PHUN - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the Phunware Second Quarter Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately 1 hour after the end of the call through August 8, 2025. I would now like to turn the call over to Joey Delahoussaye of Core IR, the company's Investor Relations firm. Please go ahead, sir.

Joey Delahoussaye

operator. you, Thank thank and participating today's in Good you call. conference afternoon, for its the XXXX. for afternoon, this financial company XX, Earlier June released results ended the quarter copy About tab on the be corporate www.phunware.com release that from selecting company's page. by the website at A found under Investors home of press the can

from today's Financial are Officer. management Mike Troy Snavely, me on Phunware's and Chief Joining Chief Reisner, earnings call team Executive Officer;

forward-looking operational statements, for During including that this be call, expectations or management address future making performance results. will Phunware's statements

involve statements factors may Forward-looking and risks that materially cause other differ to from actual results those statements.

press these please periodic that in subsequent report particularly call, about information more statements accompanies factors filed Form risk on to reports described filed For it. this most annual release recently cautionary risks, Phunware's the refer with and the in the XX-K Phunware's and SEC

The accurate this circumstances any Except disclaims after is call. or publicly time-sensitive only X, that this information required update as any by content that XXXX. call events or August Phunware to reflect law, to as today, of occur contains obligation information of revise

to my to is CEO, turn pleasure the call now Mike It Snavely. over

Mike Snavely

everyone Joey, good call. Thanks, and the on to afternoon

part upon the the customer bench quarter. XXXX, During of continued momentum of Microcap within the delivered we've advisers first most of quarter during became begun FTSE retention, and our In building recently we second X, our quarter the XXX% strengthened sector Index. hospitality Russell

$X which and sales the our million efficiency the to in of identified a XXXX, multiyear which period even our of cash far over bookings, the XXXX, half are pipeline consistent revamped contracts bookings in the and the In revenues team. reducing of third model, our preserve exceeded we sales for drive have our that team contract customer so over This by with signed to first course as and including quarter. strong is new of pipeline, already all a clients testament evolved continues generate effectiveness

mobile apart. of their life their in experiences, their industry, a audience I our interest think our utilize valuable We create it's of monetize leaders interactions. content We to location-based mobile and and analytics and monetization audiences all mobile create management, help engagement, help As ideal that the services, applications clients' us platform provide mobile moment at clients take sets app, customers application businesses hyper-personalized in stage mobile what every review management. offerings application the cycle ensuring through fully mobile

mobile years, are and enterprise We've globally pioneers. been integrated in XX data this provides with engage a our globally and clients products, The at with fully and about cloud portfolios for devices for its and their monetize audiences we mobile scale. necessary app platform our that is business Phunware and to services manage solutions,

resources leverage require provides over-the-air label less product is application testing device-specific expertise creates native and not operating approvals. capabilities and does management design services, of for system application learning model app and without that time Store continuous create offer as and the guidelines. fully requires and market, Phunware sensors App configurable white investment customer applications Unlike industry-specific, a updates technologies, framework to that with white patterns location such and specific other reusable integrations. label that and modules brandable, We Our faster technical a

of industries that Because the scalability can many there we depth we other and are our platform, of believe serve.

go-forward increase will spend we and core health elements prudently markets, growth continue revenue. of to our to build awareness innovative diversify plan In executing we quarter, strategies During begin care, hospitality programs marketing our our matrix. opportunities our the and and and to second on drive

industry while Phunware leaders to partnering additional at top list. our making with new and executives also productive We of make the opportunities prospect are also focused reach on to hiring account and

relationships with which the is which and customer leads stat ROI, mentioned that strong XXX% to delivers solution existing new retention earlier. Our customers, cementing conversions driving I sales

some interest portfolios regional from seeing operators also to world. resort destinations largest multi-property from are hospitality of the flags of We the in the

In also grow to addition by hospitality M&A. growth elsewhere in and mentioned to intend investing strategies in above, organic we the

several are and transactions have We shortly. potential actively evaluating may announcements

identify engineers managers markets, and core offering. in as reclaim more enhancements additional innovation for next offshore our to we of near will innovation our and development around and To needed. expect the investing engineering to by crown and resources building capacity utilizing growth envision We and uses are product product This team in talented an leader. research our as result

hospitality differentiated beyond We and expect products health and this new forth serve to to care. markets focus bring

turn results financial who Now to the to I'd over Troy, in Troy? more detail. our call like will review

Troy Reisner

us Thanks, second good joining Mike, and for performance. our of review like a today you to of I'd thank quarter XXXX for afternoon, financial everyone.

usual, GAAP unless be financial As I'll specifically otherwise measures, discussing noted.

