PHUN - Earnings call transcript Q4 2021

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Operator

0:05 Good afternoon, ladies and gentlemen. Welcome to Phunware’s Fourth Quarter and Full Year 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. will by remarks a today and Alan, format followed Randall, question-and-answer The include by prepared Matt X:XX session.

reliance the also such As in the include a reflect based referring our current SEC but any the only financial to should is and of I COVID-XX release SEC on like investor additional them. investors.phunware.com forward-looking Knitowski. Phunware’s will measures. or the in to statements are section statements. non-GAAP the These subject Risk materially, I things views time, access on disclosed of Reconciliation and At be risks to reminder, press Relations GAAP Investor forward-looking further non-GAAP visit and President, on to differ would of turn statements, website presentation, proceed. pandemic, forth Co-Founder, today's earnings not not available the uncertainties potential undue Actual effects over placed filings earnings X:XX discussion filings. matters footwear. of encourage various today the which and to at Sir, Alan on financial and results being of set this to today section Phunware's X:XX press to may that impact are release, as the including may Factors assumptions CEO, investors.phunware.com. Additionally, discussed you current is information please collateral include

Alan S. Knitowski

Year X:XX to Fourth Call. XXXX Thank our Full XXXX Investor Quarter very Conference you and welcome much, and

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

has brands, or is earth a a need to BXG and human BXB software being Apple needs favorite venues mission and the including on is succeed services just one their every connected product they intersect that for iOS with Phunware we on applications and provide run with transformation core to Phunware ID solutions, device devices create customers On that network Google touching that everything happened X:XX on infrastructure. digital to our to data mobile, and side, a and Our cloud-based their for applications. our Android

of and we applications a QX and On software the services guidance at approximately than $XX than and more for forward for more of provide current blockchain. mobile business X:XX across incentivized with up million are year-end efforts close worldwide, our XXXX to business QX as personal model a a of contract productivity hardware of periods to $XX of the for improved XXX% side, more platform than in or parallel, further Lyte streaming, provided multiscreen-as-a-service, cryptocurrency mining new a under with these our more including XXXX and PhunCoin cloud indirect of even MaaS immediate customers. and enterprise licensing BXC quarter-over-quarter acquisition number which and full in prices. transactionally introduction, fronts, systems, our SaaS in X,XXX ETH, currency channel trading XXX% and valued for continued a cash Importantly, million their more our are other one our vision needed gain and and and growth sequential and year is full trading, subsequently providing scale and over our operational In for rewards MaaS we our at customers PhunWallet XXXX momentum participation balance available cryptocurrency high-performance XXX our and and Central including constituted with ecosystem, to today's X:XX we key gaming, The computing. QX accelerated five-year Ethereum and of mobile year the our balance Bitcoin cryptocurrency product has sheet, year-over-year. dramatically operationally PhunToken than engagement conclusion growth called Technology digital our platform in loyalty expansion, revenue revenue as which integrated scaled and QX business the facilitated we completion tandem, adoption and for

Our will broadcast. break details further and CFO, Matt Aune, of in section the down his forecast earnings these

returning In work. terms regard their remain not operating of our and transition with a contracts facilities environment, returned our still to and BXB employees core customers and consistently in to and hybrid current have back safely to BXC their offices

both ongoing that that that an a basis expect will countries balance and while unpredictable In parallel, process states and strong X:XX of throughout cities, broader demand the with this cryptocurrency overnight. understanding aligned, public demonstrating see we happen continue engaged, independent journey active our won't on We completely hardware and are opening fully XXXX, also BXC what and and private sectors. remains customers the of for

all Yavapai of Phoenix care quarters company's Center, interest again Children's cryptocurrency, we enterprise for personal In comforted Markets, a As in amongst scalable, solution marketplace, across recurring mobile, for cloud, and activities Square, genesis of from blockchain-enabled portfolio MaaS In reiterated excited resulted of the Smart front business our for care, Center Health suggested door previously we here, Regent Hospital, addition our productivity. by powerful for transaction for computing licensing token including XXXX all Virginia by MaaS the coin low-margin MaaS transition loyalty Importantly, systems and our our far nonrecurring to aspects solution offerings Regional computing product high-margin and our our like conjunction including as activity City big wallet streaming, in health cloud. solution shifted estate Smart cryptocurrency accelerated gaming, our high-performance core rolling increase Medical continued history growth engines from our stickier, sectors in Atlantis trading, customer real we many of this secure mining past others. a in and a with was including wins were data-driven capabilities These activity many are and growing Inner and our the our dramatic Hospital platform. Workplace corporations, the data, and hit pandemic, customers digital encompasses high-performance both and Bahamas, and hospitality, X:XX and the more with conversations SaaS verticals. solution for and and business health MaaS Dignity for MaaS our that cities, hard customers direct team, government our in new these. our X:XX to forward,

HIV by In and extremely parallel, post footprint We Vizzia our expanded by token. about remain Amazon the sales excited Solutions. and global channel indirect carrier Technologies Communications, fun powered go-to-market fun and fun further IBM, Premise we scaling partners, X:XX blockchain of AWS, also our and Tech, coin Cox launch Lighting with strategy global, Cooper corporation, our global wallet including amplifying ecosystem

XXXX and We later MaaS the growth XXXX, QX as above, monetize adoption for platform and are as in announce guide in customer revenue finished part more data scale over this PhunCoin previously to are XXXX blockchain business growth extremely We our we respectively. mobile quarter-over-quarter trading promised to of half to month and today QX alone. than revenues annual loyalty to XXX% XXX% aggressively March. QX of QX and to year-over-year this and month ecosystem with XXXX also closing before enabled look April achieved extremely we commenced continuing and accelerating revenue to than global PhunToken the more QX MaaS of sequential both forward our strong, stated for X:XX next a excited As

county in high-performance both As always, we especially to with the cryptocurrency also state X:XX and to Fortune across computing strategy centered indirect range our ranging agreements Fortune and XXX will parallel, size contracts BXC core our customers, we consumers. direct-to-consumer and for continue governments and will dramatically our go-to-market expand and federal. on channel In local and direct engagements from XXX offerings

by quarter extremely have over more of quarters excited what coming are even by the in We developments number ahead. a we see past occurred and the excited that

