MFON - Earnings call transcript Q4 2021

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Operator

Greetings, and welcome to Mobivity’s Fiscal Year 2021 Earnings Call. At this time, all participants are in listen only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brett Mass of Hayden IR. Please go ahead.

Brett Mass

operator. you, Thank welcome to fiscal XXXX year I'd everybody call. earnings like Mobivity’s Becker, today Brennan, and call a Founder, Chief are Officer. Lisa Hosted and Dennis Chairman Officer Chief Financial Executive

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

Dennis Becker

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

revenue verticals, how with challenges. scratch, to our us for opportunity marketing which for has our the achieved able innovation new We was proud put, in digital like audiences new mobile and brands from in them. But and marketing, where to is we they higher audiences Simply digital legacy turned some recurring progress to in am in cent a achieve find digital Mobivity marketing multibillion SMS way new the dollar a be the and always expansion of upside have through to for business these and unique this particularly past of quarter. of solution change year, been I better slate in regulations, Mobivity. at transformation and solving pivoted industry in has drove the target of down advertisers a per fractions by to and by XXXX advertising particularly stringent marketing. and Mobivity the First, pivot marketing we margin positioned tracking building stores. over we large to changes problem privacy the customer. by and address in to exciting while phones. many seize year say was rapid the universe presented for digital I'd This how the fourth convenience the team of in The and value and growth changes the challenges restaurants continuing are higher

audiences and technology in Our at empowers many and codes, with connecting XXX% attribution offline our on better customers a dollars competitor. scale can Mobivity’s bring existing per more focuses any unique line, new larger it and offer audience. other business tracking active perfect digital customer all than across

streaming like believe year. have positioned incredible a already are Our fourth value reach successfully to mobile quarter several platforms, Mobivity to millions and connected of like we locations gaming marketing. in unique monthly million first the launched these multiple digital bit and of the XXXXs basis. to positioned We're of uniquely the pleased technology, programs our consumers We we transform phones, to locations all connections year. a consoles. more on connect and brick industry. the to mortar technology brands. games, highest to across large a to customers millions we of we're reach globe. our across audiences consumers the video across create more digital And mobile the I'm in businesses last all and of and than gaming And than These began the we are more value in I'd pivot marketplace brand report including the have demonstrated explain to these potential detail quarter and at of of digital valuable because brands, online video customers executing gambling engagements this in of boxes, this across use digital have consumer operators and intersection engage executing to why we XXX that XX,XXX the desktop and of some

costs. minimal and product First off, with existing new leverage able to we're our most of development technology assets

their digital brand convenience Circle download chain pizza a unique could burger brands. text or free watching giving For a large a offer $X.XX by video message a produces their a redeem could off burger or an if coupon playing example, many Consumers by gas at a solution game, K. send nearest game, used points that SMS Conversely, customers mobile they a codes leveraging through examples, technological the online of video or and earned a already for video a website, unified plumbing customers scannable streaming our range offer streaming that and offers in connects offers is their each advertises redeemable and trying offline Mobivity for store of a In service. game these brick and mortar digital organically and the and goods businesses are within services, between channels. products power consumers gateway offers vital only that become existing vice and placed promotions We versa. and consumers’ to physical

and respective month long Formerly, deployment and simply model, revenue. to to to consumer building to digital prior used on a spend to and businesses. cycle and organically audiences real through and digital deploying to power long we shorter market to SMS year our brands commit text relied driving sales brands audiences we our to a then get a new months digital to messages enter Under promotions. we world world match audiences need Where time production, cycles real much instant between revenue interaction their between solution,

to and consumers in has and Additionally, digital interaction have is purpose brand mortar first massive others. provide across built we brands the addressable this, These of store These major stable all On Circle brands markets, and exponentially businesses customers. power instant between the top or as and industries market for with clients mobile partner. scale, mobile ability all the and companies rapidly which and means with world brands uniquely gaming, sale gambling Subway, partnerships and and and Pepsi, the which our of are growing operate others, with digital brick among technology. markets real channels, of that The online. whether we marketing our technology in points K, can streaming we addressable valuable connect will lucrative they video grow such

