Mobivity Announces Second Quarter 2021 Financial Results


PHOENIX, Aug. 12, 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 brands, today announced financial results for the second quarter (“Q2”) ending June 30, 2021.

Summary of Fiscal 2021 Second Quarter

  • Revenues of $2.80 million in Q2 2021 compared to $2.77 million in Q2 2020.
  • Gross margin of 55% compared to 56% in Q2 2020.
  • Operating expenses increased to $2.9 million compared to $2.2 million during the same period reported in 2020.
  • Cash and cash equivalents totalled $1.9 million compared to $1.0 million in Q2 of 2020.
  • Net loss was $1.4 million compared to a net loss of $725,000 in Q2 2020.

Second Quarter 2021 Business Highlights

  • Expanded customer base to the convenience store industry, including the addition of the world’s second largest convenience store brand expanding deployments to more than 47,000 locations.
  • Sequential revenue growth of 14% over the first quarter of 2021.
  • Strong sales pipeline includes brands operating more than 13,000 convenience store locations.
  • More than 1.7 million new consumers joined Mobivity SMS marketing programs in the second quarter of 2021, more than twenty times the number of new subscribers added in the first quarter of 2021

Dennis Becker, Mobivity Chairman and CEO, commented, “Revenue growth resumed in the second quarter as our team expanded our sales and marketing efforts in anticipation of growing demand and expansion into new markets. Our success growing into the convenience store market, including the second largest convenience store chain in the world, has diversified our market focus and greatly expanded our sales pipeline. There are approximately 70,000 convenience stores generating more than $21 billion in annual foodservice sales in the U.S. alone, making it an ideal market for us to leverage our success from the restaurant industry. We are now directly engaged with several other convenience store brands operating thousands of locations who have seen the impact of data driven SMS marketing programs on both direct sales and the promotion of CPG brands that sell through convenience store chains. Our long-term strategy has always been to deliver our products and services beyond the restaurant industry and in just six months we have proven that we can penetrate another lucrative vertical market. As the restaurant industry resumes its recovery from the pandemic, and we expand into new markets such as the convenience store industry, we believe our increased visibility across industries and proven success will result in accelerated growth throughout the remainder of this year. I thank the entire team at Mobivity for their continued dedication to building value for our customers and shareholders, despite the historic challenges of these times.”

Consolidated Financial Summaries

(In thousands) Three months ended June 30, Six months ended June 30,
  2021 2020 $$ % 2021 2020 $$ %
Revenue $2,793 $2,767 $26 1% $5,250 $7,317 ($2,066) (28%)
Gross profit $1,521 $1,552 ($31) (2%) $2,936 $4,517 ($1,581) (35%)
Gross margin 54.5% 56.1%   (3%) 56% 62%   (9%)
Operating Expenses $2,927 $2,205 $722 33% $6,003 $6,112 ($108) (2%)
Income (loss) from Operations ($1,406) ($654) ($752) (115%) ($3,067) ($1,594) ($1,473) (92%)
Net income (loss) ($1,433) ($726) ($707) (97%) ($3,126) ($1,741) ($1,385) (80%)
Adjusted EBITDA * ($950) ($349) ($601) (172%) ($2,216) ($915) ($1,301) (142%)
                 
* Non-GAAP measures                

Conference Call
Mobivity will host a conference call at 4:30 p.m. ET on August 12, 2021.

Date: Thursday, August 12, 2021
Time: 4:30 P.M. Eastern Time (ET)
U.S. Callers: 1-877-226-0810
International Callers: 1-212-231-2932
Conference ID: 21996595

The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=146248

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 August 12, 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 21996595. The replay will also be available on the Company’s website under the investor relations section.

 
Mobivity Holdings Corp.
Condensed Consolidated Balance Sheets
             
    June 30,   December 31,
    2021   2020
    (Unaudited)   (Audited)
ASSETS            
Current assets            
Cash   $ 1,874,294     $ 3,282,820  
Accounts receivable, net of allowance for doubtful accounts of $29,986 and $33,848, respectively     1,552,478       305,693  
Contracts receivable, current     943,904       943,904  
Other current assets     307,451       272,736  
Total current assets     4,678,127       4,805,153  
Goodwill     496,352       496,352  
Right to use lease assets     1,296,574       57,482  
Intangible assets, net     1,274,255       1,368,329  
Contracts receivable, long term     943,904       1,415,856  
Other assets     194,012       25,230  
TOTAL ASSETS   $ 8,883,224     $ 8,168,402  
LIABILITIES AND STOCKHOLDERS’ EQUITY            
Current liabilities            
Accounts payable   $ 3,296,698     $ 1,935,411  
Accrued interest     2,324       47,316  
Accrued and deferred personnel compensation     427,220       224,881  
Deferred revenue and customer deposits     508,736       606,597  
Related party notes payable           80,000  
Notes payable, net – current maturities     149,634       561,676  
Operating lease liability     161,867       58,173  
Other current liabilities     567,715       566,303  
Total current liabilities     5,114,194       4,080,357  
             
