MFON - Earnings call transcript Q3 2020

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Operator

Greetings, and welcome to Mobivity’s Third Quarter 2020 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the conference over to your host, Brett Maas, of Hayden IR. ahead. go Please,

Brett Maas

and I’d quarter operator. are welcome to Executive everyone Becker, Financial Thank earnings like call. third Officer; Chief and XXXX and today Tiscareno, Hosting Mobivity’s Chief Founder Officer. you, Chairman to Lynn the Dennis call

assumes and such turn certain to management, the forward-looking with uncertainties. Annual and this factors call will statements recently which everyone’s and the today. contained risk its results most made to contain those company is or the accurate future. materially. I’d the reviewed information becomes statements and from cause update if may from statements policy. new this on presented statements, Harbor statements, are over with as important during documents over financial or to differ obligation anticipated after not the forward-looking by that forward-looking Report particular, company’s in to SEC, forward-looking require these actual the by release, which and information in or yours. call caution even subject like recent replayed be the on that reasons, non-GAAP financial press the refer GAAP results presented measures, Please could the known accordance to differ law, time-to-time forward-looking may results as floor can publicly those documents on Today’s in to reflect Safe include of other the differ filed in to directly current to call comparable Please materially If Dennis during and information. I update statements our or best Any Form call call is like currently corporate to the presentation, today, available being said, We to may the call identify which made I’d this based risks Becker. information reconciliation found at filed Before is actual required now made contain Except XX-K. no all be judgment events the today’s turn are calculated With attention available management’s and could the in These you that which Dennis, actual call considerable note factors the in that to with from that also along statements. measures, mobivity.com. the call are company most the the this

Dennis Becker

us joining our Thanks, Brett, for thanks call today. and on everyone

the profitable on ultimately increased couldn't of head wisely drove announce times We executing a achieved the that growth, round toward and to margins, on of course, year, as on. substantial to and the focused stated, proud we in The is our I'm businesses gross company of corner end memorable proud race is remaining a I met Nadella, software these our every CEO Microsoft plan. we now company. for every As industry transform revenue be operations. team more staying chaotic Satya

how out, capitalize made prepared to new marketplace. few last the adapt market pandemic. opportunities over to and reality, from core restaurant have under product pressure well the we've COVID-XX the the investments figure while Our The is us technology years racing in to vast digital intense to the on

need the and across goods digital sell focus ability in and remotely to or market services their shift no the to With low businesses contact, channels.

consumers strategy to customers helping platform commerce pivot digital one demand. the our is Our quickly that

brands spend. who, to Adobe, today's of channels maximizing Desk, some the put, others. categories, September is forcing marketers challenged spend best was recognized largest recently on The The We commuting solution platform Simply solve including are in many to other restaurant winners an Acxiom, mobile joined alongside Trade budgets are marketing marketing such Unified Breakthrough. together, marketing messaging are strains in financial Mobile innovating radio. as of Shopify, recognized Messaging for by majority pre-pandemic people spent, where award based group our solution Our the industry return focus on MarTech to of impressive the marketing problems and outdoor print, being the were and Traditional and less as the of conventional circumstances. time the television, listening from

to Our investment. cloud-based to point-of-sale map artificial intelligence uses marketing data Recurrency platform

working, So that right target brands the which message clear with consumers the efficiently and enables gain to are of marketing them at time. a picture, investments right

smaller. a Our technology be error drives margin high returns for couldn't during with a for time our customers

Our investment XX These through results is on customers ROI in continues a high a delivering pleased volatile show Mobivity that progress. technology. I'm a environment. that Subway relationship solution have such times their return also marketing report publicized our to Pepsi to with as in our leading

Recurrency will are relationship we early in meaningful results. and call a for develop Lynn? detailed communicating can now our market and actively serves and more the platform their customers, Pepsi Lynn are summary materials, compete, small. of some few operators. industry a challenges. with customers benefits facing to products, for I many help and turn of are restaurant restaurant them reps pandemic-related unprecedented stages, come in can over XXX pipeline Pepsi half and then a benefits I them We now Recurrency sales is And featured revenue back the its share. have marketing we on the of plans cases Roughly is seeing for the Pepsi these trained large platform our Pepsi equally our comments. meaningful of and impact. to capture of will expect view the financial Pepsi help Though approximately in