First, SaaS that we forward. to future MaaS months X- ultimately added recognition over will XX provide to the period coming for revenue revenues bookings over revenue backlog and deferred X-year our rolling to contract XX recognition

our provide the not start appearing will and in two our on near-term MaaS down or recognition in ongoing importantly months for instant our CFO broken with cycles further P&L of gratification they his four typically X:XX customer by and be sales our demonstrate While efforts pending broadcast. expansion earnings revenue to business detail these representing the reminder, the wins health our of ahead. and do and on As coming a on section periods P&L, in average, recent reporting will

five more of PhunToken to by and continue than more unique provides of month. including iOS billion worldwide, interactions installed in engagement. blockchain data data mobile Google scaling than a to customer XXX,XXX at powered day five expand MaaS billion for per PhunCoin platform With and data on our devices of up at our comprehensive more detailed supporting capable XX:XX scale, one-to-one MaaS to our we platform ecosystem, base robust transactions platform MaaS and third, typically and transactions inclusive graph growing terabytes PhunWallet started Phunware both cryptocurrencies. IDs scalability MaaS per And and commercially day, operating one of second XX conjunction and all our ontology per knowledge one a launched we applications a Apple now devices when than billion petabyte Second, per on with Android our

two financial deeper will our regulated XXX% balance to revenue security, At into our guidance only their Matt, year go and sheet first While utility XXX% including ahead. please XXXX of tokens Matt sheet flow expect as this our through dramatic the time, we will PhunCoin CFO, appear security balance PhunToken virtually quarters and transactionally Aune, quarter as XXXX year-over-year reported revenue. our our sequential our will status and improvements revenue that a margin growth for our actually on gross XX:XX tokens performance as plus new fourth net P&L XX:XX go full due operations. strong growth,

Matt Aune

performance us I'd good afternoon, for full today all year thank key progress on joining review XX:XX strategic Thanks, our initiatives. Alan. our financial like you of a for XXXX to everyone. and And

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

to reconciliation website revenues GAAP Our press XX:XX the which $XX.X for provide release, X% about represents year-over-year. million, year and results. full X-K Net totaled financial non-GAAP XXXX growth a

Our MaaS XX% services net $X.X revenues. was platform or revenue and of subscriptions million customers

of On was of the to cost revenues year. a drop gross of things, it two a previous in compared to first, basis, mismatch net that margin was were including: with team in of less technologies in revenues acquisition XX:XX a Phunware. revenues. to a for This Gross or great hardware quarter able the margin XX% mid-October, to $X.X Lyte year. last the margin is late full gross attributed and the XX.X% non-GAAP ship associated XX.X% sold can be in was million The than With with XX.X% achievement computer adjusted goods closed XX.X% we compared with.

deliver The as on affected shift to software revenue. we Our MaaS working these fulfillment strong associated for business are Multiple XXXX timing that with originally continue I'd is profile the discussed projects our reiterate, a XX:XX lower implemented. projects always QX has lot a our the by dependencies recognize margins a in of generally on ‘XX. being fluctuate are after recognize on to But XX:XX As had to means means from past, we business. our revenue. margins we to to that to but dependency, built to both than aren't curse. scheduled long-term working goal have and from only our team have part continue we was negatively a efficient situation shifted the expect gross plus and do of diligently to sometimes XX% time but new as blessing costs as Secondly, the expect past. to different be in in operationally it we which had margins out yet margin backlog. like who in did have line, to the consensus and grow wait While Lyte few a gross on but have means become. to have time, aren't this are we QX our I the does time folks the to as mitigate we We quarter the we occur XX:XX a we in future margin bookings our delivery large has our time, Phunware, scenarios our sticky time, we we for

Phunware We with moving achieved QX. top into the line integrate and Lyte to fully for are have been revenue pleased quickly

costs from Total million, year, million XX:XX last slightly that which above expense grow charge we XXXX. we line increased phase, As operating took with up impacted any QX we legal acquisition, experienced up continue gross XXXX. below during the and in in to our was integrate gross of will for $XX.X We excluding and margins. pick fully integration margins back the $X.X our as expect settlement

The compared a and year. adjusted the to noncash compensation last along million million with year. up operating $X.X stock-based to million charge was charges making million were other combined the settlement, onetime $X.X in these of By expense excluding amortization $XX.X items intangibles, expense prior $XX.X and operating this year compared for legal noncash

payoff accounting We few they compared to the per of and $XX.X $X.X year. of implications or Net charge stock-based areas of share in $XX.X minimal year are $X.X Non-GAAP notes per have these plan last $X.XX loss loss teams for under adjusting share was and and marketing cash treatments compensation $X.X the Non-GAAP the the a revenue the million to year. last $X.XX for intangibles, XXXX. year and invest with XX:XX operations. main million for $XX.X adjustment loss growth. million loss digital of loss balance value $X XX:XX million, last XXXX. of year-over-year The fair at continued to million to EPS was factors half or debt. the slightly invest loss $X.XX on to totaled net and and required EBITDA deferred at in cash down the million compared our in extinguishment million first impairment related items, include sales no closed in share change to XXXX debt XX:XX convertible addition $X.X of further to we noncash although take, $X.X million, charges of loss was end These liabilities of that fuel end per factors $X.XX of future to adjusted driving We with in for in senior of along in our from warrant Moving amortization a for share million to have Backlog $XX.X the onetime compared to our the for million per XXXX currency to just $XX.X to were sheet. year. million

