PHUN - Earnings call transcript Q2 2022

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Operator

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

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

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

Alan Knitowski

our to call. quarter Thank much. And you very welcome XXXX conference investor second

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

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

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

also its expect or company a for period. and XXXX guidance reported of for a year year roughly half parallel, up as record will second for $XX over revenue our forward public that XXX% we XXXX revenues comparable in half we tandem, Importantly, new million. are represent reiterating second In

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

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

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

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

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

Sunrise amplifying including channel & partners Consulting, Healthcare, core Axion Cox solution Business, and amongst Labs, Title and Cooper Lighting, Sequel], and sales Hiro, the for Komport, Systems, and world. government Arts new Sirius to [Cooperative SoCalGas, TD Efficiency], remain and our our for direct we our portfolio including wins City solution efforts enterprise resulted Smart estate post of our customers Synnex, for interest conversations Convergent, Energy strategy customers including solution Boyd, customer we many Media, Association, including the Workplace We about ecosystem by cities, Smart addition healthcare MaaS healthcare, also SALTO for addition American well and now further our by in with In underway these, Puget team, with virtual growing were hospitality, with blockchain our to CDW, hard that of Newcomb our [Media real and and MaaS world Care like the conjunction Land Energy, others. digital Lutron, in MKT global Tacoma already Tech, Sound scaling the In the Simplr, powered our recent indirect Verizon, footprint the These market Prestige activities excited verticals. for Live Primus door from Contact.io accompany PhunToken, expanded corporations sectors existing accelerated Phunverse extremely by MaaS continued PhunWallet of physical pandemic, PhunCoin front HID. our hit to for go launch

the to part monetize our accelerated MaaS scale continuing aggressively loyalty look are customer global platform and data this and adoption ecosystem. blockchain our business our both mobile of We enabled forward and MaaS to of

important included decentralized unit on of expansion trading these exchange Securitize. activities on swap the trading PhunCoin QX, commencement PhunToken the announcement of exchange During and centralized

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

expectation up its reported comparable period. second $XX our again million, we for while reaffirming that XXXX as parallel, for new our forward a second of half a XXXX are guidance in represent XXX% or half will roughly company record revenue for revenues reiterating year-over-year and also Additionally, public

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

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

over continue new customer one we for and that to First, rolling year QX revenue our over revenue XX period coming bookings, contract revenue wins will to recognition to ultimately existing forward. SaaS five deferred total months XX adding provide MaaS the backlog recognition

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

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

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

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

and the comparable the Phunware did Lyte reminder, loyalty have business period hardware PhunCoin. all, launched and rewards and during it PhunToken only we anchored by just a ecosystem As XXXX, MaaS the in and at by not

Aune, this our to business will growth the have and as Apple both financial accompanying of metaverse, continuing sequential the Google them half for Android CFO, deeper its world launched forwarding time, fast and to and and are Matt, ahead. virtual and strong improvements year. balance of including we mobile reported, today, application our our the as sheet branded quarter now we year-over-year active have including Phunverse. please which second XXXX However, portfolio performance our and second productively, our Matt of fiscal in continued go half edition revenue first into the At iOS PhunWallet lines expectations go scale

Matt Aune

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

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

growth year a to financial non-GAAP which the represents results. X-K Our all over year. provide million, Web GAAP $X.X XXX% of totaled revenues Net site XXXX second quarter press reconciliation and for release,

Our QX revenues represented XX% of over net of or $X.X growing million last platform year. revenue XX%

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

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

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

growth, sales in rebuilding while COVID operations paused of XXXX. heavily invest marketing our that and half first to drive expense efficiently we integrating structure of continued Phunware and during Lyte to to due the have portions by We

per business net have $X.XX treatments the million our take, cash explained. amortization last for the we million with and Backlog reported minimal in cost deferred current million the $X.XX main people the These year. was compensation of and impairment loss The Net of comfortable accounting year. with quarter assets loss operations last no the although, loss structure million quarter these at I have share previously $XX.X EBITDA loss of digital was quarter last net from with share scale share and driving $X.X to million adjusted as factors implications loss our end were existing they to loss Non-GAAP $X.XX the was year. revenue EPS confident to items include to were that factors per compared the loss quarter. to or in required or we $X.X per stock intangibles are of with million, $X.X $XX.X facilities. We down share $X.X along current the $X.X adjusting compared Non-GAAP last $X.XX for can totaled quarter year. compared the and million same per based same

second QX pleased of and We bookings our year. for the start to the half our pipeline are with extremely

trend to deferred and backlog expect to We QX. revenue point a low upwards end to from

