Form: 8-K

Current report filing

August 14, 2023

 

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Mobivity Announces Second Quarter 2023 Financial Results

 

PHOENIX, AZ – August 14, 2023 – Mobivity Holdings Corp. (OTCQB:MFON), a global provider of personalized reward solutions that drive customer acquisition, frequency, and spend, today announced financial results for the second quarter (“Q2”) ended June 30, 2023.

 

Q2 2023 Financial Highlights

 

  Revenues of $1.9 million remained consistent compared to $1.9 million in Q2 2022.
  Gross profit margin of 26% compared to 36% in Q2 2022.
  Operating expenses of $2.5 million compared to $2.4 million in Q2 2022.
  Net loss was $2.3 million compared to a net loss of $2.0 million in Q2 2022.
  Adjusted EBITDA, excluding certain non-cash expenses, was ($1.8) million compared to ($1.1) million in Q2 2022.
  Cash and cash equivalents of $529,000 as of June 30, 2023 compared to $427,000 as of December 31, 2022.

 

Recent Business Highlights

 

  Appointed industry senior executives to key leadership positions to strengthen market leadership in connecting brands with game publishers:

  Will Sanchez appointed as Chief Financial Officer
  Asif Iqbal appointed as Vice President of Engineering
  Dan Grigorovici appointed as Vice President of Product
  Beatrice Olivas appointed as Senior Director of Brand Strategy
  Rob Crews appointed as Senior Director of Restaurant Strategy

  Signed contract with major mobile casual game publisher for in-game rewarded play
  Signed deal with international restaurant brand for on-location user acquisition
  Connected Rewards program with major global convenience store brand successfully drove thousands of game downloads and acquired thousands of digital loyalty subscribers for the brand  

 

Tom Akin, Mobivity Chairman of the Board, commented, “During the second quarter, we accelerated the transformation of our business by hiring key leaders equipped with the industry expertise and experience to address the markets we serve. With the right people and the continued advancement of Connected Rewards, we are laying the groundwork to accelerate adoption of our offerings and ignite long-term growth. We are increasingly optimistic about the prospects for our business given the opportunities we see to connect brands with game developers and advertisers through Connected Rewards.”

 

3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

 

Consolidated Financial Summaries:

 

(In thousands)   Three months ended June 30,     Six months ended June 30,  
    2023     2022     $$     %     2023     2022     $$     %  
Revenue   $ 1,861     $ 1,867     ($ 6 )     (0.3 %)   $ 3,743     $ 3,897     ($ 154 )     (4.0 %)
Gross profit   $ 490     $ 664     ($ 174 )     (26.2 %)   $ 1,305     $ 1,519     ($ 214 )     (14.1 %)
Gross margin     26.3 %     35.6 %     N/A       (930 bps )     34.9 %     39.0 %     N/A       (410 bps )
Operating Expenses   $ 2,515     $ 2,449     $ 66       2.7 %   $ 5,549     $ 5,080     $ 469       9.2 %
Loss from operations   ($ 2,025 )   ($ 1,784 )   ($ 241 )     (13.5 %)   ($ 4,244 )   ($ 3,561 )   ($ 683 )     (19.2 %)
Net loss   ($ 2,272 )   ($ 1,952 )   ($ 320 )     (16.4 %)   ($ 4,750 )   ($ 3,885 )   ($ 865 )     (22.3 %)
Adjusted EBITDA *   ($ 1,762 )   ($ 1,146 )   ($ 616 )     (53.8 %)   ($ 3,128 )   ($ 2,522 )   ($ 660 )     (24.0 %)

 

* Adjusted EBITDA is a non-GAAP measure. The Company defines and calculates Adjusted EBITDA as net loss before the impact of interest income or expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation and/or other non-recurring and non-operating costs or income, as described in the reconciliation below.

 

Conference Call

 

Date: Monday, August 14, 2023

Time: 5 p.m. Eastern Time (ET)

Dial in Number for U.S. Callers: 1-844-825-9789

Dial in Number for International Callers: 1-412-317-5180

Please Reference Conference ID: 10181765

 

The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1627822&tp_key=67ae9b45a7.

 

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 August 14, 2023 at approximately 8 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 10181765. The replay will also be available on the Company’s website under the investor relations section.

 

3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

 

Non-GAAP Measurements

 

This press release includes certain financial information which constitutes “non-GAAP financial measures” as defined by the United States Securities and Exchange Commission (“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 EBITDA 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

 

Mobivity’s cloud-based Connected Rewards™ technology delivers billions of offers and promotions, building large, owned audiences for some of the world’s biggest brands. Through its partnerships with leading game publishers, digital operators, and ad networks, Mobivity connects a massive universe of consumers to its broad network of brands. As a result, digital consumers download and play more games, and earn real-world rewards that are redeemed in-store, driving acquisition, frequency, and retention for brands and game publishers. 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 from time to time in Mobivity Holdings Corp.’s reports filed with the SEC, including, but not limited to, Mobivity Holdings Corp.’s most recent annual report on Form 10-K , quarterly reports on Form 10-Q, and current reports on Form 8-K. Mobivity Holdings Corp. cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date of this announcement. 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:

 

Will Sanchez • Chief Financial Officer, Mobivity

(877) 282-7660

 

Brett Maas • Managing Partner, Hayden IR

brett@haydenir.com • (646) 536-7331

 

3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

 

Mobivity Holdings Corp.

