Mobivity Holdings' (MFON) CEO Dennis Becker on Q1 2020 Results - Earnings Call Transcript

Mobivity Holdings Corp. (OTCQB:MFON) Q1 2020 Earnings Conference Call April 29, 2020 4:30 PM ET

Company Participants

Brett Maas – Managing Partner-Hayden IR

Dennis Becker – Founder, Chairman and Chief Executive Officer

Lynn Tiscareno – Chief Financial Officer

Conference Call Participants

Jeff Porter – Porter Capital Management

Bob Prag – Del Mar Consulting Group

Brian Swift – Sutter Securities

Operator

Thank you for standing by, this is the conference operator. Welcome to Mobivity Holdings Corporate First Quarter 2020 Earnings Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions]

I’d now like to turn the conference over to Mr. Brett Maas. Please go ahead.

Brett Maas

Thank you, operator. I’d like to welcome everyone to Mobivity’s first quarter 2020 earnings call. Hosting the call today are Dennis Becker, Founder, Chairman and Chief Executive Officer; and Lynn Tiscareno, 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 the management’s best judgment based on factors currently known and that the actual results and events could differ materially.

Please refer to the documents filed by the company from time-to-time with the SEC and in particular the most recently filed annual report on Form 10-K. These documents contain and identify important risk factors and other information that may cause the 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 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, which is also available at mobivity.com.

I’d like to also remind everyone the company adopted a new revenue recognition accounting standard, otherwise referred to as ASC 606, as of January 2018 on a modified retrospective basis. This means the results for reporting period beginning on or after January 1, 2018 are presented under the new revenue recognition standards or prior period amounts before January 1, 2018 are non-adjusted.

With all that said, I’d like to now turn the call over to Dennis Becker. Dennis, the call is yours.

Dennis Becker

Thanks Brett, and thanks everyone for joining us in our call today. We hope everyone is staying safe and healthy out there and our purse go out to those directly affected by the current pandemic.

Before we get into our most recent quarterly results, I want to start off by expressing how proud I am of our team in making an exceptional transition to a virtual work environment and delivering uninterrupted support to our partners and customers. The resilience, innovation and commitment our employees have demonstrated through these chaotic time is highly commendable and I think each and every one of our team members for keeping Mobivity’s momentum accelerating.

We are becoming increasingly convinced that the COVID pandemic will forever change how brick-and-mortar brand market decile the consumers. Taking center stage in this evolution is the transition to digitizing everything possible. Mobivity has worked hard to help educate and accelerate brands adoption of digital technology to better engage consumers and that process has been slow until now. Digital is no longer a slow march to the future, but an urgent pursuit of survival.

Brands that fail to quickly redeploy resources to digitizing everything from marketing to payments space extinction, direct mail, newspapers, large venue advertising and even in-store purchases are now at personal health risk. Consumers are transitioning to pick up drive through and delivery at light speed. Online and mobile ordering is skyrocketing. For example, Chipotle, that it’s digital business saw an 81% during the first quarter and more than doubled in March. In the blink of an eye, merchants are ditching legacy analog practices and aggressively pursuing digital solutions to thrive in this new world order.

While I’m pleased to report strong results for our first quarter, I’m even more excited by the accelerating importance our products and solutions will play in this new future. Fortunately, many of our key customers are already set up for a future of low contact commerce that focuses on pickup, drive-through and delivery ordered ahead via mobile apps or online.

For example, Subway has historically earned a majority of their business through take-out orders or delivery, and Sonic our second largest customer is uniquely equipped to thrive in today’s environment given they operate a drive-in and drive-through business with little to no in-store sales. Another large customer of ours, Dutch Bros Coffee, one of America’s fastest growing coffee chains, is also an exclusively drive through operated brand. Customers in the pizza category, such as Round Table Pizza and Papa Gino’s, generate most of their sales through takeout and delivery. Our customers are now seeking our help and taking their out of store sales to the next level by using mobile messaging to increase digital ordering traffic. An example of this is how we recently leveraged our mobile messaging partnership with Google to deliver targeted offers to Sonic consumers and promote mobile ordering via their app.

