MOBI724 Global Solutions Announces Q4 and Fiscal Year 2017 Results

MOBI724 Global Solutions Inc. (TSXV:MOS), a fintech leader offering all in one fully integrated EMV payment, card-linked offers, digital marketing and business intelligence solutions reported its financial results for FY2017 ending December 31, 2017.

The company also announced that it granted 60,000 stock options under its stock option plan to two employees on April 26th, 2018. Mobi724 also granted 180,000 stock options to the CFO.

As quoted in the press release:

FY 2017 was a significant year for MOBI724 in many areas including the start of commercialization of the important Visa partnership, new sales contracts and a substantial increase in the sales pipeline.

MOBI724 announced that sales increased 29% in Q4 2017 vs. Q3 2017: $814.7K in revenues for the 3 months ended December 31, 2017 compared with $630.9K for Q3 2017. For the twelve months ended December 31, 2017 revenues increased 13% to $2.87 million from $2.55 million in the same period last year. In the important card linked offers vertical, revenue grew 51% to $729K. Card Linked Offers is our line of business where we expect significant growth, as the Visa Offers partnership began commercial rollout in late-2017 and is anticipated to start recording material transactional revenue by mid-year 2018.

In addition, sales and markets are growing:

• Shortening of the sales cycle from 15 months to approximately 12 months due to substantial investment in advancing sales relationships;
• Entered new markets in Colombia and the Philippines, and expanded in Argentina;
• Expanding cards under management.

The Company incurred an operating loss of $7.7 million for the 12 months ended December 31, 2017 vs. a loss of $3.7 million in 2016. Of this loss, approximately $2.7 million are non-cash charges relating mainly to amortization and share-based compensation. Though revenues increased period over period, this increase was more than offset by increased operating expenses related to higher labour costs, and increased costs for business development, travel and marketing activities.

The higher net loss at $10.8 million for 2017 vs. $4.9 million in 2016 is related to the increase in the operating loss and higher non-cash accounting charges of $4.6 million primarily associated with the increase in fair value adjustment on liability for the acquisition of Mobi724 Solutions Inc.

The Company continues to seek opportunities to enhance efficiencies to reduce costs and improve cash flow going forward.

The Company ended 2017 with $3.7 million of cash. This amount does not include cash of $930K from the April 2018 Warrant Incentive Program.

Marcel Vienneau, MOBI724’s CEO, said, “In 2017, MOBI724 made strategic decisions that will promote success for years to come. We invested considerable resources in terms of time, staffing and capital that will demonstrate accelerating returns in 2018. With the increasing activity generated by our Visa partnership and other important relationships, we characterize 2018 as our first year of full commercialization.”

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