MFON - Earnings call transcript Q3 2024

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Operator

Good afternoon, everyone, and welcome to Mobivity's Third Quarter 2024 Earnings Results Call. Hosting the call today are Bryce Daniels, President; 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 factors currently known and the actual results or events could differ materially. Form documents the the its SEC, filed report the to from most to report quarterly with annual time and on refer filed XX-K. company by time recently on Please Form and XX-Q in particular, identify differ These to and other actual those contained in risk information documents important factors may that contain cause statements. and from results the forward-looking statements are of being forward-looking made call made this today. during Any as contain these update if could in results this update in current reviewed new publicly statements or accurate those after forward-looking the forward-looking the call available or replayed the the reasons may by anticipated future. from is during materially not required to information actual even assumes statements, call becomes the differ as the If company no or to information information. Except today, the presented law, obligation found call comparable that presented President. Today's most accordance and Daniels, the which include said, calculated measures, over corporate at along and to the to presentation, are I'd be is financial appointed call today's may reconciliation Mobivity's GAAP also in Bryce mobivity.com. With turn which require to a available recently with our non-GAAP in financial with press recent which like release, measures directly can Bryce, is yours. the floor

Bryce Daniels

afternoon, good Thanks, Brett, us XXXX all you Earnings Call. for joining We and everyone. Mobivity's appreciate today Conference Quarter Third

casual marketplace, new vice our and performance to company brick-and-mortar connecting story, within games a to investors operates brands mobile For audiences, Mobivity technology is marketing versa. that a digital primarily

possible in-person digital authentic valuable and and Our in their businesses Connected marketing building channels. thereby Rewards environments relationships and by platform exchange all and redefines value between bridging consumers

platform. of notably, for marked SMS pivotal that business, our Mobivity's marking in we another completed I'm Connected period of QX divestiture report history. significant Mobivity's XXXX pleased moment a marketing legacy the progress Most Rewards to

rewards margin massive and us connected this resources attention our and market allowing focus are addressable business. growth high on company, pure-play gross the to all a for now We high

our business becoming transformation, rewards successful completion pure-play from connected are QX of company. a Mobivity resulting highlights Some the in

the us momentum seeing in few our increasing audience its Our in gives has profitability next in We're months. continued our achieving reach established strength backlog, we trajectory, building and pipeline which the and confidence in previous on trajectory growth quarters. strong growth unprecedented

quick-serve worth programs fiscal our exceptional X and value. establishing expectations, channels platform programs Our both of business earn-out divestiture X final completion continued through provide cash will with SMS programs, at audience provided that our XX.X for exceed to the brand and our we achieved ROI million some flow over launched partners, cash will and our our strategies. The reached with and brands strategic acquisition the step continue years. transformation. most through reach. The the Rewards consistently business transaction of Connected highlighting XXXX we've our It's in in an performance for of space. and publishing with million game new deliver Year-to-date, launched to our from the grow metrics on and marquee restaurant themselves delivering XX customer our over us users allow consumers about store reached milestones We engagement technical partners. strong next major drastically we've The the scale closing programs. our brands We've with represents year. convenience the the effective

approach In through to of to progress we've focused substantial complete conversion Rewards, next is Rewards per by platform, and what customers scale product Connected attention action. expect now the been strategic QX, our we're our of COO, rapidly. Mobivity's direction. allows the the success us the our connected more structure. continue excited revenue our and scaling Kim With on Connected made and focused about growth increase we pace resources, on and across over rates able new Our Revenues in streamline bring management cost capabilities all results we QX few couple Carlson, dedicate we key our to to these grow, meaningfully innovation technical further months. With validating months proven Mobivity's achieve to and I'll rewards as all business materially revenue and of call to necessary on that, be our continues for we driven the and to to formula. operational details Kim? our will size, of metrics, over our next progress outlook. now hand our the audience work

Kim Carlson

our market. pure-play we spends are Mobivity's With expanding share platform Bryce. continues of company this to to uniquely you, mobile $XX of to which a Connected user market over rewards Rewards a positioned capture connected massive retention, target annually Thank transition billion. and complete, acquisition now an

channels particularly partners, fostering and pipeline our Connected growing sustained our performance expansion customers that cannot our a our channels. we to highs, new reach that brand believe market our and will the we value the both continued and We're partners, historic we and acquisition that growth. What's is backlog is provides and approach validates programs. effect validation most both our which The are of gaming strategies, is drive customer of for audience other strong one creating network valuable for encouraging Our seeing consistent value deliver believe of at our the get Rewards opportunities partners. from engagement

market now similar processing audiences. apps. in are on gains from already evident verticals our fundamentally in our our for goods, and not on The discount packaged consumer exciting restaurants deliver verticals. With the product streamlined verticals are we necessary innovation is like verticals but and execution consumer operational remains efficiency market our These opportunities to though are with achieve growth expansion this focused dynamics us now and and profitability amplify substantial stores, we gaming quick-serve levers focus other set-top new consumer efforts. and huge accelerate convenience approach to focus These in responsiveness. can Our Connected Rewards, growth core

of some remaining and milestones technical capture is growth through focus ahead, the look breaking in our our Rewards scaling we Connected substantial As remains on to us. front platform that

to our excited coming are positions well expanding and than his to transformation market. call for strategic calls. With mobile share us that, We're our acquisition of and share Bryce ever confident hand in I'll retention remarks. closing future the progress capture more to user the back an completed Our the in

