PHUN - Earnings call transcript Q1 2022

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Operator

Good afternoon, ladies and gentlemen. Welcome to Phunware's First Quarter 2022 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. Financial Chief Aune Matt Officer. And will The Matt remarks Alan, prepared Randall, format followed today and by by session. include a question-and-answer

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

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

Alan Knitowski

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

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

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

accelerated our further introduction, revenue XXX Bitcoin a parallel, more of including provided the even our Ethereum, Mass further of digital conclusion of new than $XX growth, more our scaled more a million and a light for business subsequently a across at we improve X,XXX digital product as indirect Phunware current currency than as gain public today's than company. adoption QX life sales and expansion, new high-performance in balance trading customers to BXC our to hardware our and and software, productivity platform with needed for cryptocurrency cloud or our is called for (ph) engagement one cryptocurrency our over under to business Ethereum provide services which loyalty contract their we QX which side, streaming, our is transactionally other business PhunCoin SaaS constituted operational for worldwide. computing. with a these and the in rewards systems, as-a-service, And our applications mining, the as the and multi-screen Mass efforts enterprise licensing mobile available cryptocurrency PhunToken On key asset number activation, channel platform record gaming. participation representing trading, reported fronts, first-quarter hardware sequential to incentivized Central including mobile personal model PhunWallet has momentum revenues blockchain. periods year-over-year five-year and and facilitated the XXX% for vision for In prices. continue completion The continued sheet, of more balance ecosystem, growth at valued we and

company for QX revising more tandem, second represent guidance would our of forward while for which XXXX record XXX% than our in a and quarter publicly. trading upwardly we're revenue Importantly, new up year-over-year,

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

returning to their only back return hybrid in to are and with BXB BXG contractors transition facilities, operating customers current a to their our and remaining safely of terms core In work. regards our offices beginning to employees environment, and

ongoing expect and cities, completely understanding both for that and churning. parallel, of balance remains continue demonstrating strong the sectors. a basis XXXX, an the opening fully of on unpredictable engaged, alike, and that demand see public this hardware are while BXC cryptocurrency independent what throughout also active private customers countries We we and and states, will broader In our within

cloud. across quarters, suggested big product in by of again As for mobile, dramatic solution and previously excited past the in our data, here, high-performance and we're computing, increase and both reiterated and offerings comforted aspects the activity cryptocurrency, all

our Importantly, for and cloud, and core productivity. year a from data-driven mass company's recurring, this high-margin a stickier, genesis forward, engines to business rolling shifted history trading, and growth activity computing wallet token, as of licensing Loyalty coin, our including the more our streaming, our transition was systems gaming, blockchain of enabled our encompasses non-recurring, mass mining, business we high-performance scalable, our Marketplace, capabilities, all and secure powerful our far personal platform. Last transaction fast a for low-margin, cryptocurrency in

for Falls many Southeast Stanford Florida, Developers Operation these. Safety, Alliance, conjunction cabling California Miami for Bear Live innovations, Dade customers of new conversations hard pandemic, Idaho Land Energy and Digital amongst World American solution solution our Foundation Smart from sectors our South Smart Health, our enterprise the hospitality, of cities, healthcare by continued MaaS - customers In accelerated with Door corporations, Cooperative, communications, These resulted Nation, with Title estate, were our Tech, our MaaS team, in Sioux interest portfolio In Workplace including customer Lifesaver, and government verticals. Dakota, like that Solution Development real Sanderson Yellowstone for of Association, others. Front of and activities we wins healthcare, and including MaaS growing Farms, for County Humana, in addition the City many to hit direct

adoption forward this strategy monetize adding about business our and our of of Data those Platform aggressively We our scaling look Customer Loyalty Blockchain indirect and further global remain by our Ecosystem our extremely and both prior Ecosystem. and partners MaaS with during We're footprint announcement. to post-launch our expanded our excited also amplifying go-to-market earnings blockchain enabled We global labs PhunToken. and by of previously announced part scale and powered by the sales Mobile MaaS accelerated channel Axiom PhunWallet the PhunCoin to continuing to

During the and exchange, QX, on Uniswap, initial commencement trading here for on exchange announcement trading centralized And on PhunToken these securitized. LATOKEN. the activities commencement announcement QX exchange offering in of PhunToken included PhunCoin centralized de-centralized important in QX exchange, of here

tokens dollars’ highly digital exceed market last As PhunToken PhunCoin combined, did XX% we diluted ownership a for that ownership to exceeding Phunware representing achieving and currently specific expected differently also than trading several currently it's capitalization reminder, take next over when more than parallel, was acknowledging some to than billion XX all currently both entire XX% in PhunCoin an digital new and US Phunware owns than trading liquidity than our time, clarity additional for asset owns launched a complete but both constituting fully asset as tokens. million not in volume X be constituting our launching market now reminder, markets of active. will of in In is more the we more all NASDAQ against PhunCoin exist This currently believe and earnings call, when of $XX weeks. market unsecuritized, for token more PhunToken capitalization upon while Phunware. likely multiples total value million. terms PhunToken that $XX representing and live ownership and of Said billion the our and more And and formally recognizing

