MFON - Earnings call transcript Q4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone, and welcome to the Mobivity Fourth Quarter 2023 Earnings Results Call. Hosting the call today are Tom Akin, Chairman of the Board; and Kim Carlson, Chief Operating Officer.

Before I turn the call over to management, I'd like to call everyone's attention to the company's safe harbor policy. Please note that certain statements made on this call will be forward-looking statements, which are subject to considerable risks and uncertainties.

We caution you that such statements reflect the management's best judgment based on the factors currently known and that the actual results or events could differ materially. Form documents the the its SEC, filed report the to from most to annual with time and on refer filed company by time recent Please XX-K. in particular, important These documents may actual the to results factors in other from contained statements. information cause those risk differ forward-looking contain that and identify and Any forward-looking call this made being statements are made during today. as of

as reasons statements this reviewed required call results anticipated assumes update or to is call even becomes the today, the those accurate company forward-looking publicly after information. law, forward-looking replayed the the or by or differ to Except not if the no may presented If contain current those update during from information in the new information available actual materially obligation the statements, could future. in

Today's today's release, GAAP financial include most in also comparable which financial reconciliation and which presentation, a can which and available the non-GAAP be accordance directly at is require press presented to mobivity.com. are along in calculated with the measures, recent corporate with call may measures, found

turn said, call like to Tom, the is that With Akin. over to the floor I'd Tom yours.

Tom Akin

partners operator, and today Mobivity's Full Thank Mobivity XXXX you not hello, for for brand was proved and as joining the Year of and Earnings us Call well. Call but for work transition only everyone. provide programs above QX and business XXXX game XXXX you, year measurable Thank a our publishers we where for that viability of Rewards comparable our demonstrated value both programs. Connected far

revenue on the is Connected and directed costs, our significantly completing efforts the offerings team generating capital pivot and We today. resonating market our we towards and made to product cut of towards We and the that building significant focus reshaped business in technology Rewards. our focused our steps

convenience gas our year groundbreaking Mobivity. expectations partner year of programs at ]. both Rewards level, of the platform. programs TXB brand exceeded with we Connected game speed be and strength Chevron the the launched XXXX, full like will new for Marathon, the first brands In closed [ validating a believe and what These running into far we momentous part and have We

pipeline us perspective additional fully our continuing Connected and growing, in midway in XXXX. XXXX game and business healthy, to revenue partners growth ramp to is materially techs Our valuable year. expect gives through confidence of overtake which and through the business growth from the legacy the Rewards anticipate that a up brand We

platform be both positive our to game response to publishers. overwhelmingly continues from The and mobile brands

new brand cycle. innovated sales made and progress has partnerships, our drastically and also team in and impressive addressable we've expand our already our expanding Our reduce launched products robust market that

prospects the Rewards. remain in We path business about with our highly for optimistic forward and scale and Connected confident grow to the are

our highly to and momentum forward we took this in The focus and XXXX. yielding platform are already on scalable transform look throughout XXXX to on this steps we profitable and business positive results, building

details business Kim now the our transformation. to I'll call Kim? Carlson, of who over COO, will further discuss continued our hand

Kim Carlson

on billion targeting retention. Tom. that acquisition user annually $XX you, spends Mobivity is market over Thank a and

the Connected Our product new We've to in as that performance-based a tremendous feel Rewards seen offerings resonating channel we at continued innovate and offers new pull is platform have scale the success from market. market.

Mobivity. power It's at emphasize what do important to simplicity and the we of

Mobivity. gross and get margin. model mobile and the proving We transaction, casual Rewards digital rewarding facilitate an all This attractive while is platform interactions paid environment $X consumers partners games. these of be between highly and seamlessly per for between to maintaining and $X effective Connected Our our drives brands brick-and-mortar for

fuel the Chevron we app, the These the [indiscernible] built largest placements with launched and the include brands first of quarter country. we in products momentum in with Marathon Circle the the media. K's new owned Continuing app inside some XXXX, in XXXX fuel programs of app,

