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Mobivity Announces Fourth Quarter and Full Year 2022 Financial Results

PHOENIX, March 30, 2023 (GLOBE NEWSWIRE) — Mobivity Holdings Corp. (OTCQB:MFON), a global provider of personalized reward solutions that drive customer acquisition, frequency, and spend, today announced financial results for the fourth quarter (“Q4”) and full year ending December 31, 2022.

Q4 2022 Financial Highlights

  • Revenue growth of 185% from $613,000 in the fourth quarter of 2021 to $1.7 million in the fourth quarter of 2022.
  • Gross profit improved from a loss of $367,000 in the fourth quarter of 2021 to a gross profit of $602,000 in the fourth quarter of 2022, representing a 264% improvement.
  • Operating expenses decreased 3% from $3.7 million in the fourth quarter of 2021 to $3.5 million in the fourth quarter of 2022.
  • Net operating loss improved by 23% from $4 million in the fourth quarter of 2021 to $2.9 million in the fourth quarter of 2022.

Recent Business Highlights

  • Mobivity has executed more than five million Connected Rewards impressions rewarding consumers with a variety of rewards for playing mobile games.
  • Total gaming publishers executing Connected Rewards programs has quadrupled to a total of eight publishers marketing a dozen popular mobile game titles in the past 12 months.
  • More than 14 brands, across a variety of verticals including restaurants, convenience stores and salons, participating in Connected Rewards campaigns.
  • Gaming industry veteran Kim Carlson appointed as Chief Revenue Officer in September 2022.
  • Completed a $3.5 million financing in March 2023.

Dennis Becker, Mobivity Chairman and CEO, commented, “This year we made significant progress in our transformation to focus on Connected Rewards, a platform that has shown great potential for growth, particularly in the multi-billion-dollar gaming industry. This platform brings brands and digital businesses together in a unique way to cross-promote services with everyday incentives, creating a win-win-win scenario for game publishers, popular restaurant and convenience store brands and consumers. Our new team members, including our Chief Revenue Officer, Kim Carlson, bring a wealth of experience from the gaming industry, and we are confident that Connected Rewards will drive our business growth in the future. While we remain committed to our legacy business, we believe that Connected Rewards is the future of our business and we will capitalize on the vast potential of our technology in the mobile gaming industry and create long-term value for our shareholders.”

Consolidated Financial Summaries

(In thousands) Three months ended December 31 12 months ended December 31,
  2022 2021 $$ % 2022 2021 $$ %
Revenue $1,747 $613 $1,134 185% $7,534 $8,175 ($641) (8%)
Gross profit $602 ($367) $969 264% $2,205 $3,873 ($1,668) (43%)
Gross margin 34.5% NM     29.3% 47.4%   (1,810) bps
Operating Expenses $3,545 $3,658 ($113) (3%) $11,364 $12,746 ($1,382) (11%)
Income (loss) from Operations ($2,943) ($4,024) $1,081 NM ($9,159) ($8,873) ($286) (3%)
Net income (loss) ($3,210) ($4,150) $886 23% ($9,997) ($8,260) ($1,737) (21%)
Adjusted EBITDA * ($1,740) ($3,618) $1,878 52% ($6,421) ($6,287) ($134) (2%)
                 

Conference Call
Date: Thursday, March 30, 2023
Time: 4:30 P.M. Eastern Time (ET)
Dial in Number for U.S. Callers: 1-877-407-0789
Dial in Number for International Callers: 1-201-689-8562
Please Reference Conference ID: 13737006

The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1603820&tp_key=c5dee851d4. 

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 March 30, 2023 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 13737006. 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 offers and promotions, building large, owned audiences for some of the world’s biggest brands. Through its partnerships with leading game publishers, digital operators, and ad networks, Mobivity connects a massive universe of consumers to its broad network of brands. As a result, digital consumers download and play more games, and earn real-world rewards that are redeemed in-store, driving acquisition, frequency, and retention for brands and game publishers. For more information about Mobivity, visit 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.

Investor Relations Contact:
Lisa Brennan • Chief Financial Officer, Mobivity
(877) 282-7660

Brett Maas • Managing Partner, Hayden IR
[email protected] • (646) 536-7331

Mobivity Holdings Corp.
Condensed Consolidated Balance Sheets 

  December 31,   December 31,
  2022
  2021
  (Audited)   (Audited)
ASSETS          
Current assets          
Cash $ 426,740     $ 735,424  
Accounts receivable, net of allowance for doubtful accounts of $34,446 and $56,340, respectively   1,081,183       578,303  
Contracts receivable, current          
Other current assets   195,017       227,458  
Total current assets   1,702,940       1,541,185  
           
