SMSI - Earnings call transcript Q1 2018 | Smith Micro Software, Inc.

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Operator

Good afternoon, and welcome to the Smith Micro Q1 2018 Earnings Call and Webcast. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. At this time I like to turn the conference call over to Mr. Charles Messman, with Smith Micro. ahead. go please Sir

Charles Messman

March and release to everyone. financial discuss quarter copy year the operator, should now, joining received the have results you financial us first a ended fiscal XXXX today Smith the of XXXX. good you, By Thank you press afternoon, of for for XX, with Thank Micro Software's results.

at information a section (XXX) and one, Tim Chief discussion Executive note expenses please Micro; or our new Investor Relations Officer. and company of future If forward-looking e-mail website Smith today market will to and reserves. like of and consist call and you you profitability, have the Chief and visit operating you today's Officer company's XXX-XXXX, would including, Smith, product us regarding do Huffmyer, we will the immediately. Board hear development copy those you'll and new Chairman, without of and of not call, www.smithmicro.com revenue limitation, our have during Bill of at one Financial President the statements, the Please that we On cash some opportunities,

or statements. to risks Forward-looking results by trends could those uncertainties, differ forward-looking implied expressed materially cause and or our from actual which statements involve

any more as update made. only filed forward-looking Smith our date assumption statements, XX-K our For information, speak belief no risk the recently and to refer which in Micro's they Form. assumes most please factors discussed obligation Smith management's of Micro are to

certain measures. refer Bill? press earlier the want Bill. forthcoming measures. reconciliation remarks, that for our non-GAAP our the call to turn prepared financial release said, to Bill, now call Please to point refer a over I I'll over turn out to That disseminated of I the Before to financial back we'll in non-GAAP

Bill Smith

across Good made first am several our Charlie. quarter call. joining the during afternoon, encouraged with progress today earnings you for quarter organization. the thank I everyone, XXXX us the you, and areas conference of Thank for Overall

T-Mobile The momentum the expectations news with in results This recent SafePath our to Later how merger continue deal us I and could SafePath world in build particularly with will the first leading exciting thoughts proposed with of mind Sprint. I as mobile for products were regarding the our CommSuite. Sprint. internal the quarter this some with Family some in and share an growth, to call at announcement line launch brings this as we how of view platform two it our on and opportunity impact

quarter. to at XXXX revenue was with $X.X quarter nearly loss $X.X in million, non-GAAP Gross of which profit let's talk quarter first about was came a the million flat Now the of fourth XXXX. that our $X.XX Mobile quarter $X.X million in I QX expense quarter tends Congress World for to lowest highest should seasonally our loss participation be revenue per share. and Barcelona. to due in or note

product provide turn private remarks. strengthening to allowing for over We call our activity Tim his our Tim, want transaction roadmaps was this positive I Before also our of more address I the week. last and in us to placement XXXX. the that believe the very M&A detail for company, sheet, announced balance accelerate will is to recent

the over to that call turn I with Tim. So will

Tim Huffmyer

Bill. Thanks

$X total stock newly share and purchased issued above the million. common our X The net of our the warrant million cash platform was let grow $X.XX private common product funding Bill the and business, included a warrants. support SafePath As each of just $X.X to start evaluate me roadmaps, to with of of completed of subscribers. stock provided was proceeds mentioned, we M&A summary and a opportunities and market The placement as at for recently as May completed on priced issuance continues for

a into the our obligations Upon rights first rights complete the to addition to agreement. entered quarter steps Form under registration company also registration take we filing agreement, necessary XX-Q, In securities will the the purchase Company's of agreement. the

back are we We journey to and profit revenue extremely round of as growth. excited with new funding our continue this

the the Now for first quarter. numbers review let's

$X.X revenue in For year. posted lower reported adoption the quarter was in of QuickLink manager a legacy a segment growth revenues first increased $X.X quarterly customer families, of we last came result CommSuite offset of million, life. as both end to rates quarter, the wireless compared million that year. for connection both million contract to by compared and SafePath revenues product million, revenue for The $X.X to wireless The same last increase $X.X the of revenue from

