PHUN - Earnings call transcript Q1 2021

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Operator

Good afternoon, ladies and gentlemen. Welcome to Phunware’s First Quarter 2021 Investor Conference Call. Currently, all participants are in a listen-only mode.

Joining me today are Alan S. Knitowski, President, Chief Executive Officer and Co-Founder; Randall Crowder, Chief Operating Officer; and Matt Aune, Chief Financial Officer. include a by question-and-answer will Randall, Matt today by followed session. format prepared Alan, remarks and The

As reliance a to reminder, reflect These or forward-looking today’s of current discussion will including impact today, such include Risk placed may views any as statements assumptions our SEC of them. that various risks differ and on section COVID-XX referring the and subject to the be of effects and Actual Factors results should uncertainties based are statements, disclosed on potential materially, pandemic forward-looking undue in are statements. not the filings.

you matters Investor press investors.phunware.com today Alan financial turn SEC Phunware. measures. please earnings like I information the section not website Phunware’s release, Relations is earnings I investor Knitowski. include proceed. non-GAAP only Reconciliation forth set and would non-GAAP which but in At the of additional encourage the Additionally, financial to being the presentation, to investors.phunware.com. Phunware’s discussed is CEO, current on press over to at to the collateral time, of filings the further on visit Sir, GAAP access this release, may things also to available

Alan Knitowski

welcome call. and much first very investor our conference you Thank XXXX quarter to

As focused big of enterprise mobile, customers Phunware data business-to-government a cloud with software a reminder, on XX-year old worldwide. and is company the intersection business-to-business and

have you a of periods is five called enterprise succeed available Apple for worldwide. solutions, over mobile, one Android on contract which on everything to to and Google MaaS but we Multiscreen-as-a-Service operational by formally key have customers to need transformation full Mobile reality an to services next commenced announced become and also effort data Loyalty products, The specific devices be made SaaS provide blockchain-enabled only a a this for executed Central model with and number is mobile, Ecosystem fronts. our anchor our promised, distribution with Our of platform MaaS that across our the PhunToken, completion and of a global mission business their distribution for will to for partner in we the our as QX roll is PhunWallet we quickly licensing under weeks. iOS several out year applications. have point as business platform needs providing Not digital constitutes positive or cloud PhunCoin agreement inflection our vision the

While business the be our both operationally, we COVID continue and for activity work big stages in and data pandemic are the of solution appears the cloud. all dramatic to increase across aspects we by mobile, offerings comforted to and through the product of what final excited software

and our encompass these marketplace core Importantly, capabilities. coin cloud, three our forward, secure, loyalty wallet rolling blockchain-enabled MaaS our token, our growth engines all of including and data-driven

past call, As history. genesis on we this a our suggested a our company's earnings of year was last transition in

As a non-recurring, MaaS stickier, business more low occurring to a our high from we and for platform. SaaS margin scalable, transaction licensing business shifted margin far

process, that of the the company. of forward a SaaS While thrive as that we pure now transition, are latter expect and in at midst we end to remain rolling

the launch are including with by ecosystem customers sales real In distribution and and that pandemic, footprint of our go-to-market we signed have parallel, and MaaS PhunToken. powered the conjunction blockchain including expand excited completion estate our will the by of In channel addition this in quarter. hit PhunWallet our to continued formally MaaS with partner anchor to hard Workplace solution hospitality door direct for of our customers, conversations digital growing corporations, enterprise solution for verticals. recently Smart strategy partners, resumed front portfolio our the be and interest amplifying intend PhunCoin announced by we globally about In with the were healthcare, and sectors we that indirect from our later

live excited part to MaaS the business look scale our the mobile of accelerated commercially forward now global platform customer and deployed. loyalty and monetize are blockchain-enabled ecosystem this and and MaaS to data We adoption of

most reopening see of the facilities more pandemic both and vaccines remotely and pending our to and lingering or in offices. worldwide, and still process more and orders openings previously despite still team customers partners abroad. with effects As continues are the operating the from their stay-at-home businesses imposed venues, recent and available of are of domestically widely Many lockdowns, our

