SMSI - Earnings call transcript Q2 2021 | Smith Micro Software, Inc.

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Operator

Good day, and welcome to the Smith Micro Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Charles Messman, Vice President of Investor Relations and Corporate Governance. ahead. go Please

Charles Messman

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

consist today's Bill those -- Safety of the would that by cash operations you and expense, will visit information how Smith the the of please Chairman going company's you product reserves, not hear completed acquisition without Micro's the our at Board, Chief may position the If new website one, impact today forward. President profitability, do have Please operating of from statements, future strategy, Tim the have new product Smith Executive like new a Chief Family call, www.smithmicro.com. the and including, market future our recently of Officer note during On and Mobile and Relations Financial company development, of Officer. Smith, Micro; copy section we business Business Huffmyer, limitations, regarding Avast and and existing some Investor financial and customers, of opportunities, revenue forward-looking acquisition discussion

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

over management's financial no of assumptions forthcoming with factors said, to obligation assumes a measures. like earlier Please out refer and forward-looking call risk I'd the for filed measures. to to as today disseminated included turn to please offering. prospective XX-K made. prepared For only refer reconciliation to the which the public speak any non-GAAP update certain to Smith I'll our our financial With of point are we that preliminary respect our our information, Bill. to release filed will our statements, Bill? they press in and beliefs refer remarks, more the to in Form that recent supplement date Micro non-GAAP recent

Bill Smith

you second our Thanks, Charlie. Good the in conference for afternoon, us quarter line for today call. and XXXX quarter the came Overall, everyone, results with our second expectations. for joining thank

the We make gained people, Avast of great the to in continue Safety strides April through with of and year. Mobile integration acquisition technology this customers Business Family of the

our I'm Our bolster technology they a and completed this we Family especially platform audit solution in where identified platform the both combine a team detailed Family the coming to Avast the second will a of pleased share platforms to have map. place in Safety best-of-breed quarters. product areas road integration further accelerate that SafePath into Safety during to quarter, plan solid now

platform our We end by 'XX. single on have of to all a running expect customers of the

the new marketing sales have carrier through the gained that Safe with and untapped we potential also the relationships potential regard underway acquisition. to and optimistic with Family the of am On the of productive the are the Verizon am with encouraged of the customers active conversations the front, other with acquisition. deployment. came extremely very building I with we I each customers

provide on in situation. the pending, with more on updated Later we color I soon. a have this still come agreement Although bit amendment U.S. terms executed I a to is little evolving fully believe commercial will the a conclusion call, T-Mobile will and

the continue to announce am means support we we also I carrier's customer, won have Mobile AT&T Lastly, delighted that app going will Family Secure a as forward. back which to

business say team, the line of this great impact Family that will While accomplishment our on would I can't potential time, this our a provide for quarters. positive have at I details it Safety to and any a in is future like

from second increase financial reported the XX%. of at in at QX. year, of for revenues the quarter same is the Furthermore, XX% revenue loss $XX.X Gross an $XX.X to Revenue $X.XX Family up QX a QX for quarter look million last came Non-GAAP XX% percentage was from of results. is or as for of million let's a quarter Safety profit was our quarter. compared in Now share. and the $XXX,XXX per loss this revenue of up QX year, net XX%

Our no the strong, payables our $XX of than quarter trade very just at was carry million, and the on balance debt cash end sheet. under balance other we

my while the to I to adding this intend increasing addition, over cash and warrants shareholders. and successful, $X wife our In balance, also company XXX,XXX million if exercise quarter our

Okay.