XXX% XXX% As previously up prior to promised. of today stated growth is than guidance announce well as excited above, our year-over-year, than more we're extremely more sequential which revenue above

our more Additionally, extremely and in pleased our parallel, year-over-year, successfully XXX% than to is previously quarter growth XX% in our finished trading company revenues QX expect to fully QX second We up of history higher in quarter promised. also first highest upwardly the history revise while similarly publicly, we're the which than will company while QX revenues highest for publicly. sequentially more the strong, and than revenue guidance trading represent the that of posting

offerings centered ranging we especially and from XXX state contracts always, XXX and to In continue with federal. dramatically to performance continue agreements local also in that the cryptocurrency Fortune occurred size the extremely engagements our quarter. number range developments have And direct-to-consumer our see county a expand our go-to-market We're we indirect direct As of and strategy will and excited coming on even governments channel quarters past and by both the high we across for over parallel, Fortune BXC consumers. will customers, to in what more and computing ahead. by core excited

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

our of P&L, in by our While do business revenue demonstrate broken not in the of be ongoing instant on will earnings CFO for efforts the and gratification further or his health expansion broadcast. these near-term they importantly section and detail our down provide recognition

whether cycles our in sales As typically appearing amount six three wins a the as on and representing impending on reporting recent start coming months ahead. average, P&L will customer periods reminder, to

per Phunware devices Second, X including mass to XX our than per scale. with at growing terabytes billion per than per devices one more when operating more to of transactions installed we billion worldwide, unique supporting petabytes capable transactions base scalability IDs month second, one at typically day. on expand continue of platform day XXX to billion data, more mass thousand five of up than

ontology Customer mobile Data and of launched Ecosystem our both comprehensive Platform are Apple our knowledge all one-to-one now and scaling digital graph presently detailed and platform conjunction robust in Android MaaS Our and interactions a third, and applications with assets. mass on engagements. Blockchain powered iOS, a PhunCoin by data PhunToken Google our provides for inclusive we commercially And a PhunWallet

tokens are a balance only P&L XXX% regulated margin revenue. as as our new and PhunToken virtually due sheet security, status utility transactionally flowing net to security PhunCoin tokens While on gross our their now through appear

PhunWallet, performance and our our the productively. now XXXX, please will ahead. Loyalty including have reminder, Matt not during are our in ecosystem Rewards CFO, lines for by hardware second balance continued our plus we business are this comparable revenue scaling Both sheet XXX% PhunCoin. growth Matt quarter. time, the now as period strong go our As improvements, year-over-year we Aune, the first-quarter deeper reported, year-over-year, did guidance a At go expect revenue Phunware of and or and by that sequential PhunToken, into MaaS and growth and active business anchored Lyte the either financial

Matt Aune

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

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

all press to revenues combine to decided X-K which for release to financial the GAAP reconciliation represents $X.X of quarter year-over-year. totaled continue evolve and non-GAAP of have first revenue reporting we match transaction and we We as how provide Our services from million, XXXX a historically business. results. presentation growth application website categorized to Net a our our of the we XXX% what run with standpoint, presentation that subscription revenue as

will we XX% computer representing revenues $X.X net last revenue forward, that, only million With of QX platform and revenues. hardware our revenues, Going present growing XX% year. was platform of over

branded compared revenue year. have year. non-GAAP of adjusted revenues margin ross to QX of last XX.X% $X.X Our year. QX we by life gross basis, Platform XX% XX% in was to it, as for margin to compared represented of last margin computer was a in XX% G hardware XX% last Phunware XX.X% million. net was compared gross XX.X% totaling On

margin by different pleased gross than was our an from profile we're by improvement Lyte last as previously, mentioned platform see business. Lyte I've quarter. hardware a business to has which X.X%, a higher-margin computer Phunware margin As Phunware

year. and expense in up these adjusted $X.X year. year have to to amortization million long-term $X.X million onetime Other were million excluding mid operating compared this expense items goals. the streamline operating margins intangibles, a fully and $X.X million our we prior to expand to stock-based operating more was $X.X year. our supply Total up same By last However, $X.X gross compensation million chain quarter was of work $X.X operating and with consistent non-cash from compared do and to still be combined charges, non-cash making expense last the million