but and XXX based hold we we excited value results, go finally the million on on have an are closing, thrilled currently also are of just beyond. with going in In the short, prices. opportunities even with just approximately our getting and forward Ethereum Bitcoin aggregate started are We to offensive. over today's more XXXX $XX about X,XXX XXXX now and ability the In

access have needed are offerings. We and as little a business with million revenue opportunities. lines build to sheet capital strong we very XX:XX and both to in market $XXX balance to additional our through all inorganic shelf debt and continuing organic also Importantly, via have of share committed

million quarterly expect we are for $X mentioned, a year previously Alan than to QX first here time in post, the strong positioned start and company, to as public full As the of off XXXX. more revenue

tell base. markets. to year-over-year institutional in to and and happy the corporate efforts retail XX Vanguard appreciative attending are Group next the South will XX and Conference financial May Florida. The is and of BlackRock strong XX:XX the in our strengthen capital profile story We We conferences will our see meetings extremely were both H.C. conference double financial active our May ownership growing through by further Wainwright our base on with our remain investor Investment led and we Global in major be investor

and to call at meetings as to each We with of like turn present high-class themselves. XX:XX the over will I'd look to that, opportunities one-on-one event investors augment number With Randall. conversations institutional the

Randall Crowder

quarter What has reported a is we us the Phunware positioned third we was different it achieve than last able in for Matt. were company operating Thanks, fourth to XXXX. well year. materially the XX:XX quarter when

cover wanted to and our business statements, before our refined each of I which Now mission. vision units, to and our take I a moment mission unique ratified share XX:XX Phunware's Board. current recently by were

order and to audiences team engage, cutting-edge in of dedicated their blockchain manage and better Our brand intersection at industry and in monetize the big deploy data cloud, mobile, pioneers communities. of help any global any technology

on with order or partners, enterprise advocates. the a whether screen, and at the right the interactions Our in time, on employees platform engagements the right worldwide, brands right XX:XX right context between delight audiences and to profitable drive focus and cloud Multiscreen individuals are vision. right place in engaging behaviors as-a-Service they Phunware's in consumers, one-to-one facilitates the person channel

with venues create will a We being intersect on interface and a or every software Phunware that a Phunware human MaaS ID favorite their for that has brands, solutions touching earth or infrastructure. through network device applications

facilitate virtual Lyte we personal, real inform, XX:XX and brands the units: core alike. worldwide around have organized and Our the interactions in experience engagements and improve business and services, transactions, and subscriptions better digital transform to corporate vision human individuals this, application leveraging world four and blockchain achieve Now to Phunware. and company data government by by between key world to software the is

As we the performance unit, about commercialize providing further as business we unit-specific and and will the reporting point back in to these think market. future we guidance further indicators scale key to each

Software subscriptions and services.

see influence we and software key pandemic towards verticals. buying and decisions signs many sales continues positive recovery, the services to that our extend cycles subscriptions Although for of the point

voters, us Front on to deals announced of Smart more well-known also partnership MaaS indicative for we work up City engaged their contract better Advocacy MaaS their we revenue. that for heard. in these we're solutions possible license Campaign closer to are with for the of with Digital message thrilled in higher commerce, most closely $X contracts will multiple to evident again average However, XX:XX today Door area ensure that best hospitality care, has as five-year be corporations, target new initiatives. margin to local and the saw It only Nucleus Quarter-over-quarter, politicians focusing on are have Our engage for become that not key also to larger interest chambers strategic and million terms. for verticals: four three transformation Brad with brands but health We and the Parscale MaaS MaaS SaaS ensuring politicians. is recently officials activity Workplace Smart a did recurring to digital will with of also close multiyear generate the growth value a deals discussions significant support continues XX:XX were for total trend the

solution thrilled recently our manage in additional solution which set promotional mobile Paradise includes Southern, that at successfully standard a As employee Alan Workplace tech-enabling and can begun integrations, for new mentioned, tech-enabling which has XX Norfolk is easily announce experience. mobile released. parking comprehensive for This in guest Island, also booking we that such room was the has lighting, are our XX:XX as Bahamas, already across experience Hospitality video Georgia. We one on-site resorts. their employees recently we in operations and Smart reservations the experience over Smart which Atlantis headquarters is our by from to deployed launched for solution new With Atlanta Atlanta, acres unified five revenue highlighted and XXX distinct generating over the

In well our a is this addition to XXX for software to us. with industry-leading advantage location-based competitive platforms integrate services third-party software, ability over key

Application are on rules than to focus with all to about through platforms companies mostly consumer and application expanded data-enriching comes our Partners. brands on seeing we keep are complete rather we a popular consent their we Many have advertising list Facebook to it to our phunware.com integrations like equally the with regard review include concerned can new agencies. struggling working are XX:XX strong managing You offer media. business, when directly the of transactions transactions. as growth With under up

the spend platform data of identify media with out can ensuring engaging and marketing on consumers get helps more target right the customer they by mobile. Our brands their

to sales the quarter and taken of brands We we can four platform technology their the reps that the people platform fourth it. we securitized built be invested enable blockchain that into to but are incentivize trading operates a but XX:XX in take plan to PhunCoin. also momentum in offers our a the exchange, we Trading the manner. In team for help Many the security we've how the developing able ability ATS, contextually is that markets but trading understand on quarter, second been Alternative appropriate PhunCoin authenticate also us we new help System. fourth of heading steps regulated longer the us XX:XX customers, to SEC in our compliant expected, have Blockchain. is in added the most end blockchain critical not MaaS data to accounts up to occurs quarter engage XXXX. now This Securitized set an it's Since capitalize FINRA-registered and XXXX. on engagement only previously live the people to who than dealer ensure has markets an securitize by token broker

we our We distributions to our exchanges like in are to A end of PhunCoin. the trading attorneys Regulation first by also additional decentralized begin the support offering of working investments and anticipate parallel, token with to prepare Fund In Uniswap quarter.