We $X.X the Moving Subsequent partner, close with the and $XX to our debt. [Stellar million. of roughly quarter to in borrowings V cash we closed with balance our increasing quarter, million Capital], agreement the sheet. the million $X reached in to an

dip having based sell through we We on just So could approximately enough or of equity have operating aggregate into hold with we to holdings crypto prices. our XXX Ethereum, and today's an million $XX cash Bitcoin ensure currently XXX over without our ATM. value

in roughly QX to In million of another top-line hold currently have just we addition, closing, the to defi posting on which of annually. decentralized revenue. $X or continued build holdings, record yield quarter by thrilled under we're created finances XX% momentum In

the we and margins As drive ability scale the about optimistic we grow. our second year, of as toward higher are half business look to we the

revenue business in committed to market continuing are We through to organic inorganic lines and opportunities. both and build share all

institutional XXth XXth would We financial to to that, will meetings story Crypto and markets. September event tell major will and Xth. high December the through and next and attending themselves. call one-on-one to we both Annual Xth, Needham our Investment the UBS corporate September many conversations conferences each conferences remain be Wainwright efforts opportunities With at our further I We Conference our H.C. are, active the capital the investor strengthen profile and meetings as with look on in Randall. Global to TMT turn over The on present with Xth like Conference Global the Conference Second the through the on forward investors class financial

Randall Crowder

Matt. Thanks

our disclosed key objectives. significant been storm of maximize has the there previously well for markets order to half shareholder guidance. five meeting on the the our and are In Although, been quarter focus value, pressure the centered weathering we first has year, around

around visitors. about have that development am most MaaS of of of First, drive sense we get I complete a a encourage to more Southern interoperability. but enable our features Phunware's over a as that core of achieved and have digital that one advantages. competitive margin Norfolk we transformation investors available to the remember drive the Any time the would thinking occupancy time, integrated that It's name lighting adoption deploying and that enhance management decade accessible approach. separate mobile few. the suites, and in to that some and also important company as and YouTube people systems, third the employees the seamless this, understand than and budget expansion everyone improving just engagement proud mobile drive platform through I digital the have table experience forced MaaS and and well the channel. productivity parking demo shorten enterprise better Southern on check experiences tech experience our any applications functions and/or brand only that transformation. as right and for can longer cycle, third At XX mobile no mechanics an are controls, the out scheduling to is firm its be be platforms only potential our exhibit only Norfolk True sales to of we've scalability enabled need such more have to is party game single we behavior. this for With of parties, experience experienced a to deploying When not tenure but to rather sets, sign addressing feature like an is also custom solutions on through temperature solution all tech deliver To to technology numerous Phunware a average on but not venues app a will looking across account profile. than five years, workforce of industry any and software, contextual

over brands party in additional point made solutions. a work third the they've with as continue integrate add investments of on list some will already utilization solutions to to integrations transcript. quarter be of available other to these maximize we integrations of and each The In already have fact, just done well will we hundred following the work

MaaS the rapidly integrate they easily mobile applications any that to mobile deploy HubSpot reason give or CRM can ability was ability way we and cloud Amazon. may the might from brands from with a pre-integrated developed have services to course, same license we ensure functionality, software Of our brand the the integration license the come We need. core to

compelling satellites we've to same mobile Speaking device software the and a outdoor. way mobile of of is one internally locate device advantages capabilities, pre-integrated indoor, developed most a our triangulate MaaS competitive can GPS

Management across Our the navigation of and streamlining to provide underlying finding while deployment patented and sub-one any beacon management. MaaS blue beacon real way positioning, deliver first capabilities solution campus LBS time simplifying indoor proximity, dot software native second and mobile functionality facility, and

mobility Our not and who but seamlessly of mobile from wheelchair the to compliant impaired, anyone advantages drive is but hearing productivity addressing a only advantages who visually between environments. challenged profitability solutions to a have transition outdoor in due impaired are to transformation or ADA also needs everything indoor introduce industries need order competitive brands COVID-XX are These enabled stroller, and wake late in of us of and to their adopt to the competitive the mobile own desperately digital pandemic. also to

active software industries entertainment. of quarter, our pipeline most As and hospitality sports healthcare, are this in our and

our proposals increase. deal we terms have five seen new to remain size average years, our deal to continue average While three for

are have the that attention to pipeline and hand represents closest of healthcare deal our with since true our is front at digital our $XXX,XXX is SaaS. solution over of with we $X.X an average live of our a an million other smart example, on average Hospitality size lot half deployment the For a Bahamas. of pipeline deal now seeing hospitality more and size XX% represents Atlantis door

active media and rich But are food and data of most and a beverage, retail, the lot government healthcare. travel seeing and our are For sports entertainment. and new growth industries opportunities, we in

to the deal engagements lot I approximately size for respectively. healthcare pursuing deployments platform and direct our in reflects to As best At $XX,XXX gross we've targeted investment the more $XXX,XXX made retail of have average brands our May, margin their of which across discussed as this media initiatives. SaaS of mobile. pipeline transparency to represent with of in Blended, been was XX.X% time, and we seek an QX, and have our half a bring control

