Mobivity Holdings Corp. (MFON) research, news, and more from GeoInvesting

Company description

Tue, 09 Jul 2013 04:00:00 GMT

Mobivity is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers via multiple channels. The only system of its kind, C4 is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal.

Research

Tue, 16 Nov 2021 18:03:27 GMT

Mobivity Holdings Corp (OTC:MFON) ($1.52; $84.2M market cap), the maker of the Recurrency platform intended to increase customer engagement through mobile messaging and personalized digital offers, announced Q3 2021 results:

Sales of $2.30 million vs $3.18 million in the prior year
Net loss of $0.02 vs EPS of $0.00

“The restaurant vertical has been impacted tremendously by the COVID pandemic, and those headwinds continue to linger. These issues have hindered the restaurant industry’s adoption of the digital transition. Thanks to our success winning major brands, we are uniquely positioned to monetize the intersection of millions of consumers, billions of transactions, and the digital businesses who must have efficient and effective access to customers. In just the past few months we’ve already developed new sales pipeline opportunities with digital customers including crypto, streaming video, and gaming operators where our loyalty, perfect attribution, and unique offer code solutions bring compelling value to digital acquisition and retention challenges. We’ve also seen overwhelming demand from our restaurant, CPG and C store customers who seek quick access to a highly relevant and large digital audience to drive sales.”

Conference call highlights:

"Our revenue for the third quarter of 2021 was down 27% on a year-over-year basis at $2.3 million while our gross profit was down 42% at $1.3 million. Note that the third quarter of 2020 included approximately $1.5 million in onetime development fees, which was mostly margin. Excluding this one-time development revenue, our comparable recurring revenue was up 38% in the third quarter, and our comparable gross profit was up 77%."

While it seems revenues are still growing if you take out the one time gains from last year, when we first found the stock we thought they were close to profitability, but while revenues are growing they are still losing money.

Research

Fri, 13 Aug 2021 17:38:03 GMT

Mobivity Holdings Corp (OTC:MFON) ($1.75; $96.9M market cap), the maker of the Recurrency platform that increases customer engagement through mobile messaging and personalized digital offers, announced Q2 2021 results:

Sales of $2.80 million vs $2.77 million in the prior year
Net loss of $0.03 vs net loss of $0.01

“Revenue growth resumed in the second quarter as our team expanded our sales and marketing efforts in anticipation of growing demand and expansion into new markets. Our success growing into the convenience store market, including the second largest convenience store chain in the world, has diversified our market focus and greatly expanded our sales pipeline... Our long-term strategy has always been to deliver our products and services beyond the restaurant industry and in just six months we have proven that we can penetrate another lucrative vertical market. As the restaurant industry resumes its recovery from the pandemic, and we expand into new markets such as the convenience store industry, we believe our increased visibility across industries and proven success will result in accelerated growth throughout the remainder of this year. I thank the entire team at Mobivity for their continued dedication to building value for our customers and shareholders, despite the historic challenges of these times.”

Echoing the sentiment of the release, the conference call suggests growth will accelerate moving forward throughout this year and beyond:

“As the restaurant industry resumes its recovery from the pandemic, coupled with our aggressive expansion into new markets such as the convenience store industry, we believe our increased industry visibility and proven success will result in accelerated growth throughout the remainder of this year and beyond.”

Research

Fri, 14 May 2021 04:00:00 GMT

Mobivity Holdings Corp (OTC:MFON) ($1.67; $92.5M market cap), the maker of the Recurrency platform that increases customer engagement through mobile messaging and personalized digital offers, announced Q1 2021 results:

Sales of $2.5 million vs $4.6 million in the prior year
Loss of $0.03 vs loss of $0.02 in the prior year

“We are increasingly optimistic about the opportunities for our business, particularly in light of a recent Supreme Court decision that reduces the legal risk in operating SMS marketing programs and moves by technology leaders to protect consumers’ privacy from third party advertisers by limiting third-party cookies and device identifiers,” added Mr. Becker. “Each of these market developments significantly expands our addressable market and creates the opportunity for us to deliver a record setting year. We accelerated our sales and marketing operations in the first quarter in anticipation of these changes. These efforts increased awareness of our platforms and have driven more than a five-fold increase in our sales pipeline since February. We are working diligently to convert the pipeline and deliver stronger results in the coming quarters.”

CC highlights

So, we have, no guarantees, but we have bigger sales pipeline than we've had before. I think one of the things that might be confusing about the first quarter, that's not obvious, I'd like to point out is that, our services are typically paid for out of the marketing budgets of these brands, particular franchise brands, like the subways of the world and whatnot.