Tim Now to financials. analysis let's of detailed more turn over quarter the a Tim? second for call the

Tim Huffmyer

you, Bill. Thank

we mentioned, further Mobile revenue acquisition. to support legacy just contract This with the originally to Safety classified efforts the acquired excited are as with Bill As was stream refocus Avast revenue AT&T. Family

earnout continue with will cash work then of purchase agreement, the conditions the seller. could in and evaluate expanding result platform to We in implications and on additional based to the on which the separately the the terms future payments asset customer

the the Now details financial of second let's quarter. cover

XXXX, quarter, which better revenue than million was quarter. last our compared year, quarter the up same XX%. million Bill the of last expectations revenue was posted $XX.X the we as to of second an When indicated, communicated for For $XX.X XX%, first quarter compared increase to of

compared was For X%. the of year, to year-to-date, $XX.X million increase second last million an $XX.X revenue quarter

Safety the related XX, Mobile This of on Safety Sprint for revenue part was acquisition to Family the we expected primarily quarter offset During Safety revenue, compared of expectations second Avast reduction the revenue increase last last million the the XX% XXXX. Business related Family XXXX, communicated XX% exceeded SafePath to completed second quarter was April additional legacy revenue first $XX.X quarter. to and This in XXXX. and increased the of inclusive The received our year our quarter which by to platform of compared Mobile in the subscribers. of an Business, quarter to compared Family of first Avast lower increase of Safety increase SafePath to sequentially Family

current quarter, current the focused all and initiatives In subscriber the are July only trends branded products through reminder, not on a the T-Mobile Sprint based T-Mobile marketing and products. our branded on As coming Family newly we to quarter. the subscriber second X% products, guidance through quarter the increase XXXX. XX% the by trends revenue This to continue of compared Safety third current expect Safety assumes Family acquired to

to the better-than-expected platform than second of offset an revenues. second advertising CommSuite which X% year. revenue quarter. decrease first During Revenue XXXX X% the due million, This quarter of XXXX, from and sequentially to was CommSuite was was platform from last quarter communicated expected $X.X of was by the down as last compared subscribers, better the decreased expected quarter

the now subscribers to option an move to navigate T-Mobile Sprint for We the to network as merger services. continue T-Mobile voice have Sprint from

we continued expect decline subscribers transition in CommSuite subscribers. these Sprint Sprint from the As network, a the

forward Boost platform reminder, of formerly look revenue. XX% Mobile We goal by relationship the in increase approximately expanding a As the with Sprint, owned is to Mobile, comprised including subscribers. DISH the CommSuite CompSuite part our and now DISH to Boost of future,

third than second quarter pipeline approximately U.S. Based first revenues of to revenue XXXX, XX% to the be platform current higher of down to the visibility expect COVID-XX to of the down was we near-term volume Tier quarter year quarter variable our challenges. to higher in the and lower expectations of quarter. a variable X% new last due increase compared slowed revenue global primarily has with CommSuite and near-term for is the decrease This communicated revenue XX% the second $XXX,XXX was our customer. we of on be expect to second XXXX, to compared outlook, X compared quarter. of last activity, was quarter the primarily related customers, by second quarter which of During XXXX. This XX% compared third the XX% revenue related to continued to to ViewSpot ViewSpot down X% quarter to

newly For revenue, we the higher Family products, approximately of consolidated the of compared be quarter XX% to the XXXX. to to XXXX, by expect X% Safety acquired third quarter second including

For XX% same margin last year. to $XX.X the the million period year. for second during XX% was quarter $XX.X million compared the gross quarter, to compared last second Gross was profit

margin Business gross for process third-party and achieve few rate. next quarters, be continue the service to goal, will complete through is that purchased current goal be near Until contracts. the XX%. newly margin this to longer-term fixed expect we Our to within Avast application work Mobile Safety run continues gross To we Family this

profit operating for second $X.X year-to-date expense expense expense an the or quarter year-to-date, $X.X second XX% of last $XX gross XX% an compared increase second year-to-date $XX.X during an quarter to compared $X.X year. increase to or GAAP quarter year. operating $XX.X Non-GAAP $XX.X was XX% million, and last $XX.X year. million, XX% an year. or for second the quarter or was last for increase was margin compared year. million was million of million compared operating operating $XX.X last million, to second the year-to-date non-GAAP $XX.X XX% For last to XX% of was expense the Gross the GAAP the year, compared million, quarter to million of million for compared last increase same period to second was for million the quarter