indirect primary offer how and GitHub it to portals Developer helps remotely MaaS brand about MaaS to and is comprehensive software mobile documentation case to activating training channels establish PHunware types global carriers. four, webinars, objective, incentive essential three, hardware structures and in parallel, provide and order respectively. and true Second Program of sessions partnerships and presence. Phenom training we more four documentation successful. to better opportunities. two, execute available be channel integrators our courses to strategic In our studies, by also portal full consultants; support their one, vendors; to and collateral provide scale learn have customers, partners network; reseller via channels digital the the are system Certified strategy we to ensuring our a telecommunication our comprise strategy sales software The developers; partners training live through These revenue and additional place e-books proper to and effectively on-demand our In and articles, Phunware

better authenticate compensation solutions who a to PhunToken, engagement PhunCoin, data not to release we To devices give backend with data brands. customer engagement. to foundational it blockchain PhunCoin. the experience platform deliver we of the and participants launching us better By with were control only as that opportunity and existing incentivize but and leveraging new engaged that blockchain accounts support ecosystem compliant relationship our MaaS incentivize comprehensive proper fair to end, authenticate establish make their have platforms. technology, the also also ecosystem register, and and required easier registration excited of to objective, user enables across will data over Third the being can their update with and well to that This announce as to compensate now with a recover for functionality that leveraging consumers update is while a consumer help profile ownership

commercialize with WebX Android. data consumers applications economy support Looking world's are positioned network with truly PhunWallet, Phunware, bridges the ahead, both Google to to by first we infrastructure and mobile available WebX data iOS a Apple which Oracle as a first to an to Lyte is decentralized that persistent well on as robust well through connection required

product update extension be ecosystem, of of account rewarded choose activity; functionality marketing the information are enable users will platform, and PhunToken. and the to and and profile location consumers give for while include; control to being MaaS the experience their to in our world in that seamlessly colleagues, the auditable dual based to larger regular to refer an token engagement an updates with over allow but more on support we our new roadmap family working that milestones, friends, share; ability As their that real access build; enhancing information to interact users rewarded with and they brands networks they

velocity and layer also own methodology. and token are focusing We enabling security to PhunCoin by for scaling both on PhunToken our

meantime, will to aggressively the framework continue and more so guide we expect we've provide will for the providing to calculator. step-by-step mainstream can roadmap functionality they community target exciting that created. Web our providers, drive top staking developer liquidity build the through new In and our phuntoken.com to expands, of help As on liquidity new whitelisting a as site a resources such we adoption,

what many Bitcoin for and section check the first data oligarchs without migrating Feed the individuals latest and Fourth can our empowering to the and we Austin, do are to manage disremediating user for Lyte benefits by parallel, for that and the for of by growing the You did finance, Phunware without headaches. In as framework ourselves top their community. platform and Phun ramping generated Texas from an of content can consent to blockchain also in intermediary. third plan data need out develop sales. our objective, We parties a on data to party on regulatory the capitalize administrative positioning of enable order to

We TikTok. are Facebook, a primarily across focused a strategy is marketing supported to pursuing YouTube Instagram, comprehensive selling that direct consumer by effort, and

marketing of so certain to many the begun chain US, process of these are our targets only our hope Fortunately, of and we ideal efforts, achieve After economies targeting is blockchain also Australia. customers have spend not Great English markets our outside scale. Britain speaking also the we for ensuring increasing supply marketing but scalable, such as Canada,

expand, and more able layout support could shipments consider to we’ll achieve expanding As million of X,XXX better will be to of orders. almost targets. and warehouse efficient last up to revenue we our assembling just week, scale of of occupancy growth again. Dell our the facility have We near revenue begun believe $XX our size new in we double will have month taken outside before Austin plenty have a headquarters room and Illinois the having of to I old in

engaging working we're focus improve such layout, In volume our margins ERP Fifth a stronger investors price as new to addition functional with to appreciation. objective, a and drive more system. improvements, also institutions efficiency a on implementing more awareness, to through

we we Gateway, broadly story that We road a shows upcoming working set to half since and more with non-deal we reported X.X build great today larger of Wainwright look the to the second To why and Capital shares average as point share been last ROTH more are the end, represents in announcements and PHUN. than Phunware of are entry an with volume up million a have up XX% excited closely daily year. H.C. position believe investors to about over in out

Since of headquarters employees occupancy home. the a and this are space in to evaluating of home office giving best is Phunhouse, of worlds, our Austin. the work our employees quarter, to new in and end Diego Dubbed San and of employees. we took both ability XXX As our of the recently Irvine historic are our converted office, from the majority have California the new the we Texas, the in complement

are of note, by of this space Of office what showcase be has to best executive end the briefing back the fully offer. We to also as the center expect using we Phunware an year. the in the

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

Alan Knitowski

Thanks, Randall.

