MFON - Earnings call transcript Q1 2019

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Operator

Ladies and gentlemen, greetings, and welcome to the Mobivity Holdings Corp First Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions].

As a reminder, this program is being recorded. It is now my pleasure to introduce your host, Brett Maas of Hayden IR. you. Thank

begin. may You

Brett Maas

Mathews, I earnings welcome today call. Chairman Officer, Becker, Operator. first are to quarter Founder, Charles Executive Chief XXXX Hosting and Financial would you, Officer. everybody like Mobivity's Dennis Chief Thank the call

is as over company contained new becomes statements turn in Please measures, being non-GAAP subject on like best actual policy. recently important identify as materially. accordance contain or may most the directly which factors presented which by require contain everyone's which most ASC today's available quarterly its management, to the during January recognition Any I This materially standard of replayed time-to-time filed modified this new or is be are reporting certain may in the call that uncertainties. also are the considerable the statements results XX-Q. results everyone the forward-looking filed Before like could judgments call as over update risks differ or retrospective this can such financial would prior the comparable today, to cause information. period These the documents Dennis after from anticipated the adjusted. calculated obligation revenue at factors to reflect to accounting information reviewed January as XXXX, and this particular GAAP future. remind call Form referred made the those forward-looking of With adopted after Becker. forward-looking to known recognition and to XXXX events statements the the company and financial Safe forward-looking reconciliation on with that in in that documents is January that to are beginning I X, to call press which available statements I'd that information revenue are our to under Dennis forward-looking Today's actual the and currently otherwise X, and will company's made be release, other statements. risk in presented report that presented in results turn update accurate Except for means also mobivity.com. company or I'd call you caution law, reasons from to and may management's yours. differ during SEC this by and current to if assumes today. not or before no even standards call new If are period the XXXX statements, results required on information from basis. these those the to a all found Harbor publicly include note actual the with Please based the attention measures, that made differ on call a the amounts the could the said, We like refer call XXX, statements, not

Dennis Becker

and about consumer our Thanks continuing is us marketing everyone evolve we like losing channels are new our to prior to Amazon. customer detail methods a learn thanks are going experience. about Consumer facing entities embrace advancement today. to model consumers in engage learn the brands going solutions Brett. mass with call with and call, and billion industry with engage are these seeking that revolutionizing and tasked extinct And Yesterday's or digital In dramatically improves of companies with ground discussed how marketing $XXX on and Digital consumers. competitors digital how for joining digital is how earnings engagement. brands

sales successfully centric go progress marketing these practices, customers costs especially companies markets trends that While brand loyalty value. have who and satisfied starting improve that target and accelerate. are marketing exhibit driving to way to Companies business stabilized to spend create and we're to Mobivity's still adopting deeper more significantly. strategies seeing data-driven a our in These allow have companies revenue, execute grow customer the truly conditions

are by customers is impact the our business their Our software very outcome. having excited on

sales As existing a recurring by new Mobivity suite full the customers, rapidly result, of as pipeline. both and demand increasing our market is for in and from evidenced acceleration growth solutions revenue of the our the

our throughout to continues power. last we the locations $XXX measure goal. in metric per to per Therefore contracts Our per metric averaging annual under with goal the revenue recurring an progress per revenue our million location per first than pleased of more I'm This the on In partnerships per rate exceptional brands key we in that We're location location quarter, accelerate our of particularly average a averaged follow And pricing say recent as per $X,XXX This grew to XXX,XXX annual year, the our $XXX sales year. $XX year our evidenced which location our CPG year-over-year direct per in Pepsi. dramatic license key increase. now that million location to sales two is at illustrating pipeline, our clearly means pricing year, result by acquired future increase metrics we with improvement acceleration annual closely XX% our core to power pipeline to an continues revenue in added in in key can scale growth seeing is annual to to the $X,XXX important our this acceleration of revenues track which revenue. indicator achieve potential. we against performance contracts

the contract been pleased of and Pepsi efforts, handful to consummated full some joint had of that solutions While of a including to for ad-hoc a customers. phases sales resale I'm recently in to planning promotion time, the we we allow report suites our formal

under on for Foodservice Pepsi internal marketing sales umbrella. thousands As and calling a result, significantly. Mobivity Pepsi contractual is the increased has Foodservice locations of visibility by broad logistics Mobivity the The now people with language restaurant XXX,XXX of supported operations pricing marketing over

