Smith Micro Software(US:SMSI)2025-05-07 21:30Financial 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]