Lynn Tiscareno

Dennis. Thanks,

of third year very third quarter income of profitable quarter. mentioned, As to loss of million a to a million, $X.X Net in we're the quarter. improvement for excited was the XXXX ago and $XX,XXX compared report $X

the we have to are sell recurring been the that non-recurring approximately of third higher without of customers quarter achieved and compared quarter in as improvements cash result receivable positive million due $XXX,XXX, industry to operating of an improvement expenses, a $X.X in margin the XXXX. along of Additionally, income of $X.X operations revenues, and These from new to ended our with of million. revenues, $X.X lower events ways we $X.X loss new pandemic. operating reach million, was third We canceled with accounts a traveling embrace outside our approximately million direct and

year. Importantly, $X.X of $XXX,XXX cash period used months the the XX% dropped same in million first nine year to operations during the last from has during

improvement revenue compared same increased Our the period third in XX% the to the XXXX during Year-to-date XX%. $X.X million, $X.X reflecting to $X.X of in million was XXXX. quarter of XXXX, compared third for of revenues an million, to $XX.X million quarter

quarter XXXX, profit third Our third and compared the margins increased XXXX XX% of in million, gross for quarter to of our for gross XX% the XXXX. of $X.X XXX% to quarter the third increased to

charge trade the are the decreased of XXXX. were due in the non-recurring have on revenues XX%, increase the his in to that For third same the carrier unable during $X.X of over with compared coming we for in to nine travel million, at period quarter a and of remarks. believe by costs remainder an the quarter operating the coupled gross contractual compared been ended margins in of show reduction will in XX% months September XXXX, same cost savings Dennis? expenses These in travel to from closing we quarter to earned call to our XX% year now and for increased We sidelines were period and the gross $X.X costs the XXXX that third million savings Total pandemic. XX, continue obligations surcharges third to margin minimum. Most for I Dennis of previously related back during higher margin will spend improvements through that XXXX. this reported revenues of the a operating turn result

Dennis Becker

Lynn. Thanks,

working in while customer any or and for your a first activities. objectives, and we profitability. great a in from tuning of confident Q&A. about home strength interest the growth and proud expanded We're for the of open I've the months and exemplifies this chaos, focus As time. our We'll achieve in growth XXXX our diversified pandemic in person We're by chaos that customer say amazed entirely into on solutions. And business dedication for and up maintain sent time and and paid profitability. continued demand and in, we of focus off delivering XX%, executing trajectory. model, our the year, already March, in more XXXX our team's our by margins achieving and This revenues, growth for now Nine to you all society quality uncertainty Mobivity. commitment, plan than these thank technology marketplace our without our and back in we've and call the perseverance the continued excited for lapped for our been economy into gross exceeded on of profitability and

Operator

go Capital. comes [Operator first The Instructions] Please ahead. Porter from Porter question Jeff from

Jeff Porter

little Good afternoon. I grocery, new calls, Dennis, on how prove you'd up the to in a critical sort the efforts was verticals, color open you on some and just that relationship getting think two trying you of you new mentioned that Pepsi that media, believe might give the I Can prior thought into verticals, proceeding? company maybe mentioned, convenience.

Dennis Becker

Yeah, question, absolutely. Thanks for Jeff. the

remind goods course the partnership consumer what everyone own they one that also well. they're beyond the Frito point is as of key -- to we're that So that They I company. major things I'll of their space, about packaged excited think your Lay restaurant a

demand industry. a excited So sell of actually we're things people relationship with that Circle the And more brand space. with branch X-Eleven venues, and the A seen live we've and brand, optimistic little very can pandemic store beyond goes sector. of store global but convenience lot we we entertainment the is competitors course realize about don't space, restaurants, products from from they restaurant We're convenience like lot this, pre-pandemic brands course, grocery. recently, the bit. into But out into of and goes kicking that food, grocery store convenience one then as whatnot. space the to sector that the were working of convenience fastest still serve that and growing and and We're store opportunity changed K is that is through really also opportunity a quick the a of that the large

that. serve products; hot they pizzas, burgers like of lot and Now a things meal

success the will space, space their where category, we've well. restaurant to that's had So and profile fits translate restaurant the quite I in think the customer convenience the

and of very as major groups research we're I swing really that with seeing ago accelerated, had that pandemic text but, that couple weeks research industry had interesting now in distinct to with -- the demand the just so become call opportunity industry this industry So, we and restaurant the store very to well, the the from about. messaging a become just they SMS were very Mobivity explaining beyond one us, in we're convenience full and excited that have now space for opportunities that industry some not is that grocery has

