November 2012 - Mobivity

Clarified Opt-Out Regulations From the FCC

Posted by | Mobile Advertising, News, SMS | No Comments

Those of us in the mobile marketing industry haven’t been strangers to the struggles related to opting-out a user no longer wishing to receive a text message, and the lawsuits that can come with them, but the FCC shined some light on the open seas today as far as what is acceptable moving forward.

As Wireless Week notes,

“The FCC today issued a declaratory ruling stating that it’s alright for companies to send a confirmation text after a consumer has sent an opt-out text.”

The article goes on to state that the FCC confirmed that sending a one-time text message confirming a consumer’s request that no further text messages be send does not violate the TCPA of the commission’s rules, as long as the confirmation text has the specific characteristics described in the petition. “Our ruling will allow organizations that send text messages to consumers form whom they have obtained prior express consent to continue the practice of sending a final, one-time text to confrim receipt of a consumer’s opt-out request,” says the FCC ruling, acknowledging that the practice of an opt-out confirmation message is widespread.

At Mobivity, we’re pleased with the FCC ruling and clarification that will allow us to continue providing the same genuine and quality customer service and experience that both our clients and their customers have become accustomed to. Although this FCC clarification will offer no protection to downright spammers, like this group of British individuals who were indicted for sending nearly 800,000 spam texts per day, it does offer a clearer view on our day to day activities, and offers protection to Mobivity and our clients alike.

The good news, and main take away from this, is that mobile marketing is becoming a better place for marketers and brands to be. With regulations being set in place to protect brands and their customers alike, many of the headaches for mobile marketers will begin to become less and less irritating as the mobile adoption grows each year, and Mobivity will be right here to help you wade the mobile marketing waters as the tide begins to rise.

The (Quasi) Smartphone Revival

Posted by | Mobile Advertising, Mobile Experience | No Comments

According to new figures released by the Wireless Smartphone Strategies service, there are now more than one billion smartphones in circulation worldwide.

As of the third quarter of 2012, one in seven people worldwide now own a smartphone, which brings the grand total to just over 1 billion smartphones worldwide. Around this time last year, there were only about 700 million smartphones in use worldwide, showing an almost 40% increase in only one year, according to Strategy Analytics.

Although the total number of smartphones active worldwide seems like a huge number, developing markets like China and India still have plenty of room for mobile growth, with Strategy Analytics predicting that smartphones will reach 2 billion active smartphone in around three years.

While smartphones may be the fastest spreading technology in human history, it’s still important to keep in mind the number of users still using feature phones as opposed to smart phones (or dumb phones, as we like to call them). With Apple as one of the most valuable companies in the world, due largely in part to the 2007 release of the highly popular iPhone, smartphones and how to connect with your customers who have them are often on people’s minds. However, it is incredibly important to keep in mind that smartphone penetration is still only around 27% worldwide, leaving the majority of mobile phone users without access to some of the “fancier” and more media rich mobile marketing efforts like mobile apps, QR codes, and push notification systems.

Even more relevant, the United States are slightly higher in smartphone penetration with around 63% of American mobile phone users having smartphones, and 37% with more simple feature phones.

At least in the United States, it’s simple for developers as smartphones are inherently ruled by Google’s Android and Apple’s iOS operating systems. Yet marketers aiming to expand their customer reach in the mobile realm will have a hard time if only aiming to reach smartphone users. As the great David Ogilvy once said:

“If it doesn’t sell, it isn’t creative.”

It is simple for marketers to become distracted by the shiny new marketing mediums available with the wide range of capabilities smartphones offer, but is important for brands and businesses to keep in mind where their customers pay their attention.

That’s what makes a multi-faceted mobile marketing approach so much more successful. No successful business will be okay with only target 63% of their customers with any given marketing medium when the capability to reach 100% of your customer base is available, and that is exactly what makes mobile marketing and SMS messaging a perfect pair.

