Financial Performance - Revenues for Q3 2024 were $4.6 million, a decrease of 58% compared to $11.0 million in Q3 2023, primarily due to a $5.2 million decline in the Family Safety product line [73]. - Gross profit for Q3 2024 was $3.3 million, representing 71.6% of revenues, down from $8.5 million or 77.0% in Q3 2023, reflecting a decrease of approximately $5.1 million [79]. - The net loss for Q3 2024 was $6.4 million, resulting in a net loss of $0.54 per basic and diluted share [73]. - Revenues decreased by $16.7 million, or 52%, to $15.6 million for the nine months ended September 30, 2024, compared to $32.3 million in 2023, primarily due to the loss of a Family Safety contract [81]. - Gross profit was $10.7 million, or 68.5% of revenues, for the nine months ended September 30, 2024, down from $23.9 million, or 74.0% of revenues, in 2023, reflecting a decrease of $13.2 million [81]. - Net cash used in operating activities was $9.4 million for the nine months ended September 30, 2024, compared to $6.0 million in 2023, driven by a net loss of $44.3 million [87]. Operating Expenses - Operating expenses decreased by approximately $0.8 million in Q3 2024 compared to Q3 2023, primarily due to reductions in sales and marketing expenses and general administrative costs [73]. - Selling and marketing expenses were $2.1 million in Q3 2024, down from $2.4 million in Q3 2023, primarily due to decreases in personnel-related costs [79]. - Research and development expenses were $3.6 million in Q3 2024, slightly down from $3.7 million in Q3 2023, with personnel-related costs decreasing [79]. - Selling and marketing expenses decreased by $1.4 million to $7.2 million for the nine months ended September 30, 2024, primarily due to reductions in personnel-related costs and marketing expenses [82]. - Research and development expenses decreased by approximately $1.9 million to $11.3 million for the nine months ended September 30, 2024, mainly due to a decline in personnel-related costs [82]. Cash Flow and Financing - Net cash provided by financing activities was $3.6 million for the nine months ended September 30, 2024, primarily from a registered direct offering and private placement [89]. - As of September 30, 2024, the company's cash and cash equivalents were approximately $1.5 million, with an additional $6.5 million raised post-period through stock offerings [84]. - The company has retired all outstanding debt as of December 31, 2023, which alleviates covenant violations but raises concerns about future liquidity and operational funding [86]. Strategic Initiatives - The company executed new multi-year Family Safety agreements with a Tier 1 carrier in Europe and a U.S.-based carrier, with the U.S. solution launched on the SafePath Global platform in Q2 2024 [73]. - Family Safety applications are currently provided to two Tier 1 wireless carriers in the U.S., with expectations to grow subscriber bases and associated revenues [73]. - The company anticipates launching the Family Safety solution for the Tier 1 European carrier in the near term, expecting robust marketing activities [73]. - The company anticipates revenue growth from marketing efforts with existing Tier 1 carrier customers and new launches in the U.S. and Europe, although immediate impacts from contract losses may affect liquidity [86]. Impairment and Valuation - The impairment charge for goodwill was $24.0 million for the nine months ended September 30, 2024, indicating a significant decline in the fair value of the reporting unit [82].