we During contribute These the will the we to from enhancements, positive are Sprint on actions of launch is to Revenue growth. XXXX expected results on execution. actions. dependent SafePath Sprint seen now we've quarter Sprint which and based recent XXXX, do revenue accelerate though, expect product fourth and rolled CommSuite out expected completely from,

required. support We to continue efforts as those

is been of launch operations Sprint Sprint base a This to product. the the of quarter has due using legacy SafePath result but was solely change application, reminder, originally existing or and delayed for contract based an several subscribers was a legacy in of not first has months. subsequently status. product change of The and was XXXX on our that Sprint a unique sunset As

launched product the will distribution new quarterly $X.X graphics reported Bill was The decrease and lower in million launches segment unit products. revenue in this later the a legacy $XXX,XXX and of the agreement expect revenues We more of year. detail result a to Clip graphics last termination a compared product just in this of Our year. Studio recently activity minutes. additional discuss sales of few

the quarterly last our expect operating last to quarter quarter, first a was For $XXX,XXX the or to compared Gross comparing term margin was last XX% million was XX% loss excludes a near which of loss $X $X.X first profit decrease for approximately expense per million, million, to for was first plans. Operating XX% The $X.X non-GAAP compared year. was during non-GAAP period In $X.X $X.X for year. $X.X share per $X.XX of operating first compared $X.X gross $X.XX quarter loss million, year. the the compared $X.X quarter million, or million quarter to to loss million, of operating The loss net share, first million, year. loss last be non-GAAP expense any to non-GAAP a restructuring same for the the year. the unannounced or operating we last

comparable have Within reconciliation the press metric we our of a mentioned release, most metric. the to previously non-GAAP GAAP provided

first value income discount Due adjustment of tax foreign to warrant years, our and GAAP noncash our $XXX,XXX. of expense cost stock $XXX,XXX; the issuance the taxes. of amortization past quarter, to net includes of reconciliation over cumulative For the amortization is debt primarily of due charges: the a fair following $XX,XXX; and losses compensation expense intangible few $XX,XXX;

For utilized for now review. concludes my rate a This we financial resulting XX% non-GAAP The first quarter XXXX. $XXX,XXX. purposes, was non-GAAP benefit tax tax

Now back Bill to

Bill Smith

Tim. Thanks

the mobile details subscriber the with for Before users I want into our Strategies to direction drill priority high experience customers strategic churn enhances we and providers. and loyalty about software all quarter, satisfaction. their prospects reaffirm service remain our providing that to first reduce and a customer carrier of boost

relationships to Of is course Family our churn combat subscriber CommSuite customer most the platform. one stickier platform SafePath create ways our effective services and messaging through like of value added and

to correlation & as Let's & Safe the start in Found the Sprint, about Sprint SafePath carriers Safe continue at Found. by talking new efforts. Subscribers marketing service grow increased off our at known with of implementation

several plus New underway Found. to subscribers the well. to each & are to week, of Safe day, its as initiatives every days service seven are transition There added and a new Sprint users for acquire users continues legacy service

a rolling and awareness. this they will & associates To launching build Found this base. launch training will acquisition promote is Sprint platform. For additional throughout at for its also new retail-based campaign a new with new the campaign wider the initiative, coincide Safe SafePath service month, upgrades marketing significant targeted example, planned and out year. compensating activities To MMS-based service, travel to some be support Sprint core initiatives will is Family the These promotional retail

SafePath formally the it but until reasons, to the too is general Currently announced, user release I focused family-centric in location beyond the extends platform the obvious a development, of a direction new, about to service. think a about the I important further introduce want For much roadmap strategic features product talk that perspective. don't will product from of experience next are share major

to functionality lifestyle platform With digital that capabilities SafePath management services, improved evolve will automation and variable will platform location onboard IoT support a powerful to the the entire new products platforms. support of services. extend cases web family around the will use for parental consumer-oriented easy a products home diagnostic next devices and use built-in trackers, release, for locators, provide multitude enhanced controls, to tech This new filtering and