revenue have although for to $X.XX of we've of impairment operations look I sales our million and fair On of related integrated include were year. rebuild to ago charges to to adjusted expense excited a same $X.XX quarter or many warrant million I'm Non-GAAP we $X.X last factors net extinguishment million. continuing marketing quarter million, liabilities the due and senior $X.X minimal paused forward $X.X quarter, we compared adjusting million. of of of totaled PhunToken was for no they quarter directly structure implications by We last million compared non-cash $X.X the EPS, during per that compared share, see debt at our intangibles, to These the the Net items, side, teams $X.X along the that Phunware. and to for efforts to Backlog at as from COVID year-over-year, already. the in our revenue And for $X.XX have the last pushing and share of have to for Non-GAAP last deferred share XXXX. and take, or accounting treatments the with affected The notes to per current cash top-line were these digital beginning driving explained. of in compensation million Lyte previously continued on loss the G&A had to payoff EBITDA net team amortization $X.XX was future. required loss million current convertible loss and loss, the was we of reported adjustment per those efforts share slightly of loss marketing much XXXX in year. the the $X.X main stock-based down year. currency $XX.X value $XX.X invest we the our Lyte end to to net in for loss And end more loss fully million, have year year. $X.X of per see loss factors

debt. cash the balance $XX.X We in in to million closed with $X.X Moving the sheet. quarter million and

and bitcoin posting largest have to We by XXXX based also on $XX.X XXX quarter value today's the continued a we we're million revenue as over build QX closing, XXXX. with In Ethereum aggregate in an prices. just approximately X,XXX of hold thrilled currently our public in momentum on QX, company to build

offerings to achieve two expand further In invest presence to made additional the bolster with major and our in to milestones We the business have addition, product crypto we ecosystem. continued of progress the topline QX. in our plan

on As securitize. on PhunCoin what trading and PhunToken token begins list

We expect year. remainder of achieve continue for to to and the close the strong quarter growth quarter-over-quarter the

via committed organic previously As $XXX as million digital very build approximately cash have of continuing and and mentioned, inorganic capital market share little business to in needed through we our additional and in million access assets revenue and debt opportunities. shelf also We're hold to $XX both to all with lines offering.

and the And with at the investors to look opportunities would to XXth H.C. in one-on-one story through on the our Randall. Investment strengthen investor the active Technology next further be to conversations and Media remain present markets. our efforts financial corporate XXth With virtually. XXrd will like themselves. on conferences both We with Wainwright profile The to May capital Florida. and Needham conference conferences I meetings event forward South major We meetings institutional in our many each the over May it that, through as high-class turn Conference tell and XXth May we'll financial Global attending, call are &

Randall Crowder

Thanks, have to issues exceeded the in to is and for markets a macro war more Matt, take than with over since have as thrilled guidance by year-over-year. which world the our last are to we due growth XX% quarter the prior XXX% continued our inflation over earnings hit all such why call, revenue Ukraine, the

large and engage brands incentivize interaction ecosystems more deliver consumers. I'm as to ensuring about engage with and technology, ways by than engagement most only designed contextual PhunCoin, ever relationship Platform better can their to we unique our what Phunware that platform what PhunToken to leveraging consumers with on are authenticate established their give engaged Data helping our our have it control the solutions has need better Customer brands MaaS also decade with excited the who better compensate more blockchain but than now and audiences to been MaaS while not By represents now who is leveraging data opportunity Mobile every that a However, platform over spent brands.

network WebX strategic bridges truly finance data vendors, Bitcoin service to well-positioned to with to Lyte Phunware, [Indiscernible] mobile through WebX to data by a persistent are disintermediates, software Looking PhunWallet first the ahead, the providers. do system with an and integrators, required applications de and consumers finally, consultants, hardware we robust Oracle for with for connection we and and that world's support first commercialize infrastructure carriers economy did will data vendors, by -centralized

During significant the quarter, we two had and deployments. software services subscriptions

was a mobile to headquarters lighting, We're such but critical deploying parking operations at has understand point our enabling unified first With the manage cloud experience. mobile a their a Atlanta, enterprise for employees The all. a is XX about from all, on-site can Smart over solution MaaS tech not experience platform. room replace one which application easily Workplace as new standard Georgia. new Norfolk rule This in booking, and for them application reservations Southern, mobile rather to employee integrations, to our set them

functions, to smart we Phunware.com the In all under this one us. competitive addition a can seamless into different platforms create of to is location-based XXX A industry-leading be ability a world. a mobile space our but to complete numerous is integrate offer with for leverage found MaaS over everything software vendors Partners. Every third-party to going experience on together advantage software, space integrations key list for brings mobile-first well services in

already gaming, plus Solution Augmented Atlantis the registration. control acres resorts now utilities promotional in a We the also highlighted their access five and Atlantis by as with to Reality, includes casino. such begun mobile video contact distinct additional Atlantis guests’ discussions active enabling and in generating capabilities Tech for additional include is which successfully launched XXX Island, and Paradise comprehensive plus We're a across is extend to over our online. This MaaS has experience Bahamas, is in that which available revenue Smart Hospitality the in solution guest