of As year a an beyond. continue result sales I the ability and pipeline our is XXXX sales to grow our in this then Mobivity acceleration revenue. in catalyst pipeline this execution and and to convert to anticipate be Speeder to our important

you're increasing consumer backdrop Given advance solutions efforts growing the businesses. seeing and to demand, brick-and-mortar rapidly of refine digital in

have demonstrate our to we continue claim. help to a up increased ROI conversion digital to data lots back is the as and increase our of We marketing customer This and key dramatically testimonials ability experience. to sales we companies

for advantage win. recurring showing for in significant double-digit growing our deal The sign a companies that Again provides us our team our demonstration compete fees the licensing five-year now Another management. services. to of value amazing winning our large our to a ability five-year unique well. agreements. provides In for the our second in as against an year the and contract year Mobivity achieve to brand stream largest but customers recurring small of technology also but these on with straight revenue platform puts competed job quarter, one I'll is our as base, track this to Mobivity past This contract growth multi-billion for long-term customers ability licensing the the incumbent visibility offer our add did third in well. first digital of revenue

for power be customers. of lifetime exceeding Mobivity. best have service customers of high increasingly Software the companies and many model years. as track The And their record an good a us is our XXXX revenue SaaS retention like increasing have the or typically business point term of for value customers' longer-term our this across inflection growth significant to board. we're commitment shaping and is models

remainder recurring With first more the through add these quarter, continue in our the our of a and model to just pipeline new and our year revenue revenues start XX put, global of for million a the of is our over pipeline our time. sales first our growing leverage locations to convert days. sales CPG to already in building partnership. logos the great significant is percentage the in from locations $XX off in focus XXXX accumulated Our annual recurring is pipeline, list revenue, Simply sales increase

where our in two relationships Pepsi These Mobivity. per of a expanding for summary to market. for will to with for Purina our We're turn the lot attention retailers and true incentivized that The under goal is financial year this a greenfield summer. credibility This license. exciting investment subsidize convertible partnership an or continuing more. come of addressable focused location major begin Charles large more we embark of brand built. comment. will our I view our The retail the a at bring readily, to trials $X,XXX the to And to in especially on they Purina market, are our by Japan that market retailers are on the most bank show leveraging the license and we in We XXX,XXX of quarter then have technology detailed on provide back and brand their are Charles? with two with of are later presence track rate belly annual call this that relationships brand power offer achievements little also I international platform now locations result. the evolve over strategic and per near-term an our ultimate the attracting to

Charles Mathews

Dennis. Thanks

our revenue structured with the obtain million And through based did lenders or with bring will the loan. a with support forward. requirements. more facility payment loan QX cash, clients XXXX. new of help diligence loan isn't credit quarter February we to until and note this amortized is expand we non-convertible facility due going ended that to recurring ability interest XX% a and our due is establish growing to lists operations favorable fund bearing but two-year XXXX While The first a terms in in $X.X brand-name believe $XXX,XXX a in in no We're

increase which for on of the or contracts $X.X an first GAAP we're compared of XXXX, to revenue were $X.X on On last a basis million of per quarter first ASC million Our the of we the first compared seen quarter of year, contracts in for in location adjustments to is increase to that $X XXXX. have the XXXX, signing. revenue XX%. first of million for attributable since increase was XXXX, increase down the XXX amount closed XX% Since the XXXX in in excludes $XXX,XXX an This a basis. the million revenues non-GAAP $X.X quarter quarter

Dennis our the evidenced earlier, As location per per increase dramatic average XX per months seen XX% our grew pricing pricing we $XXX mentioned which in year. in past power to improvements the as year-over-year by location have

existing In adding currently addition, contract per additional increases the services location. average under we revenue locations to are which

quarter XXXX believe personnel first an non-GAAP and quarter, net we XXXX XXXX. expenses an a services. leverage of business to and that down $X.X in compared costs depreciation General in and build costs and For $XXX,XXX $XXX,XX prior existing under strong excludes costs which excludes XXXX and by ASC number for decreased XXX, comprised a of related the increasing first were $XX,XXX XXXX XXX the were which of from without in were to development the $X.X the of the operating Total administrative XXXX QX, marketing related these million model. contract adjustments lower QX, in only revenue lower $XXX,XXX. selling year-over-year in $X expenses adjustments We quarter, were in to QX, costs QX, and for example, operating year million for increase research QX, $XX,XXX. amortization of ASC to Engineering, primarily the due added and were personnel expenses of improvement down $XX,XXX due annual overall the we the reduction additional $XX,XXX locations QX, increases operating our by XXX to cost. $XXX,XXX in contract On down million. upon operating non-GAAP decrease up reflect basis compared an to $XXX,XXX Sales cost. On of to that basis ASC

