Revenue Growth and Strong Gross Margin
Expansion Lead to Narrowed Net Loss per Share
Today Phunware, Inc. (NASDAQ: PHUN), a fully-integrated
enterprise cloud platform for mobile that provides products,
solutions, data and services for brands worldwide, announced
financial results for its first quarter ended March 31, 2019, and
provided an update on recent business developments.
First Quarter 2019 Financial
Highlights
- Net revenues
increased 6.7% year-over-year to
$5.3 million
- Platform subscriptions and services
revenue increased 20.4% year-over-year to $4.8 million
- Gross profit margin was 50.8%,
representing 8.4 percentage points higher than the prior
year
- Non-GAAP Adjusted EBITDA improved by
$3.5 million to ($3.2) million, or 52.1% improvement over the prior
year
- Net loss per share improved $0.17
per share to ($0.12) compared to ($0.29), or 58.6%
improvement year-over-year
“We are very excited with the financial performance
underlying our first full quarter as a public company,” said
Alan S. Knitowski, CEO and Co-Founder of Phunware. “Not
only did we achieve continued revenue growth alongside strong gross
margins and lower net losses in the first quarter, but we also
established a positive backdrop for the second quarter as we
anticipate launching our blockchain-enabled data exchange and
mobile loyalty ecosystem in parallel with our new initiatives
specific to patent licensing and intellectual property
monetization.”
First Quarter 2019 Business
Highlights
- Closed new and expansion contracts with
customers from healthcare, media and entertainment, real estate,
political, and travel and hospitality verticals
- Named by Columbia-IBM Center for
Blockchain and Data Transparency as Global Top 10 Category-Winning
Enterprise-Grade Blockchain Business Networks
- Announced data.world and Rifiniti
partnerships, expanding our global partner network for the
data and location services offerings within our
Multiscreen-as-a-Service (MaaS) platform
- Launched the Phunware Phenom
Certified Developer Program, with Applaudo Studios becoming the
first Phunware Phenom Certified Developer
- Awarded 3 patents for (i) Indoor /
Outdoor Mobile Device Location Monitoring, (ii) Enterprise Branded
Application Frameworks for Mobile and Other Environments, and (iii)
Mobile Device Localization Based on Relative Signal Strength
Indicators, bringing our intellectual property portfolio to a total
of 16 awarded patents and 6 patents-pending
- Launched the PhunCoin Launch
Alliance in conjunction with our blockchain-enabled data exchange
and mobile loyalty ecosystem
- Continued a Reg D, 506(c) token sale
for accredited investors, including KYC / AML verification via
CoinList
- Commenced a Reg CF PhunCoin token sale
to unaccredited investors via Republic crowdfunding portal
Safe Harbor Clause and Forward-Looking
Statements:
This press release includes forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including statements regarding our future
results of operations and financial position, business strategy and
plans, and our objectives for future operations, are
forward-looking statements. The words “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “expose,” “intend,”
“may,” “might,” “opportunity,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “will,” “would” and similar
expressions that convey uncertainty of future events or outcomes
are intended to identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking.
The forward-looking statements contained in this press release
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. Future developments
affecting us may not be those that we have anticipated. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond our control) and other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements. These risks and uncertainties include, but are not
limited to, those factors described under the heading “Risk
Factors” in our filings with the Securities and Exchange Commission
(SEC), including our reports on Forms 10-K, 10-Q, 8-K and other
filings that we make with the SEC from time to time. Should one or
more of these risks or uncertainties materialize, or should any of
our assumptions prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. These risks and others described under
“Risk Factors” in our SEC filings may not be exhaustive.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future
performance and that our actual results of operations, financial
condition and liquidity, and developments in the industry in which
we operate may differ materially from those made in or suggested by
the forward-looking statements contained in this press release. In
addition, even if our results or operations, financial condition
and liquidity, and developments in the industry in which we operate
are consistent with the forward-looking statements contained in
this press release, those results or developments may not be
indicative of results or developments in subsequent periods.
Disclosure Information
Phunware uses the investor relations section on its website,
https://www.phunware.com, as a means of complying with its
disclosure obligations under Regulation FD. Accordingly, we
recommend that investors should monitor the investor relations
section on Phunware’s website in addition to following Phunware’s
press releases, SEC filings, and public conference calls and
webcasts.
About Phunware, Inc.
Everything You Need to Succeed on Mobile — Transforming Digital
Human Experience
Phunware, Inc. (NASDAQ: PHUN) is the pioneer of
Multiscreen-as-a-Service (MaaS), a fully integrated enterprise
cloud platform for mobile that provides companies the products,
solutions, data and services necessary to engage, manage and
monetize their mobile application portfolios and audiences globally
at scale. Phunware’s Software Development Kits (SDKs) include
location-based services, mobile engagement, content management,
messaging, advertising, analytics, loyalty and rewards (PhunCoin),
as well as a mobile application framework of pre-integrated iOS and
Android software modules for building in-house or channel-based
mobile application and vertical solutions. Phunware helps the
world’s most respected brands create category-defining mobile
experiences. For more information about how Phunware is
transforming the way consumers and brands interact with mobile in
the virtual and physical worlds, visit https://www.phunware.com and
https://www.phuncoin.com and follow @phunware and @phuncoin on all
social media platforms.
Financial Results
Phunware, Inc.
