Austin, Texas [May 15, 2020] (ORIGINAL: BUSINESS WIRE) – Phunware, Inc. (NASDAQ: PHUN) (the “Company”), a fully-integrated enterprise cloud platform mobile that provides products, solutions, data and services for brands worldwide, today announced financial results for its first quarter ended March 31, 2020, and provided an update on recent business developments.
“During extremely challenging times, we are successfully executing our operational model and business strategy to become the premier digital transformation source for mobile initiatives worldwide,” said Alan S. Knitowski, President, CEO and Co-Founder of Phunware. ”The latest quarter closed with nearly $11 million in Backlog and accelerated our Net Revenues composition specific to the use of our Multiscreen-as-a-Service (MaaS) platform for mobile to more than 90% of Net Revenues.”
The Company expects to see a flat to slightly down Net Revenues total for the coming quarter, which it believes to represent a bottom for the year and a Net Revenues base from which it will re-accelerate its growth sequentially during both the third quarter and fourth quarter thereafter.
First Quarter 2020 Summary Financial Highlights
- Net Revenues for the quarter totaled $2.6 million
- Platform Subscriptions and Services Revenues were $2.4 million
- Gross Margin was 58.7%
- Net Loss was ($4.0) million
- Net Loss per Share was ($0.10)
- Non-GAAP Adjusted EBITDA Loss was ($3.2) million
“We are pleased to have achieved year-over-year margin improvements of nearly 800 basis points and a 54% reduction in cash used in operations during the comparable period inclusive of the COVID-19 pandemic,” said Matt Aune, CFO of Phunware. “We have strengthened our balance sheet and provided increased operational flexibility and runway, all while laser focused on executing against our existing customer contracts, aggressively pursuing new business opportunities and partnerships and successfully launching new MaaS platform products and solutions within our Healthcare, Smart Cities, Corporate Campus and Political Advocacy verticals.”
Recent Business Highlights and Announcements
- Notable Strategic Announcements:
- Notable Customer and Partner Wins:
- Added Global Multinational Customer for Mobile Corporate Campus Solution
- Launched Mobile Healthcare Solution for Integrated Health System in New York to Address COVID-19 Challenges
- Partnered with Red River to Distribute its Multiscreen-as-a-Service Platform to SLED Market
- Partnered with Diversified to Bring Mobile Digital Transformation to Businesses Globally
- Partnered with Noviant to Bring Pandemic Response Solutions to Cities, Health Systems and Small Businesses Impacted by Coronavirus Pandemic
- Notable Product Updates:
- Launched Pandemic Response Solution on Mobile to Address COVID-19 Challenges
- Launched Smart City Solution on Mobile to Help City Officials Address COVID-19 Challenges
- Received Notice of Allowance for United States Patent Covering Enterprise Branded Application Frameworks for Mobile and Other Environments
- Launched Mobile Telemedicine Solution for New and Existing Healthcare Customers
- Launched “Gather Safe” to Help Existing Customers and Their Employees Return to Work
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.
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.