Financial Performance - In Q1 2025, the company reported software and subscriptions bookings of $359,000, a decrease of 40% compared to $597,000 in Q1 2024[78]. - The company's gross profit for Q1 2025 was $359,000, resulting in a gross margin of 52.2%, compared to a gross profit of $524,000 and a gross margin of 56.9% in Q1 2024[85]. - Adjusted gross profit for Q1 2025 was $374,000, with an adjusted gross margin of 54.4%, down from $569,000 and 61.8% in Q1 2024[85]. - The net loss for Q1 2025 was $3,723,000, compared to a net loss of $2,292,000 in Q1 2024[85]. - Total revenue decreased by $0.2 million, or 25.3%, for the three months ended March 31, 2025, primarily due to a decrease in advertising campaigns, partially offset by an increase in software subscriptions and services revenue[102]. - Total gross profit decreased by $0.2 million, or 31.5%, for the three months ended March 31, 2025, primarily due to the revenue changes mentioned above[103]. Revenue Breakdown - Software subscriptions and services revenue increased by $181,000, or 39.9%, while advertising revenue decreased by $414,000, or 88.7%[102]. Operating Expenses - Operating expenses increased by $1.775 million, or 52.2%, for the three months ended March 31, 2025, driven by increases in sales and marketing, general and administrative, and research and development expenses[104]. - Sales and marketing expenses increased by $453,000, or 102.3%, primarily due to increased corporate marketing and sales consultants[105]. - General and administrative expenses increased by $993,000, or 40.2%, mainly due to a rise in professional fees related to litigation[106]. - Research and development expenses increased by $329,000, or 68.0%, primarily due to higher payroll and consulting fees[107]. Cash Flow and Financial Position - As of March 31, 2025, the company held total cash of $109.7 million, all in the United States, while expecting to continue operating losses and negative cash flows[109]. - The company utilized $3.3 million of cash from operating activities during the three months ended March 31, 2025, resulting in a net loss of $3.7 million[117]. - The company may seek additional equity or debt financing in the future to support growth and acquisitions, which could impact its financial condition[113]. Future Plans and Investments - The company plans to develop a new generative AI-driven software development platform aimed at reducing costs and time for creating custom mobile applications[73]. - The company is investing in the expansion of its marketing and sales capabilities globally, as well as in the development of new products and services[77]. - The company is actively utilizing generative AI tools to streamline internal processes and enhance mobile app development efficiency[75]. - The company does not expect to achieve profitability in the near future[77]. Backlog and Revenue Recognition - As of March 31, 2025, the total backlog and deferred revenue amounted to $4,923,000, down from $5,197,000 as of December 31, 2024[78]. - Approximately 52% of the backlog as of March 31, 2025, is expected to be invoiced within the subsequent 12-month period[80]. Accounting Policies and Market Risk - No material changes to critical accounting policies and estimates compared to the previous Annual Report[127]. - The company reported no applicable quantitative and qualitative disclosures about market risk[129].

分组1 - Phunware reported a quarterly loss of $0.12 per share, which aligns with the Zacks Consensus Estimate, showing improvement from a loss of $0.41 per share a year ago [1] - The company posted revenues of $0.69 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 14.67%, but down from $0.92 million year-over-year [2] - Phunware shares have declined approximately 41.7% since the beginning of the year, contrasting with the S&P 500's decline of 3.8% [3] 分组2 - The earnings outlook for Phunware is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.12 on revenues of $0.7 million, and -$0.48 on revenues of $3.21 million for the current fiscal year [7] - The Zacks Industry Rank for Internet - Software is in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Phunware Reports First Quarter 2025 Financial Results New Customer Launches Drive 40% Revenue Growth for Software Subscriptions and Services Strong Balance Sheet of $109.7 Million Powering R&D Activities in AI-Driven Customer Platform and Corporate Initiatives AUSTIN, Texas – May 12, 2025 - Phunware, Inc. ("Phunware" or the "Company") (NASDAQ: PHUN), a leader in enterprise cloud solutions for mobile applications, today reported financial results for the first quarter ended March 31, 2025. Financial Highligh ...