Application media or Second, Data Customer Platform. data Transactions and

on We diversify doing businesses to considerable begun a targeting channels interest to in with media agency will from success we're better ensuring to first-party The directly to have customer these regulation like generals Europe ours, third-party Google. are businesses companies relationships, their while manage cultivate We're consent. spend deceptive the in Privacy cookies general for Google traditional consumers the like Consumer to data seeing but PhunWallet critical as see going curate forward. investigating also what data we'll practices, From both continue Act, we data, advertising for the writing attorney protection source and to to brands is able wall. state look Facebook be XXXX abandoning and California agencies platforms data trade to and in

Third, digital asset DeFi. transactions or blockchain and

Our blockchain enabled already leadership, thought our has investors. institutional media, attention social primary attracted through we've and means to with relations engaged will retail traditional both investor considerable been ecosystem that and grow be in worldwide

this were previously see Alan the time represents we company a excited U.S. As in since is itself, has launched a is PhunToken began considerable mentioned, first traded exchange. Uniswap, on decentralized to a which asset on digital publicly traded a milestone trading that

expect distributions PhunCoin to two in Securitize iOS Securitize. and as milestones trading help Ecosystem, both of and support to a operates exchange brands is additional also QX Mobile and A PhunWallet Android. is To available blockchain We're Loyalty Markets Regulation our FINRA-registered their on at data lists within trading enabled additional SEC and begins LOTToken PhunCoin. ATS, in Goodwin with our further on Google Apple system. consumers and Markets Securitize achieve activities prepare manage alternative offering an investments PhunToken working on to We attorneys and an broker-dealer and

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

to rewarded users PhunToken. be and with interact by while that to enable PhunCoin New brands We're being a networks location-based seamlessly rewarded on own consumers allow velocity and the our layer also scaling token for family, functionality both for will finally, enabling to and build, with refer and support in to security real-world friends, they PhunToken colleagues focusing marketing and methodology.

parallel, comprehensive the such we developer that a After Australia. our functionality spend. drive across Tik providers, our continue created. Canada, strategy the support completed increasing headquarters. speaking, At relationships, begun expect room efficient By the not new facility exciting on to of primarily is healthy has aggressively Britain, for of the more layout only expand. -centralized meantime, Illinois, Great better international process new we of Crypto outside YouTube, can just are double Chief as of marketing that that QX, liquidity for Executive to to or transition new by will to were end Alan our supported a old tok. warehouse will transactions pursuing guide of as life, markets English the to have the team. liquidity revenue our has internal Matt the in effort better have supply chain community, of hardware such targeting as a the as support finance marketing Phunware. plenty announce and Facebook, reliable expect providing will We're But we've roadmap selling thrilled Instagram, a initiatives. the Lyte have team provide As Fourth, so and securing and also growth build Vice that ecosystem, the near through of the more targets we Dell set size de we resources to we step-by-step help will Austin to target In Officer only but and And calculator. focused In direct-to-consumer staking the we to PhunToken.com not President we whitelisting adoption begin expands, Lyte Lull by leverage top website a they and also framework treasury mainstream global

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

and reduced are XX. As headquarters in of we're we majority end by employees a have Austin new California, expect Newport office presence to of in the journey in the of of space the end Texas, in beach Lyte to XXX the new our Since in Illinois quarter, evaluating have our QX. and establish employees

we company's as Finally, and [Indiscernible] serve General Chief the to Chris hired announce Counsel Legal were we that thrilled Officer. to

For like turn closing to remarks, I'd now to over Alan. things back

Alan Knitowski

across today's Thanks, mobile, platform growth. Randall, throughout me our our as we highlighted addressable scaling at in all excited global the cloud data systems of our is Phunware. of high-performance that to Blockchain plus accompanied backs are our accelerate extremely Ecosystem computing by mass the to that What being now shipped engagement and ongoing to and recent it have by call, and community MaaS cryptocurrencies decade the by resulted big convergence trends building consumers as via massive markets Lyte and culmination act wind of further can and strong years and our blockchain means

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

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

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

and areas as that we customers, in in we to and and international forward merger Importantly, Asia, platform partnerships, Especially and represent have markets expect and activity operating are targets ecosystem. that including will mass our done rolling would distribution more on America. more accretive more for profitably our provide and acquisition previously, Europe, Cryptocurrency South focus deals

growth all financial maintain our interest consistently to breathtaking for sheet Finally, parallel, treasury Operator, expect the ahead, year-over-year, for and leverage questions inflation. core the value of and behalf rapid to from scale. strategic at would do expect a and family revenue company. includes sound and asset top-line that on while overall efficient see through up go sincere more that, see we more a the to importantly, forward, which all thank generate neutrality decentralized rolling also on go model, in and we activities call to from expect ongoing please. you, ourselves only into financial protecting operating XXX% we entire of coins or a finance cash for your our open in strategic with operator. the and With stable conjunction a use an Phunware operations you can expect rather can support towards now storing worldwide, working and transition I of laser-focus like But to Bitcoin to meaningful and In returns our strength balance operations results. we Not as new our to for purchases, also corporate for you of

Operator

is for Certainly. we Please while Instructions] poll Ladies the open hold floor and questions. now gentlemen, [Operator for questions.

