/EINPresswire.com/ -- PHOENIX, AZ--(Marketwired - May 15, 2017) - Mobivity Holdings Corp. (OTCQB: MFON), the award-winning mobile marketing and customer engagement platform, today announced financial results for the first quarter ended March 31, 2017 ("Q1 2017").

1^st Quarter Highlights:

• Q1 2017 revenue grew 15% year-over-year to $2,113,000.
  
  
• Net cash provided by operating activities was $237,000 in Q1 2017, the first positive operating cash flow quarter in the Company's history, representing a 155% turnaround from the $428,000 use of cash in operating activities during the quarter ended March 31, 2016 ("Q1 2016").
  
  
• Net change in cash was $18,000 in Q1 2017, the first positive net change in cash in the Company's history without receiving funding from external sources.
  
  
• Cash and cash equivalents totaled $2.2 million as of March 31, 2017.
  
  
• During Q1 2017 and up to the date of this report, Mobivity renewed and expanded its agreements with several key existing customers, resulting in long-term, multi-year, guaranteed minimum revenue contracts including prepayments on minimum contract fees.
  
  
• SmartReceipt transactions during Q1 2017 rose to more than 256 million, a 74% increase as compared to Q1 2016.
  
  
• Subscribers to Mobivity powered mobile marketing campaigns grew to 8 million unique consumers in March 2017, an increase of 56% compared to March 2016.
  
  
• Mobivity powered more than 152 million mobile marketing messages in Q1 2017, an increase of more than 74% over Q1 2016.

Dennis Becker, Mobivity Chairman and CEO, commented, "Building upon the success of 2016's exciting growth year where we saw the business nearly double revenues year-over-year, the financial growth from the expansion of existing customers is self-evident. With new brands such as Red Lobster, HoneyBaked Ham, and Marco's Pizza, along with increasing traction with Regis and new deployments into the Fantastic Sam's system, we are building a pipeline that encompasses more than 14,000 locations across new vertical markets."

Mr. Becker continued, "We also believe that the results brands are seeing with our technology is validating our value proposition and thus strengthening our recurring revenue model. Some of our largest customers are now signing long-term, multi-year, guaranteed minimum revenue contracts including prepayments on minimum contract fees. These expanding term commitments and prepayment arrangements are improving the quality of our revenue as well as our cash flows. Going forward, we are very focused on building upon the favorable contract terms of these recent, large contract renewals and applying this model to new opportunities as we grow."

First Quarter 2017 Conference Call:
The Company has scheduled a conference call for 5:00 P.M. Eastern Time (ET) on Tuesday, May 16, 2017 to review financial results for its fiscal first quarter ended March 31, 2017.

Conference Call Information:

Date: Tuesday, May 16, 2017
Time: 5:00 P.M. Eastern Time (ET)
Dial in Number for U.S. Callers: 877-705-6003
Dial in Number for International Callers: 201-493-6725

Participating on the call will be Mobivity Holding Corp.'s Chairman and Chief Executive Officer, Dennis Becker, and Chief Financial Officer, Christopher Meinerz. To join the live conference call, please dial in to the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time.

A replay will be available for two weeks starting on May 16, 2017 at approximately 8:00 P.M. ET. To access the replay, please dial 844-512-2921 in the U.S. and 412-317-6671 for international callers. The conference ID# is 13660949. The replay will also be available on the Company's website under the investor relations section.

First Quarter 2017 Financial Results:

Revenue for Q1 2017 was $2,113,000, representing an increase of 15% from $1,845,000 in Q1 2016. The increase in revenue was primarily attributable to an increase in SmartSMS revenue.

Gross margin decreased to 74% in Q1 2017 compared to 78% in Q1 2016. Operating expenses (excluding goodwill and intangible asset impairment charges) for Q1 2017 were $2,882,000 compared to $2,807,000 in Q1 2016. The increase in operating expenses was due to an increase in engineering, research & development personnel related costs as compared to Q1 2016 to support the Company's growth. Operating loss for the quarter was $(1,326,000) compared to $(1,367,000) in the corresponding period in the prior year. Comprehensive loss for Q1 2017 was $(1,354,000), or $(0.04) per diluted share, compared to $(1,422,000), or $(0.05) per diluted share in Q1 2016.