decentralize this while we the fact, to the a participants AML loyalty further KYC In complete effort to whitelisting designed to token promote and program utility launched ensuring unique procedures. support appropriate recently

activities will also community. feedback. is iOS to exchange brands PhunWallet month Android the great and be for their better growing publishing is end or receiving We mobile To of within data engage website available PhunToken Google our and our Apple this and consumers and for new help blockchain-enabled ecosystem, manage educate loyalty XX:XX by a

map an experience XXXX in it easier of and user creating updates, our product for road regular comprehensive ability the the profile account accounts auditable larger to working this over update existing devices, activity. mass choose users an experience to As information register well milestones profile platform, users a enhancing as more and extension information but of we are their to across new include to access give and as on registration engagement to the they control share, recover make

they friends, XX:XX that seamlessly with the be to Lyte brands to to refer location-based by the Phunware. PhunToken. real networks build. will family world interact And in New and consumers for while users rewarded functionality support and with allow colleagues enable marketing rewarded being

had record As already touched our Alan to following Lyte on, work integrate and quarter Phunware as we initiated into Matt fourth them a acquisition.

supplier able we two face. to are Fortunately, relationships relationships support seeing we order will support critical expansion. These the of chain constraints supply our that strategic the continue in our to us important to are help and to demand many international were competitors mitigate increased secure

We support and team are also back support remarks. to I'd with size new the someone of Lyte recently a outside for be to set layout border California, efficient the our on to XX:XX Ukrainian space organizing refugees will arrived we the running. since better to proud Lyte I'm we office Alan and efforts of XX like Ukraine, excited Austin note, old Texas warehouse At is warehouse of in return of announce and things revenue majority closing, XXX at the personal that engaged XX:XX in we lease will employees just Alan of Beach new our Austin, warehouse and office. to year, of assessing the In on of the who turn a employees I we'll moving executed Lyte’s in a more the was are more Illinois, born other more Now new grown supplies XX:XX Since are As final operations. help where employees room need. be in double to and commercial growth until of plenty will addition have over for to out have be to operating to of primarily that the has targets our our Illinois for end who couldn't team. we marry Newport the the expand in up to raised

Alan S. Knitowski

XX:XX Thanks, Randall.

scaling wind all in blockchain supplement community backs extremely massive of ecosystem now years the engage the of to is of can it have accelerate call, and as customers our today's cryptocurrencies we we resulted platform by can throughout of ship that What expect convergence this computing ecosystem big mobile, cloud culmination to additional our to markets trends and capabilities incent We Lyte their identify, and MaaS excited and consumers audiences. our decade-plus to and acquisition. growth. recent Technology MaaS addressable accompanied and building now offer engagement that further our our core high-performance complement systems across target strong highlighted blockchain data, in by MaaS and means our me we our XX:XX the As of our act enterprise ongoing that are global because to as offerings at directly

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

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

from more partnerships laser XXX% core financial In or maintain year neutrality and we protecting With merger growth parallel, acquisition meaningful all overall with operations operations the will consistently transition our Asia strategic Finally, up go expect and to behalf as XX:XX to company. expect to I newfound includes rolling your to international like value and you to of rolling Importantly, of activity would forward, late do and and targets that including focus of entire more Technology, distribution or financial in revenue conjunction generate America. ongoing strength platform provide we open efficient line asset Lyte and as South ourselves call cash model, on year-over-year, see importantly from you did to our and last focus customers, to also on into the our markets, for now deals especially areas only profitably we leverage we stable and that our more also a forward MaaS cryptocurrency returns can please. balance all an and corporate for inflation, operating the while in represent expect that, and which towards a interest working more go XX:XX and and of for more a accretive in and strategic ahead, a of and rather Europe, sincere Phunware ecosystem, questions are sheet can our family Not would for at on see that we to scale. we our operating purchases treasury top support use through results. Bitcoin worldwide, for expect Operator, operator. but the rampant finance activities DeFi thank coins expect for storing with you breath-taking decentralized

Operator

open coming from XX:XX Certainly. for [Operator Your now questions. Darren The is Capital with Aftahi is floor question ROTH Partners. Instructions] first

Your line is live.

Darren Aftahi

questions. is? Hey, first, guys. and can that you for XX:XX my quantify the how taking [Indiscernible] to actually revenue Thanks on speak pushout XQ MaaS big

Alan S. Knitowski

order having QX, revenue through launches, recognition as have revenue. We'll goes actually Matt let in again issues walk and the you those in really and the to to to were do when delay. is had we you that end the for we through, actually where But launch up Yes. it the timing us in we wait XX:XX finish the saying, way them works for recognize QX

the quantify want predominantly that Norfolk piece, Southern do you in which of Matt, So that terms to is [Indiscernible]. actually

Matt Aune

Yes. Yes. Thanks, Darren. XX:XX

that And is it similar So about in basically about good more thing a of it's terms talked in tied to engagement as up. past, just that customer back and in a so QX we that even one situation building talked it's mostly happens furthering this the that pushout, and the and we've here. it's

I the So talking million tied like it's related believe amount, go in million to to that $XXX,XXX the of project. another of terms some other to – well, stuff to we've terms that somewhere of customer $X.XX project. got through but probably to related kind as of There's that's it's in somewhere $XXX,XXX, that $X.X in neighborhood tied to we're

Darren Aftahi

how of those indirect signed yield And when actually XX:XX That's relationships XXXX? you progressing speak on you channel partners we that's and Great. your could helpful. in of kind can kind see then and to