Your coming your first pose question from is your for Buck. today affiliation, question. Scott announce Please then

Scott Buck

I'm Wainwright. H.C. Good guys. morning, with

for few Just me. quick ones

is the you is ceiling On that once to everything the there gross think do gross speed? what business? guys margin a XX% Could up be hardware, margins, fully

Matt Aune

this by Absolutely. Yeah, the way. is Scott. Matt, Hey,

of of that have Like we the we that inventory, in a margin the a lot I chain, gross on XX% not process like the but attainable I of here business. said things facility be the Also, mentioned end place. to call, optimizing for stuff is to new into definitely XX% think it's yet, lot there's where said on I we are terms to wanted moving supply that quarter. in just we're at of putting Randall

I all right. give together up the manage those to and things think to So ability us margins those are push in better going us a

we're and we'll certainly be. in updated, than where we direction we're definitely targeting. we're moving want is when happen, XX right keep going certainly, to that's to XX So I attainable, but and we something think We're to think I that's you QX, better in not were to the have

Scott Buck

Okay, jump to higher, Not that walk -- be ask expect to guidance, Matt, that's a event, with helpful. individual but right? not for to not steady any we'd

Matt Aune

with comment. agree that would I Yes.

Scott Buck

Okay. that's That's -- helpful.

cost moving do on now less to on own. driven in guys to you clearly, XXX% a this a are set or additional revenue then forward, of you hiring lot or more hiring being terms and growth Second at are do of XXX% growth some able to time? at Where need support infrastructure, you your

Alan Knitowski

Yeah. of is on that. couple A Alan. things This

a little we how monitor parallel, able for we easier to obviously report things platform where First, are be out you just think year-over-year do gross year-over-year. how prior that's moving restructured look and helpful. to it separate questions see hardware, revenues we against the over will I really and that. we from It side XX% when In margin so hope towards, to and the you all I make your as about of go platform drop we

any All of even the independent that of of existing. hardware is completely

seeing So all of the good news happening. is across is what's that what growth we're elements

see will across saw in those those stable engagement doing for the they expect we sales rewarding their we direct-to-consumer, business. we're and as very we to control and software the more of even Mobile them as out things, the of who their a of the brands. for for call digital Rewards associated They we Loyalty that and go which tokens. what in actions things bit people their margins token the includes with high-margin with along the lot side a of profitable getting expand even On platform were All identity, being components rewarding the behaviors are, with

huge talking So think that I hiring. is about, it when growth you're

an will I we and hires at receiving. for right will of More Relative there now to that of increased facility capabilities need it. all dedicated two builders evolutionary capability building personnel the Mostly orders in are selling. would been that I of both on side, to the and the the out out front call sales see to scaling are that to computing. team element the expansion there There's direct typically headcount be for match have the platform think platform continuing the what on high-performance support people new we're that the just scaling indirect engineering to add and fronts. of the

sales. I on built plan the a really of the going and have -- and things to lot sell we see into getting revenue now, we extra that those growth don't plans but headcount require the a tokens modest right ability side amount that think to out of because measured throw we're -- scale we're So at fairly operating hardware headcount the

Scott Buck

just few Alan. helpful, cryptocurrencies for really over me, Ethereum. in weeks, get additional Bitcoin one the to last given done last have here aggressive what acquiring would or And That's expect then more you

Alan Knitowski

Bitcoin. are our we sales, and think dollars, U.S. side, Ethereum we actually when accept I at So doing token obviously

If to people things convert of by our One Bitcoin into Bitcoin getting default we or the do instantaneously do balance. buy those. hold so much pretty typically fairly end U.S. we that for typically we when actually onto Ethereum, Token adding just that dollars, up sales we're with is we Bitcoin,

So those to both as on we tend fronts go. increase balances

we need future, than In Matt we what intent on right balances of don't the Bitcoin to go looks to area color balance that kind would we decentralized what we that holding runway then Great. leave appreciate depending in what cash If the activities financial support. area. have and in plan have balance in I headcount, big those Well our want operate, wants, we right the allowing he now, to add and in lot. probably to continue finance and really front that kind the on he a we we to as at enough Ethereum need yeah, then any other guys, that operating what a deems kind cash the think don't that operational gradually we more of what that additional for I now initiatives of have up. thanks

Operator

today announce for pose question. coming your from question affiliation next Your Halpern. is Howard your Please then

Howard Halpern

guys. Congratulations, Brothers. Taglich Great with quarter. I'm

on platform side, of internal growth -- is all -- the the growth. that terms growth that In year-over-year from

still of correct? building are in and channel a Is indirect the Your pipeline. partners process that

