Mobivity Holdings Corp

Greetings and welcome to Mobivity's first quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brett Moss of Hayden IR. Please go ahead.

Thank you, Operator. I'd like to welcome everyone to Mobility's first quarter 2021 earnings call. Hosting the call today are Dennis Becker, Founder, Chairman, Chief Executive Officer, and Lisa Brennan, Chief Financial 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 risk and uncertainty. We caution you that such statements reflect management's best judgment based on factors currently known and that the actual events or results could differ materially. Please refer to the documents filed by the company from time to time with the SEC, and in particular, its most recently filed annual report on its Form 10-K. These documents contain and identify important risk factors and other information that may cause actual results to differ from those contained in forward-looking statements. Any forward-looking statements made during this call are being made today. If this call is replayed or reviewed after today, the information presented during this call may not contain current or accurate information. Except as required by law, the company assumes no obligation to update these forward-looking statements publicly or or to update the reasons actual results could differ materially from those anticipated in the forward-looking statement, even if the new information becomes available in the future. Today's call may conclude non-GAAP financial measures, which require a reconciliation to the most directly comparable financial measures, which are calculated and presented in accordance with GAAP, as we found in today's press release, along with our recent corporate presentation, which is also available at mobility.com. With all that said, I'd like to now turn the call over to Dennis Becker. Dennis, the call is yours.

Thanks, Brett. And I appreciate everyone on the phone for taking the time to join us on our call today. First, I'd like to congratulate our team at Mobivity for innovating and growing through the height of COVID. We dealt with some headwinds in the first quarter as our customers also persevered through continued closures and stay at home orders. And we supported our customers with creativity, innovation, and support as they worked through the financial uncertainty at the peak of the pandemic in January. Through these challenges, we foresaw significant developments on the horizon, and we began ramping up our sales and marketing operations in preparation for what we predicted would be a significant increase in demand for our products and services. And we were right. Our sales pipeline has grown more than 500% in just the past few months. We predicted two key developments that we believe are certain to drive outperforming demand, growth for Mobivity's digital loyalty and text message marketing solutions. First, a Supreme Court decision on April 1st has significantly reduced the legal risk in operating SMS marketing programs and expanded the addressable universe. Second, major moves by Apple and others to protect consumers' privacy from third-party advertisers increases the need to engage consumers directly, a need perfectly served by our targeted, opted-in text messaging programs where consumers subscribe for targeted promotions and offers versus having their privacy pirated by third-party websites, apps, and social networks. I'm excited to dive further into why we believe we're well-positioned to capitalize on these key market trends and are still pursuing a record year, despite a start impacted by the pandemic's peak. I'd like to start off by talking about the landmark decision by the Supreme Court in the Facebook v. DeGioia case. The SMS text marketing industry has historically been hampered by a 30-year-old law called the Telephone Consumer Protection Act, or the TCPA. On April 1st of this year, the Supreme Court released its highly anticipated and unanimous decision, which greatly reduced the liability risk for companies operating SMS text marketing programs. Before this ruling, TCPA litigation had become a multibillion-dollar industry, that we believe had kept some of our addressable market from pursuing SMS marketing programs. With reduced legal risk relating to SMS, our addressable market has expanded drastically, and we're already seeing demand accelerate from brands that had formerly stayed on the sidelines. We also believe that this ruling will incentivize our existing customers to accelerate growth of their own programs through Mobivity, which could lead to increasing revenues. Just as importantly, The privacy decisions of some of the largest tech companies have turned marketing and advertising on its head. Businesses will need programs like SMS text messaging to have direct relationships with their consumers versus relying on third-party media advertising to promote their products and services. Apple recently rolled out its highly anticipated app tracking transparency feature with iOS 14.5. which lets users decide whether apps track their activity for targeted advertising. Overwhelmingly, users seem happy to disable app tracking. Only 4% of all iPhone users in the U.S. have agreed to app tracking after updating their device, according to the latest data from Verizon-owned analytics firm Flurry. Forrester's Prediction 2021 B2C Marketing Report explains that An unprecedented pandemic rendered B2C marketers' existing plans and strategies moot, and new announcements from Apple and Google put data deprecation on a fast track. But these trends aren't a flash in the pan, the report says. In 2021, marketers must prepare for an ecosystem without third-party cookies and device identifiers, all while navigating an unpredictable economy and reduced budgets and headcount. The report further forecasts that marketing message volume will increase by 40% next year as brands try to hold on to customers and drive new purchases. Mobivity's opt-in targeted SMS marketing programs are the perfect solution for marketing's new normal. Consumers opt-in to the program, which removes any doubt about privacy concerns, and are connected to an ecosystem that drives efficient, effective, data-driven marketing. We believe this is a seismic shift in the industry that will drive demand for mobility solutions and drastically accelerate growth. To capitalize on these trends, we've been hard at work ramping up our marketing operations to ensure maximum awareness of Mobivity's products and services as brands race to find solutions to engage an increasingly elusive digital consumer. Along with launching a new website that more clearly positions our services around SMS text marketing, We've executed on strategic marketing events, including a very well-attended webinar featuring Greg Cree, former CEO of Young Brands. The result has been a material increase in lead volume, and our sales pipeline has grown more than 500% since February. I will now turn the call over to Lisa for a more detailed view of our financial results, and then I will come back for a few summary comments. Lisa?