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8-K - CURRENT REPORT - MOBIVITY HOLDINGS CORP.mfon8k_mar262018.htm
 
Exhibit 99.1
 
 
March 26, 2018
 
FOR IMMEDIATE RELEASE
 
 
Mobivity Projects Strong Growth in the First Half of 2018, Announces Preliminary 2017 Results, and Appointment of New CFO
 
PHOENIX, AZ – March 26, 2018 – Mobivity Holdings Corp. (OTCQB:MFON), maker of the award-winning re●currency platform that increases customer visits and spend in restaurants, retail, and personal care brands, today announced that strong revenue growth is projected in the first half of 2018. The Company expects 2018 first half revenues to grow at least 75% over first half 2017 revenues.
 
Dennis Becker, Mobivity Chairman and CEO, commented, “The first meaningful commercial deployment of our re●currency platform and service offering deployed a little over 24 months ago in 2016. We’ve since seen an increase in our customers’ investments in re●currency. Throughout 2017, Mobivity’s minimum total contract values grew to more than $19 million, an increase of more than 260% over our minimum total contract values of $5.3 million in 2016. Additionally, our average contract term has also increased 250% year over year, from 1 year to nearly 2.5 years. More recently, some of our customers have begun to publicize the amazing results they achieved with re●currency. Increasing contract values, term lengths, and market awareness of how our technology delivers results, is creating strong momentum going into 2018. We also believe that our current revenue trajectory will propel the company to cash-flow breakeven by the end of the year.”
 
The Company has also recently appointed Charles B. Mathews as Chief Financial Officer. Mr. Mathews has more than 25 years of accounting and management experience serving in CFO roles for a variety of publicly traded companies. Mr. Mathews is a Certified Public Accountant and holds a B.A. degree in Business Administration from Alaska Pacific University and an M.B.A. degree from Arizona State University. Mr. Mathews succeeds Christopher Meinerz who has left the Company to pursue other interests.
 
"Charles has extensive experience spearheading the financial reporting and operations of several publicly traded companies, including companies listed on national exchanges such as NASDAQ, AMEX, and TSX" said Dennis Becker, Mobivity's Chief Executive Officer. "We believe we’re poised for significant growth and Charles’ experience will be instrumental in elevating our financial operations to the next level."
 
"The opportunity to join a company with a rare combination of household name customers, like Subway and Baskin-Robbins, and ground-breaking technology was irresistible, " said Mathews. "I’m very excited to apply my experience in helping to drive Mobivity’s growth."
 
Additionally, the Company announced preliminary financial results for the year ending December 31, 2017. Full 2017 financial results are expected to be published in the Company’s Annual Report via 10-K filing.
 
2017 Highlights:
 
Net loss decreased to $5.9M, a 38% improvement over a net loss of $9.5M in 2016.
 
Net cash used in operating activities decreased to $2.4M through December 31, 2017, a 23% decrease as compared to $3.1 million during the same period in 2016.
 
2017 revenues were $8.6 million, an increase of 2% compared to 2016.
 
Operating expenses declined slightly to $11.6 million in 2017 versus $11.8 million in 2016.
 
The Company had $460,000 of unrestricted cash at December 31, 2017 compared to $1.2 million at December 31, 2016.
 
Subscribers to Mobivity powered mobile marketing campaigns grew to 9.7 million unique consumers in 2017, an increase of approximately 24% compared to 2016.
 
 
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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 re●currency suite of products increases customer engagement and frequency by capturing detailed POS transaction records, analyzing customer habits, and motivating customers and employees through data-driven messaging applications and rewards. For more information about Mobivity, visit www.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, 2016 filed with the SEC on March 31, 2017 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.
 
