Phlash Report

I hope everyone enjoyed Thanksgiving last week or if that’s not a holiday you celebrate, I hope you had an opportunity to spend some extra time eating great food with people you are grateful for. It’s hard to believe that 2020 is almost in the history books. What a year! Our hearts go out to everyone who has been negatively impacted by the ongoing pandemic, social unrest and economic challenges, but we’re also excited about the opportunities such widespread disruption has created for Phunware.

As most of you already know, we’re in the digital transformation business … we get the right content to the right consumer at the right time in the right place. We help brands leverage all of the information available to them in the virtual world in order to inform and enhance real world experiences in a mobile-first world that is quickly becoming mobile-only. To give you a quick comparison, Phunware is doing for mobile engagement with our Multiscreen-as-a-Service (MaaS) platform what Amazon did for cloud storage with AWS. So, if you’re new to our story then your timing is fortuitous.

Large brands all over the world are scrambling to not only better engage consumers, but also address the very real challenges they now face due to COVID-19. Fortunately, we’ve invested over $100 million developing a comprehensive platform that can do both. Phunware’s products and solutions are commercially available today off-the-shelf, but we can also design, build and support custom optimizations based on a customer’s specific needs. Some of our most exciting optimizations include:

• Smart Workplace for corporations
• Smart Campus for institutes of higher education
• Smart City for government officials
• Digital Front Door for healthcare
• Advocacy for politicians

Looking ahead to 2021, I couldn’t be more bullish. Several years ago, we made the conscious decision to not chase lower margins and non-recurring revenue, but instead invest heavily into our platform. This was key to ensuring that we could operate as a true software-as-a-service (SaaS) company capable of seamlessly activating and supporting hardware, software, system integrator and carrier channels worldwide. I believe this indirect channel strategy will be the key to our growth in the coming months, which is why we were thrilled to welcome Farah Khan as VP of Channel Partnerships.

From hardware vendors competing to enable 100% connectivity across a smart campus to system integrators consulting enterprise customers on digital transformation initiatives, global leaders in technology are looking for additional ways to deliver more value during challenging times. By reselling Phunware’s native, mobile-first software, our channel partners are able to achieve scalable competitive advantages in healthcare, retail, residential, corporate campus, hospitality, media and entertainment, advocacy and politics and aviation environments.

Further, and to address many of the unique challenges brought on by the COVID-19 pandemic, we have also optimized MaaS to allow our channel partners to white label, OEM and/or resell industry-specific solutions such as our Smart Workplace for corporations, Smart Campus for higher education, Smart City for government and Digital Front Door for healthcare. In these instances, we can even provide retained services and support on a case-by-case basis to design and deploy custom mobile solutions on top of MaaS, all tailored to the unique needs of specific channels and verticals as required.

In closing, I want to thank all of our incredible employees who make what we do possible as well as our shareholders who are on this journey with us. I assure you that we are committed to doing everything we can to maximize shareholder value by scaling responsibly and revolutionizing how large brands engage with consumers.

Sincerely,