Jeff Porter

As a it ability both? margin that, it combination see that from our expanding gross just is to or to is scale nicely. or follow-up the Is analytics, up-sell coming data to I some attributable is just of of a

Dennis Becker

that a lot Mobivity it decisions marketing, transaction customers sale we of all make our bring these point cash sale allowed that's of in -- And with loyalty that brought message see whether value or C-coupon We've know point that text of we data, our customers. now It's in and of were happened, so their billions to engagement, basket a able credit. whether us see a because our for we more of product because transactions, there both. sales have was coupon to been combination to or of all a we see full happen data,

we program, don't the we email year with are whether their virtual of all wallet program, we their running that not which powered email are which announced by last power promotions and in example, in their but the but scannable, in coupons and the digital for offers app, like power now emails digital promotions, Mobivity. their it's we offers app, Subway, app, and So, their we've

consuming just been because So, provides, in it's your yes, offers has our our the customers gross lot and which a promotions, features the platform a digital the of messaging, that point, broader the that portion of expansion of software. to namely unlike profit now text

we started those messaging, unlike goods, So, really you the as gross carriers product fixed charge which know, margins messages. costs of move some the been some just hard have to a us software high we've enjoying text costs pure still of text

just we the we've times. create is can code and it once Software it created sell and many

digital has that product, told us have offers these created from offerings and So, much because our expanding we've the margins. new need product what learned promotions customers' higher like the that data has information that

Jeff Porter

Thank you.

Dennis Becker

Thanks Jeff.

Operator

question ahead. Private [Operator Bruce Evans, go Instructions] Investor. Please The next comes from

Unidentified Analyst

on congrats a Hey, fabulous quarter. Dennis

Dennis Becker

from Bruce. you. to Thanks Good hear

Unidentified Analyst

before sales expanding How you have salesforce to people XXX did many your people?

Dennis Becker

Right.

sales of they or both to our partnership getting marketplace, in XX they country bench and our partnership, really salesforce. selling expansion, and with know, ever so team because, of about a is helping XXXs and customers, food customers, as a of Pepsi have So, we've as basis, that your sales XX folks around very operate of, at. cross-selling the that extension excited out, Pepsi it, new restaurants that are kind operators well of becomes that pointed because call carried daily into I other a scale question, thanks our And just tend reach sales on reps you expansion only efficient that to across as so an this the massive

Unidentified Analyst

like seems dramatic are a a of expansion who pretty XXx have with on selling it effects product? people could sales It our your

Dennis Becker

very no, teams with their and about direct big in very account backing Pepsi well. has excited know, up -- it's as closely just we're they're you Yes, teams. And error, a that's worked the we the sellers. those also not cutting

awareness to a services it's selling, the and the just extension to of also can but products partnership So [Indiscernible] direct increase, produce. have advertising that that for for volume great and

Unidentified Analyst

you that the sales don't reps, them they presume anything unless I pay produce.

Dennis Becker

frequency products the and and drive can is the can't facing industry. to that brands Frito-Lay studies, the both just relationship purchase for of And Gino's I but the and Well, with to to specifics that, services time their again, and drive it Pepsi Papa others case know of their have like as Pepsi, published, the with mission speak food in public consumption Subway and Pepsi say suffice we higher consumers. we [indiscernible] partnership

rate the that think and attachment space, it's in now I with, to right delivery I a incident orders, of too, and that takeout for common have drinks think restaurant So, highlight knowledge tend lower snacks.

time at can that and know ours transacting it restaurants. that ways from no so, like help those with are And that increase given you changing, changing important Pepsi help like get more consumers rates, the is CPGs attachment the interacting technologies

Unidentified Analyst

job, Great. Good Dennis.

Dennis Becker

Thanks, Appreciate Bruce. it.

Operator

and conference answer any question the like concludes the Becker I'd to This over session. for turn back remarks. closing Dennis to

Dennis Becker

and the we to in the Thank year. joining on you, everybody on year the for informing of results and end everyone excited appreciate end us our Thank the our today past call here you. strong get as we're future

Operator

today's concludes conference This call.

you may disconnect You and your participating lines. Thank for have day. a pleasant

Mobivity (MFON) 9 Nov 202020 Q3 Earnings call transcript