Smith Micro Software (SMSI) Q2 2025 Earnings Call August 06, 2025 04:30 PM ET Speaker0Good day, and welcome to the Smith Micro Second Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Charles Messman, Vice President, Marketing.Please go ahead.Speaker1Thank you, operator, and good afternoon to ever ...

Financial Data and Key Metrics Changes - For Q1 2025, the company recognized revenue of $4.6 million, a decrease of approximately 20% compared to $5.8 million in Q1 2024 [9] - Family Safety revenues were $3.8 million, down approximately 15% year-over-year, primarily due to the decline in legacy Sprint safe and found revenue [9] - Gross profit for Q1 2025 was approximately $3.4 million, down from $3.8 million in the same period of the prior year, with a gross margin of 73% compared to 66% in Q1 2024 [11] - GAAP net loss for Q1 2025 was $5.2 million or $0.28 loss per share, significantly improved from a GAAP net loss of $31 million or $3.28 loss per share in Q1 2024 [12][13] Business Line Data and Key Metrics Changes - CommSuite revenue was approximately $700,000, an increase of $100,000 compared to Q1 2024, but decreased by $400,000 compared to Q4 2024 [10] - ViewSpot revenue was approximately $100,000, down $600,000 year-over-year, primarily due to the end of a contract [10] Market Data and Key Metrics Changes - The company expects consolidated revenues for Q2 2025 to be in the range of approximately $4.4 million to $4.8 million [11] - The company reported $2.3 million in cash and cash equivalents as of March 31, 2025, and filed a new shelf registration with $75 million capacity [15] Company Strategy and Development Direction - The company is focusing on SafePath OS for kids and senior phones, aiming to align with mobile operators' core business strengths [5] - SafePath eight, the next generation of the SafePath platform, will introduce AI-centric features to enhance family safety solutions [8][16] - The company is optimistic about closing new customer deals and expanding agreements with current customers [5][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong global demand for digital family safety solutions, viewing it as an immense opportunity for growth [7] - The company is seeing positive shifts in conversations with current and prospective customers regarding their latest solutions [24] - Management remains optimistic about the company's prospects for a return to growth and profitability [28] Other Important Information - The company has engaged in extensive discussions with mobile operator partners regarding new initiatives [5] - The new SafePath eight platform will include features such as social media intelligence and a family AI assistant [18][21] Q&A Session Summary Question: Metrics on SafePath 2.0 performance - Management indicated that SafePath 2.0 is off to a strong start with good adoption expected to improve during the summer and back-to-school period [31] Question: Engagements and pilots for SafePath Kids - Management confirmed expectations for meaningful launches in Q3, aligning with back-to-school opportunities [34] Question: Visibility on SafePath Seniors pilots and pricing thoughts on SafePath eight - Management noted that the first trial for SafePath Seniors has already occurred, with a potential launch in Q4 [38] Question: Relevance of tablets and potential impacts from global disruptions - Management stated that the SafePath OS solution will run on tablets and is compatible with existing carrier offerings [51]

Financial Data and Key Metrics Changes - The company recognized revenue of $4.6 million for Q1 2025, a decrease of approximately 20% compared to $5.8 million in Q1 2024 [8] - Family Safety revenues were $3.8 million, down 15% year-over-year, primarily due to the decline in legacy Sprint safe and found revenue [9] - Gross profit for Q1 2025 was approximately $3.4 million, a decrease of $400,000 from the same period last year, with a gross margin of 73% compared to 66% in Q1 2024 [10] - GAAP net loss for Q1 2025 was $5.2 million, or $0.28 loss per share, compared to a GAAP net loss of $31 million, or $3.28 loss per share in Q1 2024 [11] Business Line Data and Key Metrics Changes - CommSuite revenue was approximately $700,000, an increase of $100,000 compared to Q1 2024, but decreased by $400,000 from Q4 2024 [9] - ViewSpot revenue was approximately $100,000, down $600,000 year-over-year, primarily due to the end of a contract last year [9] Market Data and Key Metrics Changes - The company expects consolidated revenues for Q2 2025 to be in the range of approximately $4.4 million to $4.8 million [10] Company Strategy and Development Direction - The company is focusing on SafePath OS for kids and senior phones, and SafePath Kids rate plan solutions, which align with mobile operators' core business strengths [5] - The upcoming release of SafePath eight will introduce AI-centric features aimed at enhancing family safety solutions [7][15] - The company is optimistic about closing new customer deals and expanding agreements with current customers [5][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong global demand for digital family safety solutions, viewing it as an immense opportunity for growth [6] - The company is optimistic about returning to growth and profitability, particularly with the upcoming product innovations [26] Other Important Information - The company filed a new shelf registration to replace the expiring one, maintaining a capacity of $75 million [13][14] Q&A Session Summary Question: Metrics on SafePath 2.0 performance - Management indicated that SafePath 2.0 is off to a strong start with good adoption expected to improve during the summer and back-to-school period [28][30] Question: Engagements and pilots for SafePath Kids - Management confirmed expectations for meaningful launches in Q3, aligning with back-to-school opportunities [31][32] Question: Visibility on SafePath Seniors pilots and pricing thoughts on SafePath eight - Management stated that the first trial for SafePath Seniors has already occurred, with a potential launch in Q4 [34][36] Question: Relevance of tablets and competitive landscape - Management noted that their OS solution is compatible with existing devices, including tablets, and emphasized the importance of family safety features in attracting loyal customers [42][48]

Smith Micro Software, Inc. (NASDAQ:SMSI) Q4 2024 Earnings Conference Call March 11, 2025 4:30 PM ET Company Participants Charles Messman - VP, Marketing Bill Smith - Chairman, President, & CEO Jim Kempton - CFO Conference Call Participants Scott Searle - Roth Capital Partners Matthew Harrigan - Benchmark Operator Good day, and welcome to the Smith Micro Fourth Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will ...