Alan Knitowski

let you Howard. me can this -- components we've Hello, then with different a give an side. you. absolutely let talked on as platform there's here. let lot me into with before Yeah. That's walk He opportunity of Randall Yeah. But the And true. through dive Randall one

Howard Halpern

of of expect But second half a year. still thing. an be more Yeah, the that again, we ongoing to

earnings I own last they're their the company, with lightly. integrating other even ones, York you New technology the carrier, of a another call recall Stock not from into few and think a $XX you and someone like got Exchange a billion

they and bars, monetize, that channels as to training through feat technical consume of this a they recognize both way up we get stocks revenue, addressed, running. Alan to once to the even collateral, multi-million-dollar these and is to no it small to license. deal portals, things just [Indiscernible] from is flow-through going And compliance like integration, Matt one deal even to So these

stacking goal And just so stacking for the rather. us is clients, start customers

expect months months take up things even then those to to XX, time, X And to so XX still and and sign channels. channel begin these take probably possibly XX a monetizing we to activate another truly

about ones back excited solution. going big business a obviously, and right as now office, their second-half-of-the-year of still Workplace to we that the people cooling are is get the part a Smart Carrier begin into be a to large have So heating looking

been knows fame, to then obviously impacted that so Internet Everybody And has really on from bullish COVID. them And due Cox. broadband

Randall Crowder

into getting in they're but way. a big healthcare

lot in of on that So need productivity. and they've to experience white-labeled the kind that a of drive clinician healthcare our focusing hospitals software

in we're pipeline so them. And got already for customers the

natural for then And through is them. Smart them contracting smart working progression Just ID well, as with Workplace. locks,

little their our COVID bit. solution. So license again, Smart Workplace by impacted a But

X,XXX crack but the nut also seeing to is the these only partners a engage, our getting to who used we're by software that fall comes all hard news you it I'm $XXX to seeing not mobile then of of and do in software This really all ones year, now They'll their contracts competitively a of engagement, so well is excited about million the really partner. over mobility one Google, and preferred mobile, big finally, it We're the have drive to with wayside. over contextual really this need when so having Amtrak, to lot CEO Axiom work we when And have very to employees labs. connects a world. another to proposals name all we're that order bigger. large see They gotten channel locations good RackSpace, is of don't partner They the it. comes lots,

And services the to deployments their we so think mobile they large be of as digital transformation and will software, their needs. answer multi-million-dollar about platform

now. in is starting kick I that leaders ongoing business one their in well. second half see training that so year to right the And of as

think hired the signed I these should just channel all indirect the partners during indirect So to to by We're keep table. better They're we bring channel a week. what the bullish we two end pushing we'll have and going will be then They able executives. pandemic just starting of QX, them. of start to of on they're senior. very sense We up new next to very be

have And so we'll hopefully you. look tangible for QX update a to more for

Howard Halpern

build? ramp And seeing the you're season? into political to your requests up in of terms you about start we what how Are seeing Okay. activity as for offering

Alan Knitowski

answer ahead one. I'll we've go this Yeah, and proposals got is that The are outstanding. yes, short take

yeah, that of through local or We're the months will whether we spectrum, are of a judicial the to in seeing as legislative the XXXX lot weeks secret next that spectrum, level. activity we political lots at get obviously there expect of no no polarizing announce executive coming things issues It's that elections are several the it's the But November. fronts of and more in probably. up couple have We a on nature. all it's secret

these we over that But board And the big as of Kelly past, that to are out. locally. the supervisors, work get and one globally, in their the local things. need people rolled think school really districts, we involved the get what is while years really means their city we've cycle. to expect next we're that happening And definitely their really, that that of is council, the doing presidential is the local big are realizing things going lessons the announcements all being last announced races while they to I into start few XXXX that

XXXX. here think active average, it's I above to going for real active, be

Howard Halpern

terms one last acquisition the the last one what couple market? And Where for multiples pipeline over what's you in of seeing half the the compared me second last opportunities, year. occurred seen of and landscape, guess, weeks Okay. I of in like you've are like given to in in

Alan Knitowski

Randall. ahead, Go Yeah. Yeah.