Media Contacts:
Corey O’Donnell ● Senior Vice President of Marketing, Mobivity
corey.odonnell@mobivity.com ● (480) 588-2470
 
Investor Relations:
Charles Mathews ● Chief Financial Officer, Mobivity
Charles.mathews@mobivity.com ● (877) 282-7660
 
 
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Mobivity Holdings Corp.
Consolidated Balance Sheets
 
 
 
December 31, 2017
 
 
December 31, 2016
 
ASSETS
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
Cash
 $460,059 
 $1,188,485 
Restricted cash
  - 
  1,000,000 
Accounts receivable, net of allowance for doubtful accounts of $2,280 and $15,503, respectively
  885,743 
  1,244,484 
Other current assets
  209,536 
  179,376 
Total current assets
  1,555,338 
  3,612,345 
 
    
    
Goodwill
  803,118 
  803,118 
Intangible assets, net
  676,436 
  627,119 
Other assets
  88,916 
  109,776 
       TOTAL ASSETS
 $3,123,808 
 $5,152,358 
 
    
    
 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 
    
Current liabilities
    
    
Accounts payable
 $1,096,003 
 $701,347 
Accrued interest
  1,168 
  2,020 
Accrued and deferred personnel compensation
  590,500 
  671,677 
Deferred revenue and customer deposits
  1,429,266 
  160,023 
Notes payable, net - current maturities
  2,236,224 
  1,011,910 
Other current liabilities
  226,355 
  115,051 
Total current liabilities
  5,579,516 
  2,662,028 
 
    
    
Non-current liabilities
    
    
Notes payable, net - long term
  180,810 
  361,166 
Total non-current liabilities
  180,810 
  361,166 
Total liabilities
  5,760,326 
  3,023,194 
 
    
    
Commitments and Contingencies
    
    
 
    
    
Stockholders' equity (deficit)
    
    
Common stock, $0.001 par value; 100,000,000 shares authorized; 37,025,124 and 36,388,981 shares issued and outstanding
  37,025 
  36,389 
Equity payable
  100,862 
  100,862 
Additional paid-in capital
  77,910,842 
  76,698,383 
Accumulated other comprehensive loss
  (65,764)
  (32,999)
Accumulated deficit
  (80,619,483)
  (74,673,471)
Total stockholders' equity (deficit)
  (2,636,518)
  2,129,164 
       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 $3,123,808 
 $5,152,358 
 
 
 
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Mobivity Holdings Corp.
Consolidated Statements of Operations
 
 
 
 Fiscal year ended December 31,
 
 
 
2017
 
 
2016
 
Revenues
 
 
 
 
 
 
Revenues
 $8,591,955 
 $8,432,616 
Cost of revenues
  2,792,738 
  2,096,392 
Gross margin
  5,799,217 
  6,336,224 
 
    
    
Operating expenses
    
    
General and administrative
  3,357,165 
  4,385,763 
Sales and marketing
  3,631,728 
  5,038,041 
Engineering, research, and development
  4,201,647 
  1,712,750 
Depreciation and amortization
  386,304 
  709,456 
Total operating expenses
  11,576,844 
  11,846,010 
Loss from operations
  (5,777,627)
  (5,509,786)
 
    
    
Other income/(expense)
    
    
Interest income
  4,637 
  2,780 
Interest expense
  (169,044)
  (77,361)
Goodwill Impairment
  - 
  (2,247,447)
Intangible asset impairment
  - 
  (1,684,203)
Foreign currency (loss) gain
  (3,978)
  1,556 
Total other income/(expense)
  (168,385)
  (4,004,675)
Loss before income taxes
  (5,946,012)
  (9,514,461)
Income tax expense
  - 
  - 
Net loss
 $(5,946,012)
 $(9,514,461)
Other comprehensive loss, net of income tax
    
    
Foreign currency translation adjustments
  (32,765)
  (32,999)
Comprehensive loss
 $(5,978,777)
 $(9,547,460)
 
    
    
Net loss per share - basic and diluted
 $(0.16)
 $(0.29)
 
    
    
Weighted average number of shares
    
    
    during the period - basic and diluted
  36,575,762 
  32,797,631 
 
 
 
 
 
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