Mobivity Announces First Quarter 2024 Financial Results

PHOENIX, May 15, 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 first quarter (“Q1”) ending March 31, 2024.

Recent Business Highlights

• Grew consumer audience by more than 30% to over nine million consumers vs Q4 2023
• Added 6 new brand partners including leaders in fuel and convenience and fast casual restaurants in Q1 2024
• Increased conversion rate of audiences by 15% vs Q4 2023
• Grew the number of mobile game titles by 83% vs Q4 2023
• Appointed Bryce Daniels to the role of President
  

Tom Akin, Mobivity Chairman of the Board of Directors, commented, “We are pleased to appoint Bryce Daniels to the role of President of Mobivity. Bryce has worked closely with the company over the last two years and played a critical role in the development of the Connected Rewards platform and optimization of the present business model. His leadership and institutional knowledge will be instrumental in returning Mobivity to growth.”

Bryce Daniels, Mobivity President, stated, “During the first quarter of 2024, we gained significant traction with each of the key operating metrics that we believe will drive further growth and improved performance for our business. We expanded our footprint with new brand partners including highly recognized leaders in the fuel and convenience space, grew the number of mobile game titles that leverage our platform, grew our audience by approximately 30% to over nine million consumers and increased conversion rates of audiences engaging with our platform. The synchronization of these metrics reinforces our confidence for reigniting revenue growth and achieving profitability later this year.”

Kim Carlson, Mobivity COO, added, “Increasingly, our platform is proving to be highly beneficial for brands. With rising food and labor costs, the restaurant and convenience store space, in particular, is leveraging our solution to drive incremental traffic and directly improve operating margins. The proven successes are, in turn, creating additional momentum for our business. Our pipeline of new business opportunities is robust, and we remain highly optimistic that adoption of our solution will increase as companies look for new and innovative ways to acquire and retain new customers.”

Consolidated Financial Summaries

(In thousands)	Three months ended March 31
	2024		2023		$$		%
Revenue	$1,601		$1,881		($281)		(15%)
Gross profit	$636		$815		($178)		(22%)
Gross margin	39.8%		43.3%		N/A		(350 bps)
Operating Expenses	$2,493		$3,034		($540)		(18%)
Income (loss) from Operations	($1,857)		($2,219)		$362		+16%
Net income (loss)	($2,254)		($2,478)		$224		+9%
Adjusted EBITDA *	($1,653)		($1,366)		($287)		(21%)

Conference Call
Date: Wednesday, May 15, 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: 85469

The call will also be accompanied live by webcast over the Internet and accessible at: https://viavid.webcasts.com/starthere.jsp?ei=1671553&tp_key=eada9a ....

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 May 15, 2024 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 11155948. 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 [phone].

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
[e-mail] • [phone]

Investor Relations Contact:

Brett Maas • Managing Partner, Hayden IR
[e-mail] • [phone] 

Mobivity Holdings Corp. Condensed Consolidated Balance Sheets
	March 31, 2024				December 31, 2023
	(Unaudited)				(Audited)
ASSETS
Current assets
Cash	$	186,782			$	416,395
Accounts receivable, net of allowance for doubtful accounts $60,265 and $16,107, respectively		839,187				876,465
Other current assets		209,345				135,916
Total current assets		1,235,314				1,428,776
Right to use lease assets		715,106				770,623
Intangible assets and software development costs, net		55,082				65,916
Other assets		97,490				69,036
TOTAL ASSETS	$	2,102,992			$	2,334,351
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	3,120,057			$	3,372,141
Accrued interest		320,655				21,474
Accrued and deferred personnel compensation		113,048				272,247
Deferred revenue and customer deposits		110,292				155,472
Related party notes payable, net - current maturities		2,304,375				3,072,500
Notes payable, net - current maturities		—				7,154
Operating lease liability, current		282,435				276,072
Other current liabilities		45,941				248,434
Total current liabilities		6,296,803				7,425,494
Non-current liabilities
Related party notes payable, net - long term		6,807,399				4,413,987
Notes payable, net - long term		218,918				265,959
Operating lease liability		587,622				660,852
Total non-current liabilities		7,613,939				5,340,798
Total liabilities		13,910,742				12,766,292
Stockholders’ deficit
Common stock, $0.001 par value; 100,000,000 shares authorized; 67,949,709 and 61,311,155, shares issued and outstanding		67,950				67,950
Equity payable		989,947				989,947
Additional paid-in capital		119,285,105				118,624,601
Accumulated other comprehensive loss		64,098				(153,831	)
Accumulated deficit		(132,214,850	)			(129,960,608	)
Total stockholders’ deficit		(11,807,750	)			(10,431,941	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	2,102,992			$	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 March 31,
	2024				2023
Revenues
Revenues	$	1,600,905			$	1,881,482
Cost of revenues		964,411				1,066,575
Gross profit		636,494				814,907
Operating expenses
Bad Debt Expense		49,109				—
General and administrative		644,729				1,544,106
Sales and marketing		763,099				691,220
Engineering, research, and development		1,026,418				734,375
Depreciation and amortization		9,909				63,902
Total operating expenses		2,493,264				3,033,603
Loss from operations		(1,856,770	)			(2,218,696	)
Other income/(expense)
Loss of settlement of debt		—				(10,857	)
Interest expense		(397,472	)			(238,446	)
Settlement Losses		—				(10,000	)
Foreign currency gain		—				(176	)
Total other income/(expense)		(397,472	)			(259,479	)
Loss before income taxes		(2,254,242	)			(2,478,175	)
Income tax expense		—				—
Net loss		(2,254,242	)			(2,478,175	)
Other comprehensive loss, net of income tax
Foreign currency translation adjustments		217,929				31,502
Comprehensive loss	$	(2,036,313	)		$	(2,446,673	)
Basic and Diluted	$	(0.03	)		$	(0.04	)
Weighted average number of shares:
Basic and Diluted		67,949,340				62,078,218

See accompanying notes to consolidated financial statements (unaudited).