report from Finally, volume with conduct and we our since SMS are QX value. former partners fees of key predominantly digital developing new and businesses this where multiples We're through year, pleased running fees with brand locations, transactions, higher new just already last model in drives as that transaction achieved also as recurring consumer digital need model. although to partnerships that our power revenue recurring world brands deals four to model, it little real programs dollar business generated we've customers. brick new pipeline. model vice supported brands early brands and and fact brick of seeing brand is to existing from that in and our environments Or mortar with many also strong very XXXXs live by demand have the our with our delivered digital These new product consumers additional development platforms technology mortar digital new from programs the We're versa. velocity and and existing

of our support upside. hand strongly the ensure will customers. detailed I tremendous to to a I the upside some more point the out customer believe to key new upside relationships to accept long-term made continuing We fuel short-term within tough for some with long-term changes in existing model. our of Before over will contracts choice this shift our financial call We our did Lisa restructuring summary require results. our business model that of

protected an Mobivity I changes, privacy Lisa? not a then pioneer we the consumers for Lisa results. impact will While comments. brick era in commerce. financial pleased over to more these are the term to as a back with are I that these of excited way detailed a help view turn and for a partner customers and connect revolutionary digital call will of we're mortar to us short of few continuing And now our come summary

Lisa Brennan

Dennis. Thanks

is confident million million, the ended the customer sheet. a described. three decrease sufficient the due continue to of large XX% from XXXX XXXX recently is cash business compared $X to that added December million, million XXXX. XXXX. ended months executing approximately February the we conversion on cash, $XXX,XXX with this year a our year to $X.X XX that Dennis balance XX, we model hand a This $X.X XX, $XX.X While December additional ended previously were to for loan or of We're in key in XX completed reductions months on Revenues in that for decrease from primarily to the

a that repeat reduction customer of fees million this of in by from engineering XXXX XXXX. there First, in paid was non-recurring revenue $X.X cannot

million of in restructured we XXXX, in in XXXX. restructuring which these included XXX revenues in related decrease late contracts customers’ booked ASC revenues a $X.X resulted And $X.X of this million. another third one that Second,

capture this million by compared primarily was higher to Total in we to continue other operating share to was through XXXX. with grow will due investments year-over-year in new impact marketing expenses model. to This increase for with our $XX.X feel While and the to sales revenue in XXXX this business customer and XXXX. this increased services XX% $XX.X market confident negative, million, from customer customer we provide

XXXX. related incurred to case. strongly in versus now costs a Facebook non-recurring Telephone the feel the also will Court the legal were Duguid $X.X approximately that And we Act. Protection Supreme fees continue ruling involving million Consumer landmark disputes that expenses in We not during resolving These has issued these

XXXX. That messaging in his margin messaging high to because recur fees, costs profit are said, earned I'd to closing revenues business. generated from the of of wireless costs carrier XXXX our and new fell business the are It back by hosting line XXXX, profit Finally, not non-recurring from goods historically in formal at gross remarks. not I'll our in messaging multiples carry gross for to mobile did call margins with very by primarily profit did cloud over and that like XXXX of margin, to XX% now we our excited are engineering transaction wireless -- surcharges. our address same the transmission turn our for gross earning XX% of Dennis? revenues and free being Dennis, and

Dennis Becker

want have term and seen enjoying a consumers these brand offer are brand real and like and customers, while digital video real digital to gaming, that of businesses these most from far, and as strategy. part long response services importantly, world offers Thus and tremendous partners, rewards motivated we digital our incorporate rewards world their consumers. obvious Lisa. It's Thanks that a

pivot which counting the now audiences. tuning and and than We few bring and operators with all And executing In to to convenience Mobivity. key new on intersection in of forged Thank love more platforms, continued XX we're in our million between a across since they already console help mobile, you Mobivity we've fact, reaching those gamers gamers excited versa. partnerships months, your to food for brands we a in are in to past gaming the PC play interest believe offline whole building for and approach advertising. online vice role powering a and valuable are