SafePath superiority focused replacing. the on things horizon note exciting see, devices is on platform can important versus iOS functional on SafePath. you there our to we're service the also As some for It of legacy

safety that access Sprint SafePath For Safety instance, see on the use old some leaves replace We version of for an is significant a portion as strong even community family our a iOS Family services This such of without Family location the iOS the family vision to platform. T-Mobile offer of the the legacy app. to an service indicator a target. the platform, large decision application as do with carriers still lack directly user not

talk let's solutions. Now core about other

of Sprint premium we VVM revenues service I'm voicemail visual year. subscribers. the happy growth enhancements front, be This On expansion implemented last continue from to can the consulate late attributed the with product backend to to subscriber grow the report

voicemail both voice-to-text platform, forwarding. the subscriptions transcription As the premium delivers strong from experience enhances mobile also such as premium providing for model, and by a service features revenue value-added through service channels time-saving revenue overall valuable, service Visual in-app message realize and as carriers proven Voicemail our advertising. It Android users

As we devices, tie will currently as Later voice-centric This this relevancy throughout new consumers. delivering rapidly increase that with launch, of Amazon of platform this we better voicemail are the development, expand Home. voice a other our will are developing market opportunity of the expanded voicemail strategy, the personalized our confident a and call, functionality last features, a With all continuing within on voicemail integration in pathways wide the actively product, to visual range I Google universe. theme year, several mobile will ages. users in of messaging such with experience Alexa mentioned to changing

IoT We're devices. IoT space, our competitive which who these several device the operate robust as to advantage connected add Smith to grow this expansion our QuickLink continued of proliferate. IoT in of constraints will as market. continues effort IoT for management Micro for latency, portfolio about solution solutions. interest address and OEMs talk the Device the very resource-constraint providers emerging created chipset an grow currently to coming in well to Management product on quickly, Having and It differentiator we computing as as to low In increase our platform, client cases IoT competitive are our and will through client, let's our to active use has development devices. conversations can in cases intelligence of IoT continue using size that The with functionality evolve. with and operators is substantial LightweightMXM clients which IoT proven useful the wireless their Next, quarters, and consumption and important growing resource reduce market edge importance, functionality in LightweightMXM devices, continues attractive our our, well-positioned have team

a our optimization Wi-Fi management and solution, NetWise. Now about for bit

major to license of grow count, the continues client of customers. of installed our three number terms In across our instances NetWise

service. during and a as first types. market solid as in fresh of expand with a in the the indicator market on NetWise, presence and emerging growth we of we Additionally, upside saw This effectiveness enabling the quarter, We positive our solution utility of new an device technology mobile is counts. policy our see Wi-Fi-first NetWise also

year. important to enabled group We the engine in-depth progress continue Wi-Fi NetWise to large central have populations. continues strategic industry. during milestones first very planning, and strategies first our services that network and usage graphics pleased the capture to I'm From the cost-saving as to enhanced last across insight, some cost-saving in also the achieved of key better benefits device our evident build several with across in the trends analytics changes fronts. We upon by quarter, understanding these quarter value developments, mobile the solution, of made our metrics, data we it's

to our backend implemented digital marketplace. adding exciting expanded our to content line our up. And some e-commerce much-needed and an infrastructure Firstly, product we upgrades product graphics by and new significant portfolio, existing

helps expansion is reengage supports As Moho the base the earnings this core Artist. this mentioned the of and I strategic in it as vision users long-term last Motion call, business of unit, central customer activity products, incredibly the and our of to Poser, graphics loyal

few to you to such application mydotsmithmicro.com, well resell Moho, graphics It Escape sure saw, this Rebel Rebel Artist visit to their our market-leading agreement. Rebel. Under products, X, the Motions our take to weeks products, as applications portfolio urge store, is first these use Motion works as an movement with is product. strategic very at and other bring award-winning I relationship added a and artists graphics we've As product will a also of ago. our we graphics X a this announced for online work look amazing sound. as can we to partnership, with life digital I'm with paying our you part

our opportunities some planned. emerging are our content-based the announcements. expansion, to digital artists. comprehensive transform there portfolio for These in expensive releases lineup, of Our as portfolio for so emerging are grow graphics further into as tuned the for and continue more online our business say, market. stay we on virtual-reality comics There exciting market digital additional Needless will graphics releases horizon XXXX, to within graphics to future exciting will graphics universe changes are our seek toolkit energize the throughout several

proposed the merger let's change within the Now world. This discuss be will major Sprint. T-Mobile of wireless and a

as many we our advantage have to new process. seen times take solutions mergers the wireless to arrive. develop understand and off, years. I of I First how know over the position they opportunities

as I a terms future energizing and view merger proposed of In our business, stimulating opportunity. of this the