The results were incredible. 50% of consumers that responded to the campaign culminated in making a purchase through the mobile app without being provided any form of discount. With takeout, drive through and delivery and sharp focus, we’re also seeing our customers redirect the marketing budgets. This historic shut down of sports, major events and entertainment venues has narrowed the options for brands to market and advertise to consumers. In fact, QSRs have always dedicated a large portion of their annual marketing budget in sporting events ranging from in-stadium to broadcast. In the absence of March Madness, The Masters, the NBA Playoffs, and now even the Olympics.

Brands are scrambling to reallocate their marketing budgets and keep consumers engaged. Ad agency Magna now sees linear TV spending dropping 12% in 2020, an interactive ad bureau survey projects that traditional media spend is expected to be up 39% this year. We’ve always competed against radio, billboard and television marketing budgets, and now we could receive a higher proportion of marketing spend as those competitive channels are sidelined for the foreseeable future.

In fact, our customers SMS text marketing volumes increased 35% in March and our variable revenues, which are usage fees our customers pay above their annual license fee minimum increased 48% in the first quarter. A plan for the remainder of the year is now aimed at navigating the short term dynamics of the current pandemic by bolstering our cash flows and transitioning to profitable operation.

Falling record revenues and margins in the first quarter, we’ve implemented adjustments to operations and reduced our current monthly cash burn by almost 90%. Additionally, our sales pipeline includes more than $6 million in annual recurring licensing fees, which could yield a meaningful growth year, despite the obvious challenges imposed by the covert pandemic.

I will now turn the call over to Lynn for more detailed view of our financial results, and then I will come back for a few summary comments. Lynn?

Lynn Tiscareno

Thanks, Dennis. I’ll kick off with an update on cash flows. We ended the first quarter with $208,000 in cash. However, we have recently brought in $890,000 under the Paycheck Protection Program provision of the CARES Act. The unsecured loan has a term of two years and it’s guaranteed by the Small Business Administration. The loan bearing interest at a fixed rate of 1% per annum with the first six months of interest deferred.

In addition, the program states that the principal and interest will be forgiven, if at least 75% of the loan proceeds are used by Mobivity to cover payroll costs, including benefits and the company maintains its employment and compensation within certain parameters during the eight-week period following the loan origination date. Based on initial calculations, Mobivity anticipates that the entire $890,000 will meet the conditions for forgiveness.

I’d also like to highlight the cash used in operations for the first quarter fell to just $340,000 reflecting a reduction of more than 79% versus $1.6 million during the same quarter of last year. Furthermore, as Dennis described, our recent growth in revenues and margins including operational adjustments have greatly reduced our current cash burn. Assuming, we maintain our current revenues trajectory, we’re very confident that we have sufficient cash on hand to support operations for the foreseeable future.

Our revenue for the first quarter of 2020 was $4.6 million, compared to $2.4 million in the first quarter 2019, reflecting an improvement of 88%. Approximately, $1.3 million of first quarter revenues are non-recurring with $3.3 million in quarterly recurring revenues associated with customer licensing commitments and recurring usage fees. I’d like to point out that 90% of the $3.3 million in quarterly recurring revenues are tied to the contracted minimum licensing fees, leaving only 10% of these revenues to variability.

As Dennis pointed out earlier, we saw a 48% increase in variable fees in the first quarter of 2020 compared to the same period a year ago. Assuming our customers adhere their minimum recurring license fees through the remainder of 2020 and variable fees continues to perform at current levels, we could see revenues this year exceed $14 million without additional revenues acquired through new sales.

Total operating expenses for the first quarter of 2020 increased by 29% over the same period in 2019. Keep in mind, that this was a 29% increase in expenses, against an 88% increase in revenue with a 14% year-over-year increase in gross margin. As a result, our operating loss narrowed by 47% compared to the first quarter of 2019. Also note that our first quarter operating loss improved over the fourth quarter of 2019 by 62%.