Randall Crowder

we'll in of just even and them proven. about through [Indiscernible] but businesses, to one. our a than Alan, get future, involved distant they're hear $XXX they're who software kind reality if EVP no no though they know or cash, but not those tech it's lot it kind the better the [Indiscernible]. number He we paying product interesting, have our never [Indiscernible] and never company, And this. -- of most the of a of is tech not our heads and people's work, our work, of deployed you Excited what be for ask company myself what's lot lot that a some don't that the of maybe you seems don't money doing. about looked thinks who million even matter We're of seems a were [Indiscernible] but spent is every water, our from the multiples in talking I too those like sometimes a at time is any made tech

to ecosystem. Loyalty customer, And for our oriented. what so is looking us about need a engaged an we began actually we we're But tech. don't more begin actually that's for good of brands deploy as to Campaign we And reached Rewards acquire as thing to lot a think and MaaS how

a XXX with long Fortune almost standing there So retainer. a brands, of lot companies relationships as these large have out today

SaaS, and campaigns. Campaign So their Even ongoing These kind employee campaigns benefits revenue but it's marketing education looks more ongoing of campaigns, like oriented. is ongoing. advertising

we now where kind profitable, because kind the something revenue can - only closer are that those looking a we're right low we're things EBITDA, or X looking get of so are And for multiple for to of X companies of

Matt Aune

Ecosystem. that are their we're to data blockchain can what and but accretive of exchange reach expand doing, enabled Mobile that our Loyalty

under in acquire million maybe reasonable maybe are $XX $X top-line on top-line But revenue, low-end to can in there up for revenue. that And around so million we a $X think And a to multiple. that love things they our umbrella few, not are would that trading NASDAQ. like OTC a seems the or were this multiple it probably especially trading that trading they Canada, and if on in are near

be would we're companies public that both accretive and actively so And private possibly some to looking us. at

Howard Halpern

helpful. That's up great Okay. the keep guys. work. Thanks, And

Operator

Instructions]. [Operator

for today question next your pose Toffee. then of affiliation, Your Please your is from coming question. announce Darren

Unidentified Analyst

Roth Darrin Hey, with and for guys. questions the congrats on quarter. is Capital for Partners. taking This on Austin my Thanks

Matt Aune

you. Thank

Unidentified Analyst

couple you have a guys. for have a Just

mix just First, segments curious on not general just asking moving -significant for curious like the but sequential anything any into on specific think especially general given should how we pre thoughts guidance, and XQ what the the probably the ramp I'm or between guidance about that, your are that.

Matt Aune

a Austin. about you trajectory. two-thirds, was similar obviously Hey, one-third, like Yeah, QX see a kind Matt. This so of is QX

is Randall mentioned So recognized see earlier, a of lot lot We we'll in we get end obviously going pipeline, of over a longer a deals of have to periods up. but as that of time. where in stuff the coming lot

mix QX And so quarters. for you're probably was of couple likely the next to closer to that in what it see

revenue. start come that deals quarters. platform terms that recognize we're But future, long of to rather Ideally, want of start down. the recognize that bigger get to you're XX/XX deals slightly to see delivered couple And or in, to revenue. We'd we in to have versus time. we that closed next we something over that than of then these see and As and get going run, revenue, some lower over in a mix of these change probably light bigger the foreseeable some that in as going

Unidentified Analyst

curious want curious And it's touch just very labs that's the I'm know guys. your partnership. one traction thoughts I they'd you then that probably open playing we've just helpful. No, on it. there. me, are seen noticed to action the what verticals early. I what for last still I could possibly on just doors for up I'm that really that. And new some Got

Randall Crowder

all and that now we're days, early right take so the It's training them. Crowder so doing Yeah, one. I for can

of the the they So them they organize business way over their have world. all around centers excellence, -- they

of mobile because with Fox. brand-based Phunware sometimes lot they And was really Fox's function. arm. we to used realize your don't that A Like

specific embed if partners, We a founders you Fox downloaded those software they'll -- exact have Axiom were products. Phunware customers, really approach with we were so them. same did and greatness. application, the we just were and We worked of tandem brands, work teams ready takes larger they'll to architecture, we like with have embedded platforms. the it and And items do so always the it's ones RackSpace can around deployed healthcare especially the cloud. the And centers Google, focused you forklift sometimes back-end through they then that But with. How of its all lot excellence a or a on company So blockchain. they've experienced in mobile be Fox. you with their large

actually are ready great archaic us for century, them is firms the ways. hospitals running partnership get And they platforms, works the or law XXst which that large both so because for still

have onion actually deliver. of the not ready what the Some they're for opportunities peel back power we of exciting can and we math and will really the

aspect the the to we've got now deliver. to that So mobile we deliver solutions know of in And Axiom ready on can take get can order we work. backend their

again, now. the training all we signed partnership. so the doing just And We're

close And so to some and there's to our pipeline market, so we've QX. up already gone first however, looking deal, things popping in and the hopefully in

Unidentified Analyst

guys. appreciate I Thank Well, awesome. Perfect, it, you.