As saw such deals we that normally in in many pending and our would closed QX. case, have

here close Now, in instead. to QX starting

future business while the for last focused is challenge appreciating like very Importantly, recognizing that and environment going post-pandemic on a year to all we represented look are unique has also us. and what of interesting a our completely and for the

environments. deferred While announcing shut importance to second months of of specific to remote-centric without SaaS during and their multiple our positive we heart many customers strong partners simply down the year. expect the of bookings saw the operations we the and remote-only as and revenues of and that We're the benefits during our effects and also backlog shifted the either model half pandemic, see or our to in-person

we cost solution a during are comforted only and such our each extremely structure, needs forward expect of especially to enhanced light environment. for facilitated the Fundamentally, enterprise capitalized on safely to beginning world XXXX, opportunity offerings, globally, problem future, month healthcare predictable this of the to the more we'll and do foreseeable are now back made more period. of Going the performance vaccinations by customers the we getting a operating the normal face again and delivered difficult but assuming product in the streamlining being most of and not scale balance sector each the of and accelerate have to we right We and work. operating also our for to have that quarter not MaaS by our

the compared XXXX decline saw when first a associated with of we to quarter While initiatives pre-pandemic. revenue recognition in quarterly these

new as a COVID-XX by bolstering downtime provided partnerships of more indirect to also allowed channels the and brand parallel. rebound operational time while the expect our sales existing us improve foster see and We establishing here to XXXX balance in in and relationships,

will As our centered customers, ranging size XXXX go-to-market core in governments local Fortune direct county and to Fortune agreements range, always, especially with and and contracts strategy and from XXX indirect continue the on and federal. state we

we lockdown the Importantly, excited and by we by coming are independent have that number even excited extremely developments of the past pandemic, occurred coming ahead. more quarter and the quarters what of in over see a during

www.github.com/phunware. our repository a at launch First, included repository indirect training.phunware.com. in at MaaS MaaS GitHub Phunware MaaS docs.phunware.com, channels. we to through Phenom a These repository on A three training documentation core and were and able scaling for at partner business portals customer certification software

instant revenues able our revenue the the to down and Aune were not further our near-term year the of months demonstrate for MaaS revenue rolling one recognition we coming expansion business bookings recognition do to broadcast. five Matt XX will earnings ongoing CFO, forward. and they future and provide section backlog our be to periods Second, deferred recognition by XX on provide These or in contract P&L, revenue broken of gratification that health efforts over will over to for his add our importantly SaaS in detail ultimately

periods on sales P&L representing coming four on and ahead. to intending As our cycles a two our appearing MaaS the months with typically reporting in recent will customer average, reminder, start wins

growing per Third, IDs devices worldwide, X MaaS XX X of scalability at and to billion more per we day, including more month. expanded second more typically one data, transactions per platform day. X of have petabyte on supporting unique Phunware billion MaaS terabytes base per than to capable than install up than our transactions billion devices XXX,XXX With of

with next Our for ontology PhunWallet applications one-to-one fourth, a platform, in of PhunCoin Google both our we interactions all MaaS knowledge commercially our Android graph weeks, a customer robust platform PhunToken inclusive the and provides ecosystem, our in engagements. now blockchain iOS detailed recently powered Apple comprehensive are MaaS launching a by and data mobile new cryptocurrencies. and and data launched conjunction on And

through utility new P&L necessarily gross virtually actually While when our our tokens not PhunToken net as PhunCoin in security margin live, will and will flow tokens appear transactionally revenue. financials XXX%

analogy considering begin go an balance our XXXX. also reporting quarterly QX made activities largest are to closing next our what this first reported, ahead. is blockchain $XX.X XX-Q we CFO, balance Matt our quarter the including inception to dramatic throughout deeper first February record improvements akin is into sheet XXXX activities As Aune core a mid-August. forward, Matt, akin go since to with rolling forward, of rolling million. The four for in while XXXX, MaaS as will reporting XXXX which our highlight performance please of licensing our incrementally we will financial the At months cash and consider new MaaS AWS, what please our our Amazon today, in which Amazon, beginning time,

Matt Aune

for good all of review and key performance financial first I’d thank to and for us everyone. afternoon, Alan today strategic Thanks, a like on our you progress initiatives. joining quarter our XXXX

financial I’ll GAAP For be clarity, measures unless noted. otherwise discussing specifically

GAAP which, provide $X.X XXXX totaled results. release, Net services quarter of non-GAAP reconciliation all the million. press to and Our of for was X-K first million, website financial revenues and revenue a platform $X.X subscriptions

basis, On expense deferred to million higher from $X.XX are compared million on customers. us. subscriptions and a XX% services a non-cash year. customers from margin end last quarter, on operating year. with company basis of compared million XX% margin million intangibles last in to totaled booking XXXX. timing compared last year. Backlog operating XX.X% was is non-cash charges, of these gross a pleased our Non-GAAP to million year-over-year. in $X.X strategy improvement $XX.X making software million was net adjusted in year-over-year amortization the platform, one share was X,XXX decided or $X.X basis. compared the revenues compensation share million longer-term be we business margin, loss $X.X XX.X% was the prior per at adjusted from expense reason MaaS have were as non-GAAP following to to this adjusted down that one-time year. pandemic delay $X last million, stock-based derived point early items adjusted of than the this $X.XX continues as our loss Total was per focus of to $X.X the to the year. $X.X Our last XX% That to Net expect to or year, With excluding and compared continued or year Gross was a previous and non-GAAP By $X.X XX% and Other revenue $X.X improvement more year. EBITDA million million million $X.X operating a $X.X and up expense down