We the for will up open Q&A. call now

Operator

Capital. Instructions] question [Operator first GE Schulte from Our Zero with Joe is

Unidentified Analyst

can And my Thanks. see Hey, competition? about just your talk guys, how thanks Yes, taking you're competition call. for in thinking how developing vertical? you about you

Dennis Becker

Joe. question, Yes, good, thanks. for Thanks the

you business how technology thinking the instantly, of presented like new our Circle a with think you this brands any yes, is a unique patented So one streaming get at way or about how used we're K the X,XXX locations. all this about XX,XXX and about think can these video with product could think our you of at voucher or game locations of enjoying that advantage we here work capabilities line. playing while When are Subway about we be competitive and core combination

point our patents what around thanks So patents build real physical IP and to locations, receipts on helps of codes have we around at dynamic a to portfolio text relating printed IP at sale offers we retail, that around redeemed have messaging physical we're doing. digital

Beyond turns messaging get to that, text perfect, way environment. to it consumers that a is out coupons from ubiquitous any

redeem have thinking words, getting while you go publisher gaming if and use, friction, we that some you, and so to your to of since system to you're lot, about built instant reduced get something you're all other build do That's favorite out. offer gratification. or in that when store voucher get video an already again, it So, doesn't to type playing that game, any couponing that can to have a

are our mover and into advantage in or has world power a bring these the essence, brands, and method system, code sale to first things play least for of plug retail So to operators integrate for big proprietary think across real build rewards we resistance the all a wanting digital natively big devices ecosystems. point built path of their with coupon

the we're building not digital of to to the pay we're any into value that all woven vice these that get for competition this at us. operators premiums we're aware have, while confident the So willing most their time game, their advantage programs, that that's we is and big as scaled we're protected of acknowledging time, and a of versa. this together same kind digital consumers pretty direct patented At the are through technology product high

Operator

from Jeff Management. question Porter next is with Our Capital Porter,

Jeff Porter

to nuances I'm and that of trying go margins can gross and that's the with why you're to on give and dramatically, and pivot customers. of sort flavor going understand confident these the of the impact new to customers new how Hey, with Dennis. fairly going new some up pricing of see sort these any us margins gross that, we're

Dennis Becker

Jeff, the hey, thanks for Yes, question.

XXXX, Look, customers a we gross on higher of comparable were we straightforward. pretty engineering helping it's our So through a in had COVID. and doing margins year-over-year lot basis, we non-recurring because during

respective the XXXX into in trying convenience game text of because service, helping whether of different brands fell delivering bring So legacy to back video brand's lower ordinary service, business consumers and to to streaming adopt it's get a the margins or game, now try their business when consumer, we a versa. messages store to of vice went kind each we services, gross streaming or to in kind of other's we're customer a their

dollars, to messages of to that premiums model, their mentioned, So helping the that who the as the and or a we're fees convert game to I where Subway text the get words, those a those Sonic customers. are or paid Sonic just the transact visits the being in during in consumers, other in transaction premiums where dollars are try in And pennies. call, that's being somebody XXs send paid versus legacy existing are our a

digit what or excites now far So digit that to even messaging that goods good the transaction down of new costs about low cost most line business we dilutes our fees, of massively the double higher of can and is single levels. command

to that to example just the streaming our to de minimis try is a good text streaming incent messaging pay a hypothetical the given subscriber, food them coupon convert fee of that video a to $X. consumer it's to as a transaction a again, transaction that us code giving customer is fast So, service. a operator wants To video cost

a having of So again goods. you a cost and of margins a own if with you're sub brand working making get $X goods, brand, and charging and than penny cost penny consumers sub higher gross that penny their and just say having dramatically directly

own Does a our sense? mortars such just being together ability if uniquely So this gateway we're paid working makes these two to just that and there's than with their audiences bringing audience. service talking higher to brick in premium

