Mobivity Sees Revenue Growth
By Ken Nagy, CFA
On March 21, 2013,
Mobivity Holdings Corporation (OTC:
the San Diego, California based developer of marketing solutions
and platforms for mobile devices, filed its 10K Annual Report
with the U.S. Securities and Exchange Commission.
The Company reported solid growth for fiscal 2012 with revenues
jumping by $1.555 million, or 62 percent year over year to $4.079
million compared to the full year ended December 31, 2011.
The revenue growth was primarily due to the acquisitions of
Mobivity and Txtstation in April 2011 and the acquisition of
Boomtext in August 2011, each of which had partial year revenue
recorded in 2011.
Similarly, Mobivity saw a 12 percent year over year organic
growth of Boomtext revenues as well as a 49 percent jump in
revenues from CommerceTel operations.
Gross margin jumped to 68.1 percent for the year ended December
31, 2012 compared to 60.9 percent for fiscal 2011.
The improvement was primarily a result of the acquisitions of
Mobivity, Txtstation, and Boomtext in 2011, and reduced costs
related to message transmission through the consolidation of
acquired vendors, negotiated volume discounts, and greater
leverage of fixed costs.
Total operating expenses for the year fell to $6.546 million from
$17.068 million for fiscal 2011 primarily as a result of goodwill
impairment charges of $742,446 in 2012 versus $10.435 million for
2011, related to the Mobivity's three acquisitions in 2011.
Still, net loss for the full year ended December 31, 2012 was
$7.338 million compared to $16.309 million for the comparable
twelve months of 2011.
Here again, the improvement was primarily a result of the $9.692
decrease in goodwill impairment charges offset by a $4.015
million year over year increase in net interest expense.
Based on a weighted average number of basic and diluted common
shares of 23.069 million shares, basic and diluted net loss per
share resulted in a net loss of $0.32 for the fiscal year ended
December 31, 2012. This compared to a basic and diluted net
loss per share of $0.78 on a weighted average number of basic and
diluted shares of 20.910 million shares during the full year
ended December 31, 2011.
As of December 31, 2012, Mobivity had current assets of $445,043,
including $363 in cash, and current liabilities of $9.740
million, resulting in a working capital deficit of $9.294
On a year over year basis, the Company's current assets decreased
and the negative working capital position increased as a result
of continuing losses from operations.
Still, in December 2012, Mobivity announced that it had entered
into a non-binding letter of intent to acquire the assets of
Sequence LLC, developers of the Stampt mobile loyalty
Stampt's Smartphone app offers a convenient paperless way for
customers to use value-based loyalty incentives and the combining
of Stampt's install base with Mobivity will extend the Company's
reach to more than 6,000 local advertisers nationwide who will
now benefit from a unique combination of mobile messaging,
social, and Smartphone loyalty capabilities.
Mobile phone users are emerging as the principal interactive
channel for brands to reach consumers since it is the only media
platform that has access to the consumer virtually anytime and
As a result the mobile channel is a highly effective campaign
tool and its response levels are high compared to other media.
Therefore, the future of digital media is anticipated to be
driven by mobile phones where a direct, personal conversation can
be had with the world's largest audience.
Mobivity Holdings is a pioneer in the deployment of the mobile
channel as the ultimate direct connection to the consumer with
over 4 million consumers being engaged via their mobile device as
a result of its technology.
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