to million or XXXX Dennis first net for million $X.XX now to in was share. his of back $X.XX of call Dennis? closing Our net or for turn remarks. per loss the the per XXXX a loss quarter over I'll $X.X compared $X.X share,

Dennis Becker

now With formal accelerate in Charles. place Pepsi, with significantly. partnership our Thanks agreement is poised believe business our to we

with and additional additional create Pepsi adding attracting expand partnership, to is sure sales publicize opportunity. Furthermore, maturing compound visibility pipeline are partnerships to others and effect expect Google, market Fiorina and materially As we Samsung, our dramatically quickly that network opportunity our following. and begins their be revenue our tailwind to partner channel amplified output with marketplace a will that's

our even future commitment as coming signed. also sales during sales QX, I'm expanding in are we extremely strong spend with direct up much start from from Our excited with agreement in team a sales to pipeline achieving existing $XX another term new are efforts XXXX. agreement Spanning recently Pepsi. customer, of picking partner been Pepsi place direct our and formal world-class just from the such million for Mobivity given brands has a

Our growing pursuit a never and has into for hundreds growing the locations and -plus relentless the of Mobivity on of growth. I focus business to of $XXX thousands team applaud been million sharper

Operator

[Operator Jeff Porter from line the of with Instructions] Capital Our first comes question Management. Porter

live. You are now

Jeff Porter

Hi, Dennis.

Pepsi, their mentioned is marketing that You I'm work? understand base? going of and you exactly exactly Pepsi to to could that relationship commit are they What a trying to our expand how on what little? products resources will installed of

Dennis Becker

Sure.

collaborating an So up with basis. we had Pepsi been on ad-hoc until now really

that independent all have financial way on that's such or so reps to all build just product brands. been operators is that the up internal a with which Pepsi table, restaurant there an now suite partners like needed really means call facilities we will to sales for spanned other can set towards specific and suite. Pepsi And And And summary what initiative of there facilities from our is of all these that use in terms consume as digital within in been Mobivity we're be of in recently This the its large products so that the the to that place et agreement towards reveal what has across there the so for of that platform of logistics we content, number it to a is again, Pepsi restaurant we and now agreement this their last tools set and will receive that months parameters marketing that But of content sales So Pepsi's Pepsi cetera. has set across any salesforce to wasn't - digital of in we've Pepsi place anything plan across in for they more pricing tools marketing. now operational formality start campaign the is information. reps They of be operations, will from our for with products product help this scale broader SMS cetera. that part there and recent now of logistics systemising up et off serving a their Mobivity pricing that loyalty there's of full conclude research brands over hopeful working look drive six to belly I'd now of as consummated brand the that what thousands so publicity soon marketing a formal or country.

Jeff Porter

salespeople bonus? to sell our And there them is dollar is their marketing to products? they incentive Pepsi Are some incentivizing a or spend commission financial giving like some

Dennis Becker

as largely sales brought imagination what can that can that generally reps Pepsi beverage consumers restaurant Pepsi driving see is help that's speaking helping the the Well And add achieve volume convincing all at beverage I the their volume And where aligned. plan, us a Either also but to their that's the to ways. can't based general leap tightly together we're or compensation restaurant and a we really on not goals, to the beverage orders on success probably a and Pepsi of it's clients. the restaurant salesforce, applying assume with just and while increasing it's their that in goals. also order of brand its incentive comment I compensation the two on structure it's or arrangements in happened about might that comment some of be supplier,

Operator

queue. questions turn to further for to back floor over in no like I'd have we closing. gentlemen, the and management Ladies

Dennis Becker

thank everyone And operator. for today. you, call Thank attending you our

Operator

Thank you, for This ladies today. and our gentlemen. does teleconference conclude

now for have at may Thank participation. day. a disconnect your you You line this time. And your wonderful

Mobivity (MFON) 15 May 192019 Q1 Earnings call transcript