Mobile Becoming a More Powerful Consumer Revolution Than Web

Posted by | Case Studies, Mobile Advertising, Mobile Analytics | No Comments

When looking at the rate at which consumers adopted the internet boom of the 1990′s and early 2000′s, it’s becoming more clear each day that the mobile revolution is poised to be much more powerful and disruptive to the way consumers interact with businesses, according to a new report from Forrester Research.

Throughout the “How to Start Bridging the Mobile Monetization Gap” report Forrester Research notes that although mobile is evolving faster than the Web could have ever dreamed of, sound monetization strategies are not currently following close behind. In the report, Forrester notes that “few businesses can survive on mobile as a standalone business model, meaning that mobile more often than not takes on the role of an extension of an existent business model.” And, as Thomas Husson (Paris-based analyst at Forrester Research) notes:

“Marketers need to combine new marketing variables such as time, consumer knowledge, and place to deliver more personalized, immediate and tailored content on mobile phones. They need to anticipate the emergence of new forms of interactions with consumers by providing immersive rich-media formats that provide personalized, contextually-relevant content that is not perceived as ads by consumers,” he said. “It requires marketers to identify the value that mobile engagement brings throughout the customer lifecycle.”

Mobile Growth
Many companies like Facebook, Rovio, Twitter, Pandora, and Groupon often generate headlines in the mobile industry because of their large groups of mobile users. However, these companies have not proven business models that directly support their mobile users. One example of this conundrum is Facebook, which claims that nearly 60 percent of all its user-base is accessing the site from mobile devices, yet revenue generated from mobile only represents 15 percent of the company’s total revenue.

Similarly, Rovio boasts nearly one million app downloads via popular app franchises like Angry Birds, yet thirty percent of the company’s revenue still comes from merchandising and licensing sources, not mobile.

Global Change
Mobile web is growing at an incredibly rapid pace globally compared to the rate at which the internet grew (and is still growing). While there have surely been growing pains along the way, Forrester forecasts that by 2017 mobile internet will reach 29 percent of the Indian population, 37 percent of the Brazilian population, and 64 percent of Chinese populations; which is absolutely astounding if you consider the rate at which internet is still growing in these countries.

However, there are two key aspects that business models like Facebook and Groupon don’t offer business looking to reach customers on the mobile channel, retention and continuity.

While these mobile models offer consumers the access to businesses via extremely populated channels, they lack a key aspect for businesses to see mobile success: the access of businesses to mobile consumers. This will be the key defining factor in coming years in the success of mobile. Advertising has always been about how to best reach the customer, and how to best influence or encourage their purchasing decisions.

Mobile marketing offers that don’t consider this sort of retention will begin to fall to the wayside as corporations, small businesses, and consumers alike become more aware of the mobile world – leaving only the mobile marketing companies who can guarantee one thing, and one thing only. More customers, more often.

Mobivity Announces Third Quarter 2012 Financial Results, Projects 60% Annual Revenue Growth Over 2011

Posted by | Press Releases | No Comments

PHOENIX, AZ–(Marketwire – Nov 15, 2012) – Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, announced today third quarter financial results for the three-month period ending September 30, 2012.

  • Revenues for the nine months ended September 30, 2012 were $3,028,866, an increase of $1,492,236, or 97% compared to the nine months ended September 30, 2011.
  • Gross profit for the nine months ended September 30, 2012 was $2,021,578, an increase of $1,055,553, or 109%, compared to the nine months ended September 30, 2011.
  • Q3, 2012 revenue increased to $1,006,262 from $842,885 in Q3, 2011, a 19% increase.
  • Q3, 2012 gross profit increased 32% to $699,201, vs. $531,168 in Q3 2011.
  • Gross profit as a percentage of revenue increased to 69% from 63% in the third quarter of 2011.
  • Projected 2012 revenues of $4M, a 60% increase over 2011 annual revenues.