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

their MaaS this enterprise offering target We ecosystem offer compliment to accept our supplement capabilities core as expect and and we our customers additional to audiences. engage identify,

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

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

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

scale. Finally, more focus the behalf with results. Bitcoin, Ethereum importantly for forward, XXX% overall meaningful our maintain returns a company, financial at to generate including and operations on for In With activities rather in breathtaking consistently a includes of in and your revenue finance while conjunction all which decentralized order thank treasury sincere from positions, to you for or laser our and our full our rolling that, to we operating we growth support line ahead leveraging asset entire up strategic a and I balance to working worldwide, all year parallel, and go we XXXX, call of core continue and strength expect top for interest for please. the through like our now as financial that amplify do to corporate would expect operator. a the also model, towards family neutrality operations sheet questions on cash Operator, ongoing and Phunware open the

Operator

Instructions]. Aftahi. and Thank pose Darren, this is your question. [Operator question the affiliation you coming please afternoon Darren announce your first And from

Austin Vetterick

This for is Austin Darren. Vetterick on

Just I if a may. few

First, what updated you're cadence just roughly issued where a the how on you you touch contributed I us to far? with just you've briefly or fully to based sense give timeline, revenue? of seen at on And token an much and maybe when so those have that could on just sales, expect guess,

Alan Knitowski

more then let Matt detail. of I'll you give a give kind highlight and a little

beat up marks to do platform we we quarter, plan specifics don't the but internally. have on second both inside that the include set break actually for revenues. first those both we out we and we sales, On Relative we token individually, of that materially

know, you we at listing have been buy.phuntoken.com. As

to means so do to that direct in through our purchasing for the a be those have are able interested tokens we So portal.

a been letters. NASDAQ The just the that really active PhunToken asset the we separate ecosystem, unique. been decentralized is market waiting yet far, tokens are token where by is people on securitized security is a exchange, purchased to security used unit have brand a of like PhunCoin, so or are this, When publicly exchange The opinion token obviously the once or final released and they some for hasn't token tokens utility traded token live PhunCoin on actually company in and for these use alone swap their decentralized They in from it's any swaps. and I a NYSE. market. currently new have ATS the ability lot development, the doing so And company

is seeing portfolio of PhunWallet. use are we are and downloading that organic what now for the a iOS Android those right So

have app things on downloadable, can and things brands platform answering then Apple you comments the with are lot to Matt, that behaviors to once have either ability one any interested interacting through are brands to those physical games that different from like overall doing on we add to surveys, the world to ultimately to watching will inside continue in And playing that? earn demographics Play want store sharing specific like things as really in. go Google forward, get to revenues. the side in and actually engaging we within highlight And to you'd the a videos, you You do try other. the at engagement, those iTunes check-ins and

Matt Aune

obviously No, last period you QX here. in revenue see for there, did prepared for Alan, X.X year. I and will there, you just well the think XX.X Q my in the million guys said same about versus it But I million platform remarks about

that. about excited and there, improvement some definitely So

Randall Crowder

this capabilities kind a who measure. building of kind to to we'll of to and building the add, when tokens to deliver of just want this of the unit of not of about anytime your PhunToken At would large that. last try features the emulate who access We're not I question our end soon. day, platform or we're Theoretically, to the and and those can features like capabilities something dogecoin finish. institutions through timeline brands, on organizations sell these as and part

focused we’ll to capabilities is with pumping their utility on new working order sharing out a better just on large need engage in bunch of And and customers. story hiring of not that kind to they brands deliver or so We're We're this what roll time. really promoters. something over the

engagement talk really MaaS, about this when we drives incentivizing think of engagement, that idea a very about of we for these they're doing is brands, if what As interesting profitability. lot

-- haven't be will. kind so begun now, of you it's this kind even , we And if we're is where right at not that's even of -- to

kind to year. come little bit And of a this expect so online that something see more next is we

Austin Vetterick

sequential I in just margins levers facilities aside, that. quarter? My think can for you sector And of the know, Lyte. that provided moving up what then I'm the moving week, last I just facility what what this the opened lift I caused the curious misheard I improve to unless improvement curious next those But suppose other question, -- on Randall, the kind pulled be in mentioned I'm hardware forward?

Randall Crowder

different market. old strategic bring it original that table, like they're a about on about a end know about relationships in marketing if up been talked young on QX selling last knows exhibit is and that but Apple business thesis going saying, iOS of and the to ways he monopolistic half we the with the anybody kind it's no year to because wake we are -- and the call. different bring It's and of best to way. town than big what been and everything Facebook of who's that What fashioned has at monopolies. mean, interesting that entrepreneur influencer Google Android dog supply the I probably the kind he's if in we we day, basically Facebook's control, has the here's platforms. is an doing okay, if hard a not run total And doing charging can, the

so And doing enabled our people. inspiration for what a the that's know ecosystem. We with that, we're thing getting some reach blockchain harder-and-harder of little to about it's

best really making And to and teach impressive so he than optimal we from have the all of entrepreneur was didn't They him that when in had there. more the sure expanding really not they and double the size, a marketing, an obviously and ERP the really functioning tools a of wasn't it's just warehouse terms were layout. under young resources got out he tricks Phunware it their space We've umbrella, system. giving spilling last trade then in kind a

