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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Mobivity Announces Q1 2019 Results, Recurring Revenue Accelerates

May 15, 2019

PHOENIX, May 15, 2019 (GLOBE NEWSWIRE) -- Mobivity Holdings Corp. (OTCQB: MFON), creators of the award-winning customer personalization platform, Recurrency, today announced financial results for the first quarter ending March 31, 2019 (“Q1 2019”).

Q1 2019 Highlights

-- Recurring revenues climbed to more than $2.54 million for the quarter, a 24% increase compared to $2 million for Q1, 2018 -- Executed a five-year contract to power digital offer management solutions to a multi-billion-dollar brand -- Added several new brands to an accelerating sales pipeline totalling more than $10 million in annually recurring revenue -- Closed partnership deals with two multi-billion-dollar Consumer Packaged Goods (“CPG”) brands to resell Recurrency and the newly acquired Belly loyalty platform -- Entered into a new partnership with a large technology investment bank to begin market trials in thousands of locations across Japan -- Net loss increased 21% to $1.8 million, from $1.5 million -- Adjusted EBITDA loss decreased 31% from $1.8 million to $1.2 million

Dennis Becker, Mobivity Chairman and CEO, commented, “Overall market demand is increasing for the full suite of Mobivity solutions as evidenced by the continued acceleration of our recurring revenue from new and existing customers. We’re also seeing great progress towards our goal of hundreds of thousands of locations licensing our solutions on per location annual terms. In the first quarter we added more than $10 million in annual recurring revenues to our sales pipeline, an important indicator of our future revenue growth potential. This pipeline includes more than 10,000 locations across several well-known brands. The exceptional acceleration in our sales pipeline is the direct result of our partnerships with two key CPG brands. Additionally, our team did an amazing job winning a five-year deal with one of our largest customers to power digital offer management, putting us on track to achieve our third straight year of double-digit growth in recurring licensing fees. 2019 is shaping up to be an inflection point for Mobivity. Our focus for the remainder of the year is to convert a significant percentage of our sales pipeline to new revenue, continue building our pipeline, increase contract terms to five years where possible, and leveraging our growing list of logos through our global CPG partnerships. I’m pleased with our continued progress towards our goal of reaching 100,000 locations producing average annual revenue of $1,500.”

Consolidated Financial Summaries

First Quarter 2019 (In thousands) Three months ended March 31, ----------------------------- --------------------- 2019 2018 ----------------------------- - ------ - - ------ - Revenue $ 2,417 $ 3,693 ----------------------------- - ------ - - ------ - Revenue excluding ASC 606 * $ 2,543 $ 2,045 ----------------------------- - ------ - - ------ - Gross profit $ 1,245 $ 2,900 ----------------------------- - ------ - - ------ - Gross margin 52 % 79 % ----------------------------- - ------ - - ------ - Operating Expenses $ 3,024 $ 4,338 ----------------------------- - ------ - - ------ - Income (loss) from Operations $ (1,780 ) $ (1,439 ) ----------------------------- - ------ - - ------ - Net income (loss) $ (1,822 ) $ (1,504 ) ----------------------------- - ------ - - ------ - Adjusted EBITDA * $ (1,254 ) $ (1,810 ) ----------------------------- - ------ - - ------ - * Non-GAAP measures

