Mobiquity Technologies, Inc. (MOBQ) is a next-generation advertising technology, data compliance, and intelligence company that operates through its three proprietary software platforms in the programmatic advertising industry. The company has seen significant developments in recent years, positioning it for potential growth in the rapidly evolving digital advertising landscape.
Business Overview
Mobiquity Technologies operates in the programmatic advertising industry, which refers to the automated buying and selling of digital ad space. The company's mission is to help enterprises in the programmatic industry become more efficient and effective regarding the monetization of advertising, audience segments, and data compliance. Mobiquity achieves this through its three proprietary solutions: the ATOS platform for brands and agencies, the data intelligence platform for audience segments and targeting, and the publisher platform for privacy compliance and publisher monetization.The ATOS platform is a single-vendor end-to-end solution that blends artificial intelligence (AI) and machine learning (ML)-based optimization technology to automatically serve advertising and manage digital advertising campaigns. The data intelligence platform provides precise data and insights on consumers' real-world behavior and trends for use in marketing and research. The publisher platform is a single-vendor ad tech operating system that allows publishers to better monetize their opt-in user data and advertising inventory.
Financials
In the fiscal year ended December 31, 2023, Mobiquity Technologies reported annual revenue of 860,090, a decrease from the previous year's revenue of 1,285,135. The company's annual net income was -6,533,117, and its annual operating cash flow was -4,395,868. The annual free cash flow was -6,553,798.For the quarter ended March 31, 2024, the company generated revenue of 263,282, up from 132,224 in the same period of the previous year. The gross profit for the quarter was 52,013, or 20% of revenues, compared to 69,416, or 52% of revenues, in the same quarter of 2023. The loss from operations for the first quarter of 2024 was 1,049,098, an improvement from the 1,356,331 loss in the comparable period of the prior year.
Liquidity
As of March 31, 2024, Mobiquity Technologies had cash of 73,068. The company used 601,762 in cash for operating activities during the first quarter of 2024, primarily due to a net loss of 1,042,260, offset by non-cash adjustments and changes in working capital.The company has a history of operating losses, and its management has concluded that factors raise substantial doubt about its ability to continue as a going concern. Mobiquity Technologies has relied on equity financing and borrowings from outside investors to supplement its cash flow from operations and expects this to continue in 2024 and beyond until cash flow from its proximity marketing operations becomes substantial.
Debt and Equity Transactions
In December 2022, Mobiquity Technologies entered into a Securities Purchase Agreement with Walleye Opportunities Master Fund Ltd, a Cayman Islands company, to issue a senior secured 20% original issue discount (OID) nine-month promissory note and a five-year warrant to purchase the company's common stock. The company used a portion of the proceeds to repay an outstanding Small Business Administration (SBA) loan.In February 2023, the company completed a public offering, selling shares of common stock and pre-funded warrants for net proceeds of 3,207,500. In June 2023, the company closed another public offering, selling shares of common stock and pre-funded warrants for net proceeds of approximately 2,528,000, which were used to repay the Walleye Opportunities Master Fund Ltd promissory note.
Risks and Challenges
Mobiquity Technologies operates in a highly competitive industry, facing challenges from larger, well-established players. The company's operations are subject to significant risks and uncertainties, including financial and operational risks, which could potentially lead to overall business failure. The company has experienced, and expects to continue experiencing, variability in sales and earnings due to factors such as the cyclical nature of the industry, general economic conditions, and the volatility of prices in connection with the company's service offerings.Outlook
Despite the challenges, Mobiquity Technologies sees significant growth opportunities in the programmatic advertising industry. The recent changes to privacy laws, such as GDPR and CCPA, along with Apple and Google's removal of identifiers, have created a major paradigm shift in the market, where user data and targeting intelligence must shift from middlemen directly to content publishers. The company believes publishers must own their first-party data and manage their audience segments in-house, presenting an opportunity for Mobiquity's solutions.The company's strategic focus is on executing its business plan, seeking equity and/or debt financing to obtain the capital required to meet its financial obligations, continuing to explore and execute prospective partnering, distribution, and acquisition opportunities, and identifying unique market opportunities that represent potential positive short-term cash flow.