ago else. and and really a Phunware go many thought then everybody to great and And that's do off people, target he'd so Phunware, really probably a executive Any executive it's of something promising promising material moons taking member he really need we the think. company and is to at how Patel Tushar just bought at the his some And business they resources Phunware, he's team. want succeed and a them still giving

lot forward, expect growth We are friendly. company. going entrepreneur and inorganic do we're a of a We great very

that think numbers. the in I seeing you're so And

Matt Aune

all I'll is, great which in and at and who's thing of only sales that, seen work is that going to the have other scale add Lyte which the but The opportunity here who's we'll United start captured, back focus an to by to with COVID States, that not, and Randall geographies. looking stop we've obviously, we

and pretty deliberate time. being our taking we're think I

sales haven't yet. use, still outbound high is that. there's wanted you supply now of work we shipping, whether for Illinois professional think PCs from get reality back red the at a the strategic the of importantly, manufacturing to that's people We got more to people lot get point, and this use investing gone and about state again and and a that a of relationships, in with we've computing, offices And And high now end happened. at moved done. personal and home all systems them very the that the Randall these remote the end using stated, a As reopened we've correctly blue, for now performance that integrating to down also wanted or to when logistics, that's lot been is Austin, and are facility and lot chain, things

or or to people to Lyte and not gets still good are back or that, is engage so and by is to unaffected because whether buying work, at. Phunware them these systems lockdowns they're And news operate the are largely by wherever they people not there are need going

exit going almost the that's took that first We've we're accelerated was And doubled of think size since. range have proud gross make bought the been as that telling. us And them, we initial on of each we be And once quarter, QX, the to double that to since to sure again to We quarter. when think will double and we that margins one XXXX. will after run that integration. their we rate we our rate bought quarter really quarter QX optimizing every Lyte very and a their ideally things business after we within continued hoping allowed forward. effectively of the terms run when business in we're is in that have working be quarter finished happens I I it. immediately it expand We're going

Austin Vetterick

year. a maybe maybe half on at as And to coming curious the updated timeline And of the me. quick the all. speak stands if rough year kind last some P&L for deals the you'd the just hit story, one to far concerned, indirect direct you if next that one the of to being P&L rolling of as that's fruition still more is any can of I'm that expect into second more if of similarly, partnerships

Matt Aune

actually that the to part of a take that in XX% may which them. were me direct with in to actually be our campaigns Let certain this. of a be have getting application mobile and used lot they business, budgets wherever terms We actually went reach users on media transaction advertising of designed

that actually where restructuring situation in and Over and is COVID. on how business period, of pleased a basis sales that, investment kind much more of now a now side lot gotten we've spent in in our time than COVID direct went before a bigger the we the for worked that

where And mobile don't at that versus to up nice organizations meaning XX% quarter we're the Dade. be deal interest opportunities indirect, intermediate with budgets on to reach to government that getting company this to of demographics the other like directly expect is just Phunware Miami we're thing XX% somewhere seeing XX% even governments We and some have other compounding about And directly that It's we're XX% scale. to we're those the between from is quarter. actually last and we businesses literally direct through just agency. coming

a so business. that We of been Phunware. And touched on that's great part by Lyte

and with the direct On are business, the indirect rest deal we software those of channels.

of list series On net the announcements that meaningful we a coming of term. new basis, in all and customer few a deployments direct put have be near the will we will

we with large hospitality can that and resorts, haven't literally We to to and largest premium then we've million their organization have that start into first one multi expect We're dollar, other expand that domestically we with, but every one that with named going we're start going abroad. of their deal five they very closed property brands.

that on coming information have one we'll So soon.

property, The goes be another big another soon behind we're and about we coming to, is properties to group will expected that XX expect their thing as we'll gaming-oriented have if kick-off that that there that. other that first hospitality we

facilities. And these XXx be because of We the what rest out are of And of by earlier, they delivered distributing at the get not their their where properties, went bite consequence. won exciting, a on something top We to there initial we Bahamas. to could of going so mentioned dollar out. some Randall a Atlanta win the but lot of multi-million rest an Apple gotten are is for just that reason better that's

to have world. the that what off like, experience. Now get had, go be to and flown deals actually the announcing door. major it's that successfully mobile we it's how experience from some Bahamas the scaling commerce, as satisfaction, provides that to in a we even those is already to applications. see play easier in is their coming to to off guest showing day consumer two other way And productivity executives through concierge going And now unique it to are be seeing groups how now in And People down the hopefully win the opposed seeing, fighting of staff these this luxury and window. actually and have that won we'll wonderful we've exactly engagement, people uptick XX what to the it really used the there, the is

Operator

coming Halpern. Howard The question next is from

Howard Halpern

Taglich Brothers, congratulations great quarter. with another I'm and guys,

your spoke are just that gated services? the communities what you country across terms within also In concierge any you are built seeing of for activity being about,