New Customer Launches Drive 40% Revenue Growth for Software Subscriptions and Services Strong Balance Sheet of $109.7 Million Powering R&D Activities in AI-Driven Customer Platform and Corporate Initiatives AUSTIN, Texas, May 12, 2025 (GLOBE NEWSWIRE) -- Phunware, Inc. (“Phunware” or the “Company”) (NASDAQ: PHUN), a leader in enterprise cloud solutions for mobile applications, today reported financial results for the first quarter ended March 31, 2025. Financial Highlights Software subscriptions and service ...

Customer Concentration - For the fiscal year ended December 31, 2024, three customers collectively represented 34% of Phunware's net revenues[35]. Research and Development - Research and development expenses were $2.3 million and $4.4 million for the fiscal years ended December 31, 2024 and 2023, respectively[45]. - The company has made significant investments in research and development to enhance existing product offerings and introduce new technologies[45]. - Phunware plans to continue extending the functionality and scale of its mobile applications, focusing on mobile products and services as one of the fastest-growing technology markets[37]. - The company is developing a new generative AI-driven software development platform aimed at enabling businesses to create custom mobile applications more quickly and at a lower cost[46]. - Phunware holds 18 issued patents, six pending patents, and one allowed patent in various areas including content management and location services[31]. - The company holds 17 issued patents in the United States, with expiration dates ranging from 2027 to 2037, and one patent in Japan expiring in 2031[60]. Financial Performance - The company experienced a consolidated net loss for the years ended December 31, 2024, and December 31, 2023, attributed to a decline in platform revenue and goodwill impairment[71]. - Future profitability will depend on the company's ability to manage costs effectively; failure to do so could lead to decreased operating margins and additional losses[85]. - The company may not be able to accurately forecast future revenue and expenses, leading to potential shortfalls in operating results[104]. - The company acknowledges that the actual market for its products may be smaller than estimated, which could adversely affect revenue generation and financial targets[81]. - The company has identified a material weakness in its internal control over financial reporting, which could impact the reliability of its financial information and investor confidence[105]. - The company may experience fluctuations in quarterly operating results due to various factors, including customer spending changes and competitive dynamics, making future performance difficult to predict[103]. - The company has incurred significant legal, accounting, and other expenses as a public entity, which may continue to affect its profitability[71]. Competition and Market Risks - The company faces significant competition in its market, with larger competitors having greater resources and established marketing relationships, which could adversely affect its market share and financial performance[82]. - The company must adapt to rapid technological changes and evolving customer preferences to maintain its competitive advantage[78][79]. - The company is focused on expanding its partnership network with third-party providers to enhance its competitive position in the market[41]. - The company may pursue strategic acquisitions to expand its business, but these acquisitions carry risks such as integration difficulties and potential negative impacts on financial performance[96]. Sales and Customer Relationships - The company aims to deepen existing customer relationships and create cross and upsell opportunities within its customer base[38]. - Future growth is dependent on the successful acquisition of new customers and the renewal of contracts with existing customers[74][76]. - The company plans to continue expanding its sales efforts, although it may face challenges in hiring and training qualified sales personnel[75]. - The company’s ability to attract new customers or sell additional products to existing customers is crucial for revenue growth, and challenges in this area could adversely affect financial performance[119]. Legal and Regulatory Risks - The company is subject to various evolving laws and regulations that could adversely affect its business operations and practices[57][58]. - The company faces risks related to ongoing litigation, which could impose substantial costs and negatively impact its financial condition[77]. - The company is subject to various U.S. and non-U.S. laws regarding the protection of sensitive customer and employee data, which could lead to substantial penalties if violated[108]. - The company must comply with various laws and regulations as a public entity, which may increase costs and divert management's attention from revenue-generating activities[149]. - The company received a notice from Nasdaq on January 10, 2025, indicating non-compliance with listing rules due to not holding an annual meeting within 12 months of year-end for the fiscal year ended December 31, 2023[169]. - The company submitted a compliance plan to Nasdaq