Right to use lease assets   981,896       1,187,537  
Intangible assets, net   194,772       1,124,720  
Contracts receivable, long term          
Other assets   137,917       173,325  
TOTAL ASSETS $ 3,017,525     $ 4,437,950  
           
Current liabilities          
Accounts payable $ 3,412,612     $ 3,823,909  
Accrued interest   443,448       172,239  
Accrued and deferred personnel compensation   569,347       495,533  
Deferred revenue and customer deposits   902,727       377,170  
Related party notes payable, net – current maturities   2,711,171       819,531  
Notes payable, net – current maturities   32,617       69,052  
Operating lease liability   251,665       229,240  
Other current liabilities   49,541       9,071  
Total current liabilities   8,373,128       5,995,745  
           
Non-current liabilities          
Related party notes payable, net – long-term   2,481,290       2,498,711  
Notes payable, net – long-term   31,092       39,086  
Operating lease liability   936,924       1,188,589  
Other long-term liabilities          
Total non-current liabilities   3,449,306       3,726,386  
Total liabilities   11,822,434       9,722,131  
           
           
Common stock, $0.001 par value; 100,000,000 shares authorized; 55,410,695 and 55,410,695, shares issued and outstanding   61,311       55,411  
Equity payable   324,799       100,862  
Additional paid-in capital   108,806,353       102,446,921  
Accumulated other comprehensive income (loss)   (100,963 )     (52,088 )
Accumulated deficit   (117,896,409 )     (107,835,287 )
Total stockholders’ equity (deficit)   (8,804,909 )     (5,284,181 )
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 3,017,525     $ 4,437,950  
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 3,017,525     $ 4,437,950  
               


Mobivity Holdings Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)

  Three Months Ended   Year Ended
  December 31,   December 31,
  2022   2021   2022   2021
Revenues                      
Revenues $ 1,746,744     $ 612,918     $ 7,533,912     $ 8,174,884  
Cost of revenues   1,144,764       979,731       5,328,483       4,302,370  
Gross profit   601,980       (366,813 )     2,205,429       3,872,514  
                       
Operating expenses                      
Bad Debt   40,383       774,312       40,383       774,312  
General and administrative   1,177,504       92,866       4,266,092       3,584,721  
Sales and marketing   838,225       1,015,154       2,616,596       4,002,565  
Engineering, research, and development   699,166       1,507,579       3,060,029       3,583,773  
Goodwill Impairment   552,476             552,476       8,286  
Intangible asset impairment   173,040       85,169       411,183       85,169  
Depreciation and amortization   64,208       182,599       417,258       707,073  
Total operating expenses   3,545,002       3,657,679       11,364,017       12,745,899  
Loss from operations   (2,943,022 )     (4,024,492 )     (9,158,588 )     (8,873,385 )
                       
                       
Other income/(expense)                      
Interest income                     5  
Gain on Extinguishment of Debt                     891,103  
Interest expense   (217,291 )     (123,252 )     (737,745 )     (267,966 )
Loss on disposal of fixed assets                     (880 )
Loss on settlement of debt   (49,503 )           (49,503 )      
Settlement Losses               (53,500 )      
Foreign currency gain (loss)   (351 )     (2,084 )     2,119       (8,661 )
Total other income (expense)   (267,145 )     (125,336 )     (838,629 )     613,601  
Loss before income taxes   (3,210,167 )     (4,149,828 )     (9,997,217 )     (8,259,784 )
Income tax expense                      
Net Loss   (3,210,167 )     (4,149,828 )     (9,997,217 )     (8,259,784 )
Other comprehensive income (loss), net of income tax                      
Foreign currency translation adjustments   27,987       3,427       (48,875 )     (28,642 )
Comprehensive loss $ (3,182,180 )   $ (4,146,401 )   $ (10,046,092 )     (8,288,426 )
Net loss per share:                   $  
Basic and Diluted $ (0.05 )   $ (0.09 )   $ (0.16 )     (0.15 )
  $ (0.05 )   $ (0.09 )   $ (0.16 )   $ (0.15 )
Weighted average number of shares:                      
Basic and Diluted   61,311,155       47,720,507       61,311,155       55,410,695  
Diluted   59,241,798       47,720,507       59,241,798       55,410,695  
                       
Reconciliation of net (loss) to adjusted EBITDA                      
                       
Net (loss)   (3,210,167 )     (4,149,828 )     $(9,997,217 )     $(8,259,784 )
Stock based compensation   463,186       226,417       1,457,570       997,274  
Depreciation and amortization   789,724       182,599       1,380,917       707,073  
Interest expense, net   217,291       123,252       737,745       267,961  
Adjusted EBITDA   $(1,739,966 )     $(3,617,560 )     $(6,420,985 )     $(6,287,476 )

Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. TheTechOutlook.com takes no editorial responsibility for the same.



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