Randall Crowder

you much. Thank

Alan Knitowski

Austin Thanks,

Operator

then pose question. announce Please Ward. Lucas from coming your is today for question next Your your affiliation

Lucas Ward

This on Ed quarter, Ascendiant. Hi. guys. in a Lucas Congratulations is strong Woo at Ward for

Alan Knitowski

Lucas. Thanks,

Lucas Ward

of momentum to the lot business. have on asset digital seem a You

question road And map that little a and contributing token. monetizing I curious, is where how of for more kind do the to just is we color that actually going? on top-line wanted was and the get see so and today what much PhunCoin related I -- that to a

Alan Knitowski

terms think We of sorts. on, always have we things lot in of going flywheel so a about things of Phunware the

a talk about That's digital asset PhunToken. lot drove a does components to a there's So the the P&L. that We to of ecosystem. lot

we've revenues results PhunToken to independent more we of of side, just that wanted the live. on the token platform shown than XX% first get in the platform was events But growth, are that that on So in see the kind those where going world. circus the year-over-year you aggregated of all

is reminder, return ATS for token, As with very information well, to for trading specific a live on people and you a reminder, in Randall and Securitize, behavior, engagement, on brands share security will and which personal an that and choose to is I as their as PhunCoin, PhunCoin digital benefit. used interactions their voluntarily personal identity token a their for your is go both that mentioned engagement. to reward which that that

Any our token, sales sales and PhunWallet purchase where purchase. of you financials and up the then both the PhunToken those both that sales, are security will that that because terms mobile through relevance appear applications on as cash, will of either has house and all Bitcoin, can your it different. that Ethereum downloaded on it's iOS slightly as We PhunWallet show within It's On the our in PhunCoin, PhunToken Android you want but revenues. earn these of to you you that that P&L the that will if anything of have the sheet, or in the PhunCoin inside happen is get balance section revenue. no our flows of terms only platform of

we Android and forward, upgrade PhunWallet. sets have specific cases applications we that road the used going for we're feature up as As the one is to and IOS

ecosystems that as two new and our for in, well. the are what PhunCoin We also with feed NASDAQ roadmaps parallel trading those markets PhunToken complement market then brand two that obviously because happens

leading exchange forward, So sales that'll June. have centralized the map successive with going we're on exchanges. see to exchange international as And at us us be and road into will a forward, on offerings a then be will for go both Randall Two an coming the of mentioned, both PhunToken of exchange of we as and I probably the offering continue that domestic standalone to those allow month get all distribution to go we end include you'll -Two PhunToken PhunToken up initial as there initial

like got Gemini exclusively would Unique ideally Coinbase things to that one way a and basis on one we internationally, trade a on So as and Tier the of PhunCoin looks be will larger only some worldwide their it though, to ones land only Securitize mystically, into if ATS. on security

Lucas Ward

Alright. Thanks clarifying for that.

congratulations. I that's think have. all I Again,

Alan Knitowski

very you Thank much.

Operator

Alan remarks. no further to in any I turn for closing to questions are would floor queue. like There over the

Alan Knitowski

Yes.

in your interest always all doing. As support. what we appreciate appreciate We of the we're

their of trying largely the of asset blockchain products. the the corporations to products offices. two ahead of are it's so the brand-new to in impact quarter downturn We're communicative computing, advantage and that and very the When the as great close and the have our about just this both Relations very lot keep QX of conferences. year-over-year seems XXX% Wainwright. to conferences, we the ways our already Investor the see be able we by as trade launch. we're to Randall's pandemic H.C. we think both digital guidance up that to to used are on difficult in revise We're we of those to be finding out going We're represents our be Needham we teams We of reconvening XXX% updates that's took accomplish introducing solutions the and of start financial in work. that excited back addition organic behind part have several on shows, said, to upwardly in be high-performance for We're customer were more go that active when we times direct-to-consumer sales few up the We're that excited our of business person able that we intersect forward, forward to to everybody first we're and that excited this the And to were that We're to We're very you is to over to activity; see And and ugly going that the a partner getting more to able in very domain our next on-site of we quarter -- and to as excited then XX-day have lot keep work. components get we'll a best we through Phunware the brand-new now of QX. clearly be possible. launch that that consistently participating going from XX it be to company. to lot acquisition meetings to in being coming an through in ourselves. a road while scaling growing. start will with excited to as scaling need look going Were our these period. announcements We're rest point parallel, able their to and that year-over-year excited remotely over weeks the and in very over a revenue financial going an to in be getting case stronger start case conferences to channels, in-person much upwardly look on giving to we'll or days person. With forward update over

our kind ask-me-anything them handled Q&A your analyst So to like be crowd opportunity here. Randall going and we're both we follow-up to around separately retail be and really some investors who to immensely for with I we just of have things able And will then with and value support an for involvement the with conferences through some thank to company. the their appreciate And meetings. world up give questions very you follow-up set institutional know ask want much that, will and the myself any financial some

that have put some we'll that and on information guidance we'll out. So

the next fantastic very much close until Phunware a your team, and thank to Randall, So myself, Matt, have of entire you on behalf time, and week.

Operator

conference does conclude today's Thank call. you, This gentlemen. and ladies

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

Phunware (PHUN) 13 May 222022 Q1 Earnings call transcript