| --- | --- | --- | |-------|----------------------------|-------| | | | | | | SMITHMICRO S O F T W A R E | | | | INVESTOR OVERVIEW | | | | January 2021 | | @ 2020 Schild Micro Software, Inc. Confidential, Any unauch brided disclosure or distibution is stictly one Wated, All rights research FORWARD-LOOKING STATEMENTS This presentation includes, and any related discussion may include, forward-looking statements regarding future events or results. All statements other than statements of historical fact may be ...

Financial Data and Key Metrics Changes - For Q3 2020, the company reported revenue of $12.6 million, an increase of 7% compared to $11.8 million in Q3 2019, but a 2% decrease from Q2 2020 [11][13] - Gross profit for the quarter was $11.3 million, up from $10.8 million year-over-year, with a gross margin of 90% [11][24] - Non-GAAP net income was $1.8 million or $0.04 per share, down from $4.2 million or $0.11 per share in the same quarter last year [31] - Cash flow from operations was $3.9 million, ending the quarter with approximately $26 million in cash [12][34] Business Line Data and Key Metrics Changes - SafePath revenue increased by 30% year-over-year to $6.8 million, but decreased by 8% sequentially [14][15] - CommSuite revenue was $4.5 million, down 1% year-over-year but up 5% sequentially [17] - ViewSpot revenue was approximately $1.2 million, down 8% year-over-year but up 19% sequentially [21] Market Data and Key Metrics Changes - The decline in SafePath revenue was attributed to reduced in-store marketing initiatives due to the Sprint and T-Mobile merger and COVID-19 impacts [15][16] - CommSuite's performance benefited from subscriber stability and growth in Sprint and Boost subscribers, with Boost now part of Dish [18][40] - ViewSpot's revenue increase was driven by variable revenue activity with a tier one U.S. customer [21] Company Strategy and Development Direction - The company launched SafePath7, enhancing its connected lifestyle platform and aiming to set a new standard in family safety applications [8][42] - Continued investment in R&D is planned to support customer deployments and product enhancements [10][50] - The company is pursuing multiple opportunities to sell the SafePath platform, focusing on North America, Europe, and the Middle East [29][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite short-term challenges due to COVID-19 and the T-Mobile merger [51] - The company expects fourth-quarter revenues to be flat to down by 5% compared to Q3 [24] - Management highlighted the importance of transitioning customers to SafePath7 and the potential for growth once this is achieved [90][91] Other Important Information - The company plans to continue hiring, expecting to add approximately 12 to 15 employees in Q4 2020 [27] - Non-GAAP operating expenses increased significantly due to higher compensation and contract development costs [25][26] Q&A Session Summary Question: What is the sequential guidance for CommSuite in Q4? - Guidance for CommSuite is flat to down for Q4 [56] Question: Can you provide more details on the T-Mobile and Sky onboarding? - The transition to SafePath7 is in progress, with a focus on a single family safety product for all T-Mobile customers [62] Question: What is the outlook for SafePath revenue? - SafePath revenue is expected to decline by 7% to 12% in Q4 based on current subscriber trends [16] Question: How does the company view the relationship with Dish? - The company is optimistic about its relationship with Dish and plans to work with them on both prepaid and postpaid services [63] Question: What is the expected impact of seasonality on ViewSpot? - ViewSpot is expected to see a sequential decline in Q1 but ramp up through the summer [86] Question: What are the factors contributing to the decline in SafePath? - The decline is primarily due to limitations in selling to Sprint customers and the need for a new product that can be marketed to all T-Mobile customers [88][90]

Smith Micro Software, Inc. (NASDAQ:SMSI) Q2 2020 Earnings Conference Call August 5, 2020 4:30 PM ET Company Participants Charles Messman - Vice President of Investor Relations Bill Smith - Chairman of the Board, President and Chief Executive Officer Tim Huffmyer - Chief Financial Officer Conference Call Participants Scott Searle - Roth Capital Josh Nichols - B. Riley Jim McIlree - Bradley Woods Operator Good day, and welcome to the Smith Micro Second Quarter 2020 Earnings Conference Call and Webcast. All pa ...