Alan S. Knitowski

going first the piece. to then for Randall take to I'll the Yes, and hand over part, XX:XX I'm second

doing we actually found they spent item we've we especially activities what cog that out office this, section their biggest on doing to each our group to to on that their through period of the inclusive the going portal been training pricing to gating the their about we've As all proverbial been get names being on earnings sales wheel of is certification that and is XX average, own months back six the packages to is, through has they, in of through using XXXX, most customers. Depending predominantly in which activating go in-person timing think in in them XX:XX go-to-market. the order their groups, we specific live. as mentioned of of the moving have working phrase for COVID, do a they across lot to their manuals on to them work meet processes call. packaging scaling marketing partner of What to that and on my the and it folks meeting So documentation, been the trained, marketing

So and we both direct the see this side, on uniquely indirect. software only

consultants. everyone their XX:XX that the of had COGS you As versus deliberate to $X.X we to actually they were some it used they Matt on But differences They six. pushed because the to flavor to more their they're going deal, hardware various to to headquarters why to a actually be closer in Norfolk They lot don't and What three channels budgets in price bit QX, timing to seeing where are million. of year, context between a timing service tends and two Southern $X.X Randall, indirect to was additional back, be some direct They provide of were a more The to revenue new provider Atlanta. found last unspent the be when go. but of these but and have mentioned months we deals, the the actually in, the and used is piece was million. because bigger be get average four you're which it like seem little QX.

Randall Crowder

Thanks, Yes. Alan. XX:XX

then their train through and takes set a the up, also to kind I pretty just spent a training portal of while up, covered working I situation a kind in half of we're them. of the of lot year mean lot we a all the collateral do then all it of it getting Carrier, And like VARs. the set think through you've well. second They getting selling deal reg VARs.

of activate. still teams going How for think a takes to I us. it unknown an for so bit be And long their little that's to

on folks we doing going up Our is kind felt really, but start work. Fortune goal be And a and lot they trains. in kind of don't works lot large don't engineering side. who possible, the There's seeing of really competitors, groups many difference as us We as a biggest lot always is possible want this from more XX:XX sign would mobile. probably of XXX as kind of because So to kind think the on software are a of many to actually concert I get as of into with focus year scratch.

And have larger looking to those much been a probably lot of out so our mobile and applying reaching platform a project. at

but come channels to it's still. again multibillion-dollar process, we while, move So be be system a to XXXX they're saying [Indiscernible] and execute half see of And I a software now. slow faster out working before need and as seeing lot these existing again, these most at going But had going to just a probably larger I with know that – start like still I of this immediate it's still I'd these and indirect But little we probably growth second of fast. the that integrators it's because are think online an don't They could companies. meaningful of We vendors have. on for hardware well we've were who think been a they projects, is Cox.

We our last licensing HIV that was is may year solution. care companies. our multibillion-dollar these licensing are As recall, announced you Cox health Smart Workplace And solutions.

direct is Microsoft a with to person this Microsoft computer so while, to or every Office every a this than this and but selling people computer. phone no thing phone a than get trying And on rather every takes different

I we revenue before the from still will those be probably year it in think second of indirect again, growth channels. So see half meaningful

Darren Aftahi

could if squeeze Maybe one. the Thanks. I last into XX:XX two

of seen So reception kind curious, the traction Campaign had since pipeline of like of terms you've have of you the I'm to Nucleus, PhunToken customers. then white announced just kind what from with Thanks. brands use space? terms of with as label in and in a you kind political secondarily, partnership And wanting in interest

Randall Crowder

to a XX:XX I'll then in take Alan ecosystem. the flavors Yes, different crypto crypto actually about our couple the on it's brands I was the and take going first think There's exciting. can how maybe one say second effect, of pretty one.

them the most proposition of think I value of PhunToken. with are starting of kind

idea this it hey, things of, got that driving want I we call so And of, more behavior. I've customers to my do profitable certain

compliance all but service. the so of that's public necessarily compliant support, wallet addresses, would offer, XX:XX kind a I -- that utility cryptocurrency, And token my team be required company. ability manage launching own that launching customer as headache have to so especially of we a take any think what company, I a of meaningful don't can And the want on of that to

we're so the the engagement And of a seeing kind kind folks rewards. in modeling of space, of initially lot

that lot are the Those talking initial kind So we're of involved. fantasy things things gamification of sports, like where to ones today. there's a

want to token, because reward us, And it's get of having as dealing of think just books have headaches deal kind cryptocurrency, any I own when uniformly, that's on exchanges we conversation headache. still It's well to Basically, which of is not on about to that. the do deal of then software benefit ask really kind the own and the saying have great don't margin XX:XX so and I all what benefit happens us. your So of revenue. the and points like, I with people their minting of of to -- A their excited of have us frankly the great with really of to think I deal I'm lot without that's not. what is to of do software any you new keep a dealing them. And first you kind with book gross they want And it really to not of industry. a absolutely these it. get quite to with ecosystem? for we with that having want they're the token want for the headaches like I focus all liability we are

a bot we've you're fraud, so exactly how dealing develop. end lot with dealing complexity of with a XX:XX You're feeling up to lot you're ecosystems with And a lot attacks, of these had our Layer of things industry of like And self-sovereign our scaling. kind identity. on two working right didn't because to have own kind the just ecosystem address then meet the how needs we also

be of the chasm it that's to in in how going of the crosses So kind mainstream. of the terms future crypto

But have as use to with can who scaling and like getting as of lot crypto if that fraud conversations different so ecosystems of things brands decentralized companies going will. would that service, a kind in centralized appropriately. You're deploying they a so a a handle good far response you

