Mobivity Announces Second Quarter 2021 Financial Results

Rhea-AI Summary

Mobivity Holdings Corp. (OTCQB:MFON) reported Q2 2021 revenues of $2.80 million, a slight increase from $2.77 million in Q2 2020. The gross margin decreased to 55% from 56%, and operating expenses rose to $2.9 million from $2.2 million. Net loss expanded to $1.4 million compared to a loss of $725,000 in Q2 2020. Notably, the company expanded its customer base in the convenience store sector, adding a major brand to its roster, boosting subscriber growth significantly, and indicating a promising sales pipeline for future growth.

Positive

• Sequential revenue growth of 14% over Q1 2021.
• Expanded customer base in the convenience store industry, adding the world's second largest convenience store brand.
• Gained 1.7 million new SMS marketing program consumers in Q2 2021.

Negative

• Net loss increased to $1.4 million from $725,000 in Q2 2020.
• Operating expenses rose to $2.9 million, a 33% increase year-over-year.
• Gross profit decreased by 2% to $1.52 million.

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

FAQ

What were Mobivity's Q2 2021 revenue figures for MFON?

Mobivity reported revenues of $2.80 million for Q2 2021, slightly up from $2.77 million in Q2 2020.

How did Mobivity's net loss change in Q2 2021?

The net loss for Q2 2021 was $1.4 million, compared to a net loss of $725,000 in Q2 2020.

What is the significance of Mobivity expanding into the convenience store market?

Expanding into the convenience store market allows Mobivity to tap into a lucrative sector, adding a major brand and significantly increasing its sales pipeline.

What was the change in Mobivity's operating expenses in Q2 2021?

Operating expenses rose to $2.9 million in Q2 2021, up 33% from $2.2 million in Q2 2020.

What new subscriber growth did Mobivity achieve in Q2 2021?

Mobivity added 1.7 million new consumers to its SMS marketing programs in Q2 2021.