Mobivity (MFON) Q2 2024 earnings summary

Executive summary

• Q2 2024 marked significant growth in Connected Rewards, driven by a new Paytronix partnership and a near doubling of the business pipeline, with a strategic focus on SaaS and data-driven mobile marketing platforms.

• The company is transitioning to focus exclusively on Connected Rewards by the end of Q3, streamlining operations and targeting high-margin revenue opportunities.

• Consumer audience grew over 40% to 16 million, with active programs up about 10%.

• New brand partners were added, including leaders in fuel and convenience sectors.

• The Recurrency platform enables POS data transformation, customer engagement, and real-world rewards for digital actions.

Financial highlights

• Q2 2024 revenue was $1.47M, with gross profit of $494K and gross margin of 33.5%–33.6%.

• Net loss for Q2 2024 was $2.48M–$2.52M; adjusted EBITDA loss was $2.74M.

• Cash at June 30, 2024 was $0.28M, down from $0.42M at year-end 2023.

• Revenue split is roughly two-thirds legacy SMS business and one-third Connected Rewards.

• Weighted average shares outstanding for Q2 2024 was about 69M.

Outlook and guidance

• Management expects a return to revenue growth in the second half of 2024, driven by a robust pipeline, new partnerships, and a full transition to Connected Rewards.

• Anticipates material scale and accelerated growth in Q3 and Q4, with continued expansion in audience reach and active programs.

• Management expects further losses and will require additional capital to fund operations over the next 12 months.