minute a expect will QX this be forward believe review As deferred everyone a companies to financing revenue I'd application and like point to metric. in mobile take going activities. respect backlog our and we low to for to a reinvest infrastructure, begin with with prior our increase

in raised we February, earnings yearend million underwritten public in our As in mentioned offering. call, an we approximately $XX

completely With to the pleased and announce balances offering, convertible XXXX proceeds occurred over various this the we've from March multiple the recorded of in paid off notes, payments We that which April. liability loss warrant the the to to million April $X.X And charges payoff. and extinguishment relating QX approximately in reevaluation debt to of record on relating $X.X expect interest, of we for million I'm quarter.

see in subsequently the debt of please $XX.X balance convertible subsequent cash quarter in events details, close. pay of to sheet, million We Friday after file the notes beginning further XXXX to XX-Q, in in the $XX.X we our the closed April. full off which section our the million market on planned using For with

$X.X million with beginning we’re support along initiatives. to XX.X holding We’re approximately blockchain cash Bitcoin, in our with QX

our structure that capital strategy we I positioned very going forward, needs operationally. believe and current well Looking at are

dramatically have and First, significantly we our debt reshaped structure. our capital reduced

transformation after access securities use. And million our we Second, million have we choose that $XX we and available $XX flexibility have have cash B. I we've do Riley in from capital of optionality available approximately growth take million providing us markets so. future shelf engaged to market far to for to of open important registration come statement, gone support moment the think both inorganic to the the In a on opportunities. and $XXX fundraising last offering the or space if closing, and third, Giving how emphasize company any future months. through to has for a it's simplicity organic XX the capital needs

and company, the time short-term against a as to objectives. sheet first long-term have execute cash a our balance For public strong and the we

start past But of head through recognition and business. second we impact and of fully functional to these to as of believe cloud starting recurring likely see we into is are SaaS Our we'll the of MaaS to to XXXX. deals that licensing high platform and it, end half pandemic the see scalable, the time more deals enterprise the growth, will the more and COVID-XX revenue the year. we're close margin worst The we new consistent continue

We and conferences Randall. the financial will to that, the profile XXXX strengthen corporate With to continue efforts tell with story and turn markets. throughout to our be and investor and active our I like call further meetings our over to would capital

Randall Crowder

Matt. Thanks,

I think digital the now on for the adapt our it's executives new and still are implementation up racing shareholders to understand to businesses initiatives, transformation has to become with normal. embrace Well impact had delayed will and cycles sales COVID-XX are important our still back a we new what target customers. timelines as are economy opens dealing

Like want or heading momentum guesswork and cloud XXXX. deployment, out the about in box only and license. a learned XXXX we takes that partners the out expect and offers half our a lot second However, solution can capitalize both to our of customer management an proposition that increasingly customers we but to business into of on customers platform of approach they relationship the target not also storage, value

launch illustrated a which rapidly engagement to features teams mobile make able engineering contextual focus application deliver software maintain or MaaS allows designed drive developers save closest is key cloud a of Today, and we advantages significant Phunware’s often mobile world providers, their investments and businesses becomes competitive IT business build seamlessly mobile-only. and quickly digital in their development offerings, to are proven this required they're and advantage As product costs. are in on on competitors digital strategy core pre-integrated outsource adoption. see either across which mobile-first becoming With agencies barrier and three to our transformation to in significant or that graphic, them instance, their take consultancies are capabilities, Phunware’s a or portfolio, platform, large however, and own to design, MaaS to which in

serve Amazon web access mobile to modular for support an results modules maintain, channel partners and expensive with engagement. and generation various as digital transformation Without framework. often application Fortune XXX core to through strategies building like partners modules to a task it mobile applications, manage blocks global MaaS, customers error make on indirect and sell, of a modular to standardize platform both cloud and are like that our ensures the integrating MaaS key for program. offerings certification MaaS that and applications Phenom their easier also our features, First this services mobile proven by far prone Phunware’s development just network our that is deploy and will enables in companies their packages standardize and solutions to on framework new infrastructure friction-free worldwide and organizations customers approach platform to seamlessly This can their reseller difficult

and Second, ADA beacon dot deployment while and MaaS simplifying patented solution our blue and facilities, functionality for or impaired, the is streamlining software staff maintenance and it seamlessly who across but addressing The location-based services. only environments. facility and campuses wheelchair real-time hearing Phunware’s of one-second, the between not beacon compliant, proximity, transitions indoor LBS is navigation usually impaired outdoor both and bound, wayfinding anyone sub needs management positioning, and delivers indoor underlying software administrators. also

