Operator: Greetings, and welcome to the Mobivity Holdings Corp. Second Quarter 2018 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Mr. Charles Mathews, CFO. Thank you. You may begin.

Charles Mathews: Thank you, and welcome to Mobivity’s second quarter and first half of 2018 financial results conference call. We appreciate your interest in our company. On the call today is Mobivity’s Founder, Chairman and CEO, Dennis Becker; and myself, Charles Mathews, CFO. Before we get started, I’d like to call everyone’s attention to our 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 our best judgments based on factors currently known to us and that the actual events or results could differ materially. Please refer to the documents we filed from time to time with the SEC and particular our most recently filed quarterly report on Form 10-Q and our Annual Report on the Form 10-K. These documents contain and identify important risk factors and other information that may cause our actual results to differ from those contained in our 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, we assume 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 this week’s press release, which is also available at mobivity.com. I’d also like to remind everyone that we adopted the 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 not adjusted. With that, I'll turn the call over to Dennis Becker. Dennis?

Dennis Becker: Thanks Charles, and thanks everyone for joining us on our call today. Our second quarter ended in celebration as we executed our largest contract to-date with our largest customer to expand globally. Despite signing on the last day of the quarter, we felt it was more appropriate to account for the associated revenues going forward into the third quarter and beyond. While this resulted in a sequential downturn of topline revenues for the second quarter, we’re now poised for a record shattering third quarter as we project revenues to be between $5 million and $7 million. Recall that the new ASC606 accounting standard will cause some lumpiness in our reported topline revenues that we feel that the contract values from our customer relationships are also more visible under the new accounting standards, and don't forget that our projected third quarter revenues have us on track to exceed the first nine months of 2017 revenue by 60% to 90%. Another highlight to the quarter was a successful raise of $6.8 million in financing through the sale of restricted common shares essentially priced at market. The funds raised was in response to our customers’ growing demand for Mobivity to play a more prominent role in their long-term strategic roadmap and thus operating more robust balance sheet. Charles Mathews joined Mobivity as our new CFO during the second quarter and quickly architected the financing which culminated a net dilution of just 4.5%. I'd now like to take a minute to elaborate a bit on the contract we executed on June 30 to expand internationally with one of our key clients. The agreement prescribes for thousands of deployments to Canada, Ireland, and United Kingdom, all of which were well into launching with some markets operating a receipt based marketing solution. The contract also provides for additional revenue upside should other markets such as Australia, Latin America, the Middle East, or Asia, decide to apply the services of the future. While we're excited to help our customers leverage targeted marketing on receipts to help their international business grow, we're even more excited for the ever expanding value of the data we’re collecting. With advancing fields such as artificial intelligence and machine learning, the increasing opinion is that data is the new oil, and thus our expanding reach to point of sales data is building a ton of strategic value beyond the financial outcomes of licensing fees. Given the high consumer frequency of quick serve restaurant chains where some consumers can visit as many as 5 to 10 times per month, Mobivity is accumulating a proprietary view into day-to-day commerce across the globe. Applying AI and other data science practices to the massive amount of data we're accumulating sets up an ongoing stream of innovation and revenue opportunities. Most importantly, access to point-of-sales data allows us to fully attribute the effect of our products and services on our customers’ revenues and definitively improve our value. This was exemplified early on during the second quarter when we announced that Round Table Pizza and Global Franchise Group, the owners and operators of more than 1500 restaurant locations across five brands expanded their contract to a three-year term including the rollout of Mobivity's full recurrency platform to all Round Table Pizza locations nationwide. As previously reported, the owners and operators selected Round Table Pizza locations were the first to see the impact of Mobivity's recurrency platform on their business. With 75% of Round Table consumers redeeming their first offer sent through Reach, the messaging and consumer outreach mechanism of the recurrency platform. The implementation of Mobivity's recurrency platform drove a greater than 40% increase in average customer spent with over 1000 participating Round Table Pizza guests per location opting to receive text-based communications. An early trial brought approximately $100,000 in incremental revenue over just six weeks and set the stage for the expanded contract. Geoff Goodman, EVP of Round Table Pizza proclaimed that early trials of leveraging Mobivity's recurrency platform to increase guest frequency and spend wildly exceeded our expectations. Furthermore, the ability for Mobivity's recognition solution to deliver unparalleled insights through data has addressed the pressing need of assessing and improving other marketing channels. With clear visibility into data, coupled with personalized guess engagement, we're now operating our brand