Bryce Daniels

Thank Mobivity, our our quarter and reach sight. a positions us the completion and you, create as our rewards in In combined we transformative direction was significant a company growth audience profitability focused to in Kim. pure-play business pipeline for excited our for significant about with backlog the positioned connected are and of growth summary, divestiture, SMS well QX with continued believe value and shareholders. We're record

direct worked for filed recently an financials XQ time time file to filings financials. complete detailed we investors review As complete due public to need our to We the the auditors extension always, diligently frustrated has delay. on extra and to are by filing. Mobivity to for our the our

released prior the on of the call Xx couple margins. with early Rewards approaching used filing margins points. be low showed a Connected marketing market a our next business. a expect and small on loyalty is to week. I'll to with gross Mobivity was active addressable important and market. the that addressable focused gross run close We business massive focused

XXXX detail of second talk quarter to excited support. expect end than months every scheduled we're firing we XXXX, Mobivity I'm for cylinders we company. time and on in open next on XXXX. all to the see of managing are The achieve our about today. As revenue happen. to and you is an and you all we Connected XXX% call, to focused call all between of first please a our XXXX your questions. Operator, done the exciting to The time the And this is now Rewards what said continued clear has for doing few Thank that we're and on then. In path for ever more it team make

Operator

Porter [Operator Capital. Instructions] Jeff from We have Porter

Jeff Porter

mentioned sale factors why you've through account? is significant process, backlog which got gating X-month the growing You that what me to closed? process? a X-month process major assuming, X-month a ROI people, they're take getting to of you show deals and Because so great the Is interested. metrics And Can you've to had I'm the a or are timing a pipeline. a

Bryce Daniels

then right got more Yes. our a metrics good much really very I'll past helped answer level, months the we've for data the for Jeff. a pass lot accelerate really of you're sales Kim little from at of operating business and I'll high XX and Thanks that detail. that a cycle. question, to this

cycle our time from a it of kind months lot but a closed data of think by of with have cases, now, deal large. now and to weeks is couple market we're one you have the tough showing is brick-and-mortar fact is I dynamics of brands that a that if is accelerating to sales meeting we within first data. that The that's and through still it a couple don't a sell of

I'll to have a are agreed Kim getting integrating build Mobivity, with brand is latter items the range of partners Your the once and use. just the the any brand and for on at pass maintain gating to do that the also side, that apps. build what these -- live folks maintain answer it's specifics. sign call they customers the once work platforms And to to to point build necessary kind loyalty, about with folks the up. from We, and technical integrations partners of wide loyalty technical Kim question our they've different with deal more the

Kim Carlson

too Jeff. much. Thanks, add Yes. Thanks, Bryce. I wouldn't

one performance on from in app. leading to Bryce rewards these performance brand think loyalty providing case side, as the their over I brand points, with help which And the studies we're cycle helps the the kind loaded on into data close instantaneously obviously, hump. be we allows of an then integration put more get sales the publicly the deals consumers technology of that the integration announced data because, said having strong the key on platforms, mentioned, brands the simply

that integration is that fantastic doors, for some helping referrals is providing partners so open moreover, But complete. question, and are then these And a already integration this and feature.

So integration reduced. is the largely time

Jeff Porter

could you, what there? that, what following our And associated just typical game an a a between me like how and we paid looks a you video costs. arrangement And partner get are marginal Great. brand idea business do company, give of in

can I understand sort model? the So the of of economics

Bryce Daniels

Yes.

transaction the X game it's platform, of So parts to at on bottom on It's other the one the and triangle a brand consumer kind side. there's publisher then on Connected Rewards It's mobile a side. right? our of the the

a there most So our in an now number of the data brick-and-mortar have. that a month. that exciting because terms impressions is these saying I would we're certain to we in one give they sign that every brand business longer with the signed contracts agreement of us we of developments add able

game, in-app e-mail, number we'll to term place in that the sometimes a place something are signage, model ad, The -- delever the ad folks download on a placements, mobile between the at is that we whether which will relevant brand, an discount year brand of brick-and-mortar we brand per of saying, paid channels. ads interacts to anywhere is a a say economic you get your and reward a $XX it's like x extent then $X on a customer, for something discount with placements, impressions get So per exciting month us. We free burger, in-store that. website sometimes is or all drink gas, this the install.