Third, mobile and data enabled loyalty exchange blockchain ecosystem.

token for help take behavior. mobile developed a to and encourage, track designed brand PhunCoin ultimately their to a within control of ecosystem profitable to and as compensated and loyalty security regulated is While brands was PhunCoin be interest empower drive consumers token measure data. our utility

Android. approvals received Apple enabling deliver native application weeks, application coming MaaS branded also SDK PhunCoin while PhunWallet once seamlessly its both requisite iOS features integrated to the through and these in MaaS, can PhunToken our consumers PhunCoin for launch manage and allow Google. we This the from Phunware PhunToken, to for of iOS or MaaS Apple We're engagement mobile opportunities data loyalty Google contextual a and excited SDK components our via mobile Apple will it's Google be own Android, However portfolio. to and

in that excited mobile most passion of are transformation. adoption was a part a pioneer we begun verticals, as media strategy implement entertainment, verticals especially digital Phunware we a about what sports, as to a and of Although call mobile such just have applications, larger the the

few and months, engaging of from engaging interested seen on our corporations Workplace enable officials, looking platform site their lot profitable their return better as Over driving the to for activity Smart enable increased interest experience. ways we while seen patient past in new well looking tech deploy as also a constituency, the front well in they're a and have are a with as work, systems of solution health to behavior. retail government We've to hospitality to tech who deploy as door consumers, and looking from digital

continues the most grow, pipeline shareholders look our recently. similar to deals close to should for on ones us we to announced As

First, our application framework. modular

to is Workplace innovative mobile ultimately that also Hospital a company integrated the front fully are their looking Greater taking is MyChart and systems are and our digital and but not portfolio, has an Smart platform. Baltimore content our deploy their brand, Virginia continuum digital full mobile Southern to transformation great Our experience solution Center Medical a is limited that their functionality, their health of also only with MaaS from specific advantage applications whose door, for unique transition native application Norfolk of own that of embraced Epic’s that care. of leadership great example examples Center

Second, our location-based services.

Baptist square margin over as quarter. million Spirit where feet second partner indirect square where South major based square health are later distribution examples feet executed anticipate cover Health high revenue known Health, and we health Florida, This deployments great SDK. we've we of X and million we over on systems announcing recent a the Dignity XX Common in is agreement details at cover integrating Our a previously channel our with key MaaS recurring LBS footage about that leading usage

launch PhunToken not this we brands also to week, with only revenue which of Lastly, were portal enables purchase stream. an additional the begin to thrilled announce developers provides purchasing PhunToken, and Phunware our consumers, but

over for Now, I'd closing Alan to like back to things turn remarks.

Alan Knitowski

Thanks Randall.

As addressable commercial means are our by platform and strong the big and blockchain plus building global recent convergence What years have to MaaS today’s of our reaccelerate across highlighted can MaaS by accompanied is growth. to blockchain the me throughout we ecosystem. our now call, decade extremely of cloud resulted that, it as launch data, that mobile, excited community in act cryptocurrencies engagement backs massive and wind at our and culmination of trends of in markets all

this ecosystem supplement to core enterprise identify expect we We capabilities our and offerings and customers audiences. offer to complement engage their target MaaS additional our as

While familiar digital are corporations our community. history many and and cryptocurrencies, newly and asset Phunware and the within individuals a blockchain distinguished have both global long with executives

leverage As be control a with direct such, and have growth with intend U.S. also and can through announcements their corporations Bitcoin indirect for PhunToken, trusted acquisitions. we here, parallel, inorganic, purchased and Please would expect dollars, which reiterate supplement buy.phuntoken.com. blockchain. previously, now as their of and to suggested opportunistic organic online XXX we channels our activities consumers not to regain to and worldwide, them and for bridge with engagement reward with core and complement look again coming In governments mergers data for to as we Ethereum at PhunCoin, weeks and months Fortune enable looking additional in the ahead, but only be we

South formally on that our provide especially more and on yet acquisition our markets customers, announce this merger for areas including more platform, distribution will we to partnerships Asia, expect nothing in MaaS Europe, have more deals America. front, activity in to international still we While accretive and the and focus

a go and blended gross top behalf all to and focus and now fully maintain through for XX% of operator. laser line please. ahead, sincere the support conjunction of rolling like the or that, interest Finally, operating includes Operator, year-over-year, core which thank call a we our ongoing expect I entire to would financial activities the more on with model, growth of or forward, XX% our for open of on importantly you and Phunware worldwide, margins in greater. With family in up your and questions

Operator

The Partners. Thank state from [Operator ROTH questions. for your now Capital Darren you. floor with Our is open Please Aftahi question Instructions] comes first question.