Condensed Consolidated Balance Sheets

 

    June 30,     December 31,  
    2023     2022  
    (Unaudited)     (Audited  
ASSETS                
Current assets                
Cash   $ 529,471     $ 426,740  
Accounts receivable, net of allowance for doubtful accounts $9,423 and $34,446, respectively     542,711       1,081,183  
Other current assets     423,371       195,017  
Total current assets     1,495,553       1,702,940  
Right to use lease assets     878,380       981,896  
Intangible assets and software development costs, net     99,257       194,772  
Other assets     127,417       137,917  
TOTAL ASSETS   $ 2,600,607     $ 3,017,525  
LIABILITIES AND STOCKHOLDERS’ DEFICIT                
Current liabilities                
Accounts payable   $ 3,481,685     $ 3,412,612  
Accrued interest     442,269       443,448  
Accrued and deferred personnel compensation     297,572       569,347  
Deferred revenue and customer deposits     469,750       902,727  
Related party notes payable, net - current maturities     1,361,250       2,711,171  
Notes payable, net - current maturities     18,096       32,617  
Operating lease liability, current     263,663       251,665  
Other current liabilities     15,162       49,541  
Total current liabilities     6,349,447       8,373,128  
                 
Non-current liabilities                
Related party notes payable, net - long term     3,894,345       2,481,290  
Notes payable, net - long term     30,223       31,092  
Operating lease liability     801,492       936,924  
Total non-current liabilities     4,726,060       3,449,306  
Total liabilities     11,075,507       11,822,434  
                 
Stockholders’ deficit                
Common stock, $0.001 par value; 100,000,000 shares authorized; 65,797,567 and 61,311,155, shares issued and outstanding     65,798       61,311  
Equity payable     307,318       324,799  
Additional paid-in capital     113,868,248       108,806,353  
Accumulated other comprehensive loss     (69,598 )     (100,963 )
Accumulated deficit     (122,646,666 )     (117,896,409 )
Total stockholders’ deficit     (8,474,900 )     (8,804,909 )
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   $ 2,600,607     $ 3,017,525  

 

3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

 

Mobivity Holdings Corp.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2023     2022     2023     2022  
Revenues                                
Revenues   $ 1,861,171     $ 1,867,162     $ 3,742,653     $ 3,896,731  
Cost of revenues     1,371,206       1,202,749       2,437,781       2,377,697  
Gross profit     489,965       664,413       1,304,872       1,519,034  
                                 
Operating expenses                                
General and administrative     1,071,153       897,984       2,615,259       2,105,160  
Sales and marketing     602,911       566,270       1,294,131       1,163,771  
Engineering, research, and development     804,343       873,836       1,538,718       1,576,059  
Depreciation and amortization     36,582       110,421       100,484       234,733  
Total operating expenses     2,514,989       2,448,511       5,548,592       5,079,723  
                                 
Loss from operations     (2,025,024 )     (1,784,098 )     (4,243,720 )     (3,560,689 )
                                 
Other income/(expense)                                
Loss of settlement of debt                 (10,857 )      
Interest expense     (244,443 )     (167,126 )     (482,889 )     (326,953 )
Settlement losses     (2,500 )           (12,500 )      
Foreign currency gain     (115 )     (510 )     (291 )     2,809  
Total other income/(expense)     (247,058 )     (167,636 )     (506,537 )     (324,144 )
Loss before income taxes     (2,272,082 )     (1,951,734 )     (4,750,257 )     (3,884,833 )
Income tax expense                        
Net loss     (2,272,082 )     (1,951,734 )     (4,750,257 )     (3,884,833 )
Other comprehensive loss, net of income tax                                
Foreign currency translation adjustments     (137 )     12,261       31,365       (634 )
Comprehensive loss   $ (2,272,219 )   $ (1,939,473 )   $ (4,718,892 )   $ (3,885,467 )
Net loss per share:                                
Basic and Diluted     (0.03 )     (0.03 )     (0.07 )     (0.07 )
Weighted average number of shares:                                
Basic and Diluted     65,670,815       58,602,319       63,884,441       57,921,596  

 

3133 West Frye Road, Suite 215, Chandler, AZ 85226

 

 

 

Mobivity Holdings Corp.

Reconciliation of GAAP Measure to Non-GAAP Measure

 

(In thousands)   Three months ended June 30,     Six Months ended June 30,  
    2023     2022     2023     2022  
Net Loss   ($ 2,272 )   ($ 1,952 )   ($ 4,750 )   ($ 3,885 )
Stock Based Compensation     229       529       1039       801  
Depreciation and Amortization     37       110       100     $ 235  
Interest Expenses Net     244       167       483       327  
Adjusted EBITDA   ($ 1,762 )   ($ 1,146 )     (3,128 )   ($ 2,522 )

 

3133 West Frye Road, Suite 215, Chandler, AZ 85226