Attached files
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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.
-1-
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
-2-
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
|
-3-
Mobivity Holdings Corp.
Consolidated Statements of Operations
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|
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
|
-4-