PHOENIX, AZ--(Marketwired - May 16, 2013) - Mobivity Holdings Corporation (OTCQB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, announced today first quarter financial results for the three-month period ending March 31^st, 2013.

• Q1, 2013 gross margins increased to 72%, up from 64% in Q1, 2012.
• Q1, 2013 gross profit increased 15% to $743,371 from $645,437 in Q1, 2012.
• Adjusted EBITDA improved 61% to ($152,706) from ($395,748) in Q1, 2012.
• Net cash provided by operating activities improved $388,836 to $60,489, from a net cash used by operating activities of ($328,347) in Q1 2012.

Dennis Becker, President & CEO was quoted as saying -- "Historically our revenues have been comprised of both shorter term, yet larger, national brand campaigns coupled with a portion of customers on recurring agreements. This has resulted in a relatively dynamic revenue profile for the business. In the last eighteen months we've made great strides in growing our focus on delivering services to the local advertiser market -- a market that's historically spent $130B on traditional marketing channels such as print, TV, or radio. Unlike larger, national brand marketing campaigns, local advertisers consume our services through a longer term, higher margin recurring license arrangement. The net effect is that our customer base is increasingly Software-as-a-Service oriented, is less concentrated, more scalable, and yields a higher margin recurring revenue composite. This has resulted in our continued growth in gross profit and narrowing EBITDA loss. The next phase of our growth will be driven by amplifying this model and scaling sales and marketing resources to acquire market share more quickly."

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 6,700 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:

• Completion of the acquisition of the Stampt mobile loyalty app.
• Deployment of Stampt across more than 90 Whole Foods locations nationwide.
• Growing monthly mobile marketing transactional volume to more than 12 million monthly engagements.

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

• Successful execution of mobile marketing campaigns in and around the 2013 Final Four event.
• Recent major motion picture campaign that generated more than 200,000 daily interactions.
• Three-year contract with the Minnesota Wild.

The Company has recently initiated activities to explore various mobile payment product strategies relating to its recent partnership with CheckAlt. It is anticipated that mobile payments will become a natural extension to mobile marketing by local advertisers and Mobivity is exploring product and technology opportunities that could leverage its more than 6,700 end users with mobile payments.

Financial Summary
		Three months ended March 31,
$000s ex-EPS		2013		2012		Chg.
Net Revenues		$1,028		$1,013		2%
Gross Profits		$743		$645		15%
GAAP Net Income (loss)		($2,423)		($1,692)		43%
Adjusted Net Income (loss) (1)		($153)		($396)		-61%
GAAP EPS (Diluted)		($0.10)		($0.07)		43%
Adjusted EPS (Diluted)		($0.01)		($0.02)		-50%
Diluted Shares O/S		23,218		22,798		2%
(1) Please see non-GAAP reconciliation table below

Non-GAAP reconciliations:
			Three months ended March 31,
			2013				2012
GAAP Net Income (Loss)			$	(2,423,215	)		$	(1,692,240	)
	Depreciation and amortization		$	33,813			$	154,617
	Change in FRM of derivatives		$	1,001,550			$	460,487
	Non-cash stock comp expenses		$	93,502			$	383,861
	Gain on contingent considerations		$	(305,712	)		$	(60,651	)
	Interest expense, net		$	1,447,356			$	358,178
	Non-GAAP adjusted net income		$	(152,706	)		$	(395,748	)
	Weighted avg. diluted shares		$	23,218,117			$	22,797,641
	Non-GAAP adjusted EPS		$	(0.01	)		$	(0.02	)

About Mobivity:

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 via multiple channels. The only system of its kind, C4 is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal. For further information visit www.Mobivity.com or follow us on Twitter @Mobivityinc.

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. 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 may contain 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 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, involve known and unknown risks and uncertainties. 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 prove to be incorrect. 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, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf months are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.