GAAP Our press X-K results. provide reconciliation financial website non-GAAP to release, a of and all

As from the our Mike use that within Bookings subscriptions period that we pay for executed and it value defined. contract over When money indicated, a time. total particular the forward-looking reflects commitment note to the the we customers term bookings, was reflect bookings provide that will is is with metric our Phunware growth. the services a customer

prior Software XXXX to bookings then in and have XXXX second XXX% respectively, quarter of the period and XXX% compared ended XXXX increased the periods. the for approximately X-month as

the months XXXX is breakage customer X the ended decrease XXXX, prior XXXX, the XXXX XX, increase Gross first The over for XX.X% months in Gross a XXXX. And to corresponding was of or were the million. which ended the X for June compared primarily period the XX, were period quarter ended of due June period. consistent $XXX,XXX, XX, increase or X XXXX. profit revenues XX% the for ended year $XXX,XXX, was $XXX,XXX the June was a $X of with profit for the approximately $X.X of fee compared approximately XXXX. million, in $X.X million XXXX, for June XX% to an X-month months period to Revenues second XXXX, quarter nearly in XX, corresponding

XXXX, were million June ago. for expenses $X.X a decrease operating Total million, represents which year over months period same the XX.X% of from the $X.X X or ended XX, X

of $X.X which June from is XXXX, XXXX. million, a For period the or XX, ended expenses same ended operating X decrease $X.X the months June million were XX.X% XX,

previous shared nature have On areas new these of from expense doing our what team's the and the reductions of said execution would management calls, resulted focus operating do. I we we

$X.X noncash $XXX,XXX approximately was X-month to our per million XXXX, period. $X.X as expense run compensation compared per Excluding for stock-based of in rate year the from period monthly prior approximately the month approximately operating million X-month month

per the million in share million we $X.XX to a and rate compared modest quarter for noted above, or $X.XX of quarter. or was XX, per ended Mike of share $X.X a as back to a of so XXXX, share As year June do ago months marketing, increase XXXX. Net the $X.X loss a or loss The per same share second a begin XXXX loss investing loss million was half of in $X.XX as this sales run the from for $X.X X net of or a the $X.XX loss expect per we of compared over to the plan of $XX.X XXXX. period million loss net in loss in

XX, June Our as sheet of of balance strong. had $XX.X we And remains cash million.

from cash approximately net added July, X.X opportunistically during through of million ATM. we proceeds $XX.X addition, approximately via million selling In our shares

the our Mike? for growth. to to path certainty remarks, necessary need to and any now profitability remaining position the turn Mike make to the navigate stability sustain like my call concludes comments. and provides we and investments back to prepared cash I'd That and Our accelerate our to over

Mike Snavely

Troy. you, Thank

consciously We future we're demonstrate, numbers work of look core around forward markets, helped of diligently to markets to and while and these As scaling increasing take reaching and continuing working hospitality to creating Phunware. to new foothold want our the within who great now costs. innovate. management of members to team a the Phunware moment controlling the have solutions I new health acknowledge care turn on the the tremendous

I also have trust. to with entrusted Phunware mantle acknowledge forward. loyal Thank to who the thank for and us you drive your wish our shareholders

by We it are are shareholder value. lasting delivering honored to dedicated and

to operator over that to the like session. we so I'd can the Operator? the begin Now turn question-and-answer call

Operator

Instructions] ROTH [Operator first comes of question Capital. Aftahi the Your line Darren of from

Unknown Analyst

R&D talk after be talk different in what products on in resort could maybe about terms when Dylan, markets hospitality markets, start, is new you investment for might of This from need other To you you and other for Mike, exactly Darren. going some and those you're technology-wise about the that right why and style now?

Mike Snavely

point the asset to to and XX enough, that history concurrent company. video-on-demand over have had scale million users technology the -- I throughout an context years, terrific we mobile last to Sure do larger What and capacity deliver otherwise enormous continually markets. at toward applications is streaming, really globally. of we're looking to a XX have scale built that mean, And really the we

terrific a We market. is like hospitality it. So

from can we've progress our larger We making additional really are see are stack substantially we markets But the you in numbers at. market, some technology can that and that just point that that other there believe and shown. we as

platform needs to and we tech to evolution unique identifying about the the at of point larger be going and is can R&D meet of go more additional So markets. that those modification those markets then our some probably

Unknown Analyst

well? accounting bookings, X Got you're really as get what guess, much sort far? Or for largest strength customers then of top you I obviously, And to at of the so it. revenue? do line across of need from like, your in customers quarter. another of do that new finish looking those is is seeing when like And terms you're the to line into how strong most coming renewing,