Mobivity Holdings Corp. Consolidated Balance Sheets March 31, December 31, 2019 2018 --------------- --------------- ASSETS Current assets Cash $ 283,411 $ 554,255 Accounts receivable, net of allowance for doubtful accounts of $8,122 and 1,072,985 601,658 $10,104, respectively Contracts receivable, current 941,154 578,869 Other current assets 834,344 736,309 Total current assets 3,131,894 2,471,091 Goodwill 537,550 537,550 Right to use lease assets 480,370 - Intangible assets, net 1,771,976 1,781,448 Contracts receivable, long term 1,625,201 2,113,823 Other assets 396,397 527,146 TOTAL ASSETS $ 7,943,388 $ 7,431,058 - ----------- - - ----------- - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 2,375,059 $ 1,731,628 Accrued interest 22,792 9,167 Accrued and deferred personnel compensation 238,823 350,311 Deferred revenue and customer deposits 1,743,532 1,956,938 Notes payable, net - current maturities 617,140 1,279,590 Other current liabilities 705,570 723,636 Total current liabilities 5,702,916 6,051,270 Non-current liabilities Notes payable, net - long term 772,985 194,328 Notes payable, net - long term - related party 1,580,000 Other long term liabilities 1,231,874 860,500 - - Total non-current liabilities 3,584,859 1,054,828 Total liabilities 9,287,775 7,106,098 Commitments and Contingencies Stockholders’ equity Common stock, $0.001 par value; 100,000,000 shares authorized; 45,998,053 45,998 45,998 and 45,998,053, shares issued and outstanding Equity payable 100,862 100,862 Additional paid-in capital 88,189,222 88,008,473 Accumulated other comprehensive loss (23,690 ) 4,759 Accumulated deficit (89,656,779 ) (87,835,132 ) Total stockholders’ equity (1,344,387 ) 324,960 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 7,943,388 $ 7,431,058 - ----------- - - ----------- -

Mobivity Holdings Corp. Consolidated Statements of Operations Three Months Ended March 31, ---------------------------------- 2019 2018 ---------------- ---------------- Revenues Revenues 2,416,617 3,693,328 Cost of revenues 1,171,909 793,389 - ---------- - - ---------- - Gross profit 1,244,708 2,899,939 Operating expenses General and administrative 1,323,935 1,248,343 Sales and marketing 838,567 1,461,580 Engineering, research, and development 577,733 1,531,598 Depreciation and amortization 284,094 96,970 - ---------- - - ---------- - Total operating expenses 3,024,329 4,338,491 - ---------- - - ---------- - Income (loss) from operations (1,779,621 ) (1,438,552 ) Other income/(expense) Interest income 17 456 Interest expense (41,905 ) (57,489 ) Gain on sale of fixed assets - (8,722 ) Foreign currency (loss) gain (138 ) 330 - ---------- - - ---------- - Total other income/(expense) (42,026 ) (65,425 ) - ---------- - - ---------- - Income (loss) before income taxes (1,821,647 ) (1,503,977 ) Income tax expense - - - ---------- - - ---------- - Net Income (loss) (1,821,647 ) (1,503,977 ) Other comprehensive income (loss), net of income tax Foreign currency translation adjustments (28,449 ) (12,615 ) - - ---------- - - - ---------- - Comprehensive income (loss) $ (1,850,096 ) $ (1,516,592 ) - - ---------- - - - ---------- - Net income (loss) per share: Basic $ (0.04 ) $ (0.04 ) - - ---------- - - - ---------- - Weighted average number of shares: Basic 45,998,053 38,018,733 - - ---------- - - - ---------- - Reconciliation of net (loss) to adjusted EBITDA Net (loss) $ (1,821,647 ) $ (1,503,977 ) Impact of ASC606 60,583 (713,568 ) Stock based compensation 180,750 252,842 Depreciation and amortization 284,094 96,970 Interest expense 41,905 57,489 - ---------- - - ---------- - Adjusted EBITDA $ (1,254,315 ) $ (1,810,244 )

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.

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, 2018 filed with the SEC on April 15, 2019 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.

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 suite of products increases customer engagement and frequency by capturing detailed point-of-sale transaction records, 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.

Media Contacts

Jennifer Handshew • Marketing Communications, Mobivity jennifer.handshew@mobivity.com • (917) 359-8838

Dennis Becker • Chairman and Chief Executive Officer, Mobivity(877) 282-7660

Investor Relations Contacts

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

Jeff Stanlis • Partner and Vice President, Communications, Hayden IR jeff@haydenir.com • (602) 476-1821

Charles Mathews • Chief Financial Officer, Mobivity(877) 282-7660