Financial Performance - For the three months ended June 30, 2024, revenues were $5.14 million, a decrease of 50.3% compared to $10.34 million for the same period in 2023[8]. - Gross profit for the three months ended June 30, 2024, was $3.53 million, down 54.5% from $7.75 million in the prior year[8]. - Operating loss for the three months ended June 30, 2024, was $(6.98) million, compared to $(3.24) million for the same period in 2023, reflecting a 115.4% increase in losses[8]. - Net loss for the six months ended June 30, 2024, was $(37.94) million, significantly higher than $(12.55) million for the same period in 2023[8]. - Total revenues for the three months ended June 30, 2024, were $5.14 million, a decrease of 50.3% compared to $10.34 million for the same period in 2023[55]. - For the six months ended June 30, 2024, total revenues were $10.94 million, down 48.6% from $21.27 million for the same period in 2023[55]. - The net loss for Q2 2024 was $6.9 million, resulting in a net loss of $0.66 per basic and diluted share[71]. - Revenues decreased by $10.3 million, or 49%, to $10.9 million for the six months ended June 30, 2024, compared to $21.3 million in 2023, primarily due to the loss of a Family Safety contract[76]. Assets and Equity - Total assets as of June 30, 2024, were $52.99 million, a decrease of 38.1% from $85.58 million at the end of 2023[5]. - Cash and cash equivalents decreased to $5.63 million as of June 30, 2024, down from $7.13 million at the end of 2023[5]. - Total stockholders' equity as of June 30, 2024, was $42.90 million, down from $75.39 million at the end of 2023, indicating a decline of 43.3%[5]. - As of June 30, 2024, the total stockholders' equity was $42,902,000, with a common stock balance of 10,625 shares[11]. - The company had approximately 9,000 stock options outstanding with a weighted average exercise price of $26.89 per share as of June 30, 2024[50]. Cash Flow and Financing - Cash and cash equivalents at the end of the period were $5,628,000, down from $7,125,000 at the beginning of the period[16]. - The company raised $3.4 million in net cash proceeds from a registered direct offering of 1,065,000 shares at $2.15 per share and pre-funded warrants for 845,000 shares[28][29]. - Net cash used in operating activities was $5.6 million for the six months ended June 30, 2024, compared to $7.5 million in 2023, with a net loss of $37.9 million[81]. - Net cash provided by financing activities was $3.9 million for the six months ended June 30, 2024, primarily from a Registered Direct Offering and Private Placement[83]. Stock and Shareholder Information - The company had 11,035,130 shares of common stock outstanding as of August 2, 2024[2]. - The company executed a one-for-eight reverse stock split effective April 10, 2024, reducing outstanding shares from approximately 76.8 million to 9.6 million[18]. - The Company received a notice from Nasdaq regarding non-compliance with the $1.00 minimum bid price requirement, leading to a Reverse Stock Split effective April 10, 2024, which allowed the Company to regain compliance by April 29, 2024[27]. - The company repurchased a total of 41,115 shares during the three months ended June 30, 2024, at an average price of $2.41 per share[93]. Impairment and Goodwill - The company recognized a goodwill impairment charge of $23,989,000 during the six months ended June 30, 2024[16]. - The company recorded a goodwill impairment charge of $24.0 million for the three months ended March 31, 2024, due to a decrease in its common stock share price[38]. - The impairment charge for goodwill was $24.0 million for the six months ended June 30, 2024, due to a sustained decrease in the company's stock price[77]. Operational Challenges and Future Outlook - The Company is facing substantial doubt about its ability to continue as a going concern within one year due to recurring operating losses and negative cash flows, despite having no outstanding debt[24][26]. - The Company plans to implement dynamic marketing campaigns to expand subscriber growth and generate increased revenues, while also considering additional restructuring and cost reductions[24][26]. - The company anticipates revenue growth from marketing efforts with existing Tier 1 carrier customers and new launches in the U.S. and Europe, despite the loss of the Family Safety contract[79]. - The company may need to take additional actions to meet future cash needs, as uncertainties remain regarding its ability to continue as a going concern[80]. Expenses and Cost Management - Operating expenses decreased by approximately $0.5 million in Q2 2024 compared to Q2 2023, primarily due to reductions in general and administrative costs[71]. - Selling and marketing expenses were $2.5 million in Q2 2024, slightly down from $2.6 million in Q2 2023[75]. - Research and development expenses remained flat at $3.7 million for both Q2 2024 and Q2 2023[75]. - General and administrative expenses decreased to $2.7 million in Q2 2024 from $3.0 million in Q2 2023[75]. - Selling and marketing expenses decreased by approximately $1.0 million to $5.1 million for the six months ended June 30, 2024, primarily due to reductions in personnel-related costs and marketing expenses[77]. - Research and development expenses decreased by approximately $1.9 million to $7.7 million for the six months ended June 30, 2024, driven by declines in personnel-related costs and contractor costs[77]. Revenue Sources and Customer Concentration - Cloud-based usage fees for the three months ended June 30, 2024, were $3.65 million, a decline of 57.0% from $8.51 million in the same period of 2023[55]. - The company generated 59% and 20% of its revenues from two customers for the three months ended June 30, 2024[58]. - Revenues from the Americas for the three months ended June 30, 2024, were $4.94 million, compared to $10.08 million for the same period in 2023, reflecting a decrease of 51.0%[59].