Alan S. Knitowski

to under and a Republican systems party. but cloud to scale we're software. -- only have we What lot consultants history but working proud it hacked I Made question dedicated CRM and iPhones really work Obviously, XXXX like he's Media a application And right Brad's iOS we proved and Campaign the because a constituents Cup platform scale. difficult comparable, circumstances. doesn't. held did of and that a computers the like World and we of the company boy, happened. politics the to But for reactions applied this been Things place most helped from and we Apple Olympic Campaign part that of we Nucleus the at politics advanced we of Brad when Salesforce, the company up that everything reactions the create Brad anywhere license on, Android. work end the fascinating very focused Yes. helped lack in long-standing better our the team for XX:XX do at that don't with would see to take globally. the working of dates None all done Nucleus our and Brad software infrastructure What and And were for get or Campaign us. American really portfolio have politics on over ever world. I'll us, XX:XX MaaS Dell ourselves advocates Games election. a we lot But and it on all the super or Brad in see grief level a specifically the we aggressively of was did back our with for Parcel of be about during Trump and the running work and We're It with center a was to did Nucleus, of is on day,

cloud. we in the handle the So platform

have all components manage engage, audiences. monetize the We and help that

specialty a have We and at scale. mobile, in proven reliability security

and important on predominantly doesn't and whole a just basis. be advocacy international This that elections, but are tied counties, a cities state development, And end dedicated and vertical And partner. end, will opportunities. federal putting center-right are a include for of and will the we're we're this XX:XX to QX. gets done and on series that great But political this working into elections that local solutions including we're currently by be that so the actually to really of something for

version democratic around elections forth. know, house and the world their version of their in of congress, they're having own the and the president you organizations, As all senate, so

that all we're developing really excited partnered literally jointly So jointly that. and we're of

and for dealing their work Salesforce know with block is that data to to for are from the applications like City XX:XX to over of local So representative, Council, intend you're to of licensing noise access do that theirs, because that between our Salesforce data be that probably probably GOP trying all when happened, have think available. going fundamentally, to much for to up but all U.S. are Senate, all going United to are tied who's based did running of up We're country, to not of or to it that's the ever nobody information we're to some as I solutions press and any January whether we of their for for constituencies. President own groups House those to in since in believe the RMC in again there the try Representatives for of absolutely don't reason I on the when XX:XX of States State election. Phunware, I a around that to how subpoena X, are their decide relationships, Trump of international people interact what happens the what platform. all important customers' activity Republican of lot from lot always they saw you bow and Congress running have of in are customers, turn an National they're shot their individual what highlight, everyone. with own. just is towards literally seen, Salesforce that, national data We make of Any to Republican plays United a where States data, And where across we for that the there's out. application it, and literally the whether GOP. identity, their some in We're a all charge Mayor, activity using the you're they may President we was just trying all anything U.S. the that And that, what built of around fully provide us you for But was a XX:XX will the and half opened President Recently, our the the for it, or which of Congress went get out for own the any another Committee it's the they a because they say last probably part that

weeks, up going partner to that And to rules that over going because I open that's of we in spending fully who fashionable GDPR, anyone I shift we've user hand very is and opportunities before sovereignty And And that this just dramatically customer in topic. complied no around in that. with data And and have going so the is personal assure honor all a every that to all nobody data, we like proud app was you to information. COPA we're a understand that every for going customer two at even other individual shift been long privacy, things or their these last have and involvement channel we that's while level have. and the data we public activity can

XXXX. and XX:XX expertise and that we've to races go folks so But So want an people easier can amplify past. with they We built going in from we're make to between here conduit of going of going more direct in November, election our be who been that we to wherever and there's big what smarter know to and obviously, in all coast coast to having solutions. the and different we are the why. We're communication prize, kind have constituents excited potential decisions candidates we're can deploy solutions for vote their cycles help market. have to that. from leading into to going these to We midterms, the excited joint We're all have our on

Darren Aftahi

XX:XX Thanks, guys.

Operator

XX:XX Your coming from Scott is next with H.C. Wainright. question Buck

Your line is live.

Scott Buck

XX:XX Hi, good afternoon, guys.

Alan S. Knitowski

How are Scott. Hi you? XX:XX

Scott Buck

just questions. I good. couple XX:XX a Good, of have

sites I of feedback their holiday has where kind early, you've on terms cross-selling it's can season. are stands in products on what that of us Lyte? been? just know early color you done advertising kind but over of you give little know I and First, the a I'm with where curious some your of

Alan S. Knitowski

XX:XX Yes.

with the of on going high thoughts I'm things. then Let have to level, me lot a the and start Randall finish operational

have of areas again, business. our kind four we of So

business. software the have We of part the

We have the transaction the business. application of part

have cryptocurrency We the hardware of piece and of business. the then business the part Lyte have Phunware by we the

software about application every and we've great quarter, gen, PhunWallet will help working expect, parallel, we even Lyte, our Canada probably we'll integration ROI demand that facility and as these their thing As do then of systems initially do that, new United an development go the optimizing our of ideally, program take a obviously, in and exclusively past you like audiences, XX:XX scaling, States. might is and started solutions adopted also what in for chain, these down And year when vertical go that that our as supply expanding we to directly one included just software the mining we'll interfaces play we In at decentralized both of we're it's you each conduits on Lyte whole governments, the in and is half IDs. market like focusing the We when so our country. to what first Phunware on with try been XX:XX acquisition a have right of be demand stand-alone our cost bunch selling the can But sell side engaging, production kits, And or the game Randall scale there'll hardware. been get and of for we've expansion that's flip focused where or or operational gen. start with engage look Phunware new for Phunware, components, available is we'll and through with our delivery. of of of along that to things the quarter more slowly of we added let a rewards and Lyte capabilities now, distribution passive computing advertising sell was our And corporations on those recently get as operational direct XX:XX all the software. people scale, to integration for up then trying and chain, computer, last to be starting of pieces I'll third making they're to get logistics supply on first fourth by logistics getting And where on adding to going focused play really things operational hardware. and opportunities where with start into. with crypto-ecosystem and start their and actively nodes We've think what we of ecosystem surveys. just the to So pay other can

we've to markets media to like. don't Randall, within think start as a don't help We to media leads about for then cash to crypto. the using bigger how senior that And how to how that. that's five and and brand is we to kind retrain engage high go the how on before operational going we But of and of want can sales, bigger. us to PhunToken scaling we and walk on information seeing faster them and growth. expect new And customer cross-selling data, than business application we're at buy be And the leads to highlight we thing leads COVID. We've open works? that's so piece, an that been the to the So purchase. you -- to to we segments more the to transaction have And it flywheel through scale were to what anybody then they're We're we can for ecosystem for then do able that bit Randall I chomping is he with. do level, adding data of the more segments, and I to which about pitching do so looks you flywheel on focus our them at everything XX:XX people what interaction demographic within think added ecosystem, expose audience like walk through details want