in a whole new level. Round Table Pizza marked the beginning of our collaboration with Pepsi. While Pepsi serves as an important product partner to restaurant brands, the ability to leverage the data derived from our recurrency platform can help both Pepsi and the restaurant brand work smarter to shape consumer behavior and drive sales. We worked closely with Pepsi’s sales force throughout the second quarter to train Pepsi reps on promoting and selling Mobivity suite of solutions, and I'm pleased to report that several brands are progressing through our sales pipeline with new contracts expected to close here in the third quarter. In fact, we did sign another sandwich chain in the second quarter and hope to publicize their launch very soon. Our proprietary technology is also helping Google bring next-generation SMS messaging technology to billions of android users worldwide. We worked with Subway and Google to execute a case study where we leveraged Google's Rich Communication Services or RCS to examine consumer purchase behavior. A typical SMS text message only contains 140 to 160 characters of text and is devoid of multimedia such as images or video. RCS upgrades SMS by enabling multimedia and other features typically found in smartphone apps such as buttons, maps, and even payment features. We wanted to see if leveraging multimedia and other advanced RCS features in a text message would result in better response and conversion rates to Subway marketing messages. Again, we're uniquely positioned to operate a test like this as we are in the entire workflow of sending the message to the consumer, seeing how they interact with the message and then ultimately tracking the consumer to a specific Subway location and reporting not only if they made a purchase but all of the basket level details of their purchase like what specific sandwich did they buy, did they add a drink or chips, and how much did they spend. The trial delivered weekly offers to thousands of Subway guests using RCS in place of SMS. This trial showcased how Google RCS engages and drives customers to Subway more effectively than traditional channels. The results were extremely compelling. The initial test which was the price promo offering two-foot long subs for $11.99 showed a staggering 140% higher conversion rate using RCS than standard SMS. I joined Subway's chief digital officer, Carissa Ganelli at this year's Mobile Marketing Association’s Global CEO & CMO Summit in Sonoma, California to present the results. The event included executives from all of the world gathering to share their knowledge to help define the future of the global marketing. The case study results elected at a great response by the conference attendees who were planning to join Google at the upcoming Mobile World Congress Americas event in September to present additional case studies we're executing this quarter. Our collaboration with partners like Google and Pepsi coupled with an increasing volume of publicized results delivered to key customers like Subway and Round Table Pizza is also dramatically collapsing our sales cycles. Keep in mind that our technology has only been operating commercially for just over two years following Subway's inaugural launch in 2016. Up until now, we were typically relegated to lengthy sales cycles of 9 to 12 months that were then followed by another 3 to 6 month trial period before we could begin realizing revenues. We're now closing deals with a 90 days of engagement with most deals free from requiring trial periods prior to revenue recognition. The term length in our contracts which have historically been one year or less are also more commonly spending 3 to 5 years which is dramatically increasing our contract sales and quality revenues. Finally, I'd also like to talk about an important new product we launched in the second quarter. We found that once we start activating point-of-sale data in real-time for our customers to improve material results for their business, we're learning about new opportunities where our proprietary technology and help drive material performance improvements for brand. One important topic for any operator is crew performance. A commonly known approach to improving crew performance is through employee engagement tactics. In fact, according to Towers Perrin Research, companies with engaged workers have 6% higher net profit margins and according to Kenexa Research, engaged companies have five times higher shareholder returns for five years. Our customers [inform] us on the potential of providing real-time sales feedback to crew and staff so that performance visibility could be clapped to minutes and seconds versus monthly or quarterly employee reviews which often require hours of manual labor to prepare. We question where we could create a fit that accrue performance, where sales and other information derived from a real-time point-of-sale data feed, could inform crew members to shape their behavior. The result was the development of our re-up product, with re-up, clients can monitor measure and reward employees by team, shift, location, or region, to better service customers, partners, and also the business. Gamification techniques help increase sales of important items by motivating employees with sales targets while showing real-time progress towards those goals, displayed on an easy-to-read tablet or monitor at each physical location. Again, it's analogous to Fitbit, where employees are being fed real-time performance data and how their tracking towards important goals. We're launching re-up at select Round Table Pizza and Subway locations, and demand from other brands has helped and grow our sales pipeline. I look forward to reporting our progress as the solution enters the marketplace throughout the year. I will now turn the call over to Charles, for more detailed view of our financial results. And then I will come back for a few summary comments. Charles?

