Mobivity Holdings Corp

Greetings and welcome to Mobility's fiscal year 2022 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 Maas of Hayden IR. Please go ahead, sir.

Thank you, operator. I'd like to welcome everyone to Mobivity's fourth quarter and fiscal year end 2022 earnings call. Hosting the call today are Dennis Becker, founder and chairman, chief executive officer, and Lisa Brennan, chief financial officer, and Kim Carlson, chief revenue 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 that management's best judgment based on factors currently known and that the actual results or events will 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 statement. Any forward-looking statements made during this call are being made as of today, March 30, 2023. 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 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 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 Mobivity.com. With all that said, I'd like to turn the call over to Dennis Becker. Dennis, the call is yours.

Thank you, Brett. And I appreciate everyone joining us today for our 2022 fiscal year earnings call. We are excited to share our achievements and progress over the past year, as well as our vision for the future. Last year, we began to transform our business to focus on Connected Rewards, a platform that brings brands and digital businesses together to cross-promote services with everyday incentives that deliver instant gratification to consumers and drive higher retention and spend. In particular, We focused on the mobile gaming industry where Connected Rewards has proven to create a unique win-win-win between game publishers, popular restaurant and convenience store brands, and consumers seeking relief from rising food and fuel costs. According to industry reports, mobile ad spend is projected to be $362 billion in 2023 and consumer spending on mobile games is projected to reach $270 billion. Based on those numbers, the results from trials last year, and the growing momentum we're seeing in early 2023, our goal is to grow Connected Rewards beyond our legacy SMS marketing business by the end of this year, and we see a massive opportunity in front of us. The Connected Rewards platform is a new channel for mobile user acquisition, both for mobile gaming publishers and for brands to build their digital audiences. Coupled with the delight that our programs bring to consumers, We create a win-win-win scenario for all parties involved and we see tremendous upside to this business. Game publishers are able to offer a higher value user acquisition and advertising experience for their players versus intrusive pop-up ads advertising competitors' games. Restaurant and convenience store brands can leverage Connected Rewards to drive sales through valuable incentives reaching a highly engaged and attentive audience spanning millions of players. Importantly, Consumers have responded incredibly positively to the model, enjoying a less disruptive ad experience while saving money on everyday items like food and fuel. We've seen results to date that give us confidence that the Connected Rewards platform is a material competitive advantage and will be the driver of significant growth in the future. As a result of our trials throughout last year, the number of game publishers we work with has quadrupled, and the number of games we've executed Connected Rewards promotions has more than doubled in recent months. In terms of brand partnerships, such as restaurants and convenience stores, we have grown from four to 14 brands, with the number of Connected Rewards cross-promotion impressions soaring to just under 2 million to more than 5 million. We qualify an impression as a transaction where a brand offers an incentive to promote another digital business's service, such as a mobile game. to incentivize their consumer to install an app or a game in exchange for a brand reward, say 20 cents off fuel or a free burger. Monetization of those impressions is a key component of our revenue model going forward. Recall that our former SMS marketing business resulted in transaction fees in the sub-10 range. Our early results from Connected Rewards have shown transaction fees ranging from $2.50 to as high as $15. While it's still somewhat early in our business model, we're very encouraged by the increasing demand from game publishers who see tremendous value in rewarding their players with high-frequency, instant gratification rewards. As we've shifted to focus on connected rewards in the multi-billion-dollar gaming industry, we've added to our team to ensure we are positioned for success. Late last year, we welcomed Kim Carlson as our Chief Revenue Officer, who brings a wealth of experience in growing game publisher and brand customer bases. We're excited to share that in addition to Kim, we've also successfully attracted other seasoned professionals from the gaming industry, including product analytics and growth professionals that will continue to expand our business and deliver outstanding results for our game publishers. This new talent will be instrumental in helping us drive growth and capitalize on the vast opportunities that come with connected rewards. Finally, I'd like to draw attention to the continued strong performance of our legacy business. which has provided a solid platform for revenue and customer reach. We saw year-over-year quarterly revenues that were much higher than our fourth quarter of 2021, reflecting a more typical run rate for our SMS marketing business. While we remain committed to our legacy business, our focus is on building and growing connected rewards. As I mentioned earlier, our goal is to expand connected rewards beyond our SMS marketing business by the end of 2023, making it the primary driver of our business growth in the future. We believe that Connective Rewards represents a significant opportunity for us to capitalize on the vast potential of the mobile gaming industry and create value for our shareholders over the long term. 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?