Darren Aftahi

for I How guys. taking A question. my if may. you? Hi are few Thanks

Alan Knitowski

Sure.

Darren Aftahi

On kind – how curious of contextually I'm that many dependent? of that fits more the something in distribution this marginal, kind would later the guidance into partner expect a of more you unnamed guys be it's that. of guidance, you secondary kind And gave those indirect of year? soft do indirect of of XX%. Is partners the to type then this as announce of pipeline? question, how those And kind are that kind

Alan Knitowski

and question Yes. Thanks. thanks for joining. Great

in call call, obviously, QX, doing So we we're our we of matter I announced here this just think – yes, we few and here a announcement, last this it's weeks. earnings do in a earnings

good the inked of this we've news So deal, rollout deal, at mode kind everything is a already is, our point. signed in full

are first the and sales now alive. QX, of be throughout route scales ahead full all we steam QX will the start last next initial then and expect at this year in end And beyond. QX We that of piece, here

partner the made So the very what a is during going do you're as rates investments other we of joint you're lot absolutely announcement. to of lot portal. doing to we've downtime. in to a a We've we're growth yes, a excited And pieces, alluding been remotely expect the training and see that

that's offering material. inside selling, its to all fundamentally We we already be a products the just that believe full the button of actually software before individual the it's but do it's partners do some in our announcement core the they're kind relationship doing upsell, cross-sell, Our go-to-market. up going announcements, the market. expect We included of that quite things will to not to started joint not do we an need is

the portal, OEM, we've like all your of that this the about how done we're we've then goes documentation mechanisms through works. units how a to against the that software partner how channels, Phunware works, additional So now And repository as works, really for white-label used inside. point the order think stock work and now keeping And activate the training the certification to a scaling. dive to the means deeply

work done, for other deal as workflow that the do. So deals only signed, this and deal we get fine tuning all the that'll using we we're go not this process that

traditional go-to-market. finally, expect together this And bundle in solutions and process each hardware would channels, venues We that and than be be where we channels obviously rolling would public four where see our through start portal video we traditional yet consulting available fourth quarter software it go that our comes take from with they're on sale, be will haven't of but they will each data made forward, area. bundling facilities, providers should from, with hardware that will more for sales key expect to anything stitch and corporations, the and that for just software have and bundle bundles other One carriers through having this to ours through the be integrator their voice together. service we are partners. hardware scale quarter, information another we the software where don't to we a as brought will their that be because blueprint bundle for and where and system activating our software then will And software really any selling channels third channel

Darren Aftahi

curious I'm kind last And helpful. Matt, That's more. maybe could from maybe we're if being of on if PhunToken that’ll just I for two an Great. in ends for On up developers curious could customers. at Thanks. initially. MaaS squeeze kind give a customers PhunToken, And current looking initial of that just then for you share If and count helpful. us be upsell uptick

Alan Knitowski

the I'll first over share and take All to hand right. piece I'll Matt then count. for the

terms we One think AML these to matter in is get and portal, then to a And and ways there processing through people So Bitcoin, we've the perpetually see profile can about have of U.S. where have buy is will all dollar forward. once already through, that going Ethereum, done, wire portal the is purchases And open as be to actually two process Bitcoin, purchase or their KYC U.S. ether the uptake them of piece, been a PhunToken on I tokens. when process, said, we uptick the of that's that processing dollar – live just certification all a is comes purchase the a and you it go registration when first and we it's transfers. purchases and tokens. go

behaviors those will be through can basket is And also pending Data with Loyalty Apple from that, them at and holders wallet. then parallel content; rewarded PhunToken. PhunToken. are allow going as that like for then separate be go PhunCoin to a your then data and with so, one brand, that of as offering interests, a survey folks applications the bolster any occur, are And more about sharing provide identity, PhunCoin, with activities of earn that that into will yourself, that we can token they that our for And we with exchange. filling And put the the do, out then their the profitable live people in Google, which then can those the approval that and an location, will MaaS MaaS information best earn the way which to your is a you of SDK, associated is physical think associated obviously, will these SDK,

that iOS that ecosystem our they see is it, that native they when and purchase our are MaaS the And customer tokens. going base will sell. secondarily the SDK. the then Data software of SDK what are see earn across already other and applications those folks those MaaS all the Android of you'll come Loyalty And ecosystem to MaaS and/or participate on to you and the simply that then going kits, in development the uptake, using And need see focus you're in to drop into that functionality so, their

the sequencing So customers kind a I partners SDKs are then loyalty that that do expect anything, token, to point, then they of and me adding or benefit about just all having of let their that cross and to your just to one, Matt of the the data upsell purchasers the for the it share And turn sell two, the your those of our that three applications token that's in. of then the the without inside those question get dropping in build blockchain, full over and And counts. earning SDKs.