So, they usually form those budgets as a percentage of sales, that's usually done the year prior. So, in other words throughout, say, 2019, they're accumulating their marketing budget for execution in 2020. And so, we were able to defend against some of the initial impacts of the pandemic in the middle of 2020, because we were still being paid for out of budgets from 2019, arguably.

So, then as those budgets waned, because sales were down for so many brands in the thick of the pandemic, you see a lag time kind of there in Q4 Q1 and so that impact our -- the performance of a number of customers. At the same time, February is when things started rebounding, and brands started formulating their plans to bounce back quickly. So, we've got right now about a dozen brands that are all six figure to seven figure ARR upside brands.

We're confident that the downturn in the restaurant industry is behind us. In February, restaurant sales were still almost 20% below pre pandemic levels. Yet in March, Famous Dave's Barbecue and Mobivity customer had same store sales skyrocket almost 44%. All indicators point to a strong rebound in the restaurant space, while heavy use of technology throughout the pandemic is leading the market through our solutions as they map out the new future of engaging consumers in a digital first world.

Research

Wed, 31 Mar 2021 15:38:30 GMT

Mobivity Holdings Corp (OTC:MFON) ($2.17; $112.0M market cap), the maker of the Recurrency platform that increases customer engagement through mobile messaging and personalized digital offers, announced Q4 2020 results:

Sales of $2.8 million vs $2.7 million in the prior year
Loss of $0.02 vs loss of $0.05 in the prior year

We anticipated that Q4 would show stronger year over year growth. However, we still believe the company’s growth plan is intact and will gain steam as we move further into 2021, especially given the several new partnerships and key customers established in 2020. We certainly want to gain more clarity on when the company can maintain consistent profitability, but it’s nice to see gross margins increased to 64% vs 41% in the prior year. Ultimately, we would like to see gross margins exceed 70% on a consistent basis.

Management commentary:

“In the fourth quarter we added a second major vertical, convenience stores, and launched successfully with a key account...This relationship has more than doubled since launching in December, demonstrating that our addressable market for our Recurrency platform has increased by an exciting amount...In 2021 we brought on a world class revenue leader in Al West to drive and expand our sales and marketing operations in response to the rapidly growing market opportunity. The pandemic highlighted inefficiencies in traditional marketing campaigns and made the transition to digital mandatory, no longer optional. We are in the ideal position to capitalize, with proven customer relationships, a validated solution, and a strong balance sheet. The future of Mobivity is bright and I am so grateful to our team for continued growth and innovation despite a historic global crisis.”

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Research

Tue, 30 Mar 2021 15:05:11 GMT

Added To Our Long Position In MFON

Mobivity Holdings Corp (OTC:MFON) ($1.97; $101.7M market cap) was added to our disclosed longs list on November 19, 2020 based on its virtual presentation available at Little Grapevine (LGV) and our interaction with management. On February 17, 2021 we highlighted a follow-up interview.

All of MFON's LGV videos can be viewed at their profile page of Littlegrapevine.com. As a reminder, in his February LGV appearance, Dennis Becker, the company’s CEO, revisited some of MFON's business operations and talked about current developments heading into the rest of 2021. We have decided to add to our long position based on bullish comments from this conversation.

We also wanted to point out that famed investor Peter Lynch was an early investor in MFON through several of his entities.

MFON is set to report its Q4 2020 results after the close today.

Research

Fri, 04 Dec 2020 16:55:58 GMT

Mobivity Holdings Corp (OTC:MFON) ($1.50; $77.4M market cap) - We are looking into a possible new contract with Tyson Foods, Inc. (NYSE:TSN). Mobivity is the maker of the award-winning Recurrency platform that increases customer engagement through mobile messaging and personalized digital offers.

An article from Yaktrinews.com states that Tyson has invested $540 million into protective measures for its food facilities and that Movivity was one of the companies it chose.

“The company said in a statement Thursday they’ve implemented social media tools “Beekeeper” and “Mobivity” to send out COVID-19 messages in various languages.”

This is a new working relationship with Tyson, so we are looking into whether it is one time or recurring. However, this comes on the heels of the company’s recent announcement of engagement with a large global convenience store to power its mobile messaging program. Since MFON did not release any statement about the contract, we view this as information arbitrage.

Regardless of the size and nature of this Tyson deal, we believe there will be a significant amount spent by companies to implement protective/preventive post-pandemic measures for worker and customer safety. These measures likely bode well for MFON and INXSF as they help companies communicate with customers and employees and ensure companies comply with safety regulations.