Charles Mathews: Thanks Dennis. For the Company's first half of 2018, total revenue under the new revenue standard ASC 606, was $5 million, representing a 16% increase over first half of 2017 revenue of $4.4 million. This increase is primarily due to the impact of ASC 606, which represented an adjustment of $1.4 million during the six months ended June 30, 2018. As of June 30, 2018, we had $4.2 million in cash, an increase of $3.8 million compared to $460,000 at December 31, 2017. This increase was primarily attributable to a successful financing of $6.8 million that began during the second quarter and was concluded July 31. The financing consisted of restricted common stock and resulted in reducing debt by $1 million and contributing $5.8 million of cash to the balance sheet. Additionally, the expiration of certain employee stock options and warrants during the quarter results in a net dilution from the financing of only 4.5%. During the first half of 2018, our outstanding stock options decreased by 1.9 million shares, and our outstanding warrants decreased by 3 million shares. The decrease in outstanding warrants consisted of 2 million shares of warrants executed, and 1 million expiring during the period. Deferred revenue for the first half of 2018 increased $819,000 to $2.2 million from December 31, 2017, balance of $1.4 million. Deferred revenue consists of payments received in advance for revenue recognition from customers, and is recognized as the revenue recognition criteria are met. The increase in deferred revenues is due to receipts of prepayments from certain enterprise customers. Deferred revenue balance on our consolidated balance sheets does not represent the total contract value of annual or multi-year, non-cancelable customer agreements. Comparing Q2, 2018 to Q1 2018, revenue for the second of 2018 was $1.4 million compared to $3.7 million in the first quarter 2018. This change is primarily due to recognition of $1.6 million of revenue related to ASC 606, recognized in the first quarter of 2018, and a reduction of $206,000 in the second quarter. In comparing the Company's operational expenses in the second quarter of 2018 to the first quarter of 2018, we have significant improvements. During the second quarter of 2018, our total operating expenses decreased $2.3 million or 53% compared to the first quarter of 2018. General and administrative expenses decreased $477,000 or 38% during the second quarter of 2018 compared to the first quarter of 2018. This decrease includes an adjustment related ASC 606 of $94,000 recognized in the first quarter. The decrease is primarily due to decreases in personnel costs, share based compensation expense, and improved operational efficiencies. Sales and marketing expenses, decreased $670,000 or 46% during the second quarter of 2018 compared to first quarter of 2018. The decrease is primarily due to decreases in personnel costs, share based compensation expense, and improved operational efficiencies. Engineering, research and development expenses decreased $1.1 million or 72% during the second quarter of 2018 compared to the first quarter of 2018. This decrease includes an adjustment related to ASC 606 of 842,000 recognized in the first quarter. The decrease also includes decreases in personnel costs and improved operational efficiencies. Comparing Q2, 2018 to Q2, 2017, revenue for the second quarter of 2018 decreased to $872,000 or 39%, to $1.4 million compared to $2.2 million in the second quarter of 2017. The decrease in the second quarter included a reduction in revenue of $206,000 related to ASC 606. General and administrative expenses decreased $75,000 or 9% during the first quarter of 2018 compared to 2017. The decrease was primarily due to lower personnel costs. Sales and marketing expenses decreased $76,000 or 9% during the first quarter of 2018 compared to 2017. The decrease was primarily due again, to lower personnel costs. Engineering, research and development expenses decreased $650,000 or 61% during the first quarter of 2018 compared to 2017. This decrease includes an adjustment related to ASC 606 of $92,000 during the period. The decrease was primarily due to decreases in personnel related costs and higher software and development costs being capitalized. Operating loss for the second quarter of 2018 increased $226,000 to $1.5 million compared to $1.2 million in the same period of 2017. Net loss in the second quarter of 2018, was $1.6 million or $0.04 per diluted share compared to the net loss of $1.3 million or $0.04 per diluted share in the first quarter of 2017. In the first half of 2018, to the first half of 2017, revenues for the first half of 2018 increased $708,000 or 16% to $5 million compared to $4.3 million in the first half of 2017. General, administrative expenses increased to $155,000 or 8% during the first half of 2018 compared to 2017. This increase is primarily due to the adoption of ASC 606 during the first half of 2018. Sales and marketing expenses increased $418,000 or 23% during the first half of 2018 compared to 2017. This increase was primarily due to higher personnel and commission costs. Engineering, research and development expenses increased [$54, 000] or 3% during the first half of 2018 compared to 2017. This increase includes an adjustment related to ASC 606 of $750,000 during the period. The increase was primarily due to a decrease in personnel related costs offset by the expenses related to the adoption of ASC 606. Operating loss for the first half of 2018 was $2.9 million compared to $2.6 million in the same period of 2017. Net loss for the first half of 2018 was $3.1 million or $0.08 per diluted share compared to a net loss of $2.6 million or $0.07 per diluted share in the first half of 2017. Net cash used in operating activities increased $1.8 million to $2.2 million in the first half of 2018, compared to cash used in operating activities of $368,000 in the same period in 2017. The decrease in cash used in operating activities was primarily due to the collections of prepayments on customer accounts and the impact of ASC 606 revenue recognized. Net cash provided by investing activities increased $6.1 million in the first half of 2018 compared to $61,000 provided in the same period of 2017. During the six months ended June 30, 2018 the Company paid off the [SPBV] loan and made payments on other notes represented $1.9 million. We borrowed $1 million of bridge financing, received $2.2 million from the exercise of warrants and received $4 million related to our common stock offering. As of June 30, 2018 we had a cash balance of $4.2 million. With that, I would like to turn the call back over to Dennis for his closing remarks. Dennis?