partners, far effectiveness Our for have these ad outpaced driving spend game mobile our from goals retention. acquisition programs of on the profitable our user demonstrating return and results platform in

programs value brands. These time, performing both in well our equation. At value audiences of provide the to loyalty of thresholds beyond driving the we sides the are results same on showcase

robust, and pipeline available are potential and current come growth market. the Our our of opportunities excited immediately the optimizing is about addressable we within can from platform that expanding

offerings, As launching capitalizing we market. our potential on the expanding in and partnerships quickly our build our remain we focused XXXX, on innovative platform's user and through move vast technology to retention products mobile acquisition potential

our for partners dedicated exceptional is of team business. our to growth and Rewards driving Our Connected results delivering

I'll Tom to With closing remarks. back that, now hand for the call

Tom Akin

Kim. you, Thank

up We progress instead directing XXXX investors for and to the that XXXX the throughout discuss look made company the are of in We've to really the forward of all part year. open company's opted to now financials it has excited rest filings. first Q&A. executing not I'll about public and the the

Operator

Peterson question Mark a [Operator [ ], first Your investor. from Instructions] comes private

Unknown Analyst

[ It's Patterson ]. Mark

[indiscernible] of a the look posted guess, are for products secondarily, strategy for a haven't know, growth see couple QX about about new to contributing meaningful overall company? of maybe able I the know X-parter. let partnerships if the a of seen bit in quarter products. the guessing been more fourth Tom talk yet, release so to at I the it. you I mentioned new your Kim, Circle to the I But and I some just business, did Kim, results guess, you of Kim, Chevron, first quarter questions, very you But with the Marathon, you haven't And those I I launched was I investors. of little I you've think wondering, and have some both K I could today Given I'm you [indiscernible] made this wondering comments how want the you year? just said

Kim Carlson

for question. Yes, the you thank

We right. and the Chevron new launch You're did app. [indiscernible] within products Marathon,

for downloading incentivize an to placements a at like apps, branded reward own these the take brand. exchange Specifically, placements users action are they in game inside the a

example, or gas discount free the store. a of item within For a

These allows incentivize valuable the their and traffic anywhere large found while publishers to brand their volume. placement a grow audiences give placements audience really audience and brand driving and else game these not within

So ultimately, environment very we're apps. within the branded sticky creating a

are amplified from by programs The brand. communication the

their to users, cetera. So notifications are and push are at for example, et going the brands inbox grow pushing partnerships and app to the core continued performance. us longer-term around These store, pipeline notification programs the growth strategy with allowing notifications, our with as to signage increase be our and in partnerships, games they we are ways operate innovate to to brands the

as are people maybe showing tremendous part are engagement. longer-term points want to They kind the brands digits. in as the growing I We moving far transacting X% more contracts. they the As of of X mentioned, to They from to the app one our from percentage X% double app that pain hear double-digit in is activity their app. question, of multiple that

So this real newest product offering through growth this and is our pillar year. our for our going forward

Unknown Analyst

know and transition, under you years and I meaningful really Rewards your than see be pretty it's think great. well But picking less it's to I seems the been X the to stead ago. Tom as said, progress know I been great joined some That's Connected speed. has up going had. that

it see and great appreciate So it's to all. really

Operator

Bruce question next investor. Your private [ ], comes Instructions] from [Operator Evans

Unknown Analyst

recurring more Could revenue model? you the expand a little bit on

Tom Akin

Sure.

Kim Carlson

Tom. ahead, Go

Tom Akin

that that, press We it talking are sure. A was -- financials we're reflect we're to lot out, doing The Kim but these in of and our don't Rewards answer about going getting really programs appears going really late a for launched was is were forward. 'XX what I just do apologize. -- in April. but quite will I release Mark right. say little Connected March, here

when to revenue results Kim, so see to why from And they're a the you question, little you're going actually that please? be stuff. the going in don't the answer probably Bruce's bit future But

Kim Carlson

Sure. Thanks, Bruce.

fixed our our we've ad we more us marketers growth developers per basis. recurrence our publishers So asking more have on say or is revenue. the a spend more. the spend return and hit model And XXX% game will a beat that the and their happy fill requesting and And game of scale dollars, to I'm install cost on they pay and supply, the rate game we that to had on

recurring steady matter of a a rate are publishers high So that us build high, of game And retention a to or revenue having growing a transaction we're supply. it's model CPI. by experiencing continuing fee paying our already the the on

So recurring that revenue continues grow. to

Operator

from Your next Berlacher comes Bob XXth question Parallel from Capital.

