Mobivity Announces Q1 2015 Results

PHOENIX, AZ--(Marketwired - May 8, 2015) - Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary SmartReceipt™ POS marketing solutions and patented mobile marketing technologies, announced today financial results for the first quarter ended March 31, 2015 ("Q1 2015").

Recent Highlights:

• Revenues for the first quarter of fiscal 2015 were $940,000 compared to $903,000 for the first quarter of 2014 ("Q1 2014")
• Gross margins increased slightly to 72% versus 71% for the same period in the prior year
• Cash and cash equivalents totaled $3.9 million as of March 31, 2015
  
  

Dennis Becker, Chief Executive Officer of Mobivity, said, "Momentum is continuing both in new deployments of SmartReceipt as well as our growing pipeline of potential customers. We are in active discussions with dozens of national QSR brands regarding SmartReceipt™ as well as other components of our unique bundled marketing solution. Our technology is powering marketing campaigns for thousands of QSR locations across the U.S. and we anticipate new deployments by additional QSR brands in the current quarter and throughout 2015."

Mr. Becker continued, "SmartReceipt™ has now processed more than 680 million transactions and we are on a trajectory to hit one billion processed transactions later this year. This represents an enormous amount of data aggregation to drive personalized and targeted marketing engagements as well as leverage substantial impression inventory for receipt advertising models such as the third party advertising campaign we are powering for Uber."

First Quarter 2015 Financial Results

Revenues for Q1 2015 were $940,000, representing an increase of 4% from $903,000 in Q1 2014. The net increase in revenues was primarily attributable to revenues from SmartReceipt, which we acquired on March 12, 2014.

Gross margins for Q1 2015 increased slightly to 72% from 71% in Q1 2014. Operating expenses (excluding goodwill and intangible asset impairment charges) for Q1 2015 were $2,424,000 compared to $2,437,000 in Q1 2014. Operating loss for the quarter was $(1,748,000) compared to an operating loss of $(1,795,000) in the corresponding period a year ago. Net loss for the quarter was $(1,730,000), or $(0.08) per diluted share, compared to a net loss of $(1,764,000), or $(0.10) per diluted share, in Q1 2014.

Non-GAAP Adjusted Net Loss, a non-GAAP metric (see note on non-GAAP Measurements) was $(1,428,000) during the first quarter of 2015 as compared to $(1,408,000) during the prior year period.

Cash and cash equivalents were $3.9 million as of March 31, 2015, consistent with the same period in 2014.

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.

About Mobivity

Mobivity is an award-winning provider of a suite of patented mobile marketing technologies designed to drive sales, enhance customer engagement, and reward customer loyalty for local businesses and national brands. Its solutions enable businesses across the United States to drive incremental sales and profitability by quickly and effectively communicating to their most loyal customers. Included are SmartReceipt, which transforms traditional retail transaction receipts into engaging "smart" receipts, an industry-leading text messaging product, and an innovative Stampt™ mobile loyalty application, Additionally, Mobivity offers a unique, high definition graphical system platform that allows its clients to enhance customer or fan experience by interacting with their mobile phones and video boards or screens in real time. Mobivity's clients include national brands such as CNN, Disney, the NFL, Sony Pictures, AT&T, Chick-fil-A, NBC Universal, and numerous professional sports teams, as well as thousands of small, local businesses across the U.S. For more information, visit www.mobivity.com.

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 Company's plans to cross-market its products, including its recently acquired SmartReceipt operations; 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, the application and enforcement of the TCPA amendments in ways not expected; our ability to successfully integrate the SmartReceipt operations and 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, 2014 filed with the SEC on March 31, 2015 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.

MOBIVITY HOLDINGS, INC.
ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) AND NON-GAAP ADJUSTED NET INCOME
	Three Months Ended
	March 31,
$000s except EPS	2015				2014
Net income (loss)	$	(1,730	)		$	(1,764	)
Depreciation and amortization		56				68
Change in Fair Value of Derivatives		(18	)			(30	)
Non-cash Stock Compensation Expense		264				317
Interest expense, Net		-				1
Non-GAAP Adjusted Net Income (Loss)	$	(1,428	)		$	(1,408	)
Weighted Average Diluted Shares Outstanding		23,022,420				17,490,954
Non-GAAP Adjusted EPS	$	(0.06	)		$	(0.08	)

Mobivity Holdings Corp.
Consolidated Statements of Operations
(audited)
		Three months ended March 31,
		2015				2014
Revenues
	Revenues	$	940,172			$	903,215
	Cost of revenues		263,914				260,893
Gross margin			676,258				642,322
Operating expenses
	General and administrative		1,161,387				1,129,952
	Sales and marketing		1,092,900				941,085
	Engineering, research, and development		114,144				297,933
	Depreciation and amortization		55,746				68,083
	Goodwill impairment		-				-
	Intangible asset impairment		-				-
Total operating expenses			2,424,177				2,437,053
Loss from operations			(1,747,919	)			(1,794,731	)
Other income/(expense)
	Interest income		56				1,731
	Interest expense		-				(827	)
	Change in fair value of derivative liabilities		18,325				30,079
	Gain on Debt Extinguishment		-				-
	Gain (loss) on adjustment in contingent consideration		-				-
Total other income/(expense)			18,381				30,983
Loss before income taxes			(1,729,538	)			(1,763,748	)
	Income tax expense		-				-
Net loss		$	(1,729,538	)		$	(1,763,748	)
Net loss per share - basic and diluted		$	(0.08	)		$	(0.10	)
Weighted average number of shares during the period - basic and diluted			23,022,420				17,490,954
See accompanying notes to consolidated financial statements (unaudited).

Mobivity Holdings Corp.
Consolidated Balance Sheets
		March 31, 2015				December 31, 2014
ASSETS
Current assets
	Cash	$	3,935,417			$	848,230
	Accounts receivable, net of allowance for doubtful accounts of $75,674 and $90,869, respectively		342,796				378,934
	Other current assets		132,810				109,846
Total current assets			4,411,023				1,337,010
Goodwill			1,921,072				1,921,072
Intangible assets, net			2,171,601				2,010,952
Other assets			111,198				99,476
	TOTAL ASSETS	$	8,614,894			$	5,368,510
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
	Accounts payable	$	506,505			$	412,551
	Accrued interest		-				-
	Accrued and deferred personnel compensation		162,713				185,214
	Deferred revenue and customer deposits		106,923				180,941
	Notes payable		-				-
	Derivative liabilities		24,334				42,659
	Other current liabilities		37,569				43,525
	Earn-out payable		840,000				840,000
Total current liabilities			1,678,044				1,704,890
Non-current liabilities
	Earn-out payable		-				-
Total non-current liabilities			-				-
Total liabilities			1,678,044				1,704,890
Commitments and Contingencies (See Note 9)
Stockholders' equity (deficit)
	Common stock, $0.001 par value; 50,000,000 shares authorized; and 23,059,078 and 22,748,193 shares issued and outstanding		23,059				22,748
	Equity payable		4,630,862				100,862
	Additional paid-in capital		63,038,431				62,565,974
	Accumulated deficit		(60,755,502	)			(59,025,964	)
Total stockholders' equity (deficit)			6,936,850				3,663,620
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	8,614,894			$	5,368,510
See accompanying notes to consolidated financial statements.