Dennis Becker, President & CEO, was quoted as saying — “On the heels of ingesting additional working capital from our May, 2012 financing, we have increased our investments in sales and marketing substantially. In fact, our marketing budget during the third quarter of this year increased over 400% over the second quarter. New investments in sales and marketing, coupled with recent product enhancements, are expected to drive quarterly sequential growth that will begin to manifest throughout the fourth quarter and beyond. We’ve also continued to drive down our service delivery costs through further consolidation of operating resources from our acquisitions during 2011. The Company also believes there are additional inorganic growth opportunities, such as acquisitions, that could escalate our increasing market position from the more than 5,000 Local Advertisers already using our technology. We believe the fourth quarter will yield a growth quarter for the Company, and we’re highly enthusiastic of furthering our mission to lead the market in delivering mobile marketing solutions to the millions of Local Advertisers across North America.”

Business Update

The Company has continued to further its penetration of the Local Advertising market by delivering its Software as a Service (SaaS) platform to more than 5,000 locations nationwide. In addition, the following key business development milestones have been achieved that provide additional access for the Company to the Local Advertiser market;

  • Contract with a major family recreation association providing access to more than 4,000 facilities nationwide.
  • Corporate contract with a major beverage retailer to enable mobile marketing services to its more than 750 locations operating in 26 states.
  • Nationwide deployment of services for a major Quick Serve Restaurant has increased our provision of services for this restaurant chain and now yields in excess of $1M in annualized revenues commencing as of November of this year.

Mobivity has also continued to see success from the Sports and Entertainment industry with several notable wins including;

  • Three year contract with the Los Angeles Clippers.
  • Partnership with the Arizona Cardinals for the 2012 season.
  • Three year contract with the Minnesota Wild.
  • Partnership with the Circuit of Americas, home of the United States Grand Prix.

In the last twelve months, Local Advertiser use of Mobivity’s patented technology has grown significantly. Consumer membership of Mobivity’s Local Advertiser programs has grown more than 300%. The total number of SMS and other interactions facilitated by Mobivity’s platform between Local Advertisers and consumers’ mobile phones has also grown more than 900% in October of this year when compared to October, 2011.

 
 
Financial Summary
  Three months ended September 30,  
$000s ex-EPS 2012 2011 Chg.
Net Revenues $1,006 $842 19%
Gross Profits $699 $531 32%
GAAP Net Income (loss) ($2,356) ($1,574) 50%
Adjusted Net Income (loss) ($396) ($314) 26%
GAAP EPS (Diluted) ($0.10) ($0.07) 42%
Adjusted EPS (Diluted) ($0.02) ($0.01) 20%
Diluted Shares O/S 23,215 22,049 5%
   
(1) Please see non-GAAP reconciliation table below
   
   
             
Non-GAAP reconciliations:            
             
    Three months ended September 30,  
    2012     2011  
GAAP Net Income (Loss)   $ (2,356,398 )   $ (1,573,640 )
Depreciation and amortization   $ 130,579     $ 191,783  
Change in FMV of derivatives   $ (213,089 )   $ 401,710  
Non-cash stock comp expenses   $ 104,561     $ 533,388  
Gain on contingent considerations     157,943        
Interest expense, net   $ 1,780,873     $ 133,055  
                 
Non-GAAP adjusted net income   $ (395,531 )   $ (313,704 )
Weighted avg. diluted shares     23,215,481       22,048,802  
Non-GAAP adjusted EPS   $ (.02 )   $ (.01 )
                 
                 

About Mobivity:

Mobivity (http://www.mobivity.com) is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers across multiple channels. The only system of its kind, C4 is a cloud-based solution, which provides broad mobile communications and extensive CRM features to clients. C4 is integrated with multiple tier-one PSTN/IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Additionally, Mobivity offers a unique graphical system through its patented Display Technology, which allows fans to interact with their mobile phones and high definition video boards and screens in real time. Mobivity’s past and current clients include CNN, Disney, NFL, Sony Pictures, AT&T, USTA, Chick-fil-A, the Golf Channel, NBC Universal, numerous professional sports teams, and many others.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted net income and adjusted earnings per share. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our “recurring core business operating results.” We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