Robert Berlacher

me. I've actually if got you'll bear several questions, with

majority Historically, and First, to over of I the by numbers. business said is if fourth quarter take traditional midyear. haven't eclipse at the legacy seen revenues or the the least rewards the connected you going

at ] basically that more, to of some revenues. And that you've $XXX,XXX can behind XXX to going So is any plus done on soon the $X.X connected but here you growth that rewards -- first assume historically, hit or hopefully, provide [ would then magic of million the forward I details a you. but I business now realize point quarter is number here? going month month, XXX a the

in you at idea for would us business you started if continuing some just least? that it So And trajectory in said March. It's give of April. growth the

Tom Akin

Sure.

that is question. Bryce to answer suited best think I probably -- Kim think, I

Unknown Executive

Yes, thanks for question. the

I couple think a of things.

we've that that as brands growth really outlook. strong inform a things built think first, couple our relationships Kim these of I mentioned provide with

First, they're largely sustainable and longer-term relationships.

case month. success These the for we that early us through relationships having brands. can studies use bring campaigns first XXXX part not build ability fight that of allow to our to on in to seen we're we've meaningful And So new the run already. every then to

in campaigns performance early juice there's our a innings more for easy seeing to kind these really increase levers these we're lot great we by squeeze brands can that we we're publishers, although results And current very really of of the pulling a of from programs. of couple and Second, the still optimizing game of kind know results.

that with bringing such and So new really feel can the Mobivity scale the to the through programs studies we both our like customers business with customers building in current is at business. position the that grow run we by good future, legacy we're when now optimize Connected at overtake case on look a Rewards

a long lot there at QX We'll can and more feeling excitement, term. about to what we everybody our in the discuss is on we're build call, have the Mobivity but tangible excited

Robert Berlacher

I Kim that? like perhaps April. Rewards know, K. -- more you might March -- indication also was programs you've in it least that February, said gross March then [indiscernible] said don't legacy And Marathon, the or Chevron, I margin, time the you be assume but second started you're April at and in all has and signed a soon they frame, if maybe any I Can got Are mentioned and you've these pipeline. How -- really you you midyear, think that Well, got cash Connected when you've Circle talking and business shot quarter, positive seeing third anything give quarter, flow think business. much you lower us just a

Kim Carlson

positive. take the business on I'll legacy can the the Connected this flow I about first thinking Maybe year about we're monthly Bryce part business But think quantify, to the eclipsed talk being second and the basis. half of the a where time Rewards cash

best flow positive? I quantify we midway So to we you do say the Bryce, want when can as think that's cash talk XXXX. about as through being

Unknown Executive

I without too time. it's mean I same specific, Yes. think around getting the

a You The the can the be couple business are kind seeing, positive. we legacy think overtaking it mentioned overtake the I we're and of numbers that will parallel a the the basis lot cash of we with And gross are monthly with that can business kind a company margins correct. becoming if from mentioned better margins flow gross things. see a of in you legacy

Robert Berlacher

the customers would as at I you acquisition on to a just to I -- on time? return comment any some going assume, and are the on mean was the at Okay. that goals and Everybody return provide that demonstrate different, measurement effectiveness think I same of there Kim well. you're have retaining of assume you I that that at Is at clients platform would spend. have at -- the spend your is looking mentioned looking those user driving any have And Can the metrics all all partners. can kind for you it and

Kim Carlson

That's right.

only So ad return our in days. on typically the how not paying are they people on on us X behaving per look gaming their transaction game are install, and basis a the clients spend benchmark but that at after measure results

within deliver the we looking how or at So if purchases purchasing ads many people watching are install, in-app an we're game.