Randall Crowder

do it's all within work, a working say residential, mix things Residential, Alan the a think of kind of use. mentioned about of to When that you people kind we say distance. evolved distance I earlier when now. how kind of play, walking one want would and live,

it few at And Fort ours. the largest country have developments the of down We in is of actually mixed a a so use Lauderdale, those. one customer of done we have

any one replace then touched kind We're I underscores application them it build doesn't rule been get give really forever. so need them you to that to services one this not to And in of something order services, the to care just seeing you sort you to best you lost. wants at mobile these is preaching AWS community all, upon think build think we're use with whatever of your And what I its that places cloud in of complexities what continues built has And Alan themselves. cloud in mixed requires. excel mobile of and That's think business. Fenway are, and are like, resorts we communities you think Park, where even at these facility, stadiums look about are gated being -- of what like now to it Vegas, what's of lot every times all it, a the all. application

that you've created got solutions is tackle focused building be spent thing, that part to different I've there you, different a bunch successful in tell a And systems, You the have because POS point of one venture and serial valet world, capital, you entrepreneur. investors on will forever decade and been the investing as one have systems, systems, entrepreneurs different laser problem. small Alan's of only what ticketing out

you're do And what going make a point be to is going that's much to those all it's stakes. of what and endeavored so to solutions have And we've cast table interoperable. wider net to have,

mixed military used different XX gated quoting everything one of a XX, because together single now, enable tech certain single that facility, one into specific on, they're deliver need. beauty Phunware any resorts, is to using manage to already to we capabilities. going other you you're one. I'm sign picture, of that bring operating one common The vendors authentication the sort If XX, If community, a all

certainly critical at workplaces, deploying these talking so mixed that And hospitality in about that's venues like then places we're hospitals, and use.

actually where One of -- even cool cool things leverage that's we're working of better. these communities is can gated blockchain on that some the we're now

could country play where You being some NFTs think of a maybe to role what these memberships. club in fractionalize based I have able membership, of membership facilities

And serves and a of than all to us building, building a large really them a tech lot different journeys. you and all a is software live cruise residential a And we And community large can equally, people no enable hotel how so platform distributed that is our those how world there's than like no ship, a cool things effortlessly. so real or large office our different large run building. it buy very of and flat a tackling looks

Howard Halpern

solutions also And Is the that advocacy in the about going up as revenue for application Alan be we quarter. bumping consequence to a election transaction joining enter talked of smart the season? customers third

Alan Knitowski

into that presidential we we XXXX, kick the advocacy What are on smart are the kind tied years, like and as game, to more where of that digits. size out software a saw take been They that election. is and or last see importantly, two much during necessarily would even average the solution midterms part. which the big approaching It's interesting haven't the in, jumped give the is we seven like still low seeing seen average, $XXX,XXX, from on deal on directly and years stuff few those now more $XXX,XXX we've

tons of be application doing the are gone we're when and tons is just which So longer. coast-to-coast. on mobile concerts, digits. state, going in be campaigns and per more the like some Nation going at those sort county, on of even tickets an stadiums, see It's or might has XX% might literally transaction, a inverted to cycle's indirect. that participate per campaigns from seeing those those probably whereas people whether really where four that in campaigns XX% significantly. we any from through five of up that, festivals per XX% a direct, XX% probably we're average to are other events events top are double be these rock on. intermediary Live arenas, interactive campaign driving through that On or that you When is We used lot to digit that buy city, And jump what inversion, spend we switched of and direct, similarly, important little been

that lot on last people the way, relates hasn't really able people because solutions, their And it things. out XX offerings, in being people and get back entertainment, a so as reach the travel. dial to enjoy want want a because coming seeing happened scary in and in just months consumers spend need to was there big into to XX to they is and to what to than pandemic is of for it their go need we're products, it out especially get especially and relates with before, they their to life as the less be And

seeing, will So happen likely so just I still away. of campaigns as this out much a campaigns then far activities lot that bigger we're But size coast to do ramp expect run, is this a And direct in. just being November's run. is more a more coast. some field, we're lead being to lot flat that not far going see the on we that

preparedness and could another, be direct on they're Dade, was I from as government or about driver's these around of Miami to Live group, everything great with doing coast probably another whether like license departments things could things with it just tied So And Nation coast state, traffic mentioning started I there as to the city on example side, different brands are by from simple and one use to transportation we health on big issues oriented And vaccines basis, part and we success. organization. hurricane the working things. literally of now county could a it finding seven one be tied direct be

So all at you're their business, a our on trying vertical We government It those works to access doesn't reach it matter what seamlessly. solution, if refining demographic, are just is if that's venue. unique be environment as doesn't in, any or to are said, it you're just because a you in And wonderful mobile want just pretty to you at locations. whether a provide as specific certain people doesn't devices. it matter people Randall that to where treat trying matter we're

Operator

our coming Lucas next question from is Ward. Instructions] And [Operator

Lucas Ward

at Ascendiant Woo for This is in Capital Markets. Lucas Ward Ed

Micron, We've sort even just of in I'm that companies been standpoint. quick been couple guys end Intel, of some like an hearing PCs, wondering from an unexpected you in-market major markets, a the there's mobile. including gaming, experiencing Nvidia, are Just questions. what from softening