Engineering, research and development costs increased to 190% compared to the first quarter of 2019, due to one-time increased expenses associated with our non-recurring revenue streams under ASC 606 of $684,000 and a decrease in capitalized software development costs. In net loss for the first quarter 2020 was $1 million or $0.02 per share, a narrowing of $821,000 compared to the year ago quarter, where we generated a loss per share of $0.04. The improvement is the direct result of the significant increase in revenue with only a modest increase in operating expenses. We are clearly making progress.

Deferred revenue grew to $1 million in the first quarter of 2020 and includes some annual customer prepays along with a setup fee for my customer contracts that will be recognized over the remaining term of that contract.

I will now turn the call back over to Dennis for his closing remarks. Dennis?

Dennis Becker

Thanks, Lynn. I’m convinced that the COVID pandemic has forever changed how businesses operate going forward. But with the slow and steady evolution towards digital marketing and e-commerce is now a race for survival. At Mobivity, we worked hard to build the solutions brands need to thrive in this new environment and we’re working day and night to see our customers through this existential transition. I’d like to congratulate our team at Mobivity for a record quarter and just as importantly for their unfazed support for our customers through these trying times. Thanks everyone for joining us on our call today.

Question-and-Answer Session

Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions] First question comes from Jeff Porter [Porter Capital Management]. Please go ahead.

Jeff Porter

Hi, guys. So you mentioned that you guys are all sort of working remotely because of COVID. What’s the impact on your ability to get going with new clients that have been in your funnel? And is this going to abate and you sort of have a backlog of deals in the works that you think you can close when people can physically get out there and visit the clients and get hands on?

Dennis Becker

Hey, Jeff. Thanks for the question. So our two largest pipeline opportunities had culminated to very late stage and by that I mean proposal stage where we’re negotiating economics and some other trends around the potential deal, right before kind of the COVID affected, had been implemented with shutdowns and travel restrictions, et cetera, including a trip to Europe right before travel kind of ceased. So we’d gotten pretty far with those opportunities. And those opportunities are still in play. There a large part of our multi-million dollar annual recurring revenue upside in our pipeline – in our sales pipeline. So those haven’t really been impacted because it’s easy to continue the negotiation and the collaboration after you’ve already gotten past in person meetings and presentations and things like that. So we feel really good about that.

In terms of perspective deals, I mean, look, most of our target vertical market is in essence virtual. They operate hundreds or thousands of locations distributed across regions and geographies. So well, it’s always better to be able to collaborate in person and to do presentations and whatnot. I’d say that, the bulk of our engagement with sales opportunities is virtual anyway, with whether it’s exchanging information or creating demos or deployments, I mean, we can’t be at – if we ran a 200 store trial with a brand, we can’t physically go to all 200 locations. So it always ends up being virtual anyway. So that’s all been, I think, relatively conducive for in continuing our sales pipeline.

The challenge, of course, is just that those brands in our sale – our target markets are also reacting operationally in terms of taking their back office, which has been headquartered or regionally office and moving those employees to virtual arrangement. So that slowed things up a bit. But there’s nothing about what we sell to the verticals that we’re selling to. That means that we can do that virtually.

Jeff Porter

Okay. And as a follow-up, you mentioned that a lot of customers or potential customers had advertising budgets targeted to the sporting events in arena or over the TV, et cetera. How do we think about the best way to go about trying to capture some of that budget and get it directed to us as opposed to these other mediums that they’re no longer using?

Dennis Becker

Well, one of the reasons behind our target vertical of the majority of our market focus being the restaurant base is that the product being sold as an occasion product. So it’s a lunchtime occasion, a dinnertime occasion, a group occasion. And that’s why sports and entertainment has been such an attractive marketing channel for the brands that we’re selling to. So now there is the challenge of trying to insert your voice into the mind of the consumer, when they’re thinking about what they’re going to have for lunch or what they’re going to have for dinner, et cetera.

