Smith Micro Software(US:SMSI)2025-11-06 14:30Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenue of $4.3 million, a decrease of approximately 6% compared to $4.6 million in Q3 2024, and a decrease of $73,000 or 2% from Q2 2025 [12] - Year-to-date revenues through September 30, 2025, were $13.4 million, down approximately 14% from $15.6 million in the same period last year [12] - GAAP net loss attributable to common stockholders for Q3 2025 was $5.2 million, or $0.25 loss per share, compared to a loss of $6.4 million, or $0.54 loss per share in Q3 2024 [19] - Non-GAAP net loss for Q3 2025 was $2.6 million, or $0.12 loss per share, compared to a loss of approximately $3.6 million, or $0.30 loss per share in Q3 2024 [19] Business Line Data and Key Metrics Changes - Family safety revenue for Q3 2025 was $3.5 million, a decrease of approximately $410,000 or 10% compared to Q3 2024 [13] - CommSuite revenue was $792,000, an increase of approximately $148,000 compared to Q3 2024 [13] - The company sold its ViewSpot product for $1.3 million in June 2025, resulting in minimal revenue from this product in Q3 2025 [13] Market Data and Key Metrics Changes - The company is witnessing a shift in the carrier market with a renewed focus on family subscribers, which represent a high-value opportunity due to lower churn rates and higher lifetime value [8][9] - The expanded SafePath platform is tailored to family needs, aligning with carriers' core business strategies [9] Company Strategy and Development Direction - The company implemented strategic changes to realign its cost structure, aiming for approximately $7.2 million in annualized cost savings [5][6] - The company expects to be close to breakeven and profitable by mid-2026 [6] - The SafePath platform is being enhanced to support families, with ongoing trials and engagements with mobile operators worldwide [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a new phase of growth and profitability, supported by a strong pipeline and ongoing customer trials [7] - The company is focused on continuous improvement and operational efficiency while investing in strategic areas [6] - Management highlighted the importance of the family focus in the carrier market as a significant growth opportunity [25][26] Other Important Information - The company completed a follow-on offering of approximately $1.5 million and a private placement expected to raise about $2.7 million [10][11] - GAAP operating expenses for Q3 2025 were $7.7 million, a decrease of $2.1 million or 22% compared to Q3 2024 [16] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [27]