Jeff Porter

Yes, we the there to piece And like download get and one redemption? user does to revenue? then so two like of also are somebody get we out? is in? game a when there Is there coupon play pieces that if Or paid something? sort that tokens or acquisition the in the them cash time they How come win on and

Dennis Becker

a Because offering new else. just bring into gotten the mobile not other consumer that And that try then or it's bring gas a service if creates it game, we've they're to store think streaming store something off also say or the or service, where Xbox the or food that transaction, a we on streaming the side, tries once video we brand, or environment. consumer we Yes, game, onetime the a and $X.XX video convenience out say you game a chain, can fast PC video try also a streaming convenience gaming service. a

and that they're and enjoy, came So company, there and ongoing earn going promotions gaming to say, know can being they brand. And the they because are the game consumer back other to whatnot that can continue know because offers that now coming the offers for back discounts digital to keep to brand. we from the they example, operator

every transaction component transactional of this, nice but a transaction. there's fees long a that tail So also come from of successful recurring

Jeff Porter

gaming those potential the DraftKings, in like FanDuel vertical, are Is universe? -- the participants gambling/ this is

Dennis Becker

billion than being entertainment, fish back gaming, consumer has of that's out privacy apps. the switch they mean, built follow kind gambling, advertising more they dramatically whether turned networks all They now, business where advertising that between that again, their the and consumers, cetera. been got think the to switch phone, they've they infrastructure invasion, $XXX industry digital on video, whether overnight. annually digital of customers, follows contests, is impacted any their to of networks used right the social it's Advertising streaming to $XXX that I off that's and digital tune et app, which digital all of between way because the Facebook, Absolutely, as whole the we ad route, billion networking banking of this use almost being advertising online

to the I to impact fact, which they now is this this exemplified with of Facebook's these In announcement, that think $XX Meta, sales earlier year billion. their changes is expect tune

all to find sees gambling, gaming, to again, they XXXX mean, channels, a ways these need we're new or to to a store, all et convenience operators, back digital And average, whether audiences serving per cetera get since brands, it's already on day I So of these need consumers, find efficiently. getting location.

about Circle estimation that people a you when customer K So X to on daily think mean our basis. Circle a go million K would

audiences so - where some to acquisition, this as who's access to And customers is of video really we're again, we gambling beyond that's and can to acquire about high premiums industry, large verticals, these excited be $XXX as applicable those beyond gaming and $XXX and to any other think trying streaming customer that, in up per transaction.

Operator

question Talkot next Our with from Bryce Daniels is Capital.

Bryce Daniels

Dennis, the thanks Hey, for call. Lisa,

exciting on going it's think what's I here.

great. little like kind more Just A connection, of the tech can guys interacting you Mobivity how describe powers? would you of my where be of like if digital I'm relationship quickly, and Mobivity And game? of and with detail nuts more with that in kind I'm, what part bolts little kind a

Dennis Becker

of gratification in advertising This doing is the where campaigns. engaging digital instant a real Sure. world experiences. consumers coupling key for innovation number is to accelerating We're

mobile mean these various a Tetris, playing to is progress they're cetera. you. are Candy in or et for like play these progression points. now But gamers get handful everyone's games, of next and Rally's the example in that also and this paying we mobile purchases, Circle to consumers Crush, of into the one And or brought paying reward that many games app these So for game, games. I giving our level, Checkers whether in have games, games is what how cases, they a by lot to money mobile they're using And what it's played K, experiences gaming brands

timely where X,XXX And on receive running use the by those discounts game fuel playing so America. any we're at across a of can now, example live Circle the campaign they to K right as gamers locations points earned