Smith Micro Software, Inc. (NASDAQ:SMSI) Q1 2020 Earnings Conference Call May 6, 2020 4:30 PM ET Company Participants Charles Messman - Vice President of Investor Relations & Corporate Development Bill Smith - Chairman of the Board, President & Chief Executive Officer Tim Huffmyer - Chief Financial Officer Conference Call Participants Scott Searle - ROTH Capital Josh Nichols - B. Riley FBR Jim McIlree - Chardan Operator Good day, and welcome to the Smith Micro First Quarter 2020 Earnings Conference Call and ...

Financial Data and Key Metrics Changes - Total revenues for fiscal year 2019 increased 65% to $43.4 million compared to $26.3 million in fiscal year 2018 [7] - Fourth quarter revenue increased 67% to $12.3 million compared to $7.4 million in the same quarter last year [14] - Non-GAAP net income for fiscal year 2019 was $9.8 million or $0.26 per share, compared to a non-GAAP net loss of $67,000 in the previous year [24] - Gross profit for the fourth quarter was $11.3 million with a gross margin of 92%, compared to $6.4 million and 87% gross margin last year [21] Business Line Data and Key Metrics Changes - Wireless segment revenue for the fourth quarter was $12.2 million, up 77% from $6.9 million last year, driven by SafePath platform growth [14][15] - SafePath revenue for fiscal year 2019 grew 435% to $18 million from approximately $3 million in 2018, with fourth quarter revenue of $6.7 million, up 28% sequentially [34][15] - CommSuite VTT revenue for the fourth quarter was $4.3 million, a 3% sequential increase, while annual revenue increased 15% to $17 million [16] - CommSuite Advertising revenue decreased 53% for the fiscal year 2019 to $1 million, with expectations for Q1 2020 between $100,000 and $300,000 [17] Market Data and Key Metrics Changes - ViewSpot revenue for the fourth quarter was approximately $600,000, impacted by competitive pressures and a delayed launch with AT&T in Mexico [18] - ViewSpot revenue for fiscal year 2019 increased 11% to $4.2 million [20] Company Strategy and Development Direction - The acquisition of Circle Media Labs is seen as transformational, enhancing customer relationships and expanding the technology portfolio [9][38] - The company aims to lead in the family digital lifestyle market, leveraging the SafePath platform and the new capabilities from the Circle acquisition [10][37] - The company plans to launch a new combined SafePath 7.0 platform in the second half of 2020 [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities arising from the Sprint and T-Mobile merger, as well as Dish Network's growth [11] - The company anticipates continued growth in SafePath revenue, with expectations of 10% to 20% sequential growth in Q1 2020 [16] - Management highlighted the importance of integrating the Circle codebase and expects to complete this by mid-2020 [49] Other Important Information - The company ended December 2019 with a cash balance of $28.3 million and plans to preserve capital while evaluating strategic alternatives for shareholder returns [13] - Operating expenses for the fourth quarter increased by 33% to $7.6 million, primarily due to increased expenses in the ViewSpot business and headcount growth [22] Q&A Session Summary Question: Clarification on SafePath-Circle growth guidance - Management indicated that approximately $500,000 of Circle revenue is included in the 10% to 20% sequential growth guidance for SafePath [44] Question: Expectations for Circle's revenue in 2020 - Management expects Circle's revenue to maintain an annual run rate of $4 million until renegotiated contracts are discussed [44] Question: Timeline for integrating Circle's source code - The integration project is expected to be completed in the next quarter, with testing and integration to follow, aiming for a product launch in Q3 2020 [49] Question: Operating expenses related to the Circle acquisition - Higher-than-normal operating expenses are anticipated in Q2 and Q3 due to code integration activities and aggressive hiring [53] Question: Guidance for CommSuite and potential revenue from Dish - Guidance is based on current run rates without assuming new significant wins from Dish [63] Question: Pricing dynamics between SafePath and Circle - The Circle deal is primarily fixed in nature, with some variable components, and pricing strategies will be evaluated as integration progresses [66]

SMITHMICRO S O F T W A R E INVESTOR OVERVIEW December 2019 @ 2019 with 11 More Strings Inc. Confidential, Any unaunt of the distribution la stration is string profiliated. All fithin assess FORWARD-LOOKING STATEMENTS This presentation includes, and any related discussion may include, forward-looking statements regarding future events or results. All statements other than statements of historical fact may be forward-looking statements, including but not limited to statements regarding the Company's plans or ...