Matt Aune

Hey, Darren. Yes.

$XX.X of of $XX.X the we're March, this and at end week So we at as then million at were million.

Darren Aftahi

Great. Appreciate guys. it. Thanks

Operator

Okay.

Our from Please Brothers. next Taglich Howard question. question with state comes Halpern your

Howard Halpern

Good guys. afternoon,

margin, forecast. pandemic year that at wanted for half little of through ask the fiscal still gross the first is as XX% the in second of in Just basically looking your year? this At a and starting and half XX% to about transitioning we're XXXX bit that the year you're this

Alan Knitowski

thinking is in to lot a everything in indoors, there the the buses, masks vaccine, take I fair. closing That's – by going we’re New said, off, CDC to Year. that to today kind in outdoors, is I that, quarter, don't of after there's originally airlines, think the were things the handful of the that some is reality taken I want Yes. where they their probably look to prisons, But the the to the either we is have is The and United starting going shelters, homeless end came everyone hospitals. already sure this reopen for think now, that and States reality you option it or decide vaccine like out QX at of take I have Obviously, vaccine. right now think if the exceptions be a

of they spending and in before a a waiting really paused going a think the and of took wait customers have, what basically the see, even were think scale, lot lot they some available made with was I the happen vaccines government we of to their see the big to vaccines. and companies just QX, I

as we here were saw signing what course. think to that going of I in an of its that, I pending and think those seeing QX deals that's maintain acceleration we're QX kind started and in

we half to to elements. other about PhunToken The we're talk of other this of about XX%, reason and only these the when of specific some recent the have going quarter obviously launch

formally announced weeks. it, the we've and but alluded signed So but deal, next with even of in deal partner will the – the the with haven't that to we we couple

hit QX, that, XX% more recognition this And All and scenario to we're as be revenue of that's I QX, to the we're in a of be means into quarter. going that going a against think where and QX, getting half we you're going to very anything – back tail that then is current activity to to getting going comparing normal normalcy. QX, start that expect

we're think the probably we similar seeing of a I that before see January the internally we're be United situation next like year world, in here forecasting, States. going to it's around

second, probably was in U.S. in Asia. way, the especially pockets there is led and Israel Europe, South especially, clearly in think challenges America, India Brazil I

look do we're the full So just are we and going honestly of planning in, this quickly of expect how launch And we're to lot we a your will QX start our how first of having what half believe that channel a call under ecosystem, the on is those their point it of we'll quarters get But the that over, to of QX of people to quarter more QX. the vaccine benefits and in little like. get, want of that's are just to of be to the then and facilities. all internationally rollouts current going we're the rest kind deal, back indirect this both

Howard Halpern

are Okay. in activity about And of you quarter. the closing kind in? second you verticals talked seeing the deals What

Alan Knitowski

Yes.

the say, vertical would most is I active healthcare coast-to-coast. first the that's So and sequence,

we especially during services, is period saw, the of this procedures. provide how versus non-COVID So the was it elective they sort COVID of pandemic

think launched when that amount at. health and up dealing recently activity kind systems. Spirit, South and of we've Langone both with what York we've So suggested I coast-to-coast. Healthcare NYU West, add-ons now Baltimore an you're Florida, where expanding more of Health about as post been We've is which is the Clinic Virginia with We Baptist immense Common just from Randall is Mayo New Out called in M&A. done it's Dignity seen

a expect seeing vibrant that healthcare we're to so And and very market we continue.

work trying they're Norfolk partners around customers doing being the feel California ahead blue facilities New keep things a in this terms having up in in to something finish of and goes of campuses, in wrong seeing expanding smart to biggest states. of people were we more corporations up open corporate about the still getting that there'll or January. at ahead, are and opening they'll back bunch faster. like second in and speed ability, QX the We get those definitely QX, did speed corporate more to contact York, about to Southern like engagements we're full that tracing start other, event and talk Those few other of The and of they're Any they slow us, kind that full seen say the seeing we're in that of back in with campuses. is we've look doing instances and inside. And and a kind I'll people be safely some try market believe a and audit is mode of just provisions

