Phunware Announces Second Quarter 2019 Financial Results
Continued MaaS Subscription Revenue Growth Accompanies Improved Net Loss per Share
Austin, Texas [August 13, 2019] (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 second quarter ended June 30, 2019, and provided an update on recent business developments.
Second Quarter 2019 Financial Highlights
- Net revenues totaled $5.5 million
- Platform subscriptions and services revenue totaled $5.1 million, or 92% of net revenues
- Multiple consecutive quarters of platform subscription and services revenue growth
- Gross margin was 50.6%, compared to 78.4% for the same period in the prior year
- Non-GAAP gross margin was 51.2%, compared to 47.2% a year ago
- Net loss was ($3.1) million. Net loss per share was ($0.08), an improvement of 34% quarter-over-quarter sequentially
- Non-GAAP adjusted EBITDA loss was ($2.4) million, a $1.2 million improvement year-over-year
“Our first half financial performance has provided a strong foundation for our growth strategies throughout the balance of the year and into 2020,” said Alan S. Knitowski, CEO and Co-Founder of Phunware. “Our SaaS, data and blockchain offerings for mobile uniquely position us to deliver true digital transformation for our customers, enabling 1:1 real-time interactions between consumers and brands in both the virtual and physical world alike.”
Recent Business Highlights and Announcements
- Notable customer and partner wins:
- Closed Mount Sinai Health System Contract for MaaS Platform Licensing
- Closed Susan Miller’s Astrology Zone® Contract for MaaS Blockchain-Enabled Data Exchange and Mobile Loyalty Ecosystem
- Closed L&T Technology Services Partnership for Phunware-Enabled Corporate Campus Contract with Fortune 50 Company
- Closed Comport Partnership for Best-in-Class Mobile Patient Experience Offering
- Awards and recognition:
- Joined the FTSE Russell 2000®, FTSE Russell 3000® and FTSE Russell Microcap® Indexes
- Rang the Opening Bell at the Nasdaq MarketSite in Times Square on July 12, 2019
- Awarded 2019 North America Company of the Year Award by Frost & Sullivan
- Recognized as Top 10 Indoor Positioning Solution Provider by CIO Applications
- MaaS platform updates:
- Announced new Data and Knowledge Graph Products and launched Blockchain-Enabled Data Exchange and Mobile Loyalty Ecosystem
- Announced Dual Token Structure for the PhunCoin Security Token and the Phun Utility Token, along with the Sale of the Phun Utility Token to International Markets
- Partnered with Wave Financial for Initial Exchange Offerings and Listings of the Phun Utility Token
- Phunware, PhunCoin and Phun Advisory Board appointments:
- Cambridge Analytica whistleblower: Brittany Kaiser, from Netflix documentary The Great Hack
- Koherent, Inc., Chief Executive Officer: Sean Koh
- Conferences and events:
- Alan S. Knitowski, CEO and Co-Founder, presented at the Southern California Investment Forum (SCIF) in Las Vegas, Nevada
- Randall Crowder, COO, moderated the OPEX Exchange Conference Panel in Alexandria, Virginia
Audiocast and Presentation Information
A pre-recorded audiocast announcement 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 audiocast and investor presentation will be accessible on the Phunware Investor Relations website at https://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 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), 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 https://www.phunware.com, https://www.phuncoin.com, https://www.phuntoken.com, and follow @phunware, @phuncoin and @phuntoken on all social media platforms.