Financial Data and Key Metrics Changes - Total revenues from operations increased 81% year-over-year and 9% sequentially to $11.8 million for the quarter [4] - Non-GAAP net income from operations rose significantly to $3.2 million or $0.08 per share compared to $241,000 or $0.01 per share for Q3 2018 [4] - Gross profit for Q3 was $10.8 million with gross margins at 91%, up from $5.5 million and 85% respectively in the same period last year [16] - Free cash flow was strong at $5.9 million, with a cash balance of approximately $24 million, nearly double compared to last year [4][9] Business Line Data and Key Metrics Changes - Revenue from the wireless segment was $11.6 million, an increase of 85% year-over-year, driven primarily by the SafePath platform [11] - SafePath Family revenue grew by 38% sequentially, contributing $5.2 million for the quarter, exceeding expectations by 26% [4][12] - CommSuite experienced a slight decline in subscribers, with revenue decreasing sequentially by approximately 7% due to the launch of new iPhones [12][13] - ViewSpot revenue was $1.3 million for the quarter, in line with expectations, but faced a sequential decline due to decreased promotional campaigns [15] Market Data and Key Metrics Changes - The company anticipates continued growth in SafePath revenue based on ongoing marketing activities and expected seasonal trends [12] - The merger of T-Mobile and Sprint presents both risks and opportunities for the company, with potential access to a larger customer base [6][7] Company Strategy and Development Direction - The company is focusing on expanding its product offerings, particularly in the IoT space, with plans to enhance the SafePath platform and introduce new consumer IoT devices [29][30] - The strategy includes differentiating the ViewSpot product suite to reduce dependency on professional services and enhance recurring revenue streams [25][26] - The company is actively recruiting to support growth in all markets, particularly for ViewSpot and SafePath product development [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory of SafePath and the potential for new subscriber acquisitions, particularly with the upcoming launch of new Android devices [13][29] - The company expects to finish the fiscal year strong, with operating revenues increasing 64% compared to the first three quarters of 2018 [33] - Management is cautious about Q4 due to seasonal factors affecting carrier focus on new subscribers rather than value-added services [54] Other Important Information - The company has seen a significant increase in cash reserves, with a $17.3 million increase in cash balance during the quarter [9][10] - Non-GAAP pre-tax income for Q3 was $4.2 million compared to $317,000 last year, indicating strong operational performance [19] Q&A Session Summary Question: Can you discuss traction with Sprint and Boost, and plans for IoT expansion? - Management noted that Boost is in a challenging position due to the merger, but SafePath growth is progressing, with expectations for consumer IoT devices to expand in 2020 [36] Question: What is the market opportunity with Sprint? - Management believes there is potential for millions of subscribers, with revenue growth driven by an expanding installed base [37] Question: What are the hiring expectations for the next quarters? - The company is looking to fill approximately 20 open positions and plans to pause hiring after reaching around 200 employees to evaluate future needs [38] Question: Can you provide more details on operating expenses? - Management indicated a couple of hundred thousand increase in operating expenses is expected for Q4, following the trend from Q2 to Q3 [42] Question: What is the impact of bundling on SafePath growth? - Management confirmed that growth has been driven by new accounts rather than conversions, and bundling has positively impacted growth [44] Question: What is the level of interest in the 5G router opportunity? - Management sees significant opportunities for mobile carriers to enter the home market, enhancing family safety through a unified application [46] Question: Will IoT have a meaningful impact on financials? - Management expects continued growth in IoT revenues into 2020, leveraging multiple approaches to engage carriers [55] Question: Will product changes in ViewSpot affect development costs? - Management confirmed that investments in engineering talent for ViewSpot are already accounted for in operating expense guidance [57]