requesting an extension to June 30, 2025, to regain compliance with listing requirements[169]. Digital Assets and Blockchain - The company holds digital assets, including bitcoin, which have experienced significant price volatility, trading below $41,000 and above $104,000 per bitcoin during 2024[181]. - The company is examining the risks and rewards of its bitcoin acquisition strategy, which may adversely impact its financial condition if the price of bitcoin falls[179]. - The company may change the means of holding its bitcoin assets, which could materially impact its results of operations and the carrying value of bitcoin on its balance sheet[180]. - The prices of digital assets held by the company may be influenced by regulatory, commercial, and technical factors, leading to potential fluctuations in financial results[182]. - The company faces risks related to the unregulated nature of digital asset trading venues, which may experience fraud or operational problems[188]. - The digital asset market has experienced extreme price volatility due to events such as the bankruptcies of Celsius Network, Voyager Digital Ltd., and FTX, undermining confidence in the market[190]. - The company’s digital asset holdings may be affected by various factors, including public sentiment regarding environmental impacts and competition from other digital assets[186]. - The Token Generation Event, which is crucial for the launch of PhunCoin, may not be consummated, potentially affecting future sales and financial condition[202]. - The development and acceptance of blockchain networks are subject to high uncertainty, which could adversely affect business plans and stockholder interests[203]. - The reliance on third-party blockchain technology exposes the Token Ecosystem to risks of wallet incompatibility and protocol malfunctions[204]. - The Token Ecosystem's operation may depend on technology and intellectual property rights from third parties, and failure to comply could adversely affect operations[205]. - The Token Ecosystem utilizes sensitive personal information, exposing the company to privacy data breach risks[209]. - Security breaches could harm the Token Ecosystem's reputation and erode user confidence, negatively impacting user acquisition and retention[211]. - The Token Ecosystem is still in an early development stage, with no assurances of uninterrupted or fully secure creation, transfer, or storage of PhunCoin and PhunToken, potentially leading to complete loss of users' investments[214]. - The Token Ecosystem is susceptible to various mining attacks, including double-spend and majority mining power attacks, which pose risks to the security of PhunCoin and PhunToken[215]. - There is currently no established public market for PhunCoin, and the development of a secondary market is uncertain, which could adversely affect liquidity and value[217]. - Delays in the development of the Token Ecosystem may lead to declines in PhunToken revenue, as customers may seek alternative methods to use or transact their tokens[218]. - The evolving laws and regulations regarding digital assets could materially impact the development and value of PhunCoin and PhunToken, with potential fines and penalties for non-compliance[219]. - If the company is deemed an "investment company" under the Investment Company Act, it could face increased regulatory requirements that may adversely affect business operations and financial condition[220]. - Potential violations of the Investment Company Act could lead to legal actions, including injunctions and lawsuits from investors, which would materially affect the company's business[221]. Operational Risks - The company relies on fixed-price contracts for a significant portion of its work, which poses risks related to cost overruns and project management challenges[86]. - The lengthy and unpredictable sales cycle may hinder the company's ability to forecast sales accurately, impacting revenue and cash flows[122]. - The company may face significant reputational harm and financial liability due to potential security breaches or unauthorized disclosures of confidential information[107]. - Increased labor costs and employee benefits could adversely impact the company's results of operations[117]. - The company faces significant risks related to advertising fraud, which could harm its reputation and revenue[123]. - The company's success heavily relies on maintaining and growing a critical mass of advertisers and distribution partners, as any decline could adversely affect the value of its services[124]. - The ability to deliver successful mobile advertising campaigns is crucial; technological challenges or failure to demonstrate success could hinder growth and retention of the advertiser base[125]. - Revenue is dependent on the performance of internal and third-party systems used for ad placement and monitoring; system failures could significantly reduce attractiveness to advertisers and impact revenue[126]. - The company must ensure that advertisements are placed in appropriate contexts to maintain its reputation; failure to do so could lead to loss of advertisers and revenue[127]. - The company faces potential legal liabilities due to the advertising practices of its