Mobivity Holdings Corp

Greetings and welcome to Mobivity's first quarter 2022 earnings call. At this time, all participants are in a listening mode. A question and answer session will follow the former 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 proceed, sir.

Thank you, operator. I'd like to welcome everyone to Mobility's first quarter 2022 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 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 management's best judgment based on factors currently known and that actual events and results could differ materially. Please refer to the documents filed with 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 statement. 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 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 turn to caller Dennis Becker. Dennis, the call is yours.

Thanks, Brett. And thanks, everyone, for taking the time to join us on our call today. Our team has done an incredible job building on the momentum created in the fourth quarter of last year. To recap, the digital marketing landscape has been upended by additional privacy measures and restrictions to tracking online activity. These changes have affected the ability to target and market in the digital world. These tectonic shifts have been felt by the largest players, including Google and Facebook, all the way to the smallest marketers in the way marketers conduct business. Mobivity has always been at the forefront of connecting premium brands to their customers in real time. Through our existing relationships, we have an opportunity to connect millions of consumers playing games, streaming video, and other digital activities to everyday retail food and convenience brands and vice versa. Thanks to our technology that powers unique one-to-one mobile messages, unique offer and promotion codes, and perfect attribution for campaign optimization and measurement. Thanks to our platform, consumers can choose to discover goods and services through rewarded incentives, whether that's playing a mobile game to receive offers at their favorite restaurant or downloading new games or content in exchange for discounts on fuel at their local gas stations. These programs are 100% opted in by consumers and immune from all the changes that have ravaged the digital advertising industry. This presents unique and valuable opportunity to both brick and mortar brands and digital first businesses to target and reward consumers. I'm pleased to report that during the first quarter of this year, our team successfully executed several programs proving the value to brands and that consumers are excited and willing to receive such rewards. These early results have shown that the product market fit is right and demand for Mobivity and our technology is strong on all fronts. Mobivity has developed three distinct applications for leveraging our existing product and technology suite to deliver real-world rewards for digital businesses. First, we launched a solution to solve the growing user acquisition crisis facing app developers. Since the new privacy restrictions on advertisers it has become exceedingly costly for game publishers and other app developers to market to and acquire new users. Our new rewarded user acquisition solution combines real-world incentives for consumers downloading and trying new games with in-person rewards like gas discounts and free quick service products. During the first quarter, we executed programs where checkers and rallies, SMS subscribers, were offered a free premium cheeseburger or chicken sandwich in exchange for downloading a mobile game. This trial campaign has now led to a much larger program launching to hundreds of thousands of consumers in Q2. Consumers will receive free food at a premier nationwide brand in exchange for downloading a popular mobile game. We think rewarded user acquisition has tremendous upside as it's a win-win-win. The consumer receives a free product, the gaming publisher gets a new user, and the brand gets more traffic. The revenue model for rewarded user acquisition is also lucrative, as digital app publishers will pay upwards of tens of dollars for successful downloads of their app. Mobivity is uniquely able to pursue this opportunity and rapidly expand, given that integrating app publisher systems to our retail brand's infrastructure is made possible by our existing software platform. We believe there is a large universe of addressable users and thousands of games and brands for our current solution to capitalize on. Next, rewarded play. Our unique combination of mobile SMS messaging and integration with brick-and-mortar point-of-sale systems is now powering rewards for mobile game publishers where gamers earn points the more they play games. Players can then exchange those points for free consumer products at any number of Mobivity's consumer brands. In the first quarter, our team launched rewarded play programs for several of our food service and convenience brands across about a half dozen mobile game titles that attract millions of monthly active players. We have developed an exciting and healthy pipeline of new gaming partners and game titles, plus new food service and convenience brands that want to get into the game. Last but not least, beyond mobile games, there's a vast marketplace of console gaming platforms, such as Microsoft's Xbox or Sony's PlayStation. One of the fastest growing segments in console gaming is free-to-play set-top games. A new opportunity for these game publishers to monetize on their players is providing players with opportunities to unlock in-game rewards in return for choosing to view brand-sponsored videos during their downtime. We're now pioneering a solution where these brand-sponsored videos will also include a QR code that can be scanned to receive real-world rewards. Imagine watching a video to receive both an in-game reward but also a free pizza. Before I hand the call over to Lisa, I'd like to highlight that the revenue model from this new business is based on fees priced in the multiple dollars per transaction, where our previous model priced services in the pennies. In fact, there are opportunities for an even far higher fees in the future with more sophisticated programs. It's also important to note that much of the upside can be powered by our existing infrastructure, where we have significant capacity left to scale and grow the business. 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?