Randall Crowder

hit I XX:XX you Yes. think it. Honestly,

minutes -- mean so we know very the XX a have mean So you for was you more Lyte – probably I -- that. I answer. probably use have Lyte think we're I some last I on because think know that I good time, questions running

Scott Buck

All the there. XX:XX right I color appreciate guys.

And Second the in generally, you generating push-pull us versus how you're about in one kind profitability? thinking update between business? EBITDA Could path the for of reinvesting on me. of growth positive kind to

Alan S. Knitowski

right to focus the and is marketing. cash it building out how on plow building out adding that back Obviously, we to going that in understand direct revenue honestly, to and keep of side business, profitability, all our to The indirect, and PC see Obviously, we Because like business want platform, added based idea don't the media to adding software We're I'll more an growing, be Randall a interesting. size, context he very about do be driving focus little sales, on our revenue important can rightly people like and along we on more focused was any going delay Matt. of give it's of we're Salesforce right to start, growth. our see XX this keeps you we're as and whereas how now, we then a want We that and I to ourselves goal that, under scaling our measured. Matt Salesforce how I'll now, Amazon give XX-month year within manages the But more drive Yes, And about event. all control that our when growing. Amazon. COVID Lyte buy. we're take being process. and do hardware neutrality. profitability we of XX:XX cryptocurrency we within was and when it that and it like was And But within to kind

Matt Aune

answer And there said Yes. lot quickly it of XX:XX you well. a Alan, because, as I'll

going direction, not but I get we're closer I an think neutrality think a that in in the kind terms opportunity of there second the position. to breakeven of we're profitability, yet. to cash year, certainly of half that there's

we're business There's on the on gross really gross focusing lines there. and new a kind that's getting as optimizing a In and margins business learning certainly integrated bit little and of between margins, a focused all terms them really of the for is Lyte curve kind of what margins of now us.

And where back the see and see then makes If year, then to line on that we in we in not, it are the put that into we'll what evaluate in, kind building now. to gross focus drop got things position. neutral get my closer margin going we'll back and the and really throughout So sense we've invest cash company. of is the really the business is bottom then right whatever

Scott Buck

XX:XX appreciate guys. I Great. the time

Matt Aune

you. Thank XX:XX

Alan S. Knitowski

Thanks, XX:XX Scott.

Operator

coming Brothers. Taglich XX:XX Howard Your is Halpern from question with next

live. is line Your

Howard Halpern

XX:XX Hi, guys.

crypto I question, guess, even I about, on, marketing expect Just area? a marketing And a or to how what basically on service, Randall plan as guess, for I the the to you you in the, dollars guess, talked quick Lyte? deploy yourself for brand

Randall Crowder

I'll XX:XX start. Yes,

it's of the through doing, we're kind the a And lot So I that no efforts. we've Actually mean, be what customers of with got on attention target IR exact good surprise of, about I our happens crypto-ecosystem. whole. all thing the a a would of example, think same we to that for lot of lot a Phunware that as

call are people stocking, I immune that of ourselves the Robinhood So to who with for but begun us. not company. following about of reserve and stayed excitement company traders, but a the the kind like people stocks lot right learning come did

messaging, of just I community transactions a new and public helps do that they exact those the us of then every active able and people we're been But around So -- besides wherewithal They channels, think stuff think to I also in of to around doing people in in you to approach lot we is app around done very kind single How then the a have building. goals it target kind more tied And flow of are that. well, think better. a downloads. common that, lot And which the the get have social out would dip that is of of those I lot you tell we that both of exceedingly of then which PhunToken we're will different a word just And for so different the constant these in of channels, new we've IR PhunWallet people we're our new to of where doing you a see able companies. -- and be a content, future is we're excited. business. XX:XX haven't today new day, Phun, get lot lot of kind kind to doing the trade people PhunCoin double, also for of lot didn't triple

and engagements data engagement like people big lot one-to-one a well. of do them as better same kind of with just to target we be exact consumers. enriched about to So awards are Those media, program brands have thinking want able sell through

just lot same of kind a market it's So marketing the to opportunities. them, to methodology of different

that with not this. different that -- a of lot so and And that's we started where than much

out customers As as member, used CMO ecosystem got thought software think this Board CEO a our And Carnival. current a watch and that app ability couple they of things do. incentivize further, former capability that to I've might want in you PhunToken lot who to all of the their so Kathy with may one is Mayer, to could their commercial, infomercial-like a leverage I Taking they as order our might recall, that. in of different examples, for could step they want put whole in showcase actually into to certain the

a to It's of nests have or kind we like of and pivot, the doing some or customers. we're reach brand within natural lot new what what we what of a in is have. to It's a of think So same trying itself not scheme same workflow. the is a those depends the marketing same order approach to on lot of It extension achieve.

