Mobivity (MFON) Q3 2024 earnings summary

Executive summary

• Completed divestiture of legacy SMS/MMS marketing business, transforming into a pure-play Connected Rewards company and classifying SMS/MMS as discontinued operations.

• Achieved significant growth in audience reach and launched six new brands on the platform in Q3 2024.

• Record pipeline and backlog, with strong confidence in achieving profitability in the next few months.

• Focused on scaling the Connected Rewards platform, expanding into new verticals, and growing the technology, customer base, and intellectual property portfolio.

• Seeking additional capital to fund operations.

Financial highlights

• Q3 2024 revenue from continuing operations was $226,208, up from $50,180 in Q3 2023; nine-month revenue was $900,008, up from $183,413 year-over-year.

• Net loss from continuing operations for Q3 2024 was $1,174,742, and for the nine months ended September 30, 2024, was $3,021,456.

• Over 51 million consumers reached year-to-date through Connected Rewards programs.

• Divestiture of SMS business provided $303,000 in cash at closing and future earn-out payments over two years.

• As of September 30, 2024, cash was $532,450, with a working capital deficit of $6,723,209.

Outlook and guidance

• Anticipates achieving profitability in the first half of 2025, supported by a robust pipeline and backlog.

• Management expresses substantial doubt about the ability to continue as a going concern without additional capital, citing ongoing losses and a significant working capital deficit.

• Plans to finance operations through additional securities sales and/or increased revenues, but no assurance of success.

• Expects to generate more revenue in 2025 than ever before, with a clear path to growth.

• Focus remains on scaling Connected Rewards and breaking through technical milestones for further expansion.