customers, which could damage its reputation and lead to costly legal claims[128]. - Limitations on data collection and processing could significantly diminish the value of the company's solutions, leading to loss of customers and revenue[130]. - The company relies on confidentiality agreements to protect proprietary information, but these may not be effective, leading to potential unauthorized disclosures and competitive disadvantages[140]. - The company is subject to income tax liabilities and uncertainties in tax assessments, which could materially affect operating results and cash flows[141]. - As of December 31, 2024, the company had federal net operating loss carryforwards of approximately $248.2 million, with $162.5 million never expiring and $85.7 million expiring at various dates beginning in 2030[143]. - The company has state and local net operating loss carryforwards of approximately $236.7 million, with the majority beginning to expire in 2030 if not utilized[143]. - The company sold and issued common stock during 2024 via at-the-market offerings and public offerings under a shelf registration statement, which may result in dilution to existing stockholders[158]. - The company may need additional capital in the future to continue planned operations, potentially through equity offerings, debt financings, or other arrangements, which could adversely affect stockholder rights[158]. - The company is subject to the risks of financial institutions failing, which could impair access to cash and cash equivalents necessary for operations[160]. - The trading price of the company's common stock has been volatile, influenced by various factors including market conditions and company announcements[162]. - The company is a "smaller reporting company," which allows it to use reduced reporting requirements, potentially making its stock less attractive to some investors[155]. - The company faces risks related to large customers having substantial negotiating leverage, which may adversely affect business terms and conditions[146]. - The company has a diverse customer base, and financial distress among customers could negatively impact its financial position and results[147].

Core Viewpoint - Phunware (PHUN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance Indicators - Phunware is projected to earn -$0.66 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 35.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Phunware has increased by 4.7%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Phunware to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Performance - For the year ended December 31, 2024, net loss from continuing operations was $10.3 million, a significant improvement from $41.9 million in the previous year[4]. - Revenues for the full year of 2024 were $3.2 million, with gross margins of 46%[5]. - Adjusted EBITDA loss improved to $10.3 million for the year ended December 31, 2024, compared to $15.5 million in the previous year[4]. - The net loss for the year ended December 31, 2024, was $10,316,000, a significant improvement from a net loss of $52,785,000 in 2023, indicating a reduction of approximately 80.5%[27]. - Net cash used in operating activities from continuing operations decreased to $13,125,000 in 2024 from $17,106,000 in 2023, reflecting a reduction of about 23.3%[27]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were $113.0 million, up from $3.9 million as of December 31, 2023[4]. - The company reported a net increase in cash and cash equivalents of $109,040,000 for the year, compared to an increase of $1,979,000 in the previous year[27]. - The company had cash and cash equivalents of $112,974,000 at the end of the period, up from $3,934,000 at the beginning of the period[27]. - Proceeds from sales of common stock, net of issuance costs, amounted to $122,342,000 in 2024, a substantial increase from $10,476,000 in 2023[27]. - Interest paid decreased significantly to $31,000 in 2024 from $1,215,000 in 2023, indicating a reduction of approximately 97.4%[27]. Assets and Liabilities - Total current assets increased to $113.8 million as of December 31, 2024, from $4.9 million in the previous year[23]. - Total liabilities decreased to $7.6 million as of December 31, 2024, from $18.2 million in the previous year[23]. Strategic Initiatives - The company plans to launch AI Personal Concierge and a new AI-driven software development platform in mid-2025[8]. - Phunware is moving forward with plans to acquire an interest in MyCanvass, LLC, a SaaS platform for political campaigns and advocacy organizations[8]. - The company appointed Quyen Du to the Board of Directors to advance new strategic growth initiatives[4]. Other Financial Metrics - Stock-based compensation expenses decreased to $1,656,000 in 2024 from $4,071,000 in 2023, representing a decline of approximately 59.3%[27]. - The company recorded a gain on extinguishment of debt of $535,000 in 2024, compared to a loss of $237,000 in 2023[27]. - The company reported a non-cash write-off of accounts payable amounting to $1,403,000 in 2024, with no such write-off reported in 2023[27]. - There were no proceeds received from the sale of digital currencies in 2024, contrasting with $15,390,000 in 2023[27].