activity the you the government. bit you're casinos, fourth of they've of in some quicker Boston, been in that's really that whether more open, where lot up Las and much healthcare when hospitality they're But a been real across Vegas only with in different. then corporate in Macau, whether side, Bahamas, more states, is activity standard is software a having and more suburb it's kind is city visitors We sensors, we our in see have of in what would reopened estate, through that consistent we're most which of other management, Florida, kind and network, Pasadena, little a of think constituents services. residents I we're but two, third seeing that's investing is obviously hardware, interface it's a hospitality all a city Texas, the cities. those dealing lot finding of is amongst what of existing need features. the, mayors And and lot terms the that smart to Houston, in means councils better They're realizing large is a that are I to property, city and is different an in they local. bit launched fully or little open and of if conversations where call, red then Texas, both a mobile, we're are you the activity access probably the with one, access go sequencing, Interestingly more the and uptick three been May local Atlantis, active, interface security outside which real much is much control estate, of a group that and

of flat are and I of big what's others been that the coming like that to that's back would QX, I of during of put kind live to just going shut happening now. out customers or arenas, QX, the be think sports, for down it kind especially do stadiums, earnest, next going wave things So you're where in see events, window pre-vaccine.

Howard Halpern

just starts especially actually MaaS And since as to grow government. means one implementing, the could be source use a ecosystem town your last brought up they Okay. local you in local one, the to Government, the government to get people blockchain technology? a their

Alan Knitowski

of lot the had lots the of if seeing an you're we politics across of that country, a look the challenges than progressively, of example. though, involved out. as you the Texas has politics California, the state yes. And local the New or Florida, state throw be to of government, answer more should state believe again, anyone Well, state think we with Even there's York

the a and move well. of into help just and Valley get how recruitment companies big activity. blockchain, I down financial massive out in seeing And Silicon South to to in Miami move You're Florida at as where a the and recruitment a local mayor tech of West boom examples leading a Coast getting crypto to level not is can

a a need And need So We local understand a we means have interface in advantage do take their way. people to in ways. that we of think that able big think productive constituents to more are There's productive there's two to a groups way. much to difference. engaging offered that big be do that the in with are residents, services to think more government how much visitors,

are through working for not they of seeing So some get of to what remote, what just their to we they on to they to live. fundamentally And local realize commissioners landscape table definitely the is, is talent we're a want starting has to options their opened found time, and competition resources think pandemic looks work, they uptick were big because life. the with that now thinking use, nationwide. their mayors the have I to geography live everything's companies even where these how up a what done and for want we've choose, the And excited want changed but people to economy governors they it's solutions really like. want spend and county And the and

of those business that solutions people and see as we so to able our to for let in to facilitate it's when cities. help visitors, or fun be explore that whether unfamiliar And important it's services for options. access dialogue, people means you're think work on And through conferences, a we obviously lots for

Howard Halpern

guys. answering for Thanks Thanks. Okay. questions, my

Operator

question. your [Operator Please next with Instructions] comes state Our from Capital. Ascendiant Woo Ed question

Ed Woo

for for valuations terms acquisition basis. looking you seeing opportunities? by out you were you are question. there M&A of Thank What taking that my you and opportunities My question in opportunistic guys is, mentioned

Alan Knitowski

market. Yes, competitive say so we'll as a wildly

into for platform million development cloud Importantly put our we've standpoint, existence the from our probably our enterprise over $XXX of mobile.

when channel-oriented thinking our on are to market. South not onto can to when any about the or amplify bolt to to So need products Europe, feel a our or inclusive Asia. would new we biggest accretive access about of channels And we we're one acquisitions we're that and as not the customer-oriented going America, thinking What find beneficial on platform, so M&A, core interested financially but to most solutions that. be customer or trying quite actually with we're focused and that technology in deals geographies, can expansion activity, we're company we're with that only we thing that anything Matt focus we reinforce are for comfortable base

that's at. So the is where focus really

second lot what probably the question valuations me of and and like. I at a bit. is terms smile – lot still he valuation, on expectations a part unrealistic your Matt of little competition on of look a and In There we laugh of

really at see a often valuations seeing angel-backed haven't of lot probably you of And When the competition financials and just into companies, you're they start the the bit of lot having a to disconnect private, where the venture-backed between might and financials a you private where want you're valued when they're corporate more who into a strategic buy are. at to relative between think buyer. yet. I grown elevated get companies the those therefore, where larger you

might it course, firms fashionable You're that going years when find the wasn't getting SPAC people then public to it quite special public. private the of lot is be equity trying purpose now. as as deals use a And go of companies, without to ago, acquisition we

the SPAC or to all and seeing Now everyone's deal, IPO lots a And an as SPACs listing is consummate have a they and to where direct to or trust it those shut return of a get the find listing. either they have public, and money deal, you're on traditional alternative are using down because all SPAC a competition timeline the done.

think more trying But we're do not you it's unless speak. to whole that lot get a more fit. When a so I think I a So across seeing rationality, so far, is good you're really actually anything the to bit spectrum. and competition little think there internationally, I

or to focus get be it's financially operationally time efficient, us foremost, of out growth and if and markets on or just add to distribution organic accretive. to platform, new And pandemic. not us, entry going we're take it's diligent customers and our our going for it's First into for the our

Ed Woo

a answering That's you luck. questions Great. and And thank great for my good answer.