As Smith and ever-evolving has advantage. marketplace adapt ability and you I respond our to to been an wireless know, always opportunistic, very believe the Micro is

both we with and expand success products presently advantages and competitive carrier. to Our will a for strength our us markedly CommSuite in allow strategy, balance can accelerate the development sheet sold SafePath, By executing to Sprint. roadmap ensure our combined on

deliver relationships T-Mobile. in our offerings. confident have both carriers ability Sprint valuable we strong with know our and to Additionally, are and Both solutions service

expand Sprint should leverage to forward return are merger, such, coming XXXX. With to look be said, profitability exciting their an ability and market It quarters. of and I promises we position expanded a a our T-Mobile to to to in relationships complete As in our revenues theirs. the year confident support that our and

Now, operator, we call for the up open can questions. Operator?

Operator

first Jim being ahead the gentlemen session. Chardan question-and-answer Instructions] questions. question from Capital. today from your we and comes now [Operator go Our with Ladies will McIlree Please

Bill Smith

don’t I think you. hear We you are muted Jim.

Jim McIlree

Sorry for that.

Operator

McIlree your is… Mr. line

Jim McIlree

You right. are

Operator

Please proceed.

Jim McIlree

you. Thank

the You quarter? are this In I right about much range, sorry revenue was muted. that. how SafePath I’m round numbers or in was

Tim Huffmyer

hundreds thousands Hi, James. measured several It was in of dollars. of

Jim McIlree

customers? you And, Great, that how legacy to of hope Sprint base said is of that's helpful. migrate, legacy those has can is? what a a I And of that reasonable that times think you that you couple think, size terms big will you customers for you customer in expectation Bill, get

Bill Smith

to I don't of see about $X.X get we to In Yes. per we've I base XXX%. calls that's that this. But headcounts, expect goal, want well. total past to a a Sprint's we knows quarter. exact really will to transition Sprint be say but expect would million into about There platform, transition as breakage, is definitely customer that talked our that When that reach reasonable not revenue business.

is So rational a number. it

Jim McIlree

that year. the said modest that Okay. from big you And stuff think are you Or functions the for goes, growth? rest as some Is CommSuite as expecting far steady a of step you’re growth upwards? I expecting that is

Bill Smith

way, the reasonable steady don't growth guess it but a throughout a monumental growth, growth. expect I it's year. think a I at look think to see expected, we I good this I it's steady

Jim McIlree

$X future? basis then will a Is you is time million what Okay, a OpEx. different last to referring I think on foreseeable my be on the OpEx, you it quarterly that for think thanks. mentioned one And that period? Or

Bill Smith

some of running been range. directional million That's $X you. a for to million in We've sort guidance $X.X

So that's the for there future.

Jim McIlree

Okay.

with everything. I from me. good luck it think a lot and that’s Thanks

Bill Smith

Jim. Thanks

Tim Huffmyer

Jim. Thanks

Operator

comes go question from with your question. Instructions] Data. from [Operator Pipeline next Mark Our Gomes ahead Please

Mark Gomes

congratulations on progress. gentlemen the Hello

you off, future anything about connected be little and XG, effort? Just about this a network, & us be it what Safe Found’s XG be will customer tell to can and And to enable basically cars attract pet that things might to how understand assist wearables in cheaply the that might valuable. what bicycles, like to the kick will bit I more for

Bill Smith

I don't think for they have XG. to wait

wearables think fact provides the point out as I work most to think well. that need for which we SafePath important that probably the commonly platform a well fine can XG under carriers’ thing to But just be wearable connected I network. devices is all the

offerings and is designed, So there, many competitive was was in SafePath this the SafePath are of it that's a between designed mind. differentiator out with when that that major

Mark Gomes

Okay.