Core Viewpoint - Phunware, Inc. reported significant growth in bookings and a strengthened balance sheet, enabling continued investment in AI-driven initiatives and other corporate strategies [5][6]. Financial Highlights - For the year ended December 31, 2024, Phunware generated revenues of $3.2 million with gross margins of 46% [5]. - The net loss from continuing operations was $10.3 million, a significant improvement from a loss of $41.9 million in the previous year [8]. - Adjusted EBITDA loss improved to $10.3 million from $15.5 million year-over-year [8]. - Cash and cash equivalents increased to $113.0 million from $3.9 million as of December 31, 2023 [8][21]. Recent Business Highlights - Software bookings increased by 232% in 2024, attributed to a revamped sales team and evolving sales model [5]. - The company is focused on recruiting experienced talent in sales, marketing, and technology to enhance operations and customer outreach [6]. - Phunware appointed Quyen Du to the Board of Directors, bringing 25 years of experience in corporate strategy and development [7]. - The company signed a term sheet to acquire a controlling interest in MyCanvass, LLC, a startup focused on voter and advocacy engagement software [7]. Management Commentary - Interim CEO Stephen Chen emphasized the importance of the company's strong balance sheet and the development of a new generative AI-powered software platform [5]. - The company plans to launch AI-related features, including an AI Personal Concierge for hospitality and Intelligent Reporting for real estate owners, by mid-2025 [9].

Core Insights - Nativo has appointed Marcus Chan as SVP and Head of Finance to enhance its strategic growth and expansion efforts [1][2] - The company aims to combine premium differentiated offerings with programmatic scale to accelerate growth and align with new market opportunities [2] - Chan brings extensive experience in corporate finance, financial planning, mergers and acquisitions, and investor relations, which will support Nativo's financial performance [2][4] Company Strategy - Nativo is focused on operationalizing its well-thought-out strategy to capitalize on expansive growth opportunities [3] - The hiring of Chan is part of a broader executive leadership transformation, which includes the recent appointments of Michael Lehman as President, Sam Amiri as Chief Revenue Officer, and Gena Schirer as Senior Vice President, Sales – West [3] Leadership Background - Before joining Nativo, Chan was Vice President of Finance at Phunware, where he played a key role in the company's public market debut and Nasdaq listing [4] - Chan has a strong background in scaling financial operations and optimizing capital structures across various sectors, including SaaS and advertising technology [4] Company Overview - Nativo specializes in creating advertising that connects better by bridging premium content with programmatic efficiency [5] - The company operates a platform that powers content-driven advertising for brands and publishers across a global network of over 10,000 premium publisher sites [7]

Core Viewpoint - Phunware, Inc. has appointed Quyen Du as an independent director to its Board, effective February 28, 2025, to enhance its strategic growth initiatives and comply with Nasdaq listing requirements [1][5]. Group 1: Appointment Details - Quyen Du brings 25 years of experience in strategy and corporate development, previously serving as Head of Corporate Strategy & Development at Condé Nast [2]. - Ms. Du will serve as a Class III director, filling a seat vacated by the resignation of former CEO Michael Snavely in October 2024 [3]. - Her appointment is expected to satisfy Nasdaq's continued listing requirements for audit committee service [5]. Group 2: Experience and Contributions - Ms. Du has extensive experience in finance, media, and entertainment, having worked in various roles that include corporate strategy, finance, investments, and business development [2]. - She has held executive positions at Fandom, Inc. and NBC Universal, focusing on M&A deals, corporate digital strategy, and market entry initiatives [2]. - Interim CEO Stephen Chen highlighted Ms. Du's impressive record in guiding strategic growth and her potential to drive high growth revenue and profitability for Phunware [4]. Group 3: Company Overview - Phunware, Inc. specializes in enterprise software solutions for mobile applications, providing tools for creating, implementing, and managing custom mobile applications [6]. - The company aims to achieve connectivity and monetization through the adoption of its mobile technologies and plans to expand its software products and services audience via a new Generative AI platform [7].