Dennis Becker: Thanks Charles. In summary Q2 of this year marked several key achievements that we believe will be catalytic to accelerating future growth. We’re stronger financially with a better balance sheet and lower operating costs. The value of our technology is becoming more visible to the market as world class brands like Google rely on us for partnership activities, while highly reputable customers like Subway and Round Table Pizza publicize the results we’re driving for them. Our customers are expanding their contracts with us both in term and in fees and our solutions are going global across major international markets. New solutions like [Rehab] are demonstrating the breadth of value our technology can deliver to the market. The size of our contracts will continue to induce fluctuations in our sequentially reported quarterly revenue. However, we expect our overall topline revenue to reduce the magnitude of those fluctuations over time. We’re looking ahead to a record-setting third quarter and are as excited as ever for the increasing momentum we’re building in the marketplace. We appreciate your continued interest and look forward to sharing our ongoing progress with you.

Operator: [Operator Instructions] Our first question comes from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your question.

Brian Kinstlinger: The incremental revenue from the expanded contract, can you breakdown between say one-time items such as license fees versus how much is recurring and then also with the increased scale what are the gross margins – what does the change look like there?

Dennis Becker: So with the new contract in particular that we signed at the end of the second quarter, so the ASC606 does kind of change or add some complexity of the term one-time revenue versus recurring. So in other words we had hypothetically a 5-year $1 million a year contract. On a recurring basis, we’ll receive $1 million a year in payments, so cash flows are recurring for five years from that customer, but depending on how much of the contract includes our customer premise installed software, which captured the information out of the point-of-sale, whatever portion that is of the overall contract value being the five years multiplied by $1 million per year or $5 million that might cause some of that revenue to be recognized upfront. So, I think that's an important delineation between kind of the former perspective on recurring revenue versus this kind of new perspective with the changes of ASC606. So for us, a good rule of thumb is that around 30% to 50% of contract value will be related to the customer premise portion of the overall contract value or of the services delivered. So, we typically don't disclose specific contract details from our customers, but that’s kind of a rule of thumb when looking at maybe some of the fluctuation sequentially of what ASC 606 is inducing in terms of revenues that are going to be recognized upfront and therefore not amortized over time, but at the same time really the cash flows and income is "all recurring".

Brian Kinstlinger: So if I could characterize what you're saying not just this contract in general, the rule of thumb is the bump that you'll see from a quarter to next if it's because of one or two large contracts, half of that bump is going to be more looking like one-time and then in the preceding quarters from a revenue recognition standpoint you take that piece out and you still have half of that bump in the preceding quarters, is that right?

Dennis Becker: Exactly. Yes, the remaining portion will be amortized over the life of the contract, and lately our retail starting point when proposing a contract to brands now starts at three years. For example, this contract we signed at the end of January is for a five-year commitment [multiple speakers] - end of June.