Cautionary Statement Regarding Forward-Looking Information

This press release contains certain “forward-looking statements” relating to the business of Mobivity Holdings Corp. All statements, other than statements of historical fact included herein, are “forward-looking statements” including statements regarding the impact of the proceeds from the private placement on the Company’s short term business and operations; the Company’s revenue projections for 2012; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, and involve known and unknown risks and uncertainties, including the risk that the fourth quarter revenue relied on for the Company’s 2012 revenue projections may not be realized; the Company’s inability to identify or successfully conclude any additional growth oriented acquisitions; the Company’s ability to obtain additional working capital as and when needed; the Company’s ability to successfully refinance or restructure its 10% secured promissory notes, in the aggregate principal amount of $4.3 million, which come due on April 15, 213 and those other risks set forth in the Company’s 2011 annual report on Form 10-K filed with the SEC on April 16, 2012 and subsequently filed SEC reports. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may not be realized. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors described above. All forward-looking statements attributable to the Company or persons acting on its behalf months are expressly qualified in their entirety by these factors. In addition, the Company does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by the federal securities laws.

Contact Information

  • For additional information, contact:

    Investor Contacts:
    MDM Worldwide
    Investor Relations
    Mobivity
    (646) 403-3554

Mobivity and Florida Citrus Sports Announce Two-Year Partnership for Capital One and Russell Athletic College Bowl Games.

Posted by | Press Releases | No Comments

PHOENIX, AZ — Mobivity Holdings Corporation (MFON), an award-winning provider of patented mobile marketing technologies and solutions, is excited to announce a partnership with Florida Citrus Sports to cover four bowl games over the next two years. During each game Mobivity will work with Florida Citrus Sports to encourage fan engagement for both the Capital One Bowl and the Russell Athletic Bowl, allowing fans to interact with Florida Citrus Sports using their patented mobile marketing platform, as well as in-stadium HD graphics for live polling and interaction during sporting events.

Michael Falato, Senior VP of Sales and Business Development for Mobivity, stated, “We couldn’t be more excited about working with the Florida Citrus and Tangerine Sports Associations. College-aged individuals are some of the most active in the mobile world, and we’re looking forward to seeing heightened engagement and fan interaction for the Capitol One and Russell Athletic Bowl games.

Mobivity will be developing and managing two real-time HD video board graphics for each of the two bowl games over the two-year contract. Mobivity’s patented and award-winning Display technology will allow Florida Citrus Sports to engage fans during each event through high-definition graphics that will display polls, voting, and contests aimed to increase fan engagement before, during, and after events.

“We are always looking to enhance the fan experience at our games, and Mobivity’s services help us to stay proactive in the mobile space,” said Steven Hogan, CEO of Florida Citrus Sports. “Fans are now accustomed to using cell phones to interact during a sporting event, and together with Mobivity we can give them this opportunity.”

Mobivity is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers across multiple channels. The only system of its kind, C4 is a cloud-based solution, which provides broad mobile communications and extensive CRM features to clients. C4 is integrated with multiple tier-one PSTN/IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Additionally, Mobivity offers a unique graphical system through their patented Display Technology, which allows fans to interact with their mobile phones and high definition video boards and screens in real time. Mobivity’s past and current clients include CNN, Disney, NFL, Sony Pictures, AT&T, USTA, Chick-fil-A, the Golf Channel, NBC Universal, numerous professional sports teams, and many others.

For additional information, contact:

MDM Worldwide
Investor Relations | Mobivity
(646) 403-3554

For business development opportunities:

Michael Falato
SVP of Sales & Business Development | Mobivity
michael.falato@mobivity.com
Phone: 512-522-4710

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