Matt Aune

others some [Gigabytes] a in is have same we've been what we we actually well. the seen here chain, lots as of supply And news. and we've of the and of in AMD, heard have lot Obviously, that conversations,

far, So wood on us. knock with

we've think, or been may companies I we're in where now. of that at that LYte have seen smaller some competitors similar size maybe other were

what's Other just actually for and have gone survived forward. not have pandemic them ones of not happening with Some going away. to new systems and been the now able have invest

And so and capturing have been probably interest or survived that we've lot seen what either actually through necessarily able from market some that we're the is have hard a landing a doing. have either we soft not of other like And in think haven't we're we simply to process. competitors like or invest , had share

were was going in holiday around supply and simply a accelerate, problem. we really shortage in end we to to I that revenue. from QX, it quarter we more up want chips do machines to turn-off it, is there Like had call then very the did the we to all massive producing seasonality at single a challenging. QX, you and QX, And big So and demand. magically then That's with accelerated saw can And which is QX, a if that because fantastic just outrageously work In keep business. you some just that world. to cyclicality never from every just window was QX, there that demand we have that a we QX. you're to of we the went honestly what effort QX, if in demand to a the because believe had QX, simple problem, of support it that we struggling in think literally stopped quarter, even a of had was chain with throughout And the a we

because to than expect buying, process So they those you less be all QX but kind always that or might like QX, sales we cards going have until is January. when see commit don't gift people people you of Hanukkah to typically Christmas, holiday get

off So it QX even then and Typically, to and and QX wasn't on a little you're to you stronger start QX going bit of an strong more in even then a reacceleration acceleration into a back see seeing in QX. QX and a see sorts unusual QX. again

year you're comparable going have for So you're we up right. be see QX is the are always going going into to see are as quarter, earlier. weakest highlight and new, we that. are always going next will the going to year-over-year basis. like really likely passes, going But I again, see be be earnings to each is If strongest, what definitely QX to you're QX a are it's actually excited, And QX I call, see then on But to anything time we and we said to to think higher. that relative what that as

a if for company that's on sure trying And we're doubled it. a Christmas and going to the to officially just probably we I hit doubled we when QX. that think have don't all make We strong we got bought suspect, to it of was that's kind rate the of from we again and until Hanukkah because QX the January. run QX as strong orders lead around

Lucas Ward

And view confirm, stronger this the QX -- I QX? assume Can for business, a -- and stronger does backlog I the you'll that that well, have just assume. a Lyte shouldn't the support I specifically your hardware,

Matt Aune

Yes, certainly.

in shipped and Xst. out correctly season QX, coming that there before going up January out the to we everything is lot are an kind of last of builds get awful able So Alan as of backlog, year through holiday not stated, backlog

in still And then the out is Christmas cash may pretty quarter high early typically to of still or some in the with be people backlog the So gift year. there buying be. coming whatever QX, of terms cards strength going is it

bit And because so the QX, Lyte backlog that and through QX. a there's and see will is when lot stuff of were deferred built of we them partially able report of of we a The backlog to you get quite out. in down shipped a and that's with QX out. numbers little bit revenue flow kind up the kind backlog

ship The to of do orders other to and down for moving reason are to certainly down it us shipped. didn't because Austin a was have already lot very important that, want we to that be could

to So a was we did -- backlog out. ours the of get it focus

going end could to kind point going is then it'll we towards because I to QX you the ramp of September just low -- think seasonality. traditionally are potentially there's looks see the back get as decent. the And as the it be it's be backlog, of to And August, like year. up for Lyte of start

kind the Friday, of black in I October's kind sales people think of for December. as little wait November slow bit a

out keep updated. So the we'll going typically throughout -- I keep a think, rest then all get in we'll you to and see and we're QX, obviously, of of build little the there backlog up kind reporting to we'll the push But it it's back keep year.

Lucas Ward

of if Last and is the guys you end? question Do as have guess, to investors producers, view winter crypto right when on a crypto. that's I going the word in crypto

Alan Knitowski

of cycles. what's this, about the we're the Yes, talk like talking been that Matt through constantly. crypto Randall, from already I'll context and take and several And about is and this it many weird me we've