And with forcing sideline, that’s where the ability for brands to build up direct-to-consumer databases is so much more vitally important. You can’t rely on the third-party relationship and not being safe. You’re a broadcaster. You can’t rely on ESPN audience to watch Live Sports if that audience isn’t there. And I think what that’s doing is that’s really shining the light on the brand’s necessity to build their own audience. And what we’ve proven over the last couple of years is that the brands can build an audience. I mean, we have brands that have several million of subscribers that have said, yes, I want to hear from you, if you’ve got something for me. Or if there’s a new product or something I should try.

And so I think that that’s really what this is doing, as it’s saying, you’re at risk if you depend upon third-party audiences for your marketing channels. And there’s an opportunity now in this new digital age to create a direct relationship to your customer base because as they say in restaurants and hospitality frequency is the name of the game. And you’re going to drive frequency either at through direct-to-consumer channels like ours or at the mercy of third-party channels, which can come and go. So I think that’s really the phenomenon that we’re seeing right now is that the lights being kind of shine on – shining on what we do in the absence of really any alternatives.

Jeff Porter

Okay. I have one last question. I’ve seen numerous transactions where private equity firms are investing in companies similar to us, maybe not direct competitors, but similar to us in our space in mobile, digital marketing because they view the long term opportunity is extremely attractive. And it seems like the valuations that they’re paying are orders of magnitude greater than where our common equity is trading at. I would say, they’re paying five to 10 times the valuation that a company like we are in relation to sales. What can we do to sort of improve our standing in the investment community to highlight the success we’re having and the opportunity we have in the future so that we get to more reasonable valuation.

Dennis Becker

That’s a tough question to answer. I think that we’re always at the mercy of the market to value Mobivity. I agree with you that there is absolutely an increasing audience to this notion of what the sales force called digital transformation. And it’s been what we’ve been preaching all along that, there’s still a vast majority of our economy that’s operating in analog ways. And I think that’s what this whole kind of COVID mess has revealed. And that is just the fact that without the same advantages that e-commerce operators have in that direct connection to the consumer in a highly measured and data-driven way. They’re at risk that they’ve stayed within the inertia of analog media and now that’s all I think now finally accelerating.

So as that revelation I think gets to the investment community in terms of valuation. And I think the one thing I’d point to if you looked at Mobivity and kind of the class of the companies that are out there trying to help these brands make that digital transformation. We’re one of the few public companies and whereas maybe the private investment community has a little bit more maybe they’re a little bit ahead of the game in terms of homework and kind of looking ahead, just, I think by the nature of not having a lot of public company comps, that creates a little bit of a dislocated situation for us. I’d like to think that we’re undervalued. But I think that – I hope that the market will quickly kind of catch up to that, because I think that’s really what this is all about right now, that transforming to digital business model and direct-to-consumer engagement, I mean, Amazon does very little public advertising through television and traditional media. It’s really, they’ve built it, the consumers have come and now they’re using all that data to keep them coming back. Every brand needs to operate that way.

And I think we’re only at the tip of the iceberg for the markets really appreciate the value that companies like Mobivity are giving to these brands. So I mean, again, I’m not trying to dodge the question, but look, I’m always going to think we’re undervalued. I think that the market is fast enough. You get out of the restaurant space, Mobivity is already doing some work in the personal care space, which is another large industry. Our largest sales opportunities are in grocery and online streaming video. So we have an opportunity to go horizontal and drive that kind of SaaS Software-as-a-Service sweet spot, economic model, high margins, recurring long term contracts. I hope that it’s only a matter of time before the market understands the intrinsic value that Mobivity is building.

And maybe to answer your question, maybe we can do a better job of publicizing our progress here, but I think nonetheless, it’s a part of a bigger picture shift. And we’re one of the few companies that are helping some very big brands like Subway and Sonic and being invited to partnerships like Pepsi that are – they have the goods and taking these massive markets to this future that up until now has been something I think everyone’s been aiming at. Now it’s becoming an act of survival. So hopefully our valuation catches up.

Jeff Porter

Clear things. Thanks, Dennis.