So & they functional the XX customers of significant advantages available? versus pricing over other more $X research found which Safe the competition, additional some to for for that the My looking cost the devices, design all are carriers. per devices at have priced device, the the for five Found, pricing when is $XX for the device for wearables at has up five sales up set justify kind you become but would

Tim Huffmyer

off, our pricing really by that's up set to customer, us. first Well, not the

I be another be better wearable that'll might the it question devices, Sprint. how that beyond to family to that. answer concept this device question for be is don't the ask in Yes, your really you plan So so know a would

Mark Gomes

and back back. get Okay. the I’ll in come queue

Tim Huffmyer

Okay.

Operator

with Instructions] Data. follow-up. Gomes from have from we ahead Please Pipeline do go your Mark [Operator And a follow-up

Mark Gomes

kind transition, some profitability how talk Can us about might expect? on color would Okay, the good When enough. you that you give you full million of $X.X what look?

Tim Huffmyer

around XX%. set for The profit this Mark. is product Yes, range

us cost to the this accommodate – structure, to there of past we've So scaling add the talked platform. much necessarily having about not in

a give standpoint. directional input you that good from So probably will some modeling I think

Mark Gomes

Okay.

there last changed in has nothing several the So months?

Tim Huffmyer

Correct.

Mark Gomes

Great.

looking more rates the use funds then and when million, of of might bit we Okay, M&A your What initiatives? a about little more might at that $X recent about details hear be?

Charles Messman

Hey Mark, it’s Charles.

that fair I say company think the has it's been acquisitive. to quite

we about, So that. to as talk we'll things announce soon as have

put does this position money think we're that all the I as far with for stronger things as in much raise. a us different on that working

Bill Smith

answers question. that hope I your

Mark Gomes

Absolutely.

number I’ve the and the back of gears to I’ll just for give else anybody investors. queue second. of chance kind from a shifting got in get aggregated a So questions

Comcast that at known your you looking the well closely and pretty – at together. work Charter So do that business is Communications Comcast

the and how tell coming initiatives be might positively So us the quarters? affect that about of what Charter can to recent you you in able

Tim Huffmyer

I think of it's wireless the at cable has long-term intriguing to the growth the watch customer. MSO's. business Comcast

added cable customers very well have a the large U.S., as here size. in We

focus So between are invested we Charter Comcast a on case that only I lot opportunity. think sector, in forward. as and good we along, move serve have we're help to And going activities really the business move their this and a here to in them this see the and

Mark Gomes

have Safe Google Okay, over month of looking the can the X from before May. now to at April the X.X X.X month Found, this? close for & for we attribute to April, and star of clear as the risen reviews To what

Bill Smith

Hey Mike, several with ongoing have we that I initiatives think operating. there's the

as also the It is taking better we've the of big reviews to with a we imprint one I product as using very our it I company thing teaching in serve is people them. the more and is continue. so. think to extremely product aspect been There's think, use very of the going that and the the proactive trend a we're forward. showing a more of reviews, to expect small lot far see making lot Being of changes the this really important and That’s that – think focus that itself I of There I mean is some it. changes, just them a reviews. and actually most getting across-the-board. them number how you'll product much

answers So question. right that in to your get Hope there's underway several that moving direction. the initiatives

Mark Gomes

thank you. Yes

customers with frequent that getting organization still been I notice lines, telling, customer telling been Location product despite on Locator has its the So Sprint Labs do similar updates Family has service Are there updates that side simply been these any something already notifications indications stop locator working a your products could" being decommissioned "and is on any the at family time. [indiscernible]. are

Bill Smith

one better it Sprint. again ask questions be probably of to would those That's

out move to is time and what I be clear that people think think across. of anything that only a from you’re I from don't just very platform marketing that reinforces changed it's I I of they to think Sprint just the going to single has to get matter a on Sprint, coming want said. some get to that seeing

app, as has changed but I as location up guess really at labs, at So the location all. labs don’t it’s updated far I to think has anything Sprint

