Mobivity Announces Fiscal Year 2015 Results, Expects Record Revenue in the First Quarter, 2016

PHOENIX, AZ--(Marketwired - Mar 31, 2016) - Mobivity Holdings Corp. (OTCQB: MFON), the award-winning, mobile marketing and customer engagement platform, today announced financial results for the year ended December 31, 2015 ("FY 2015").

"2015 was an extremely busy year for our team as we repositioned the Company around our newly acquired SmartReceipt technology from 2014 and expanded management with an evolved focus towards national brands," said Dennis Becker, Mobivity CEO. He added, "As we've made our way through thousands of new deployments of our services we are beginning to see a strong impact on revenue and expect record revenue in the first quarter of 2016."

Along with adding new relationships, Mobivity continues to strengthen and grow relationships with existing clients like Subway, Baskin-Robbins, Sonic Drive-In, Chick-fil-A, and many others. "As a result of weaving together mobile marketing with data gleaned via our SmartReceipt technology, we're able to help our clients develop new and personalized marketing campaigns, achieve better results from legacy marketing channels, track campaign effectiveness, and better measure ROI," added Becker.

As a result from client expansion throughout 2015, including nationwide deployment with Subway, the Company is seeing a very strong start in 2016. Becker continued, "We are well-positioned for expansion in 2016, and we are now beginning to realize the revenue growth from all of the groundwork laid in 2015. We've also recently expanded our management team with the recruitment of Doug Stovall to the role of Chief Revenue Officer who is quickly expanding our sales force and will be focused on accelerating revenue growth. As a result, we are engaged in discussions with a number of new brands, and we see 2016 as a year that will continue to bring great opportunities."

Fiscal Year 2015 Financial Results:
Revenues for FY 2015 were $4,619,000, representing an increase of 15% compared to $4,000,000 for the fiscal year ended December 31, 2014 ("FY 2014"). The increase in FY 2015 is primarily attributable to the addition of new programs with Subway and new clients like SuperSalon.

Gross margins increased to 74% in FY 2015 compared to 73% in FY 2014. Operating expenses (excluding goodwill and intangible asset impairment charges) for FY 2015 were $9,671,000 compared to $9,928,000 in FY 2014. The decrease in operating expenses is primarily attributable to capitalization of engineering, research and development costs in FY 2015 compared to FY 2014. Net loss for FY 2015 was $(6,133,000), or $(0.23) per diluted share, compared to a net loss of $(10,441,000), or $(0.49) per diluted share in FY 2014.

Non-GAAP Adjusted Net Loss, a non-GAAP metric (see note on non-GAAP Measurements) was $(3,861,000) for FY 2015 as compared to $(4,118,000) for FY 2014. The Company had $634,000 of cash at December 31, 2015 compared to $848,000 at December 31, 2014.

Recent Developments
During March 2016, the Company completed two financing transactions. The Company sold approximately $2 million of its securities in a fixed price private placement and entered into a working capital line of credit facility with Silicon Valley Bank to provide up to $2 million to finance the Company's general working capital needs. Christopher Meinerz, Mobivity's CFO, commented, "This recent investment and bank line of credit further strengthens our working capital and balance sheet position while continuing to fuel and support our revenue growth."

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 helps restaurant and retail brands grow their business by increasing customer frequency, engagement and spend. Mobivity's Smart suite of products -- including SmartReceipt™, SmartSMS, and SmartAnalytics -- allows brands to unlock the power of customer, employee and POS data like never before. This creates a closed-loop marketing solution that provides SmartDATA-driven insights, attributions, and validation, at scale, to continually adapt and provide more personalized, relevant, localized and targeted customer communications. Mobivity clients include SUBWAY®, SONIC®, Jamba Juice®, Chick-fil-A, and Baskin-Robbins. For more information about Mobivity, visit: www.mobivity.com or call 1(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 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, 2015 filed with the SEC on March 30, 2016 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
		Fiscal Year Ended
		December 31,
$000s except EPS		2015				2014
Net income (loss)		(6,133	)		$	(10,441	)
Depreciation and amortization		362				416
Gain on change in fair value of derivatives		(43	)			(64	)
Non-cash stock issued for services		363				529
Non-cash stock compensation expense		1,660				1,933
Non-cash impairment of intangibles and goodwill		21				5,040
Non-cash gain on adjustment on debt extinguishment		-				(37	)
Non-cash gain on adjustment in contingent consideration		(90	)			(1,492	)
Interest income, net		(1	)			(2	)
Non-GAAP adjusted net income (loss)		(3,861	)		$	(4,118	)
Weighted average diluted shares outstanding		26,684,927				21,203,563
Non-GAAP adjusted EPS		(0.14	)		$	(0.19	)

Mobivity Holdings Corp.
Consolidated Statements of Operations
			Fiscal year ended December 31,
			2015				2014
Revenues
	Revenues		$	4,618,988			$	4,000,202
	Cost of revenues			1,192,491				1,066,917
Gross margin				3,426,497				2,933,285
Operating expenses
	General and administrative			4,555,895				4,270,845
	Sales and marketing			4,024,971				3,895,033
	Engineering, research, and development			728,741				1,346,198
	Depreciation and amortization			361,840				416,435
Total operating expenses				9,671,447				9,928,511
Loss from operations				(6,244,950	)			(6,995,226	)
Other income/(expense)
	Interest income			1,540				2,131
	Interest expense			(847	)			-
	Goodwill Impairment			-				(4,078,693	)
	Intangible asset impairment			(21,188	)			(961,436	)
	Change in fair value of derivative liabilities			42,659				63,517
	Gain on Debt Extinguishment			-				36,943
	Gain (loss) on adjustment in contingent consideration			89,740				1,492,000
Total other income/(expense)				111,904				(3,445,538	)
Loss before income taxes				(6,133,046	)			(10,440,764	)
	Income tax expense			-				-
Net loss			$	(6,133,046	)		$	(10,440,764	)
Net loss per share - basic and diluted			$	(0.23	)		$	(0.49	)
Weighted average number of shares during the period - basic and diluted				26,684,927				21,203,563

Mobivity Holdings Corp.
Consolidated Balance Sheets
			December 31, 2015				December 31, 2014
ASSETS
Current assets
	Cash		$	634,129			$	848,230
	Accounts receivable, net of allowance for doubtful accounts of $237,383 and $90,869, respectively			700,356				384,566
	Other current assets			131,345				104,214
Total current assets				1,465,830				1,337,010
Goodwill				1,921,072				1,921,072
Intangible assets, net				2,373,689				2,010,952
Other assets				173,022				99,476
	TOTAL ASSETS		$	5,933,613			$	5,368,510
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
	Accounts payable		$	375,363			$	412,551
	Accrued and deferred personnel compensation			414,314				185,214
	Deferred revenue and customer deposits			72,624				180,941
	Derivative liabilities			-				42,659
	Other current liabilities			197,145				43,525
	Earn-out payable			-				840,000
Total current liabilities				1,059,446				1,704,890
Total liabilities				1,059,446				1,704,890
Commitments and Contingencies
Stockholders' equity (deficit)
	Common stock, $0.001 par value; 50,000,000 shares authorized; 28,787,991 and 22,748,193 shares issued and outstanding			28,788				22,748
	Equity payable			100,862				100,862
	Additional paid-in capital			69,903,527				62,565,974
	Accumulated deficit			(65,159,010	)			(59,025,964	)
Total stockholders' equity (deficit)				4,874,167				3,663,620
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)		$	5,933,613			$	5,368,510