Howard Halpern

dollars like Lyte marketing? some are be talked And more to you to about? you it more put networking going going Or social the for the Okay. segment, that XX:XX is

Randall Crowder

are, certainly. a QX. we to the why -- I we mean for no, have acquisition. a never had would No, able if such They it accomplish wasn't XX:XX record been we had that's that Phunware

little so in where where And growth market, of more to dollars. also dollars, we our kind understand bit spend how to to get but a

way, And Ethereum mining who builders XX:XX around usually out it's also can or community one are influencers not So gaming that one. we by running of be the to ads talking We're one switch million the of not cryptocurrency. going amazing influencers expensive, really ecosystem. Bitcoin, subscribers all reach YouTube amazing have rapid Super Bowl kind to or about not people kind if crazy to those are either

audience. target same the becomes actually it So

audiences those reach same the way. you so And target same

commercials and of those lot gone days school So all of and of industries. days old a for are flyers the running that,

people on And they where a to reach I got think so we've good are pretty today. handle how

keep comes and going awareness for fund. we're awareness stockholder shareholder overall to to for focusing it PhunToken for that, when both So Lyte, on and

Howard Halpern

XX:XX Okay.

work, up Keep Thanks. to well. Okay, great guys.

Randall Crowder

Howard. Thanks, XX:XX

Operator

Capital. Ed XX:XX from Your is coming Woo with next question Ascendant

live. is line Your

Edward Woo

that XX:XX question Yes. your are quarter. Congratulations the strategy almost M&A on is now on My you guys on Lyte. integrating

AlanS. Knitowski

that. would to I be Yes. XX:XX happy answer

have find inventory. frogs, lot to there struggling right for and So looking I something good a keep of their lot we out that a jokingly people so There family say kind to actively trying speak, to buy that to or assets, now, other been If internationally. now. find they to trying to they're ways, home to of fit. do, they are And like we've some to a works Right equated homes and find a to really assets with in buy are of looking on. money and trying add people on that

investors, lot in may a in like but They have regular volume the venture deals we deploy. to bit between and M&A they're are not part, debt, a often, So but equity, people capitalists, settings deals, of management elsewhere And chasing of messier boards deal the find aggressive on and and on that private basis. private, looking of family of may XX:XX the in in setting. equity They to having world. liquidity. might A a kind firms bit companies that to lots not we both so companies angel many private Typically, that have get lot public or don't. of offices, teams other shareholders So a markets to approvals do trading, been around we've in public then want very active opportunities. little that seen whether consensus the or the it's with and they're trading then do. a in we're mostly you some actually We little case very aggregate. conversations review see public That's private

You're competition going deals. a to see of lot for

abroad, -- areas domestically some and interest be in and to to even Matt people of have deal want $XX all of applaud relatively add-ons. accretive the more legal, in with to these two disciplined the add the kind diligence, There's big be and disciplined, small you of due just or on so And then because the deals. of to we documents, want those get costs least but million strategic only and XX:XX because relatively you effort Randall. at looking things what team's fixed his audit, that we're then And operational includes have I business. do financially the And typically deals, at size We at are multiples accounting, looking insane. are of the the

to to like necessarily I in happen. want keep other so just think have international acquisition to And really then accretive or doing that that. enter launch buy markets We that just we're to We we through. new out companies a make cases markets. going through And to have can then model roll we Lyte, small don't

So I in see Technology to the less would business. M&A Lyte say you're likely hardware

less we're Where in we to of ecosystem. we most and software application solutions up products inclusive more the that data to service bulk likely transaction new and our short in You're offer. the can acquisitions we get additional to ways see then things of things term. cryptocurrency launching platform business our in are, find the crypto users And capability our and app that our can

Ed Woo

questions Thank Well, and for you Great. good my wish guys thanks answering will you. XX:XX luck. I

Alan S. Knitowski

Thanks, XX:XX Ed.

Operator

the for closing from to questions further no Alan turn have this I would We back to floor XX:XX Knitowski lines at the time. now like remarks.

Alan S. Knitowski

have to all investors appreciate like and been I'd that value of In support just say, closing, helpful XX:XX Sure. really in the we Phunware.

we huge do get value did conferences, investors, just we chance a a investors to meet active in chance around and South institutional Matt retail some our face Greece and we go over and really ROTH the in While here folks. over like in Conference activity in our to have In at the face with Capital out interest I to to we States, world, the financial And Korea, other amongst world. Germany, United and got countries. I see crypto very

and the hope globally, can species lot the living flourishing calmer we to retail And throughout the are whole as Randall get team we heads chance we'll our all we Pandemic, we're to cap XX:XX start and just by value could excited opportunity lots appreciate be and you world, to channel. We've to trying have people and back together a things that of very to We be get Matt having the retail business more some there you that we're possibly scheduling communications. balance our the and excited future a the opportunities to talking conducting channels of what direct-to-consumer We for by always the as to and really do. time. more coming life, meet like the expect say have. institution again, pandemic. person no there's who in to the crazy our than look interactions that and all around be to world. been not we at and and as So in things the investors, really have on table domestically time. of going imagine. we we to I advantage of gotten abroad. out and and to But now shareholders, of just telegram We that to has going in pandemic, investors. getting year. the out talk the able And are a retail we of institutional accomplish I'd that We're strategic are available, obviously starting prevail with to And very through just conclusion, but accelerate XX:XX

So our and the without all we how mid-May it do you, forward and sacred that Phunware very things some of and are you. thank family. very Some and in the at in we're appreciate and much have society and you that, how in times of the in you change relationships with some being part to to we sacred to craziness important And our to is couldn't our do good how it forward us to to XX:XX doing exciting again. MaaS of getting really we life QX. talking of is all conjunction remind work, things at look we with close the to home things interim, better much. kick do We're ready We for does plan to looking

So thank you much. very

Operator

This and today's ladies you, Thank XX:XX gentlemen. event. concludes

for and participation. wonderful a You this Thank day. you your at may time disconnect have

Phunware (PHUN) 24 Mar 222021 Q4 Earnings call transcript