Operator

[Operator Instructions] The next question comes from Bob Prag [Del Mar Consulting Group]. Please go ahead.

Bob Prag

Hi Dennis, it’s Bob Prag. How are you?

Dennis Becker

Very good, Bob. Good to hear from you, Bob.

Bob Prag

Yes, indeed. So remind me if you would, what’s our differentiation? What’s our killer app of why a QSR brand is going to go with Mobivity with – what is our separate solution that you convinced Subway top on board? One of the biggest – if not the biggest QSR in the world, you’ve got Subway, they seems to be happy. The numbers you tell as far as improvement with respect to the mobile campaign to those two companies always appear to be fantastic. So what exactly do you do differently that other QSRs will hopefully find compelling to move to your platform?

Dennis Becker

Great question. And I used an analogy, so what makes Amazon better at selling things than anyone else? And it’s the data. They’ve had a head start. I mean, I would rewind back 20 years when Amazon was just an early stage, publicly traded company and every analyst is writing them off. They spent too much money. They had too big of losses to sustain. What they were doing was accumulating a massive amount of data that allowed them to create efficiencies that hadn’t been seen before.

And ultimately, they won in the marketplace with the categories that they sold in. And that’s really what we’ve been doing over the last three or four years. We’re now accumulating over $50 million full basket transactions a week across a variety of restaurant brands and even personal care brands. We see both cash transactions and credit card transactions, unlike the credit card company, all of that data, and if you follow the machine learning and the AI industries, that’s the moniker they liked it to use is that data is the new oil. And that’s because that the state of the new technology is really based off of how much data you have to pour into your software to make it smarter and continually increase its efficacy.

And that’s what we just we continually demonstrate. We just – last week with the announcement with Sonic, for example, really unheard of conversion rates to digital ordering and that’s because we’ve had a head start to use the founder of Twitter’s kind of a quote. I think he said it, always interesting how people congratulate on an overnight success for 10 years. And that’s kind of where we’re at this point is that we’ve had three or four, five years of experience with major brands ingesting all of this data and that then has led to our ability to provide these results and deliver for these brands that we’re executing for. And at this point now, we’re also, I think, outside of the international deployments on a mobile engagement perspective, in terms of number of individual unique consumers that we are engaged to through mobile messaging, it’s now something like one in 12 American. So we were running campaigns now that are also touching a very meaningful group of kind of the American consumer base.

Bob Prag

So kind of following on with Jeff Porter’s question, why has it been so challenging? You’ve got two great reference clients, customers, the metrics and success seemed to be outstanding. Why is it so challenging to get some of the other regional or more hopefully national QSRs and branded chain companies to buy into – literally buy into your program?

Dennis Becker

Well, I think two reasons. Number one is we have had the privilege of working with multibillion dollar brand. And I don’t think that multibillion dollar brand do anything much more quickly than 12 to 24 months. And then secondly, if you look at kind of the evolutionary timetable when other types of technologies have come to fruition, whether it’s e-commerce, et cetera, it takes the marketplace a couple of years, three to five years to kind of catch up.

Again, I’d point to Amazon. I mean, they were selling stuff online in 1998, 1999. Nobody really kind of moved them into this and the whole industry into thinking about e-commerce until 2003, 2005. And I think that what’s exceptional right now, it’s now becoming existential. I mean, it is now a health risk to trade cash. It’s a health risk to do business in a venue where you’re putting people together. And I don’t think that that’s going to change anytime soon. I don’t think that this is going to last forever. But I think that’s where the market was already going. You have early adopters like Wingstop and Chipotle, they’ve really been focusing on how can they convert more and more consumers to digital consumption. And that means, ordering your food using your phone and then just showing up and picking it up or having it delivered to your home.