spend, Now whether day pretty of as game vary means bit. game our ad targets that on essentially, to XX%, developer. varies we've been retaining XX% can metric their But that game, those return X because much gaming we're to exceeding XX%, little a XXX%. XX% is clients That X%, by it

to those and game that. us. We are or more asking to spend with exceeding meeting wanting developers are are Therefore, scale

what it success So very is the a marketer in measure of measurement game of finite world a like. looks

Robert Berlacher

that set then exceed contractually that or in you then XX%, there to how return that with example, kick X% they order So get use per ROAS? you for if the is incentives to comp you spend beyond if And your on $X you Is incentive-based transaction? in. XX% or exceed an $X you

Kim Carlson

contractually. Not us against measuring What other networks. is they're

channels if or Mobivity ROAS us. they're are compare to buying from other TikTok budget or over from If going installs on network to So they're perspective. move mobile Facebook ad a talk, one does a beating how their we even of that,

for path we're competitors. it's us really a really commercial performing our It's to because better costs increase a it's secondary our So not than transaction event. --

Robert Berlacher

what is we're then at beating or that of until they you? competitor and aware out say, business not to throw you're reach competitor so you're that look, you this So more to going

Kim Carlson

see time because back are platform. game much We developers events to pretty within And our performance the system. in that we tools see posted we've app own it also to access essentially our internal -- the built real getting have platform to

whether So That's very developers about short know platform day to trajectory day goals. we'll a it's transparent. our thing on order, is in a nice day the beat X, X game is really X,

Robert Berlacher

what who Mobivity's on move advantages are in the seeing? some other the Rewards the discuss there are competitors. to companies piece And that anyway? players then of and are that your just And if some Connected landscape you Can gaming with are

Kim Carlson

Sure.

So ad industry. the is mobile network massive a

together, lump on we're everybody of spending you of that a acquisition. If talking billions are year tens mobile dollars marketers

twofold. Our key differentiators really are

the operate device really Because kind First, turning identifier to has of the over of order tracking our by in ID concern. years off we or ability living last a e-mail upside not of down see turned we're ecosystem, device a X in-app or for what and that in device data Apple target is the to world particular outside world a marketing, in a is that marketing ad. brand SMS which our

is digital bridge core and I the are technological real the think piece other differentiators between the a the world.

to incentivized and products other ad deliver but there these -- to are where we've app incentives for types out legacy to users XX that our without that we games, what over years there are operating brands of are we've So networks that. immediately foundation redeemable metric no put built not of the last business, there's possible in performance that technology done. in And programs then real-world us the the which is the

a differentiator. of a other a a win for and the some our uniquely trackable It's publisher and are the nobody offering performance-based to channels, programs we typically. for game largest competitors one as on incentivized is programs key not address groups important both the or note brand. that the the are. that either problems but from And standpoint, attributable, competitive others do and offering offer win So It's

game placements had mentioned perform as really stickiness better the a by earlier, already Our for touched we're in brands And than ever spend the I've seeing mobile conversely, we're ad putting Chevron on they've game. app, on, as it and return this delivering seeing, their great other really any are results tile app. I

Robert Berlacher

that the hopefully, and what I of of that you it's -- positive, Are gross legacy your say, challenges quarter space? equation. forward, you exceed guess, gross profitability or are cash potentially you the in third to talked the are there business seeing the Are any about the margins out, X margin hurdles? quarters the margins are to -- seeing to gross or challenges, kind And what that going alluded and if any hope flow X you've piece risk

Tom Akin

Yes, maybe...

Kim Carlson

I can...

Robert Berlacher

of question. margins, that a going about this direction Addressing how talk for I pricing bit pricing remainder the you guess little on of and see the year?