Non-current liabilities            
Related party notes payable, net – long term     1,704,647        
Notes payable, net – long term     982,654       1,499,001  
Operating lease liability     1,305,219       13,296  
Other long term liabilities     554,356       831,535  
Total non-current liabilities     4,546,876       2,343,832  
Total liabilities     9,661,070       6,424,189  
Commitments and Contingencies            
Stockholders’ equity            
Common stock, $0.001 par value; 100,000,000 shares authorized; 51,615,469 and 51,380,969, shares issued and outstanding     55,411       55,411  
Equity payable     100,862       100,862  
Additional paid-in capital     101,810,068       101,186,889  
Accumulated other comprehensive income     (42,365 )     (23,446 )
Accumulated deficit     (102,701,822 )     (99,575,503 )
Total stockholders’ equity     (777,846 )     1,744,213  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 8,883,224     $ 8,168,402  
             
                         
Mobivity Holdings Corp.
Condensed Consolidated Statements of Operations
                       
                         
    Three Months Ended   Six Months Ended
    June 30, (unaudited)   June 30, (unaudited)
    2021     2020     2021     2020  
Revenues                        
Revenues   $   2,792,828     $   2,766,662     $   5,250,418     $   7,316,656  
Cost of revenues       1,272,141         1,214,915         2,313,936         2,799,328  
Gross profit       1,520,687         1,551,747         2,936,482         4,517,328  
                         
Operating expenses                        
General and administrative       957,400         1,003,146         2,246,770         2,249,922  
Sales and marketing       1,111,693         495,616         2,008,443         1,303,623  
Engineering, research, and development       674,035         521,597         1,397,985         2,199,127  
Impairment of intangible asset                       8,286          
Depreciation and amortization       183,584         184,918         341,811         358,845  
Total operating expenses       2,926,712         2,205,277         6,003,295         6,111,517  
Income (loss) from operations       (1,406,025 )       (653,530 )       (3,066,813 )       (1,594,189 )
Other income/(expense)                        
Interest income               76         5         913  
Interest expense       (23,867 )       (68,088 )       (56,383 )       (145,277 )
Loss on disposal of fixed assets       (880 )       (3,935 )       (880 )       (3,935 )
Foreign currency (loss) gain       (1,774 )       (52 )       (2,248 )       1,100  
Total other income/(expense)       (26,521 )       (71,999 )       (59,506 )       (147,199 )
Income (loss) before income taxes       (1,432,546 )       (725,529 )       (3,126,319 )       (1,741,388 )
Income tax expense                                
Net Income (loss)       (1,432,546 )       (725,529 )       (3,126,319 )       (1,741,388 )
Other comprehensive income (loss), net of income tax                      
Foreign currency translation adjustments       (9,241 )       (26,136 )       (18,919 )       (39,217 )
Comprehensive income (loss)   $   (1,441,787 )   $   (751,665 )   $   (3,145,238 )   $   (1,780,605 )
Net income (loss) per share:                        
Basic   $   (0.03 )   $   (0.01 )   $   (0.06 )   $   (0.03 )
Diluted   $   (0.03 )   $   (0.01 )   $   (0.06 )   $   (0.03 )
Weighted average number of shares:                        
Basic       55,410,695         51,615,469         55,410,695         51,524,778  
Diluted       55,410,695         51,615,469         55,410,695         51,524,778  
                         
                         
Reconciliation of net (loss) to adjusted EBITDA                        
Net (loss)       (1,432,546 )       (725,529 )     $ (3,126,319 )     $ (1,741,388 )
Stock based compensation       275,453         123,544         504,076         322,757  
Impairment of intangible asset                       8,286          
Depreciation and amortization       183,584         184,918         341,811         358,845  
Interest expense, net       23,867         68,012         56,378         144,364  
Adjusted EBITDA     $ (949,642 )     $ (349,055 )     $ (2,215,768 )     $ (915,422 )
                         

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



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