MFON - Mobivity Announces Q2 2020 Results Net Loss Narrows as Gross Profit Climbs 92%

August, 10 2020 04:05 PM Mobivity Holdings Corp

PHOENIX, Aug. 10, 2020 (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 second quarter (“Q2”) ending June 30, 2020.

Q2 2020 Highlights

Revenues increased 14% to $2.8 million compared to $2.4 million in Q2 2019.
Gross margins increased by 69% to 56% in Q2 of 2020 versus 33% during the same period last year.
Gross profit rose 92% to $1.56 million in Q2 2020 from $808,000 in Q2 2019.
Net loss narrowed by 72% to $(726,000) compared to $(2.6) million in Q2 2019.
Cash used in operations for the first half of 2020 fell to just $167,000 compared to $2.6 million during the first half of 2019.

Dennis Becker, Mobivity Chairman and CEO, commented, “For the second quarter we delivered a 14% year-over-year increase in revenue and a significant improvement in our bottom-line, despite the unprecedented challenges faced due to the pandemic. Customer deployments continued to increase across the globe, and we brought several COVID relief programs to market while our workforce moved to an all-virtual work environment. We are on pace to achieve a recurring revenue run rate of $14 million for the year and continue to approach cash flow break even.”

Becker continued, “The pandemic has forced merchants to transition to digital solutions so they can continue to operate and grow while navigating shutdowns and a decreasing number of opportunities for face-to-face customer interactions. Our solutions enable restaurateurs to pivot quickly and spontaneously roll out special offers and low contact ordering options like delivery and curbside pickup. The pandemic has exposed the importance of investing in direct, digital connections with consumers, and we are well-positioned to capture a meaningful share of the opportunities. Our proven solutions provide an above average return on investment and in some cases are necessary for the ongoing viability of a business given current conditions. Mobivity’s tremendous scale of billions of customer interactions, and millions of offers handled monthly gives us the experience and track record to help this transition.”

Consolidated Financial Summaries

(In thousands)
Three months ended June 30,
Six months ended June 30,

2020
2019
$$
%
2020
2019
$$
%
Revenue
$
2,767

$
2,435

$
332

14
%
$
7,317

$
4,851

$
2,465

51
%
Gross profit
$
1,552

$
808

$
744

92
%
$
4,517

$
2,053

$
2,465

120
%
Gross margin

56
%

33
%

69
%

62
%

42
%

46
%
Operating Expenses
$
2,205

$
3,293

$
(1,088
)
-33
%
$
6,112

$
6,333

$
(221
)
-3
%
Income (loss) from Operations
$
(654
)
$
(2,485
)
$
1,831

74
%
$
(1,594
)
$
(4,280
)
$
2,686

63
%
Net income (loss)
$
(726
)
$
(2,575
)
$
1,849

72
%
$
(1,741
)
$
(4,412
)
$
2,670

61
%
Adjusted EBITDA *
$
(349
)
$
(1,841
)
$
1,492

81
%
$
(915
)
$
(3,297
)
$
2,382

72
%









* Non-GAAP measures

Conference Call
Mobivity will host a conference call at 4:30 p.m. ET on August 10, 2020.

Date: Monday, August 10th, 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: 10010631

The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=141082.

A replay will be available for two weeks starting on August 10th, 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 10010631. 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,

2020

2019

(Unaudited)

(Audited)
ASSETS





Current assets





Cash
$
996,710


$
273,599

Accounts receivable, net of allowance for doubtful accounts of $85,803 and $88,071, respectively

