZ – November 9, 2020 – 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.”

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

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.

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

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  

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

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 )

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225
 

 

 

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

 

55 North Arizona Place, Suite 310, Chandler, AZ 85225