Phunware Announces 2019 Financial Results

Austin, Texas [March 30, 2020] (ORIGINAL: BUSINESS WIRE) – Phunware, Inc. (NASDAQ: PHUN) (the “Company”), a fully-integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide, today announced financial results for its fiscal year ended December 31, 2019, and provided an update on recent business developments.

“Today we are pleased to share our trailing financial results for the Company, which included a dramatic year-over-year revenue transformation from one-time, non-recurring application transactions revenue to annual and multi-year recurring platform subscriptions and services revenue tied to the licensing and use of our Multiscreen as a Service (MaaS) enterprise cloud platform for mobile,” said Alan S. Knitowski, President, CEO and Co-Founder of Phunware. “More importantly, and specific to the subsequent events and recent operational actions taken to address our go-forward business activities while the ongoing COVID-19 coronavirus pandemic continues to unfold worldwide, we have announced a $3 million structured debt financing to address our balance sheet and a furlough of 37 Phunware employees to address our cost structure during the existing governmental stay-in-place orders unique to our business facilities and operations in Central Texas, Southern California and Southern Florida.”

Full Year 2019 Financial Highlights

• Net revenues for the year totaled $19.2 million
• Platform subscriptions and services revenue were $17.2 million
• Gross margin was 52.9%
• Net loss was ($12.9) million
• Net loss per share was ($0.35)
• Non-GAAP adjusted EBITDA loss was ($10.2) million

“While we are releasing our full year financial results for last year as part of today’s announcement and filing requirements, our executive team, board and staff are extremely hyper-focused on our existing and pending activities for the current and future quarters in light of the realities that we and all other businesses face with the unknown macro and operating environment unique to COVID-19,” said Matt Aune, CFO of Phunware. “We are executing against our existing customer contracts and are aggressively pursuing new business opportunities where our mobile, cloud, big data and remote expertise intersects directly with the needs of our Fortune 1000 customers, including remote telehealth and telemedicine triage for healthcare patient capacity management, virtual rallies for political advocacy during a Presidential election year, remote work optimization for corporate campuses and social distance policy enforcement, communications and people and asset tracking for smart cities and government organizations at the local, state and federal level alike.”

Recent Business Highlights and Announcements

• Notable Strategic Announcements:
  • Launched a National Ventilator Registry for Critical Medical Equipment Tracking in Response to COVID-19 Coronavirus Pandemic
  • Announced a $3M Structured Financing Transaction for Issuance of Senior Convertible Notes

• Notable Customer and Partner Wins:
  • Drove Digital Transformation for Global Destination Casino Resorts Operator
  • Added Two Pediatric Healthcare Customers for Digital Front Door Deployments on Mobile
  • Added First National Railway Customer for Mobile Corporate Campus Solution
  • Partnered with Cisco Systems to Demonstrate Integrated Mobile Corporate Campus Solution at South by Southwest 2020
  • Cisco Meraki Launched Phunware Location Based Services in Meraki Marketplace
  • Added Top US Cancer Center as Mobile Digital Front Door Customer
  • Announced New Customer Wins for Application Transactions
  • Added One of the Nation’s Largest Health Systems to Enable Digital Front Door Deployments on Mobile
  • Received AVIA’s Badge for Digital Front Door Mobile App

• Product Updates:
  • Released Enhancements to Location Based Services Sample Code
  • Launched Landmark Routing Functionality to Location Based Services
  • Announced 2019 Product Deliveries and 2020 Roadmap for Multiscreen as a Service Platform
  • Released New User Activity Audiences Capability to its Multiscreen as a Service Platform
  • Announced 2019 Phun Ecosystem Deliveries and 2020 Roadmap
  • Announced Knowledge Graph and Data Exchange Yield Strong Results for Ten Million User Mobile Application Portfolio

• Board and Advisory Board Appointments:
  • Appointed Blythe Masters as Phunware Board Chair
  • Appointed Wavemaker Partners’ Eric Manlunas to Board of Directors
  • Appointed Wall Street Veteran Blythe Masters to Board of Directors
  • Appointed Former CEO of T. Rowe Price’s Global Investment Services Todd Ruppert to Advisory Board
  • Appointed Wikipedia Co-Founder Larry Sanger to Advisory Board

• Conferences and Events:
  • Presented at Austin’s Small Business Expo
  • Phunware’s Executive Team Attended CES 2020 in Las Vegas

Transcript Information

A transcript will be made available today at 1:30pm Pacific / 3:30pm Central / 4:30pm Eastern discussing the Company’s financial results, product announcements and business highlights. The transcript will be accessible on the Phunware Investor Relations website at investors.phunware.com.

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 and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company’s Investor Relations website, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations 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), an award-winning, 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, loyalty (PhunCoin & Phun) and analytics, 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, with more than one billion active devices touching its platform each month. For more information about how Phunware is transforming the way consumers and brands interact with mobile in the virtual and physical worlds, visit www.phunware.com, www.phuncoin.com, www.phuntoken.com, and follow @phunware, @phuncoin and @phuntoken on all social media platforms.