of So game, gallon are a And and through those gas. of receive points, American they've these they North from take and simple a that points, this they're gamers turned off K the Circle $X.XX in. text receive earning voucher they in X,XXX any games, the they're then playing message locations after can turning their points to

to Store our game, chain, burger free they America. consumer Play or for brand audience, and a audience Google app then a where sandwich Another download subscribers, technology the using a brands text of any download the the detects audience and And their go program they their email that restaurant to locations they at then successfully example that downloads mobile that's the code game. audience, burger, once their with text use App their instantly, coupon restaurant if incentive is burger offering got to automatically their that subscribers, we've their that their from the and Store, X,XXX their message came consumer message game, free a across they can it a that sends go chicken detects free that

beginning that's real experiment game new publishers again, acquire operators help as audience brand to customers. then the other used example, with world So here using -- the kind side to advertising and digital where And last products. we're a is of I like the

out massive What So a with a bring another impression. it's just B about we've checking these a we're sports is experienced mobile online or or where using advertising using into we're advertising, And we're doing scores, banking where all getting ads. visual more that can lot consumers using those $XXX rewards again, on than industry. world ESPN or whatever Facebook, there I real get so mentioned we there's spent see we billion, app and it plus experiences,

phone a a pop it's their they're game. maybe playing So for free up game mobile a ad, on example,

ad to at if that up, monetize and on free free game. a see any the other pop with America, consumer a across the click gamer games to So an support we milkshake locations as allows examples, X,XXX use they the If and clicks get that ad, once advertising those all Sonic’s again, at on that up the ad ad, they're unit. ad, from their then can the gratification any so digital a that technology the with Mobivity, and message that code they Sonic same coupon milkshake get that experienced at that they receiving day look text instantly simple instant show get and they

So those are some these kind world already of of all real running. examples are of we programs

Bryce Daniels

is just the interesting. That's fair of it convenience question of think market right like way And addressable gambling, addressable market? being is adding just still we're about digital market the kind of there. think mentioned, the is that you everything whole core And that to is the to gaming, about our kind market restaurant

Dennis Becker

the facing use their expected. And so challenges. it. this Yes, highlights as again, they're that and product over we lot of just the directly and And about experienced a where selling we premium time, another than think convenience supply friction for is been to absolutely. we've also store slower it's this that's I chain, that interesting a that we all think experienced roll industry, point restaurant a when and Labor costs,

wants that's just digital acquire happening, experiences an life was weekend. was these meal. this the in In Kart, consumers the everyday just my example, already Kart. a And customers I brands fact, where And happy kid to Mario to tap branded whole I Super meal there is experiences toy of happy was for Super themselves. the world real this where got Mario

to has a point, markets that. now, digital your a mortar our Because this on, Kart move and brands traditionally that that to think gets types these it we're Super that premium, help higher restaurants, catalyst we're to into willing are something such brick to win-win as acceleration the is to store a that cetera of that also that convenience of et we doing a so had those adoption. financial the can is serve programs. And we big what to lot proposition it Mario pay relieve expanding And value serving, bringing to industry friction now to getting quickly already those more

before we summary, we you be and them hey, a should say, guess say, customers I now the digitally you doing in of digital partner direct can be to where to stores in whereas can should to go industry video. here's involved premium your that's So at brand customers, talking the a because streaming program go gaming these to engaging start And least initially. restaurant subsidizes from expenses, It digitally get or interactions. your with there convenience a the and

friction it gets C- we quickly, what relieves and brands together faster. a a spending time more lot restaurant will this So think big lot of We of store which really make working putting that think been we've a of brands. pipeline and move pipeline

Bryce Daniels

Yes, interesting. Interesting, really guys. exciting stuff to see. Thanks, Appreciate it.

Operator

may participation. time. you end for lines This today's And this Thank disconnect your your concludes the session. at conference. reached have question-and-answer of We the you

Mobivity (MFON) 31 Mar 222021 Q4 Earnings call transcript