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 third quarter (“Q3”) ending September 30th, 2022.
Third Quarter 2022 Financial Highlights
- Revenues of $1.9 million compared to $2.3 million in Q3 2021. The year-over-year decrease in revenue was primarily due to the restructuring of a large customer contract due to COVID related changes in their business offset by increased Connected Rewards revenue.
- Operating expenses decreased 11% to $2.7 million versus $3.1 million in Q3 2021.
- Cash and cash equivalents totalled $1.0 million compared to $1.6 million at September 30th, 2021.
Third Quarter 2022 Business Highlights
- Appointed veteran gaming and digital advertising executive, Kim Carlson, as Chief Revenue Officer to lead sales, marketing and customer success teams to accelerate growth.
- Announced partnership with P97 Networks to expand reach to over 65,000 fuel locations for Connected Reward programs.
- Signed four new regional convenience store brands and added three new restaurant brand customers operating approximately 1,000 locations collectively across the United States.
Dennis Becker, Mobivity Chairman and CEO, commented, “Over the past several years we have amassed a customer base spanning national and regional restaurant and convenience store brands reaching most of the US population. Furthermore, we’ve recently compounded our reach by adding large scale connectivity to more than 65,000 fuel stores. Mobivity now operates a one-of-a-kind “last mile” gateway to the point-of-sale, loyalty and promotional code platforms that power marketing and commerce for brands reaching most of the US population. In a matter of months, our team has done an amazing job leveraging these assets and innovating a new paradigm of advertising that uniquely addresses the disruption across the multi-billion dollar digital advertising industry. While it’s still early in the transformation of our business model, we are now set to scale beyond our legacy SMS text messaging business, and we expect Connected Rewards to become the majority of our revenue run rate over the course of the next year and beyond.”
Consolidated Financial Summaries:
| (In thousands) | Three months ended September 30, | Nine months ended September 30, | ||||||||||
| 2022 | 2021 | $$ | % | 2022 | 2021 | $$ | % | |||||
| Revenue | $1,890 | $2,312 | ($421) | -18 | % | $5,787 | $7,562 | ($1,775) | -23 | % | ||
| Gross profit | $84 | $1,303 | ($1,218) | -94 | % | $1,603 | $4,239 | ($2,636) | -62 | % | ||
| Gross margin | 4% | 56% | -92 | % | 28% | 56% | -51 | % | ||||
| Operating Expenses | $2,739 | $3,085 | ($346) | -11 | % | $7,819 | $9,088 | ($1,269) | -14 | % | ||
| Income (loss) from Operations | ($2,655) | ($1,782) | ($873) | -49 | % | ($6,216) | ($4,849) | ($1,367) | -28 | % | ||
| Net income (loss) | ($2,849) | ($984) | ($1,865) | -190 | % | ($6,734) | ($4,110) | ($2,624) | -64 | % | ||
| Adjusted EBITDA * | ($2,106) | ($465) | ($1,641) | -353 | % | ($4,484) | ($2,689) | ($1,795) | -67 | % | ||
Conference Call
Date: Monday, November 14, 2022
Time: 5 p.m. Eastern Time (ET)
Dial in Number for U.S. Callers: 1-800-920-3365
Dial in Number for International Callers: 1-312-281-2942
Please Reference Conference ID: 22021275
The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1581046&tp_key=413d927874.
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 November 14, 2022 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 22021275. 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 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.
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