Mark Gomes

Okay.

is giving accelerate M&A success the talked customer, acceleration You that in those about initiatives Sprint confidence direct result the there? of efforts, a the the seeing your or you moving at roadmap happiness development you're of to

Bill Smith

the Yes, to. great I of of where this to you moments is those any opportunity move really is think have and marketplace [ph] the one competition cease beyond up what

I works something really is and that that for think CommSuite. SafePath both

our revenue I are get products the would else lot providers these make revenue two the we think way front quarters and and just competitors. but to like really we see anybody anybody of coming that out to us no being both just for in so of There's significant of, would in look we far these a off products that us.

Mark Gomes

back Great. question queue jumping those in the One last lines. along before

we various At we've you America with if do others now and Sprint an that some understanding of and well Asia, have replicate of some update that Europe, been down so start numerous I'm got opportunities? in carriers. with various and ramping folks of Thanks. give process the say, have what's can with these Latin point which what us on [indiscernible] you you of assigned engaged could carriers, what degrees wondering happening that, to You you,

Bill Smith

out strategy, carrier those leveraging the part in our user fine-tune about opportunity this to looking that. the for where to for the compete, to understand And the product, to what to more of X learn Well, Sprint the implementation tried our software then off been presence. And offering. learnings offerings, or to the Europe, in to PAC to carriers, X of be go-to-market think we're take is being going a other to in Tier or has base offering, Asia fine-tune our we to we're have that it I the us first already understand grow what great Tier takes really and really Americas, roll

I area Safety think dear able these one the Family the hearts your that’s matter safety the where times, live people loved to world. and monitor critical. and is near happening of you And are well there as subject being is of in no scary if as is are things ones really strange to

think, I a intend opportunity, great it's seize we So and to it.

to We forward. have more that raising in capital that fortunate And going makes even been we’re possible. additional move

Mark Gomes

Great. so Well screen is now very devices time on mobile refreshing… be right less for not showing whether a available or segment should there children, for interesting. CNBC

Bill Smith

lined Yes got up. if one – there’s that’s that’s another – you going Mark the you no are one, to I think last we’re –

pounce have if through let’s other any one you them. So [ph]

Mark Gomes

customers? have Okay any or sounds expectations, you the for be or W. & good. Based internal value Smith on for experience, Found might indications, lifetime Safe your William do what

Bill Smith

we So I it. it’s think do have

think I more that little stage we will it forward. good at think it’s data. something metric, track I going is And this obviously want too we a but be think we a but early

Mark Gomes

that to say product it's terms to safe it’s to of safe be the in upon Sprint marketing primarily response expense And incumbent ability? Okay.

Bill Smith

therefore, can more so. will from to and they We do to to really customer their user actual willing so than help wherever the marketing us, them. mean come let I and Sprint the base we're Yes, has owns

Tim Huffmyer

other with of actually that we far we obviously maximize updates they I these important running the as timing that as very can are that Sprint, nature, are is And when and working thing around some closely think app campaigns. so

I store retail think the as campaigns of, Bill spoke an example.

Mark Gomes

the Great. iOS, downloads? Android from what seeing terms your are talked iOS? terms about of you are on what You customer Sprint advantage in versus on folks of you And base in seeing uptake

Bill Smith

It’s a pretty interesting spot.

split, of quite very downloads. both. under seeing as That's iOS the on you're think is than very, small. as was stronger kind far legacy very, actually but the Android it's I Obviously, actually platform good iOS

Mark Gomes

speaking, so customers? what about, To relatively activations? into and new Okay you existing talking is insight

Bill Smith

on app with Yes, I we're we people – with get don’t a free trial. specifics upon and the that actually quite have conversion think into we but actually that, at We're using very to this strong pleased going it actually to trying are stage. happy

Mark Gomes

anything could from sense share you current of your sunset is hold specifically, whatever And least with to is? Sprint happen in terms what that date at us of your their to needs [ph] there end, for [ph] Okay. to

Bill Smith

time when sort trigger. it’s stage. trigger at time some decide they that you the event the it's Sprint. probably there’s And could think it efforts is pull keep Again, the in of to place around I assume tied for I specific I So marketing to game that. a is plan and pull and our think And that. ads there But this to can’t will new get executing adding into