So someone for and game, $X the of the $XX. We the paid cost reward. Mobivity reimbursed the every gets between time installs brand

pay a of burger. drug, we the if the it's that free brand for cost So

the things is technical to the it's the low, XX% our we XX%. that advertisement of is of cost that's is. pays the X% -- there us marginal game And So in brand. and what what reward cost of costs Usually, those to from and X very of then terms X%. our And clip, to difference types between a take

details you. So you to I'll floor have if the in, give Kim, any fill to

Kim Carlson

No, I [indiscernible].

through well.. walk it You

Jeff Porter

portion we there onetime there participate And Is things we that in-app recurring So that's is experience a earn. then fee in? that? some that to

Bryce Daniels

Yes.

think to every the So consumers right? SaaS that now, a agreed It's we business at predictable place make period as and job the brands good the we've those number not which of us of with revenue, our time. over a a of our recurring month. certain impressions sure interact long deliver reoccurring, they've think it's we do impressions -- rate, that interact But ads gotten with a to to our

reoccurring it So your month-over-month kind Jeff? question, revenue, it's we true good feel recurring of that that Does is not although answer revenue. SaaS

Jeff Porter

download Right. a means that just a But still can several customer, games? they onetime we're per But that game. -- customer download when so earning certain that

Bryce Daniels

see Yes. many as customer download The them. can of as games in they front

Jeff Porter

Do customer at time the to brand Do utilize a they up that all? on say, get we dealing that Do a we discount? every gasoline. let's discount and anything, participate we at with participate is in and gas fill go we're getting retail all

Bryce Daniels

that side not business do now. right participate our We in of

is users I think the loyalty on that business participating exciting to the ways our one platform. their when can evolve of brands acquire

Jeff, a member ad say, you for interact fuel of already you're with let's a not example, loyalty brand So for program. an that their

to where us that offer a our pay up brands sign gas, loyalty for program. future program. use go loyalty You sign the driving and There's their the for for scenario person in potentially up to would get

Operator

are your -- more. Patterson from we no conference gentlemen, further This ], questions have and private at There Apologies. investor. time. concludes Ladies X call today this [ for is this Mark

Unknown Analyst

might comes just answer wondering be Q could any Since if Kim. a I out. your of you I to able questions couple and Bryce didn't see that come ask I before out, financials was

upfront. some the You mentioned receiving divestiture SMS cash and

I Is balance And I fairly know any second EBITDA. next more the on can give in of few some debt would be, a months, the for you your think even GAAP been the achieving company. earn Bryce, you maybe allocating of sheet sheet super how maybe mentioned much there balance adjusted is said that then I to that? to exciting results the out over you profitability this to detail question time. improve kind think, which have close the to you're period maybe situation? And

by certainly, by right a quarter second I'm most about not quarter you likely cash cash flow the the second are see a So or quarter first sometime being yourself positive basis, thinking in the in on but well, runway position as talking you for flow -- certainly the now?

Bryce Daniels

Mark. that Thanks, from -- that the the appreciate so question out. the sale. proceeds We've when I came X probably Yes. The question. the announced first weeks SMS about on ago,

commenting X at years then about comfortable paid there. and based on for in the on an we those how next buyer's for cash closing I'm in how received get earnout basis hands. We on specifics the performs business So the -- business, $XXX,XXX the the

what But that aisle probably right decisions second we'll structure we're I that capital next cash all suffice a of and say to growth motivated we leg us cash the to and the think -- are it's use achieve a and have profitability, the given comes haven't we early say, in we think, in given place. To it little business, balance -- given in and front until all in. your sheet of question little when look, too make I would of get that the the we're be balance opportunities of the right Mobivity. very about in where the we're excited about to

some I'm think to. where I is about around and we'll line right think XXXX kind to of the and give point be any of program real put are to pipeline backlog first probably that, us on half real concrete feelings hesitant the I but the time the it, specifics the

Unknown Analyst

thing story, The I that ramp-up strong with divested guess do SMS part flow XXX the my business, related the my I divestiture or cash expenses new the business question super profitability achieve sounds guess is parts. maybe it the the of of business? now, to is it's also positive of which race positive. just having up were cash to first Great. your XXX% like story has could follow flow lot a revenue -- with X is If recurring on to a of which I part

Bryce Daniels

business cost a going really things mountain makes correct. then hosting That's of maintenance don't to because us and have to does the our technology of a One technology just innovate couple Connected expenses lot portion also is for Rewards wasn't relevant it a how a us. shed lean legacy it of second, this which more And lot technology. maintain. prior in that going kind We've cuts Yes. the to we from of forward business forward, we good costs we have that of of that continue and a

Operator

your are for that concludes at lines. today. call please ask gentlemen, time. We this and participating you no your There for conference Ladies and questions you disconnect further thank this

Mobivity (MFON) 14 Nov 242024 Q3 Earnings call transcript