Mobivity Holdings Corp

Greetings, and welcome to Mobivity's fiscal year 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 everybody to Mobivity's physical year 2021 earnings call. Hosting the call today are Dennis Becker, founder, chairman, and chief executive officer, and Lisa Brennan, chief financial officer. Before I turn the call over to management, I'd like to call you with 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 management's best judgment based on factors currently known and that the actual results or events 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 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 the forward-looking statements. Any forward-looking statements made during this call are being made as of today. If this call is being 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 statements, even if the new information becomes available in the future. Today's call may include non-GAAP financial measures, which require a reconciliation to the most directly comparable financial measures, which are calculated and presented in accordance with GAAP and can be 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 thanks, everyone, for joining us on our call today. First, I'd like to say how proud I am of the team at Mobivity for the innovation and progress we have achieved over the past year, and particularly in the fourth quarter. 2021 was a year of change in the digital marketing universe and at Mobivity. The digital marketing industry was turned upside down by stringent privacy regulations, and particularly to changes in tracking and advertising to mobile phones. Mobivity has always been a better solution to the many challenges in digital marketing. but we are unique in the way we address this new slate of challenges. We seized the opportunity presented by these changes and pivoted to some new exciting verticals while continuing our expansion in restaurants and convenience stores. This pivot has positioned us to be able to achieve rapid growth with higher margin and higher value of recurring revenue by solving the new multi-billion dollar problem in marketing, which is where advertisers find large audiences and how they target them. Simply put, our legacy business drove the digital transformation for brands through building audiences for SMS marketing from scratch and for fractions of a cent per customer. Our new business line that focuses on connecting existing offline and digital audiences can bring in many dollars per customer across a larger and more active audience. Mobivity's technology empowers our customers with 100% unique offer codes. perfect attribution and tracking, all at scale better than any other competitor. Our customers use Mobivity technology to reach and engage more than 100 million consumers across more than 40,000 locations across the globe. We're executing millions of digital engagements to these customers on a monthly basis. And because we have demonstrated the incredible reach and the value of our unique technology, We are positioned to connect these millions of consumers across thousands of locations and brands to online businesses like video games, gambling, and streaming video across all platforms, including mobile phones, set-top boxes, and gaming consoles. These connections are some of the highest value in all of the digital industry, and we have the potential to transform digital marketing. I'm pleased to report that we began executing this pivot in the fourth quarter of last year. We connected several mobile gaming operators to our large brand consumer audiences and have already successfully launched multiple programs in the first quarter of this year. I'd like to explain in a bit more detail why we believe we are uniquely positioned to create a valuable marketplace at the intersection of digital and brick and mortar brands. First off, we're able to leverage most of our existing technology and product assets with minimal new development costs. For example, Leveraging our unified offer solution that produces unique, scannable coupon codes already used by many large brands, consumers could redeem points earned by playing a video game or watching a streaming video online for a pizza or 30 cents off gas at their nearest Circle K. Conversely, a burger chain could send an SMS text message offer, giving their customers a free burger if they download a mobile game. or a convenience brand advertises a game in-store and through their website and offers customers a range of redeemable offers for trying a streaming video service. In each of these examples, Mobivity is the technological plumbing that connects offline and brick-mortar consumers to digital products and vice versa. We've become the vital gateway between consumers, physical goods and services, and digital-only businesses and power promotions and offers that are organically placed within existing channels. Formerly, we relied on a long sales cycle to get brands to commit to deploying our solution and then spend months to a year organically building audiences to market to through SMS text messages and digital promotions. Under our new model, we simply match digital and real-world audiences and drive and power consumer interaction between their respective businesses. Where we used to endure months-long deployment cycles prior to revenue production, instant audiences between digital and real-world brands means much shorter time to revenue. Additionally, our technology has the scale, ability, and is purpose-built to power the interaction between consumers and brands uniquely across all marketing channels and all points of sale, whether in-store or online. On top of this, we have major brand clients such as Circle K, Pepsi, Subway, and others, which means we provide digital businesses an instant and lucrative real-world stable of brands with which they can partner. The digital-first companies that we connect with brick-and-mortar brands operate in the mobile gaming, mobile gambling, and streaming video markets, among others. These are rapidly growing industries with massive addressable markets and valuable customers. These partnerships will exponentially grow the addressable market for our technology. Finally, just as with our former model, where we predominantly generated recurring revenue through fees from SMS volume and brand locations, our new model also drives recurring transaction fees as digital and real-world brands conduct transactions, although at multiples higher dollar value. We're pleased to report that since developing this new model in Q4 of last year, we've already achieved four new key partnerships with digital consumer businesses that are running live programs with our existing brand customers. These programs have delivered thousands of consumers from digital environments to brick and mortar brands and vice versa. We're also seeing strong demand from additional brick and mortar brands and digital partners with many new deals in the pipeline. Our early velocity is supported by the fact that our existing product and technology platforms need very little development to power our new business model. Before I hand the call over to Lisa for a more detailed summary of our financial results, I will point out that our shift in our business model did require restructuring some of our existing customer contracts to support long-term upside. We made the tough choice to accept some short-term changes to ensure the long-term upside of continuing relationships with key customers. We strongly believe this will fuel tremendous upside within our new model. While we're not pleased with the short-term impact of these changes, we are excited that these customers are continuing as a mobility partner to help us pioneer a revolutionary way to connect digital and brick-and-mortar consumers in an era of privacy-protected commerce. 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?