Mark Gomes

it bit digital life more question be you what Safe a into of sparked means color a that believe on platform Found my of, becomes, automation mentioned I automation Found, my kind SafePath us Okay. more curiosity, home of & can you little last or can what becomes give & that? home Safe style kind incorporated on

Bill Smith

that start really you you can't about too I we thinking devices, get of if ways deep it, into So can start of sorts There's about to but but the television. can you go the all think some voice-centric think again could opportunity, see little. good the we app, different into as it's just how of have areas. wait – as Hopefully We the that's upgrades it a to really we expand lots forward. going think a to launch

Mark Gomes

Little.

the here. these your questions, discussed We’re role patience aggregator by with the looking this Any all a is forward been interesting being previously? seeing appreciate way have that to divestitures I and more. update the on

Bill Smith

strategically lines product Yes what looking and all last level different our call but us process on going about remain all really just – we has forward. I it this the what that's Tim was at are talked profitability think that on continued of with a –

Mark Gomes

you that one along this that tell in us, you material X site what can that on have in And provide and the product [ph] of can we how lines, product Micro life announcement went terms of with you Rebel should view in Okay. color general? those Smith any that,

Bill Smith

what I new product in exciting paint just bringing watercolor you life painting, it think screen when And of painting the really as actually looks and see this an same. PC capable it’s to see the it a it’s actually just if would you’re on on doing you run life. real is amazing, doing, it's

that This So very a build time. product will exciting it's over product. the is

the will hot think base We and just with grow product it and in And it time that. great expand. give it You we this start to though. users, is you think as to and upside, into we more a get have more has very

Mark Gomes

kind business? what of already in of the become this of discover kind leverage you your from products? operating could types new in around of and do that something are like world you the minds, where see products premier Is you Yes, of distributor these feel – side you or

Bill Smith

Mark Hi sure.

I think the very premier – market. they're that are very, in two we are products – lead the that have well-received we

idea and does, and for market. actual only artists. is more, a really see think you digital slowly traveled think expanding for all to we world network our build And we continue we things, products products can of over out group to brought I that. being more also support products, but what the board not builds on find of complementary portfolio our the on for what as different I these just And a I this that think having it have and do

you're anyone very products can high Some going And can what be basically to of end. our start think I use. about see very,

the this we where the So is And actual where overall products go we in to. over I think avenue think another that's step expand a direction. of great right these to want reach

yes out seen So year, the as products that more roll us see you throughout be will [ph].

Mark Gomes

And for X, the fantastic. product. I’ve it Okay very seen trailer Rebel was stunning, impressive

tracking Found to & So the feel me, May there late with Safe that one is of you March, regard to I April, about how can questions and color progression ramp into any and just how the breaking there? rolled on it’s seen the for you’ve provide you

Bill Smith

in were quarter, significant marketing Hi quarter, more fourth Mark. were the the quarter. substantially first The in they activities than the

with scheduled track We as are events number thousands. I to the comments, about. have obviously, good that the ways addressed that pretty And referenced ramp to and of we a going there. ways measuring of we're Bill rest to in We, his are think we're saw first ramps in we're quarter. that a on go still here, again activity So year. how I was on pleased that’s the prepared the the excited as have go, handle of earlier, in But hundreds we have there and

Mark Gomes

Great.

that generous your folks that think with me. Thank time of appreciate I to me you. allotment for I indulge comes about

Bill Smith

Mark. Thanks

asked I think you questions through you. are getting

So appreciate I that.

Bill Smith

you a forward further on go And to have everybody Rebel, a and has day, call, great look questions. we conference updating time hope if our Thanks. thanks, great Okay product. us want everybody Smith a call give it's the exciting think We I think today. to Micro. an next you on and call it's that thank for to download being feel for we everyone Please free

Operator

conference Ladies and attending. call. Thank you today's conclude for gentlemen, that does

your disconnect now may You lines.

Smith Micro Software (SMSI) 9 May 182018 Q1 Earnings call transcript