Smith Micro Software, Inc. (NASDAQ:SMSI) Q2 2019 Earnings Conference Call July 25, 2019 4:30 PM ET Company Participants Charles Messman - Vice President of Investor Relations William Smith - Chairman, President and Chief Executive Officer Tim Huffmyer - Chief Financial Officer Conference Call Participants Scott Searle - Roth Capital Partners Josh Nichols - B Riley FBR Jim McIlree - Chardan Capital Markets Mark Gomes - Pipeline Data Operator Good day and welcome to the Smith Micro Second Quarter 2019 Earning ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2019 were $4.5 million, representing a 54% increase from the same quarter last year [9] - Non-GAAP net income was approximately $600,000 or $0.02 per share, significantly up from the prior year [9] - Gross profit for Q1 was $7.5 million compared to $4.2 million during the same period last year, with a gross margin of 89% compared to 76% last year [16] - Operating expenses for Q1 were $7.5 million, an increase of $1.3 million or 21% compared to last year [17] Business Line Data and Key Metrics Changes - Wireless segment revenue was $8.2 million, up 70% from $4.8 million last year, with a 48% increase excluding acquisition revenue [13] - Revenue from the SafePath platform increased to approximately $2.1 million during Q1, with a 75% growth compared to Q4 2018 [10][14] - Revenue from the newly acquired ViewSpot product line was $1.1 million for the quarter [16] - The graphic segment reported quarterly revenue of $260,000 compared to $647,000 last year [13] Market Data and Key Metrics Changes - The market for smart home technologies is anticipated to reach $53 billion by 2022, indicating strong growth potential for the SafePath platform [27] - Subscriber growth related to the CommSuite product continued, although advertising revenue was lower compared to Q4 2018 due to uncertainty around advertising on the platform [15] Company Strategy and Development Direction - The company plans to leverage momentum from Q1 2019 and build upon growth in its core wireless solutions: SafePath, CommSuite, and ViewSpot [11] - A new strategic partnership with Gryphon Online Safety aims to expand the SafePath platform into home security and parental controls [11][25] - The company is focused on integrating the ViewSpot product and enhancing its features to support growth and demand [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth throughout 2019, particularly in the SafePath platform [41] - The company is monitoring potential regulatory changes regarding the use of Mobile Device Management technology in its products [24] - Management indicated that while growth may not continue at the same rate as Q1, they expect ongoing progress [51] Other Important Information - The acquisition of the Smart Retail division of ISM Connect was completed on January 9, 2019, involving the issuance of approximately 2.7 million shares and $4 million in cash [12] - Non-GAAP pre-tax income for Q1 was $780,000 compared to a non-GAAP pre-tax loss of $1.9 million last year [19] Q&A Session Summary Question: Clarification on SafePath revenue and subscriber numbers - Management confirmed that SafePath revenue was $2.1 million for the quarter but did not provide specific subscriber numbers [38][39] Question: Composition of SafePath subscriber base - The majority of new subscribers are from new acquisitions rather than conversions from existing products [42] Question: Pricing strategy for SafePath home solution - Management indicated that the new home solution would be viewed as an add-on feature to the SafePath platform [46] Question: Timeline for additional carriers on the SafePath platform - Management aims to add another carrier in the first half of the year while expanding efforts across all product offerings [48] Question: Nature of growth in SafePath revenues - Management confirmed that the growth in SafePath revenues was organic and driven by subscriber increases [50] Question: CommSuite revenue trends - Core subscriber base revenue for CommSuite was up, but advertising revenue was down quarter-to-quarter [52] Question: Operating expenses outlook - Management indicated that the $7.5 million in operating expenses for Q1 is higher than typical and expected to decrease in subsequent quarters [54]

Smith Micro Software, Inc (NASDAQ:SMSI) Q4 2018 Earnings Conference Call March 13, 2019 4:30 PM ET Company Participants Charles Messman - Vice President of Investor Relations William Smith - President and Chief Executive Officer Timothy Huffmyer - Chief Financial Officer Conference Call Participants Scott Searle - Roth Capital Partners Jon Gruber - Gruber & McBaine Capital Management James McIlree - Chardan Capital Markets Brian Swift - Sutter Securities Operator Good day and welcome to the Smith Micro Four ...