Financial Data and Key Metrics Changes - For Q2 2024, the company reported revenue of $5.1 million, a decrease of approximately 50% compared to $10.3 million in Q2 2023, and a decline of about $700,000 or 11% from Q1 2024 [8][12] - Year-to-date revenues through June 30, 2024, were $10.9 million, down from $21.3 million in the same period last year, reflecting a 48% decline [8] - The GAAP net loss for Q2 2024 was $6.9 million or a $0.66 loss per share, compared to a net loss of $5.7 million or a $0.73 loss per share in Q2 2023 [16] Business Line Data and Key Metrics Changes - Family Safety revenue was $4.2 million in Q2 2024, a decrease of approximately 52% compared to the same quarter last year, primarily due to the conclusion of the Verizon Family Safety contract [9] - CommSuite revenue was approximately $500,000, down by about $200,000 from Q2 2023, but there is an expectation of modest revenue growth in Q3 due to subscriber growth [10] - ViewSpot revenue was approximately $400,000, declining by about $500,000 compared to Q2 2023, with expectations of further decline in Q3 [11] Market Data and Key Metrics Changes - The company is experiencing subscriber growth on the Boost CommSuite premium visual voicemail platform, which is expected to contribute to revenue growth in Q3 [10] - The anticipated consolidated revenues for Q3 2024 are projected to be in the range of approximately $4.5 million to $5 million, driven in part by a decrease in ViewSpot revenues [11] Company Strategy and Development Direction - The company is focused on returning to profitability and has implemented cost reductions of approximately $1 million to $1.3 million per quarter, with plans for additional reductions [6][15] - The launch of SafePath Global with DISH is seen as a significant milestone, with expectations for more deployments in the near term [4] - The company plans to introduce SafePath Live, which will enhance family location controls and expand market opportunities [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming launch with a Tier 1 carrier in Europe, which is expected to drive new demand and open opportunities for expansion [27] - The management believes that the family safety market is expanding, particularly in light of new initiatives and legislation focused on online safety [30] - There is confidence that the company is on a path to growth and profitability, with a strong sales pipeline and collaborative relationships with carriers [28][29] Other Important Information - The company conducted a capital raise during Q2, grossing approximately $4.1 million in cash before transaction-related fees, resulting in $5.6 million of cash and cash equivalents as of June 30, 2024 [18] - The company has streamlined its operations and reduced costs associated with the Ring platform, which is expected to contribute to improved financial performance [39] Q&A Session Summary Question: Expectations for SafePath in Q3 and Q4 - Management expects to see growth in SafePath revenues in Q4 following the launch in Europe and increased activity with DISH [32] Question: Success metrics for SafePath Global and pipeline size - The pipeline for SafePath Global includes multiple carriers, with expectations for rapid deployment and significant subscriber growth [33][36] Question: Cost reduction initiatives and future opportunities - Management indicated that they are always looking for ways to optimize costs, with current initiatives targeting $2 million to $2.5 million in total savings [45][47] Question: ViewSpot revenue expectations - Management expects ViewSpot revenues to decline further but does not anticipate it going to zero, with new opportunities being explored [49][50] Question: Subscriber growth strategies at T-Mobile and AT&T - Management highlighted the importance of marketing efforts and training programs to drive subscriber growth, particularly with DISH and Boost Family Guard [52]

分组1 - Smith Micro Software, Inc. reported a quarterly loss of $0.38 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.35, and a significant decline from a loss of $0.08 per share a year ago, indicating a negative earnings surprise of -8.57% [1] - The company generated revenues of $5.14 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.82% and down from $10.34 million in the same quarter last year, with only one instance of surpassing consensus revenue estimates in the last four quarters [2] - Smith Micro Software shares have decreased by approximately 62.9% since the beginning of the year, contrasting with the S&P 500's gain of 15.8%, highlighting significant underperformance in the market [3] 分组2 - The earnings outlook for Smith Micro Software is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.22 on revenues of $5.9 million, and for the current fiscal year at -$1.15 on revenues of $24.7 million [7] - The Computer - Software industry, to which Smith Micro Software belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting that the overall industry outlook may negatively impact the stock's performance [8]

Smith Micro Software, Inc. (NASDAQ:SMSI) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET Company Participants Charles Messman - Vice President of Marketing Bill Smith - Chairman of the Board, President & Chief Executive Officer Jim Kempton - Chief Financial Officer Conference Call Participants Operator Good day, and welcome to the Smith Micro First Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________ FORM 10-Q _____________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35525 _____________________________ SMITH MICRO SOFTWARE, INC. (Exact name of registrant as specified in its charter) ____________ ...