Condensed Consolidated Balance
Sheets
(In thousands, except per share
information)
March 31, December 31,
2019 2018 Assets: (Unaudited) Current assets:
Cash $ 1,065 $ 844 Accounts receivable, net 2,738 3,606 Prepaid
expenses and other current assets 1,036 272
Total current assets 4,839 4,722 Property and
equipment, net 50 66 Goodwill 25,846 25,821 Intangible assets, net
448 521 Deferred tax asset – long term 64 64 Restricted Cash —
5,500 Other assets 187 187 Total assets
$ 31,434 $ 36,881
Liabilities, redeemable
convertible preferred stock, and stockholders’ equity Current
liabilities: Accounts payable $ 8,600 $ 9,890 Accrued expenses
2,968 3,028 Deferred revenue 2,904 2,629 Factored receivables
payable 1,631 2,434 Short term notes payable - related party
— 1,993 Total current liabilities 16,103
19,974 Deferred tax liability 64 64 Deferred revenue 4,447
5,622 Deferred rent 13 17 Total
liabilities 20,627 25,677
Commitments and contingencies — — Redeemable convertible preferred
stock, $0.0001 par value — 5,377
Stockholders’ equity
Common stock, $0.0001 par value 4 3 Additional paid in capital
125,421 118,062 Accumulated other comprehensive loss (391 ) (418 )
Accumulated deficit (114,227 ) (111,820 ) Total
stockholders’ equity 10,807 5,827 Total
liabilities, redeemable convertible preferred stock, and
stockholders’ equity $ 31,434 $ 36,881
Phunware, Inc.
Condensed Consolidated Statements of
Operations and Comprehensive Loss
(In thousands, except per share
information)
(Unaudited)
Three Months Ended March 31,
2019 2018 Net revenues $ 5,315 $ 4,980
Cost of revenues 2,617 2,867 Gross
profit 2,698 2,113 Operating expenses: Sales and marketing
724 1,919 General and administrative 3,975 4,488 Research and
development 1,309 2,300 Total operating
expenses 6,008 8,707 Operating loss
(3,310 ) (6,594 ) Other income (expense): Interest expense
(188 ) (202 ) Fair value adjustment for warrant liabilities — (54 )
Impairment of digital currencies — (313 ) Other income (expense)
4 (1 ) Total other expense (184 )
(570 ) Loss before taxes (3,494 ) (7,164 ) Income tax
benefit — — Net loss (3,494 ) (7,164 )
Other comprehensive income Cumulative translation adjustment
27 54 Comprehensive loss $ (3,467 ) $ (7,110 )
Net loss per share, basic and diluted $ (0.12 ) $ (0.29 )
Weighted-average shares used to compute net loss per share, basic
and diluted 30,264 24,952
Non-GAAP Financial Measures and
Reconciliation
Adjusted EBITDA should be considered in addition to, not as a
substitute for, or superior to, financial measures calculated in
accordance with Generally Accepted Accounting Principles in the
United States (“GAAP”). It is not a measurement of our financial
performance under GAAP and should not be considered as an
alternative to revenue or net income (loss), as applicable, or any
other performance measures derived in accordance with GAAP and may
not be comparable to other similarly titled measures of other
businesses. Adjusted EBITDA has limitations as an analytical tool
and should not be considered in isolation or as a substitute for
analysis of our operating results as reported under GAAP. Some of
these limitations include: (i) Non-cash compensation is and will
remain a key element of our overall long-term incentive
compensation package, although we exclude it as an expense when
evaluating its ongoing operating performance for a particular
period, (ii) Adjusted EBITDA does not reflect the impact of certain
cash charges resulting from matters we consider not to be
indicative of ongoing operations, and (iii) other companies in our
industry may calculate Adjusted EBITDA differently than we do,
limiting their usefulness as comparative measures.
We compensate for these limitations to Adjusted EBITDA by
relying primarily on its GAAP results and using Adjusted EBITDA
only for supplemental purposes. Adjusted EBITDA includes
adjustments for items that may not occur in future periods.
However, we believe these adjustments are appropriate because the
amounts recognized can vary significantly from period to period, do
not directly relate to the ongoing operations of our business and
complicate comparisons of our internal operating results and
operating results of other peer companies over time. Each of the
normal recurring adjustments and other adjustments described in
this paragraph help management with a measure of our operating
performance over time by removing items that are not related to
day-to-day operations or are non-cash expenses.
Phunware, Inc.
Reconciliation of GAAP to Non-GAAP
Financial Measures
(In thousands)
(Unaudited)
Three Months EndedMarch
31,
2019 2018 Net loss $ (3,494 ) $ (7,164 ) Add back:
Depreciation and amortization 91 124 Add back: Interest expense 188
202 Less: Income tax benefit - - EBITDA
(3,215 ) (6,838 ) Add Back: Stock-based compensation 11
149 Adjusted EBITDA $ (3,204 ) $ (6,689 )
Phunware, Inc.
Supplemental Information
(In thousands, except percentages)
(Unaudited)
Three Months Ended March
31,
Change 2019 2018 Amount
% Revenue Platform subscriptions and services
$ 4,821 $ 4,004 $ 817 20.4 % Application transaction 494
976 (482 ) (49.4 )% Total revenue $
5,315 $ 4,980 $ 335 6.7 % Platform subscriptions and services as a
percentage of total revenue 90.7 % 80.4 % Application transactions
as a percentage of total revenue 9.3 % 19.6 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190515005371/en/
PR & Media Inquiries:Sarah
Millersmiller@axis-entertainment.comT: 310 276.2220
Investor Relations:Phunware,
Inc.investorrelations@phunware.comT: 512 693.4199
Phunware (NASDAQ:PHUN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Phunware (NASDAQ:PHUN)
Historical Stock Chart
From Sep 2023 to Sep 2024