Starbucks has obviously been a leader in the industry of transitioning its consumer base. Now in the past, that’s been a benefit for the brand by reducing transactional costs. Now it’s even more important. It’s not reducing transitional costs and becoming more efficient. It’s an act of survival. Because the consumers just aren’t going to be returning in volumes until they feel safer. And over time, so this has become a nice to have an optimization exercise over time in reducing costs. Now it’s kind of existential. And it then bakes the question, how do you get to the consumer at the moment of consideration, which means, when I’m thinking about – what I’m going to have for lunch, when I’m out for dinner, and then making it as quick of a transition from consideration to purchase. I’m thinking about lunch, Mobivity gets me the engagement to consider a Subway or some other brand over another and my phone’s already in my hand.

So how do I convert that into a sale as quickly as possible? Because that’s the only way you’re going to be able to sell anything in the most health, safety, considerate way. So I think in the past it’s been a long-term consideration that the brands have had the luxury to evolve toward. And now it’s kind of becoming this extinction level event. So we expect sales cycles to accelerate. And again, as the traditional marketing channels mean, if you’re advertising on TV or radio, you still got to get them from that medium to a digital medium to complete an order. And that’s a lot of times the big leap.

Those channels are now in the sidelines because of shelter in place and distancing and the cancellation of a lot of live entertainment. So there’s really no other place to go. And we think all of this is, is creating an acceleration event. And I point back to our March numbers in terms of customer usage. In a time where a lot of – if you were following Google or Facebook and the ad industry, they’re talking about a reduction in volume. A reduction in ad and media spend and media of volume. We saw a 35% increase in SMS text messaging volume.

Bob Prag

Okay. One last question just to kind of follow-up again on one of the things that Jeff brought up, and that that of course would be the frustration with respect to lack of liquidity and lack of valuation and sponsorship. Has the company considered moving to Nasdaq where all the challenges that come with being a board stock from getting sponsorship and research coverage and any type of institutional interest. When is the company going to kind of graduate at this point and move up to Nasdaq?

Dennis Becker

Well, we always thinking about what venue and what corporate development ideas or strategies are going to give us the best opportunity for shareholder value and give us the best valuation for what we think we’re doing. So we’re always thinking about all sides of possibilities. That said, we focused all of our energy into growing the business. We know that this is like a lot of technology industries that winner takeoff. If you can land in the top three to five spots of a category – a new category, then the valuation take care of themselves. So we think about that, one thing that – I always – it’s in the back of my mind, it’s interesting, I think there’s only there’s half as many publicly traded companies today as there were 10 or 15 years ago.

So that’s always an interesting thought. But I don’t mean to dodge the question, I can’t answer that in terms of any definitive plans. But I can’t say, it’s always on our minds. Between where we’re reporting now and Nasdaq or NYSE, we follow much of the same reporting obligations. So we think that taking care of shareholder transparency is being accomplished where we’re at today. Is there a better venue for our company to list possibly? We think about it, but we don’t have any definitive plans one way or the other right now, because we’re just so laser focused on growing the business.

Bob Prag

Okay. Great quarter. Good luck to you.

Dennis Becker

Appreciate it. Thanks, Bob.

Operator

Thank you. [Operator Instructions] The next question comes from Brian Swift [Sutter Securities]. Please go ahead.

Brian Swift

Thank you. I wanted to follow-up on the question about differentiation or whatever. When you got involved with Pepsi, I talked to my brother-in-law, who is a major Taco Bell franchisee in the New England area about what you were doing and what they were doing. And it seems like and the relationship with Pepsi, they used to be owned by Pepsi, so the very strong one with all the young that were spin-off. And he told me that they have a very sophisticated platform that they’re using that starts with the loyalty stuff. A person places his order, it’s tied into GPS and they get within a few minutes of this of the drive up window. There’s an alert at the restaurant. And so I’m wondering whether there’s something that you’re – when you’re working with Pepsi to go, where’s your focus? Is it adding something to what they’re doing with the Taco Bell’s of the world? Or is the focus somewhere else? I’m kind of curious about that. And so it kind of leads to my brother-in-law’s description of the product that they’re using really comparable to what you’re doing? Or is it – or was he missing something on what I was trying to tell?