Brian Kinstlinger: And then as revenues expand and your margins improve a little bit, how do you think about the financial strategy as wins like Round Table Pizza, and as you're trying to diversify away obviously from Subway, how do you think about deploying capital into sales and marketing to drive additional growth versus R&D?

Dennis Becker: Well I think that highlights a couple of key developments for us this year is that our R&D expenditures went down quite a bit. 2017, we're kind of and half of the latter half of 2016 coming off of a pretty highly scaled launch with Subway, and so there was a lot of continued product development. Going forward, a lot of that product development has matured and now we are in monetization mode from all networks, so those ERD [ph] investments should stabilize to go down particularly as a proportion of revenue. And then secondly with sales and marketing, we’re pretty excited about the indirect channels that we are acquiring leads and deal flow from namely our partnership with Pepsi and a few other partnerships that are developing that I can't name yet. But that’s really bringing the market to us, so we aren’t anticipating material increases in sales and marketing expenditures because the deal flow is mostly inbound. And the pre-selling and qualification of the deal flow is pretty high as well. So in other words, we don't need as much bandwidth on the sales side to process deals. So, we don’t expect any material increases in any of those areas.

Brian Kinstlinger: And then finally in terms of Round Table Pizza, could you remind us how many stores they have and I may have missed it. Is your technology going to be installed in each of them and how long does that take or I didn't quite get it all?

Dennis Becker: Right, so the last question, yes our full product suite is installed in all of their locations. They have approximately 500 locations predominately on the West Coast and then they are owned by Global Franchise Group which owns another thousand or so locations across other brands that include Great American Cookies, Hot Dog on a Stick, MaggieMoo's Ice Cream, et cetera, and we’re very confident that we will be expanding beyond Round Table and you'll also see our product out with those other brands.

Operator: Our next question comes from the line of Brian Swift with Sutter Securities. Please proceed with your question.

Brian Swift: Could you give us a little more color on what you're doing with Pepsi? You mentioned that you have a program going with them and maybe kind of give us an idea what kind of revenue targets should be – we should be expecting. I mean I know they are not going to be Subway type things, but just kind of give us a little perspective of what you're looking for there and when you're doing?

Dennis Becker: Yes absolutely. So if you look around the restaurant space it's really divided into two halfs, you have the Coke half and you have the Pepsi half. So that gives you an idea of the addressable market. I think in terms of what we call national brands so these will be brands like Pizza Hut or even Round Table Pizza that have dozens, hundreds or even thousands of locations in multiple states and cities I think Pepsi serves over 200 brands that fit that profile. These brands we like to think of in terms of revenue upside for the company. With a $0.5 million to $3 million annual recurring revenue ballpark, so our partnership with Pepsi is an important collaboration that represents a huge part of the overall addressable market in the restaurant space and our average contract value is got to speak for themselves in terms of describing what type of revenue upside we could get from this partnership. The partnership right now is a collaboration where the Pepsi sales force is taking our solutions into their restaurant relationships. Once Pepsi procures a relationship with a restaurant brand of course after that they want to see to it that as much Pepsi products are served and the volume levels are maximized through that brand system. And historically CPGs like Pepsi and Frito-Lay and Coke have provided additional marketing funding to help their clients maintain volumes. So in other words Pepsi might do a deal with Pizza Hut and aside from the cost of the beverages and products that Pizza will pay, the Pepsi, Pepsi will also set aside since like marketing funding so that when you're looking at menu boards or seeing ads for Pizza Hut there will be a Pepsi logo to help bring the Pepsi product visibility into that restaurant brand system. We’re seeing Pepsi along with other CPGs increasingly pursue digital marketing solutions to invest that money in versus traditional marketing channels such as print and radio and signage. So that's really the nature of the partnership Pepsi is now looking at how Mobivity can be a part of that marketing spend. So that when they go into these relationships they kind of get the best of the worlds. Mobivity helps the restaurant brand perform better, but also Pepsi’s joint marketing dollars for the brand have better efficacy and that these text messages, and target receipt ads and all of these other tactics that we can provide are also going to help drive Pepsi consumption volume.

Operator: [Operator Instructions] There are no further questions at this time. I would like to turn the call back over to Mr. Mathews for any closing remarks.