Exhibit 99.1 First Quarter 2024 Financial Results Smith Micro reported revenue of $5.8 million for the quarter ended March 31, 2024, compared to $10.9 million reported in the quarter ended March 31, 2023. Gross profit for the quarter ended March 31, 2024 was $3.8 million, compared to $7.6 million for the quarter ended March 31, 2023. Gross profit as a percentage of revenue was 65.7 percent for the quarter ended March 31, 2024, compared to 70.0 percent for the quarter ended March 31, 2023. GAAP net loss for ...

Revenue Performance - In 2023, the company's revenues declined by 16% to $40.9 million, primarily due to a $5.3 million decrease in Family Safety revenues and a $2.0 million decline in CommSuite revenues [129]. - The termination of a Family Safety contract with a Tier 1 customer resulted in a loss of approximately 36% of total revenues for 2023, with no further revenues expected from this contract in 2024 [128]. - The ViewSpot product line's revenues decreased by approximately $0.4 million due to a decrease in device launches in 2023 [140]. Financial Results - The net loss for 2023 was $24.4 million, equating to a net loss of $0.38 per basic and diluted share [129]. - Gross profit for 2023 was $30.3 million, representing 74.2% of revenues, compared to $34.3 million or 70.7% of revenues in 2022 [142]. Operating Expenses and Cash Flow - Operating expenses decreased by 26% in 2023 compared to 2022, primarily due to a $12.2 million reduction in Research and Development expenses [128]. - Cash and cash equivalents as of December 31, 2023, were approximately $7.1 million, with cash flow used in operations amounting to $7.0 million for the year [151]. - Net cash used in operating activities was $7.0 million for the year ended December 31, 2023, compared to $19.3 million in 2022, indicating a decrease in cash outflow [154][155]. - The primary use of operating cash in 2023 included a net loss of $24.4 million, offset by non-cash expenses of $17.8 million and a decrease in accounts receivable of $2.6 million [154]. Debt and Interest Expenses - Interest expense increased to $6.4 million in 2023 from $2.7 million in 2022, primarily due to the amortization of debt issuance costs related to the August 2022 Notes and Warrants Offering [149]. Restructuring and Workforce - The company undertook restructuring efforts that resulted in the elimination of approximately 26% of its global workforce [128]. Investments and Financing Activities - Net cash provided by investing activities remained stable at $0.1 million for both 2023 and 2022 [156]. - Net cash used by financing activities was $0.1 million in 2023, a significant decrease from $17.1 million provided in 2022, which was primarily due to proceeds from Notes and Warrants Offering [157][158]. Commitments and Financial Position - The company has made various indemnities and commitments, which may not provide limitations on future payment obligations, indicating potential financial exposure [159]. - The company has no off-balance sheet arrangements as of December 31, 2023, indicating a straightforward financial position [162]. Revenue Recognition and Compensation - Revenue recognition follows FASB ASC Topic No. 606, with various revenue streams including software licenses, consulting services, and usage-based revenue [176][177]. - Stock-based compensation is accounted for based on fair values and recognized as compensation expense over the vesting period [180]. Corporate Structure - The corporate headquarters is located in Pittsburgh, Pennsylvania, with a lease expiring on April 30, 2026, and additional leases in California, Serbia, Sweden, and Portugal [160]. Future Agreements - The company executed a new multi-year Family Safety agreement with a major Tier 1 carrier in Europe, anticipated to launch in 2024 [130].

Smith Micro Software, Inc. (NASDAQ:SMSI) Q4 2023 Earnings Conference Call February 22, 2024 4:30 PM ET Company Participants Charles Messman - VP of IR and Corporate Development Bill Smith - Chairman, President and CEO Jim Kempton - CFO Conference Call Participants Josh Nichols - B. Riley Jim McIlree - Dawson James Scott Searle - ROTH MKM Operator Good day, and welcome to the Smith Micro Software Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I ...

Exhibit 99.1 IR INQUIRIES: Charles Messman Investor Relations 949-362-5800 IR@smithmicro.com Smith Micro Reports Fourth Quarter and Fiscal Year 2023 Financial Results PITTSBURGH, PA, February 22, 2024 – Smith Micro Software, Inc. (Nasdaq: SMSI) ("Smith Micro" or the "Company") today reported financial results for its fourth quarter and fiscal year ended December 31, 2023. "Looking back at 2023, we faced some challenges and implemented decisive changes to build a new path forward for the Company," said Willi ...