Non-GAAP Adjusted Net Loss, a non-GAAP metric (see note on non-GAAP Measurements) was $(920,000) for Q1 2017 compared to $(794,000) in Q1 2016.

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 SmartSuite of products -- including SmartReceipt, SmartMessenger, 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® Drive-In, Chick-fil-A, and Baskin-Robbins. For more information about Mobivity, visit 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 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, 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.

MOBIVITY HOLDINGS, INC.
ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED NET LOSS
		Three Months Ended
		March 31,
$000s except EPS		2017			2016
Net income (loss)		(1,349	)		$	(1,359	)
Depreciation and amortization		69				146
Non-cash stock compensation expense		337				427
Foreign currency loss (gain)		3				(15	)
Interest expense, net of interest income		20				7
Non-GAAP adjusted net loss		(920	)		$	(794	)
Weighted average diluted shares outstanding		36,388,997				29,778,439
Non-GAAP adjusted EPS		(0.03	)		$	(0.03	)

Mobivity Holdings Corp.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
			Three Months Ended
			March 31,
			2017				2016
Revenues
	Revenues		$	2,113,283			$	1,845,240
	Cost of revenues			557,388				404,940
Gross profit				1,555,895				1,440,300
Operating expenses
	General and administrative			1,015,418				1,062,953
	Sales and marketing			1,208,785				1,248,412
	Engineering, research, and development			589,322				349,098
	Depreciation and amortization			68,746				146,388
Total operating expenses				2,882,271				2,806,851
Loss from operations				(1,326,376	)			(1,366,551	)
Other income/(expense)
	Interest income			904				368
	Interest expense			(21,106	)			(7,593	)
	Foreign currency (loss) gain			(2,648	)			14,550
Total other income/(expense)				(22,850	)			7,325
Loss before income taxes				(1,349,226	)			(1,359,226	)
Income tax expense				-				-
Net loss				(1,349,226	)			(1,359,226	)
Other comprehensive loss, net of income tax
	Foreign currency translation adjustments			(5,221	)			(63,219	)
Comprehensive loss			$	(1,354,447	)		$	(1,422,445	)
Net loss per share - basic and diluted			$	(0.04	)		$	(0.05	)
Weighted average number of shares during the period - basic and diluted				36,388,997				29,778,439
See accompanying notes to condensed consolidated financial statements (unaudited).

Mobivity Holdings Corp.
Condensed Consolidated Balance Sheets
				March 31,				December 31,
				2017				2016
				(Unaudited)				(Audited)
ASSETS
Current assets
	Cash			$	1,207,020			$	1,188,485
	Restricted cash				1,000,000				1,000,000
	Accounts receivable, net of allowance for doubtful accounts of $2,512 and $15,503, respectively				114,210				1,244,484
	Other current assets				222,243				179,376
Total current assets					2,543,473				3,612,345
Goodwill					803,118				803,118
Intangible assets, net					818,170				627,119
Other assets					105,134				109,776
		TOTAL ASSETS		$	4,269,895			$	5,152,358
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
	Accounts payable			$	641,943			$	701,347
	Accrued interest				4,019				2,020
	Accrued and deferred personnel compensation				578,573				671,677
	Deferred revenue and customer deposits				407,436				160,023
	Notes payable, net - current maturities				1,066,150				1,011,910
	Other current liabilities				106,532				115,051
Total current liabilities					2,804,653				2,662,028
Non-current liabilities
	Notes payable, net - long term				353,108				361,166
Total non-current liabilities					353,108				361,166
Total liabilities					3,157,761				3,023,194
Commitments and Contingencies (See Note 9)
Stockholders' equity
	Common stock, $0.001 par value; 100,000,000 shares authorized; 36,388,981 and 36,388,981, shares issued and outstanding				36,389				36,389
	Equity payable				100,862				100,862
	Additional paid-in capital				77,035,800				76,698,383
	Accumulated other comprehensive loss				(38,220	)			(32,999	)
	Accumulated deficit				(76,022,697	)			(74,673,471	)
Total stockholders' equity					1,112,134				2,129,164
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	4,269,895			$	5,152,358
See accompanying notes to condensed consolidated financial statements (unaudited).