Mobivity Announces Second Quarter 2024 Financial Results

Mobivity Announces Second Quarter 2024 Financial Results

PHOENIX, Aug. 14, 2024 (GLOBE NEWSWIRE) — Mobivity Holdings Corp. (OTCQB: MFON), a provider of technology connecting mobile gaming audiences to real-world brands and products, today announced financial results for the second quarter (“Q2”) ending June 30, 2024.

Recent Business Highlights

  • Grew consumer audience by more than 40% to over 16 million consumers
  • Increased the number of active programs by ~10%
  • Partnered with Paytronix, a leading provider of loyalty and guest engagement solutions, to expand the reach of Mobivity’s Connected Rewards programs and seamlessly integrate with Paytronix customers
  • Added new brand partners, including leaders in fuel and convenience

Bryce Daniels, Mobivity President, stated, “Mobivity’s transformation continued in the second quarter, with the audience for our Connected Rewards platform expanding by 40% and the number of active programs growing for another consecutive quarter. With Connected Rewards as our primary focus, we added a number of new brands during the quarter and nearly doubled our pipeline since the end of the previous quarter, reinforcing our optimism for a return to revenue growth in the second half of this year.”

Kim Carlson, Mobivity COO, stated, “The new, strategic partnership we signed with Paytronix is indicative of the progress we are making with the Connected Rewards program. Through the partnership, we are now reaching many, many more consumers and driving more traffic for the brands we are engaged with. Business momentum is accelerating, and our pipeline of qualified opportunities is more robust than ever.”

Consolidated Financial Summaries

(In thousands) Three months ended June 30, Six months ended June 30,
    2024     2023     $$   %   2024     2023   $$ %
Revenue   $1,473     $1,861     ($388)   (20.9%)     $3,074     $3,743     ($669)   (17.9%)  
Gross profit   $494     $490     $4   0.8%     $1,130     $1,305     ($174)   (13.4%)  
Gross margin   33.5%     26.3%     N/A   +720 bps     36.8%     34.9%     N/A   +190 bps  
Operating Expenses   $2,508     $2,515     ($7)   (0.3%)     $5,001     $5,549     ($548)   (9.9%)  
Loss from operations   ($2,014)     ($2,025)     $11   0.5%     ($3,870)     ($4,244)     $373   8.8%  
Net loss   ($2,481)     ($2,272)     ($209)   (9.2%)     ($4,735)     ($4,750)     $15   0.3%  
Adjusted EBITDA *   ($2,738)     ($2,325)     ($413)   (17.8%)     ($5,206)     ($4,872)     ($334)   (6.9%)  

* 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: Wednesday, August 14, 2024
Time: 4:30 P.M. Eastern Time (ET)
Dial in Number for U.S. Callers: 1-800-717-1738
Dial in Number for International Callers: 1-646-307-1865
Please Reference Conference ID: 66124

The call will also be accompanied live by webcast over the Internet and accessible at: https://viavid.webcasts.com/starthere.jsp?ei=1683931&tp_key=b48ebcc8ae.

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, 2024 at approximately 8:30 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 1166124. 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 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 consumer offers and rewards by connecting world-class retail, restaurant, and convenience brand offers to gameplay in popular mobile games. Through its partnerships with leading game publishers, developers, and ad networks, Mobivity connects the massive universe of mobile game consumers to its broad network of brands. Through Connected Rewards, game developers attract more players to their games, brands experience more traffic from players redeeming their brand offers in-store and online, and consumers get valuable, real-world rewards from brands they love by playing mobile games. For more information about Mobivity, visit mobivity.com or call (877) 282-7660.

Forward Looking Statements

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.

Media Contacts:

Jeff Michaels • Mobivity PR
jeff.michaels@mobivity.com • (480) 674-6600

Investor Relations Contact:

Brett Maas • Managing Partner, Hayden IR
brett@haydenir.com • (646) 536-7331

Mobivity Holdings Corp.
Condensed Consolidated Balance Sheets
             
    June 30,     December 31,  
    2024     2023  
    (Unaudited)     (Audited)  
ASSETS                
Current assets                
Cash   $ 282,828     $ 416,395  
Accounts receivable, net of allowance for doubtful accounts $85,215 and $16,107, respectively     832,842       876,465  
Other current assets     268,248       135,916  
Total current assets     1,383,918       1,428,776  
Right to use lease assets     658,447       770,623  
Intangible assets and software development costs, net     61,168       65,916  
Other assets     90,178       69,036  
TOTAL ASSETS   $ 2,193,711     $ 2,334,351  
LIABILITIES AND STOCKHOLDERS’ DEFICIT                
Current liabilities                
Accounts payable   $ 2,879,525     $ 3,372,141  
Accrued interest     195,196       21,474  
Accrued and deferred personnel compensation     222,372       272,247  
Deferred revenue and customer deposits     87,139       155,472  
Related party notes payable, net – current maturities     3,072,500       3,072,500  
Notes payable, net – current maturities           7,154  
Operating lease liability, current     288,905       276,072  
Other current liabilities     68,101       248,434  
Total current liabilities     6,813,738       7,425,494  
                 
Non-current liabilities                
Related party notes payable, net – long term     7,638,676       4,413,987  
Notes payable, net – long term     221,877       265,959  
Operating lease liability     512,587       660,852  
Total non-current liabilities     8,373,140       5,340,798  
Total liabilities     15,186,878       12,766,292  
                 
Stockholders’ deficit                
Common stock, $0.001 par value; 100,000,000 shares authorized; 67,949,709 and 65,797,567, shares issued and outstanding     67,950       67,950  
Equity payable     1,455,943       989,947  
Additional paid-in capital     120,116,959       118,624,601  
Accumulated other comprehensive loss     61,498       (153,831 )
Accumulated deficit     (134,695,517 )     (129,960,608 )
Total stockholders’ deficit     (12,993,167 )     (10,431,941 )
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   $ 2,193,711     $ 2,334,351  
   
See accompanying notes to consolidated financial statements.   
Mobivity Holdings Corp.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
             
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2024     2023     2024     2023  
Revenues                                
Revenues   $ 1,473,040     $ 1,861,171     $ 3,073,947     $ 3,742,653  
Cost of revenues     979,081       1,371,206     $ 1,943,492       2,437,781  
Gross profit     493,959       489,965       1,130,455       1,304,872  
Operating expenses                                
Bad Debt Expense     72,974             122,084        
General and administrative     570,016       1,071,153       1,217,765       2,615,259  
Sales and marketing     851,944       602,911       1,615,043       1,294,131  
Engineering, research, and development     1,009,405       804,343       2,032,778       1,538,718  
Depreciation and amortization     3,266       36,582       13,175       100,484  
Total operating expenses     2,507,605       2,514,989       5,000,845       5,548,592  
Loss from operations     (2,013,646 )     (2,025,024 )     (3,870,390 )     (4,243,720 )
Other income/(expense)                                
Loss of settlement of debt                       (10,857 )
Interest expense     (467,014 )     (244,443 )     (864,488 )     (482,889 )
Settlement Losses           (2,500 )           (12,500 )
Foreign currency gain     (7 )     (115 )     (31 )     (291 )
Total other income/(expense)     (467,021 )     (247,058 )     (864,519 )     (506,537 )
Loss before income taxes     (2,480,667 )     (2,272,082 )     (4,734,909 )     (4,750,257 )
Income tax expense                        
Net loss     (2,480,667 )     (2,272,082 )     (4,734,909 )     (4,750,257 )
Other comprehensive loss, net of income tax                                
Foreign currency translation adjustments     (2,600 )     (137 )     215,329       31,365  
Comprehensive loss   $ (2,483,267 )   $ (2,272,219 )   $ (4,519,580 )   $ (4,718,892 )
Basic and Diluted   $ (0.04 )   $ (0.03 )   $ (0.07 )   $ (0.07 )
Weighted average number of shares:                                
Basic and Diluted     68,975,065       65,670,815       68,966,251       63,884,441  
 
See accompanying notes to consolidated financial statements (unaudited).
Mobivity Holdings Corp.
Reconciliation of GAAP Net loss to Non-GAAP Adjusted EBITDA
(unaudited)
 
(In thousands) Three Months
Ended June 30,
Six Months
Ended June 30,
    2024     2023     2024     2023  
Net Loss   ($2,481)     ($2,272)     ($4,735)     ($4,750)  
Stock Based Compensation   $213     $229     $407     $462  
Depreciation and Amortization   ($3)     ($37)     ($13)     ($100)  
Interest Expenses Net   ($467)     ($244)     ($864)     ($483)  
Adjusted EBITDA   ($2,738)     ($2,325)     ($5,206)     ($4,872)  

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