382,848



614,726

Contracts receivable, current

943,904



526,948

Right to use lease assets

147,946



-

Other current assets

374,553



601,749

Total current assets

2,845,961



2,017,022

Goodwill

496,352



496,352

Right to use lease assets

25,559



260,645

Intangible assets, net

1,547,051



1,762,211

Contracts receivable, long term

1,887,808



1,260,371

Other assets

57,027



67,787

TOTAL ASSETS
$
6,859,758


$
5,864,388

LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities





Accounts payable
$
3,753,234


$
3,256,888

Accrued interest

133,997



35,292

Accrued and deferred personnel compensation

187,925



244,953

Deferred revenue and customer deposits

781,324



440,309

Related party notes payable

80,000



140,700

Notes payable, net - current maturities

534,241



540,576

Operating lease liability

182,672



258,343

Other current liabilities

547,014



308,465

Total current liabilities

6,200,407



5,225,526







Non-current liabilities





Related party notes payable, net - long term

1,200,000



1,000,000

Notes payable, net - long term

1,255,642



567,529

Operating lease liability

32,690



45,460

Other long term liabilities

1,108,712



740,218

Total non-current liabilities

3,597,044



2,353,207

Total liabilities

9,797,451



7,578,733

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

51,616



51,381

Equity payable

100,862



100,862

Additional paid-in capital

95,338,760



94,781,738

Accumulated other comprehensive income

(30,437
)


8,780

Accumulated deficit

(98,398,494
)


(96,657,106
)
Total stockholders' equity

(2,937,693
)


(1,714,345
)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
6,859,758


$
5,864,388

Mobivity Holdings Corp.
Condensed Consolidated Statements of Operations









Three Months Ended

Six Months Ended

June 30,

June 30,

(unaudited)

(unaudited)

2020

2019

2020

2019
Revenues







Revenues
$
2,766,662


$
2,434,841


$
7,316,656


$
4,851,436

Cost of revenues

1,214,915



1,626,823



2,799,328



2,798,649

Gross profit

1,551,747



808,018



4,517,328



2,052,787









Operating expenses







General and administrative

1,003,146



1,581,266



2,249,922



2,726,502

Sales and marketing

495,616



802,050



1,303,623



1,559,192

Engineering, research, and development

521,597



761,320



2,199,127



1,739,428

Depreciation and amortization

184,918



148,391



358,845



307,481

Total operating expenses

2,205,277



3,293,027



6,111,517



6,332,603

Income (loss) from operations

(653,530
)


(2,485,009
)


(1,594,189
)


(4,279,816
)
Other income/(expense)







Interest income

76



-



913



17

Interest expense

(68,088
)


(89,855
)


(145,277
)


(130,992
)
Loss on sale of fixed assets

(3,935
)


-



(3,935
)


-

Foreign currency (loss) gain

(52
)


(35
)


1,100



(856
)
Total other income/(expense)

(71,999
)


(89,890
)


(147,199
)


(131,831
)
Income (loss) before income taxes

(725,529
)


(2,574,899
)


(1,741,388
)


(4,411,647
)
Income tax expense

-



-



-



-

Net Income (loss)

(725,529
)


(2,574,899
)


(1,741,388
)


(4,411,647
)
Other comprehensive income (loss), net of income tax







Foreign currency translation adjustments

(26,136
)


6,136



(39,217
)


(17,554
)
Comprehensive income (loss)
$
(751,665
)

$
(2,568,763
)

$
(1,780,605
)

$
(4,429,201
)
Net income (loss) per share:







Basic
$
(0.01
)

$
(0.06
)

$
(0.03
)

$
(0.10
)
Diluted
$
(0.01
)

$
(0.06
)

$
(0.03
)

$
(0.10
)
Weighted average number of shares:







Basic

51,615,469



45,998,053



51,524,778



45,998,053

Diluted

51,615,469



45,998,053



51,524,778



45,998,053

















Reconciliation of net (loss) to adjusted EBITDA







Net (loss)

(725,529
)


(2,574,899
)

$
(1,741,388
)

$
(4,411,647
)
Stock based compensation

123,544



495,805



322,757



676,554

Depreciation and amortization

184,918



148,391



358,845



307,481

Interest expense, net

68,012



89,855



144,364



130,975

Adjusted EBITDA
$
(349,055
)

$
(1,840,848
)

$
(915,422
)

$
(3,296,637
)

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

Company Name:	Mobivity Holdings Corp
Stock Symbol:	MFON
Market:	OTC
Website:	mobivity.com

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