Kim Carlson

Sure.

board we our to right think brands it I those have So when that comes in infant on on brands stages optimization. the majority of this, that Bryce touched with now, we're the

X have scientists hired data look of our -- I we've levers the new audience. think at X we to data a -- So lot that of team optimization

not that seeing certain X things clicking, Solitaire we're but games Match like enjoying maybe people games. watching or are installing So people are of more than we're set a

like the to ad technology algorithms So predictive infrastructure or would building network segment with just we're audience mobile predictive by brand. a this the

me, to better for for see We're partner, going even to levers So we're couple see return the to are to spend higher in the the lead should going experiences of customer which optimization. better on going users those just with we're simple some -- things ad happen. pull starting also app, to on even but to gaming better CPIs. branded A

The and our positive right in these gaming ability that a pretty is commercial paying get now, but in we that are us. is our costs increase a for algorithms equation, expect CPI and put game model And the dime simple, with publishers build out. should that we're quarter which optimization to

more optimization, brands, a a whole to and gaming, and should our So add build flywheel add new starts algorithms create terms which the drive commercial performance, more both consumer perspective higher. on improve, the

Robert Berlacher

And then what your is strategy...

Tom Akin

can hold on... Bob, Sorry, we

Robert Berlacher

you on. can Yes, didn't... sorry. I go No. I'm

Tom Akin

add have to I Bryce, like do you that? you'd said, anything to

Unknown Executive

No, achieved that always from risk we majority really growth, but good game we've But health we of the then about the Kim there's the the that we're what And on the gross improve doing lot are mentioned, Kim like all reasons to we're to a performance that. mentioned, delivering in publishers. dependent feel results upside built And in XXXX. it. I of as for margins date really what think Kim pipeline to to feel already and there's hit we've of the

Tom Akin

have than key our of games pricing a a the favorable. We're differentiated people but of And pricing the our on channel, going any seeing -- Bob, lot of discover. the a before. really -- channel It's seems to our going this is now. return realize, we're something lot and channel. done think is be like is of to a to it's brands have spend like different I a very is to Yes, new ad It activity

happy right monthly quarter. we're to headed well, the of a every So the lot going to we're be over, daily, adjustments there's weekly, that to and direction, but process in see

do that So excited wrong. has and We've learn. do they to an learned on want that participating, lot major, brands major we awful developed what lot some to have to a a in we're XXXX what And product participate. got to to right, continue we've

really didn't we that's apologize them So had happen lined I going doesn't that -- up, Bob? in but for your that we case. Does the tell what's the 'XX in any get that question, answer to that story financials really

Robert Berlacher

Yes, to going question, was -- I promise. last my it just does. I you --

talked potentially are there the sounds but you have you've all and you had that as launched other as about gaming publishers the ones. it about You -- that with? like partnerships brand, smaller done well publishers, you've companies, at talk Can with, X gaming

Kim Carlson

the -- publisher the names? develop game Specifically,

Robert Berlacher

was with, just I curious -- are if don't I any that people there familiar that might would be -- Yes. I just know.

Kim Carlson

Playtika, and of Sure. working and top year last is Yes. are there many XX to well was which many We around but world. of other the in and name out our Europe Interactive some of -- a Game U.S., the of Tripledot, say, located GO!, AppLovin, DoubleDown Mobile the I'd we're the partners. Scopely interestingly I'm the to as makers one actually the Many Year in -- MONOPOLY titles. few. key They as are but say actually, proud Western happy Israel, publishers with,

X XX. the that's or top So so really of

XXX% of before, we're fill supply. I mentioned rate As at our

key we've mentioned. new retained game with their basically becomes the spend onboarding that us growing publishers the we're as is But And supply well. those as I've So available.

Tom Akin

thanks, at and are Thanks, questions Operator, there Bob, this any everyone. point? more

Operator

this comments. are I no over to can call the There time. further ahead. Tom questions for closing hand at you Go

Tom Akin

look in Bryce to of on change to results Connected for particularly we have I an their forward the want Rewards. we us for thank Well, teams, really we remainder year. the where landscape this joining Kim truly and to And everyone updating really the and the you Great. opportunity call. to respectively, quarter want putting for first and position thank this

Operator

and for now Ladies this and today's participation, disconnect. your conference may concludes Thank call. you you gentlemen,

Mobivity (MFON) 16 Apr 242023 Q4 Earnings call transcript