Mike Snavely

front and I sales what I'll have But them continually in pipeline. say the down -- breakdown we're that the have opportunities new Yes. identifying of is don't me. specific moving we

like I total we've in identified think last $X.X we -- think identified something I million contract value. quarter,

and we've quarter, to a percentage reasonable over $X on million those that, of of already liquidate period top of expect we approximately identified a This time.

think is really to starting So sales I work. the machine

Operator

of from Your Brothers. from the next comes Howard Taglich Halpern line question

Howard Halpern

Congratulations, great quarter.

customers, terms you half you of deployments? those In implementing terms of the talk the in bit in implementation a about and second what can expect cycle little

Mike Snavely

bet. you Yes,

have a path would about it's We you the I implementation, about process. think -- XX-day happy say, if for

is assumes fulfilled capacity the are But to that our engine. available customer configuration applications. platform timely, dependencies Now assumes forget that a mostly deliver don't delivery have it that that we those

correct description content. customer application. the the to with and ingest ensure of that the to that is they standards the the we So in content display the meets things work want brand customer We

customer. We've as quickly for We've seen substantially reliant so go are take months. X that, implementations implementations week. other a upon And we the as seen

our would I little that to to that the say So average a shading XX-day closer XX- range, probably in XX. is

Howard Halpern

coming guess, in the and conventions or it that hospitality success such, Okay. call have you I previous customers I had believe talked events in the vertical, this year, customers yet? about you in in any the within pipeline? Or seeking, area but is

Mike Snavely

the Yes, in it's coming pipeline.

And so that. let me about speak

So a the market of really eye hospitality to is going our bull's be property. destination

#X property could Now it Reason couple be be a beach it's be property. that Reason a could it's that #X for a resort. a could convention beautiful destination reasons. of

of in progress, apprised Gaylord couple wins hosting of expanding actually conventions And we're and making keep And with their so in. are and And that example, really convention us. those as you And good our players of our interesting relationship accommodate facilities market. guys falls to the Hotels, come major the really that actually we kind also certainly the I'd to market relationship partnering and certain customer penetrate convention category, of of convention-related say those for progress we'll activities. a into is for more of that with we're with

Operator

Our line Ed of comes Woo from from Ascendiant Instructions] next Capital. [Operator the question

Edward Woo

on in been have sales customers it whether about more changes is, the cautious? been has question same have the seen in any the My past progress. quarter? cycle, Congratulations the you Or

Mike Snavely

we're It's the I roughly sales looking same. XX-day really a speaking, about mean cycle. at

reduce shorter, it's if work process on we cycle it's sales continue see can time. and to the faster, Sometimes to our sometimes we

notably, highly are one-to-many that. relationships. And focused by on I also we Now here's mean what identifying

way approach as customers. thing owners another to in property So terrific, properties management others individual an portfolio altogether thing our love to we once. to penetrate such it's It's at multiple sell and companies, and one a property. That's

cycle, interesting now And up groups right conversations properties a but spend on we pick could time. we very XX such a going similar sales at where of properties, some potentially amount time X the have so with on

wins going would what looking I at think of you're characterize those that's see where rooftop as we're one-to-many to pace So I the increasing because relationships. that

Operator

queue, for the now are I there question-and-answer questions as call our turn Seeing no in the session. more back closing to that over Mike concludes remarks. will Snavely

Mike Snavely

had a want Yes. And cost do for And had we've I the remarks to to acknowledge through shed and closing company. we've buy had time 'XX. that to to live. as we [indiscernible] wanted tough had these I 'XX to we

you good growth here down. sort couple delivered bottom when year. comparable in we've line, our the to see, up of quarters our our start improvement look As gotten We've particularly and we're off XXXX. it to sheet at to previous a of a and can successive you rhythm We've sales balance

we have big management benefit investors, team Now with amongst interest vision. time, and the capital loyal Board along seasoned with a the of great and a our

like also track with We delivery to world in NBC, have Marriott Cowboys and Dallas Entertainment more Stadium, value a various Ryman of including brands the recent record Fox, along customers best the properties. the

lives the run tackle a of software Phunware of markets and to we in about innovation, everybody. on From excited not platform, and We Thanks to solutions of we AI. turn this tens can the we can what back millions and lot, our could that be crypto again. make Phunware great more attentions and plays intend

Operator

that and Thank all gentlemen, call. you Ladies today's joining. concludes for

disconnect. may You now

Phunware (PHUN) 8 Aug 242024 Q2 Earnings call transcript