Research

Thu, 19 Nov 2020 17:47:06 GMT

**Call To Action - MFON

We are adding Mobivity Holdings Corp (OOTC:MFON) to our disclosed longs list due to the company's virtual presentation available at Little Grapevine and interaction with management. You can see MFON’s September 2020 appearance on Little Grapevine here where the company’s CEO, Dennis Becker, introduced the company and engaged in a Q&A with Maj

Research

Tue, 10 Nov 2020 18:37:20 GMT

Mobivity Holdings Corp (OTC:MFON) ($0.96; $49.5M market cap), the maker of the award-winning Recurrency platform that increases customer engagement through mobile messaging and personalized digital offers, announced Q3 2020 results:

Sales of $3.2 million vs $2.5 million in the prior year
Small profit of $39,000 vs a loss of $0.04 per share or $1.9 million in prior year

"For the third quarter, we reached a pivotal point in our company with bottom-line net profitability, and our year-to-date revenue exceeds gross revenue generated for all of last year. Our solutions have played a critical role for our customers as they race to transform their businesses with digital solutions that meet the increasing need for low to no contact commerce and provide a quick and quantifiable return on investment. Importantly, our cash used in operations improved by nearly 90% through the first nine months of the year reflecting the operating leverage in our business model as we continue to grow and leverage the investments we have made in our award-winning technology platform.”

We’re also excited to report that our partnership with a major snack and beverage brand is already yielding wins, adding new logos to our roster and significantly expanding our addressable market. We have begun promoting our Recurrency platform to their 50,000 customers, and we have trained approximately 400 sales reps on the benefits of our Recurrency platform for restaurant operators. We believe that additional growth is achievable as this partnership accelerates and are looking forward to finishing the year strong.”

Research

Fri, 15 Sep 2017 15:41:58 GMT

MFON ($1.18) - In our August 7, 2017 email, we stated that we were taking a closer look at this digital marketing company. After years of annual revenues of $4 to $5 million and a current run rate of $8 million, the company offered some lofty goals on its Q2 2017 conference call:

“We've also identified upwards of 20 million in annual recurring revenue through up-sell and cross-selling opportunities within our current client base. We will be increasing our resources and focus on this opportunity and strive for accelerated growth.”

Earlier this week, the Company announced they would be previewing the next generation of mobile communications and commerce at the Mobile World Congress Americas Conference in San Francisco this week.

“Together with Google, and long-time Mobivity client and partner Subway, Mobivity will showcase the interactive abilities of the Rich Communications Services messaging standard to allow customers to find a store, view, select, refine, and order Subway menu items without ever needing to leave a ‘text’ message conversation. This fun, dynamic, and interactive technology makes it incredibly easy for customers to get what they want using the conversational simplicity of messaging and tap-to-select actions.

Google specifically selected technology leaders like Mobivity to join its Early-Access program and to showcase real-world examples of their RCS toolset.”

Comments from CEO:

“We’re proud to help Google, the GSMA, handset manufacturers, and wireless carriers bring this new standard to market, and excited for the many ways our engineers can use this technology to serve our restaurant, retail, and personal care brand partners; this is just the beginning,”

We began taking a closer look at the filings and came across two other positives to add to the story:

No need for additional capital in the near future. As of June 30, 2017 the Company believes they have working capital on hand, along with expected cash flow from operations, to fund the current level of operations at least through the end of the next fiscal year .
Insider buying. Over the last two weeks, Director Thomas Akin has purchased 35,000 shares in several separate transactions at open market prices. Mr Akin now owns 2.9 million shares. (Company has 36.7 million shares outstanding)

Caveats:

The fully diluted share count looks to be 50 million after factoring in all options/warrants, which is much higher than our comfort zone, given the level of revenue of the company produces.
It is unclear exactly what the relationship/partnership with Google means.
While the Company states there is no need for additional capital, if the stock continues to climb the possibility certainly exist.

We plan to interview management.

Research

Mon, 07 Aug 2017 05:49:48 GMT

MFON ($0.88) - We are taking a closer look at this digital marketing company.

We are not huge fans of marketing assistance models because it’s tough to build moats in this type of business. Still, we are somewhat intrigued by MFON recent progress. After several years of stagnant annual revenue growth (around $4 million per year) we noticed that the company has grown revenues year over year (YoY) for 8 straight quarters and sequentially in 7 of its last 9 quarters. MFON is still losing money, but we came across some verbiage in its 2017 Q2 conference call talking up some pretty big goals. For example,

“We've also identified upwards of 20 million in annual recurring revenue through up-sell and cross-selling opportunities within our current client base. We will be increasing our resources and focus on this opportunity and strive for accelerated growth.”

We will reach out to management with hopes to get an idea where reaching profitability ranks on their priority list now that revenue growth looks like it is reaching an inflection point. When we see phrases like “increasing resources” we think “an increase in expenses.”