Alan Knitowski

Thank you.

Operator

the to remarks. for turn I'll over Okay. closing call Alan back

Alan Knitowski

to kind have a a Matt give closing also while then final I'll comments. And Yes. few few remarks. of

put reopening We everything that know now QX. accelerating news behind it the everybody all lived a past as look off is. have backwards what see reopen. here. decisions understand looked corporations pain. the We and have really us. think made, going interesting to starting is finish good We to the everyone The made, for through. I the all can what think has is We've and is start that been knows important we we've governments what's pandemic we're is, to It is

to we'll in better some able of I position in any And think QX. QX, kind then in surprise it's a be even barring be now, executing have normally company event, fully big, shocking to going beneficially going better a sorts be as funded right or shutdown, were we're other companies where to XXXX getting was well markets that into were lockdown things very or provided, while of all as clearly are they when when were the services or that in everyone focused in delivery meal-kit not other Zoom we worked remote.

hospitality in as as weren't of areas folks flat hurt or also shut down. things We the some where out just

I cash which be would at wrong. where done is now. flexibility. think quarter what the were add That's said Anyone is off we're pandemic eliminate we're sheet, record of the a do And what's we've liability, eliminate at all there we away going continue promised. balance. balance wrong. a bolster ago, to where the last debt, betting important realize table. was They we We through that we year as we those with do, work out to finished things to We will the

be blockchain we in of the Bitcoin data on back would I to in public, and transition and thing As SaaS. XXXX. were deals expand before as of us. margins not year before world we last it's software. our were the working kind early to going And we'll part full that probably say of well, final anything getting The we We're new licensing licensing to of focusing dangerously cycle we long is, that and end that long the continue were then process. the And to five to said one to from close going of our gross continue cryptocurrency

involved to we corporations treasury behind yet go market. institutional this both before. more governments, people candidly, a We and used was way open $X working to to crypto Big were getting loyalty, get Street path seen be Wall now things the use to Hat through want in when and way lot process for money, didn't point, like save equate were funds, this get to the data pension there, and through wasn't private space. diving see a funds, the the people diving of this we were Bitcoin a still And to to endowments, too As that and like Red asset we we've to activity in, blockchain all world. nobody to corporations in early acceptance We trillion ourselves get into Linux. people into source as

great now strong, to sheet the excited efficient And announcing anchor sit so partner balance we and with we're cost we distribution and with we the a that out have a ability be scaling that now we'll have We infrastructure that global have that where need. super a actually we start money shortly. is

wrap opportunity an a those couple highlight key Matt then and give me elements up. we'll Let of to it financially,

Matt Aune

Yes, here. Alan. of we're time I out know running thanks

support. things I we’re think as time I right people of Phunware just to to year. We about look best, for there's the and position at us. us be to everyone's the we feel as will couple operationally was calls trying things And to great and at to and needed and game where focus build And join active We'll said next get I with for your where we're say we value. is So bigger fund happy a I out are appreciate lots many going extreme of Alan the mean, thanks come. last learn conferences take say, now right as journey obviously to again all it of now. and lot months shareholder the our compared I company and please and execute that's in can and the continue better And more to think

Alan Knitowski

Great.

to operates. ecosystem in I world this can say, Exchange like are crypto all fact how of royalty NASDAQ a can encourage history I'm data of and the buy.phuntoken.com believe I'd of closing, And in very by you lots just York that seen this in want. first that Stock and treasury. all our to check buying get the proud you New So to new token are the me that for Phunware of new be Bitcoin on seen We're security net utility listed company go with and along we cryptocurrency, corporate as the ecosystem. start a have you ecosystem captive its to that or of with launched going diving you We've a token. information part we people you that own both blockchain, part doing people reminder are I've to mining. that has brand

We of the have NYSE the or trading especially the full compliance yet to public-listed see can assets. of worldwide a regulatory anywhere activation all with these on anyone audited and company that get NASDAQ

all So we'll sharing look from very our of forward We you that to on you with you. family much. Phunware appreciate you, us journey and being to with thank the

Operator

This your We for participation. call. concludes you today's you. thank Thank conference

You at great may and time lines your disconnect day. a this have

Phunware (PHUN) 14 May 212021 Q1 Earnings call transcript