Dennis Becker

No, I think that’s a great question. I think what that describes is that the way that the consumers are going to be engaging with the brand is a perpetually evolving situation, whether it’s apps or text messaging or email or Amazon Alexa, where you’re talking to something. And that is a great question because it does also eliminate our focuses to be the – we think of those channels as spokes and there are spokes that we help brands with, whether it’s text messaging or what you saw last week with Sonic and doing this next generation messaging for Google. But we’re really focused on being the hub. And so again, you can – what is it that’s making those suggestions? Or if you’re near a Taco Bell and you’re using the app or you receive a text message, and I point back to the data that we’ve accumulated.

We’re accumulating more than I think something like 4 billion transactions a year, we’re mapping those to an excess of 1 billion consumer marketing engagements. And that’s just pouring into our intelligence engine, if you will, that becomes the hub for these brands. So, the way that they are going to optimize and get guests to come back more often, the system just kind of perpetually gets smarter, the more information that it sees. And that’s where, again, I point to our strongest advantages, we’re a good three to four years ahead. I think of most of the competitors and amassing the amount of data to make the platform that much smarter.

And that’s precisely why Pepsi partnered with us. I can’t say who, but I know there were a handful of technology partners that helped Taco Bell put their app together and create some of those tactical features that you just described, but they aren’t partners with Pepsi. Pepsi look to Mobivity, because Mobivity had more of that hub position having a more holistic database of information that was more broadly applicable to the marketplace versus kind of individual tactics. So it’s our ability to be the hub. And I would point to, a lot of our revenue growth over the last three or four years has been from our existing customers, because they just expand their licensing spend with us as they grow an appreciation for our ability to quarterback more and more broader set of their marketing activities over time. So again, I think there’ll be a lot of anecdotal applications and kind of tactics you’ll see with brand and our mission is not to become a spoke, but to operate as the hub for the brand.

Brian Swift

Okay. How was the relationship going with PepsiCo? Is it stall now with – shutting down or is it – are you making some progress on getting some wins there?

Dennis Becker

No, it’s the opposite. It’s a bit of a twist just in that, clearly not a normal sales environment, but our mission all along has been to help brands perform better. And now that performance has become a kind of a multitude of options in terms of how the brands choose to succeed. They kind of have to go with proven today. And what Pepsi has done a great job of and they’ve been very public about this is, COVID relief efforts to just bring what they know works to the customers, to the brands and we’re in that portfolio. So in other words, in the past it’s been Pepsi offering. And I’d also just point out, Pepsi went through a leadership and a regime change last year.

So that split up things a little bit for us. And coming out of this year, most of that’s in place. And we’ve enjoyed an acceleration of our collaboration with Pepsi and we had a lot of things that have gotten off the ground that should have gotten off the ground a year ago quite frank. But the good news is they’re off the ground. And now with the COVID situation is how can Mobivity and Pepsi help brands survive? And how can we help them bridge to the other side of what I think everybody agrees. It’s a temporary situation. It might have long-term implications in changing consumer behavior, but we just have to kind of make sure that everybody gets through this temporary period. And Pepsi obviously has a deep appreciation for how Mobivity can help brands do that. And so we have a joint Pepsi- Mobivity relief program going. And so the conversation now is not, hey, in your buying cycle your marketing choices we want to give this to you now, because Pepsi is going to help subsidize that and support it. And so we’re actually seeing an acceleration of activity through that partnership right now.

Brian Swift

Yes. I would think so, because they certainly bring a huge credibility to what you’re doing because their presence is so broad out in that marketplace. So it should be at the right place at the right time. So hopefully you’ll get some – we get some new customers out of it. Anyway, that’s enough for me.

Dennis Becker

Appreciate it. Thanks, Brian.

Operator

Thank you. That concludes the question-and-answer session. I’ll now turn the conference back over to the management team for any closing remarks.

Dennis Becker

Thanks everybody for joining us in our call today. We truly hope that everyone continues to stay safe out there in this new environment. And we’re looking forward to regrouping here next quarter and providing further updates on our progress. Thank you.

Operator

Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation and have a nice day.