So interesting. it's of kind

you time to these feels cycle, a horrific horrible. first these Like amazing you die. see go highs, it crypto The just going lows, through everything's

since is it Bitcoin for You time started ago. XX see the XXX the dead years

overly it's about by measured was in. or like put lot now overly not it the elated the little Right there's of cycle, lows. the stay for kind that and low us, get worried For a to seems a evidence of particular highs strong easier this

just basically If all you number earnings share per hit estimating our a And look we happened. Bitcoin. per had a was you at as to were that like We loss what wrote that's just impairment expected. we operations set from five in that I where that impairment what in down, think, share you $X.XX the $X.XX of happened reality, loss tied

write we wrote also an and basically to And token. to the treated. Ethereum $XXX, impairment down the So GAAP per and we $XX,XXX way Bitcoin on down took to FASB that's it

it's we down with over pushing here price take you write and obviously it, today back gains or to already ever add that day. back and tied value. you Ethereum buy you we that those possible a XX,XXX on we $X And depending couple when really touched any unrealized million from the thousand, that stand mark have back literally, don't to X,XXX, lowest it wrote in as down. in. given And to to get You where Bitcoin like that's We positions X,XXX, over to market

in got in leverage, which way risk XXs their that doing term had end me too feels capital contagion liquidated. bankruptcy, event, the the much being blew is was I'm and throughout, because everything of was capital, crypto going whether were then where And like ugly long and used which really it that our So Coinbase frozen, arrows set Voyager, management the back we that withdrawals up and of up an it bankruptcy, to result trading got management. way like people the to late redemptions capitulation three all just And call Celsius putting was caused delevered. fully irresponsible of cycle sorts numbers, kind they it

was the absolutely liquidated. good about the all got exhausted ultimately XX,XXX. And point and low positions all think got worldwide news destroyed the of I that delevering sellers is those and

ebbs So we're flows? quarter next going of in and second is literally probably halfway can happening, over and to to the you happening have the XXXX. be next But more

the from that these I hash they is one you it exposure now including to behavior. do XX/X, it single things you of at And product give was largest then to their it week? that up week, you investors of own complete intermediate was took to it it. step record complete And a launched managers happen, ETF, years Bitcoin. scam, They suddenly when they to nothing by of the asset This saying just ugliness And on eventual because they down. that them went blockchain fraud, Bitcoin ago And sort call a their talked the security, it then they working see them all but joke and of XXX, never was rate, goes every complete oriented basically, what So looked institutional everyone. and and record it's want it earth. within quarter tie do the criminal provide about is a have what tried BlackRockm was to just capitulation what perfectly to this have Bitcoin, globally an runs

in cynic down they and carnage not they front BlackRock hammer get create to position prices as all out price say, that realized are. surprisingly, jumps here in, accelerating suddenly can to retail along. and are missed the wanted and runs on whenever in be hard And Street, the into suddenly as we want so me they humanly they hey, would as Wall the aggressively So possible,

pump So think and nonsense. bogus focus on in building. We're not dump that we and I interested

world a our need, day. with red new deal Linux our the So through about want safe do our We doing treat the platform, legality. in ecosystem, about talking focus he focus back the what and in deliberate things source focus as through like crypto on safely how means very and they right go to way. focus can We this regulation. our feature head hat is use much on on Randall brands on We is into what right very, people it used us when sets, hit do to cases, open they

is most never. wiped actually appreciation. king, of hash Bitcoin Bitcoin from usually difficulty say record now, does else and highs Arrows say structures is gets price all Three that I record resumes so and the set now going Capital does carnage follows. adjustment away, has correctly, place Bitcoin on that's everything never what right away, that, economic Bitcoin The what based it at done. crypto is And So does to think been -- wiped would was I rate that by be hash followed everybody in in. that But put rate

way Bitcoin the day, So those that's same And like see gain, a And down point But the we are it's we not non-cash excited impairments. massive have we holding we're of were unrealized a that of before. that write it. we cash. to kind to but at the end we're downs the we holding never took where just now things write

Operator

floor there closing you. queue would are to like for Thank remarks. in this time. President, And Phunware’s at CEO back Co-Founder, now the questions turn and to I And Knitowski, no further Alan

Alan Knitowski

stock the never rising really macro more a We're with are about the calmed down life of things just today. rates. very, an that inflation see is whole chaos strange your short lot do a it I responding very still interest markets carnage will is in and Clearly, myself piece and time, Randall, been the little of overwhelming lot mid-terms. the the bit. keep I and and the Matt, I'll the are your excited and like happy fed that things market, team future appreciate be of that kind Yes, the into leading We've general that to working of held. think activities interest. hard. there is a

is focus GDP companies rising, things And that so a And go to recession, We going going that's the consecutive of we're rates contraction. can what view do to quarters We're inflation control. do to activity, keep in opening office, how the cryptocurrency strong things then encouraged that as more that for can the consumer of two if bode consumers we relates to up Phunware our both direct be going say we're continued software interest continue And really the high to and starting world on and will a the offerings getting hardware to it is that to challenge. by we're we are openings our that and to systems. see on people and Lyte we're direct more well back sales. indirect

just have especially being over coming ones the of some mode. a teased that several will bit that contract much of are and here. are they said, but the execution get kind we before can looking now we formally, of we announce forward and lot to we a a along have announcements to very We next in those little So little months, we under weeks out further are

are investors.phunware.com, go IR our interest. reach to always please Any follow out ups, more for and as you thank to team we to engage. So your happy than

rest your very you thank of great and have a So week. ,

Operator

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

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

Phunware (PHUN) 12 Aug 222022 Q2 Earnings call transcript