an Safety last XX% increase Also and $XXX,XXX an expense advertising-related has compensation to the lower increased at in approximately second our employees our year-over-year, Family to was million as contract XXX expenses marketing -- revenues. This in excuse primarily and year employee-related costs. increase the quarter. non-GAAP resulting development expenses, support increase me, end related of by offset the third-party of increase Now XX in $X.X is operating headcount of for

first XXXX or $XX.X quarter the the non-GAAP expense million last higher million second of communicated of operating XX%, quarter was The in matching $X.X quarter. expectations

income non-GAAP expenses is for quarter second $X.XX to launches. be per diluted we expect and earnings to income revenue million share per share rate share second the loss $X.X product $X.XX quarter related a or the consolidated business quarter $X.XX loss non-GAAP to diluted X% diluted quarter. to or last compared prepare $XXX,XXX $X for X% income The non-GAAP third marketing as second support XXXX, run This Family full for than for of net The million last the higher the acquired was newly Safety the year-to-date increase $X.XX and earnings earnings year. expense sales we and For was net additional to a $XXX,XXX non-GAAP of net net per of approximately non-GAAP a mostly operating compared or net per quarter year. share or loss

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

reconciliation expense million million; acquisition of noncash are quarter, $X.X costs stock For includes $X items. which the the of compensation the of intangible following million, some amortization and second adjustments: of $X.X;

The items. year-to-date, and amortization of million, following Mobile is of intangible on of million; Avast the Business of quarter the which are million; allocation. reconciliation includes noncash adjustments: $X.X For $X.X $X.X costs purchase Safety second company the expense Family compensation stock acquisition working formal price the some

For In and the allocate estimated final amounts estimates income these and assets, to The expense. made expense purchase of match half among second state purchase tax second certain the due quarter, price XXXX, to the allocation. GAAP be we will to price adjusted tangible is taxes. goodwill amortization foreign

we each financial period. This tax XXXX reflects XXXX. purposes, resulting for expense non-GAAP rate taxes the X% actual concludes tax my and utilize during For non-GAAP review. income a Any expensed

Now back Bill. you, to

Bill Smith

Thanks, prospects quite Safety largest the with and Family about U.S. bullish so Tim. start I'm let's on customers, Verizon. our customers, two an T-Mobile with largest update the

to carrier. to organizational earlier, the has mentioned the with I As progress we T-Mobile, ongoing been due our on commercial continue discussions than slower changes within progress expected although

T-Mobile with I progress U.S. made integrate contract the productive with I also plans While had the with through for Smith largest different patient T-Mobile them, we had the with the SafePath a initial will with customer. positive negotiations I meeting Micro, Safety to place we very to a positive in not regarding outcome apps am a them leadership platform. concerned at confident must with the soon. X be am very we've about line as On work We've continue we conclude negotiations have and our engagement Family legacy over to good note, deal finish great we on new getting

the that one powered onto consolidated services expect legacy subscribers be is currently who would initiative this once SafePath apps. use We completed, the by platform

SafePath the and Now about is the significant bit variety continue to the strengthen users business last Avast of acquiring Since we've April, of well let's report areas Verizon made with migration of large other talk in and Smart our Safety, from Verizon Happy Family a our family initial to relationships carrier. will strides Avast from a safety original discussions to very strategic expectations. frankly ahead the Family regarding platform within going is deployment.

Thanks base team on has and service. Smart for Verizon. the the The front success our on also open very early Verizon acquisition marketing collaboration been Family product we future seen grow with user success We for believe and marketing the relationships have Micro. product tap to this marketing user at user plans strong to Verizon joint the additional to will revenue growing past and Verizon with into help Smith approach Sprint, base

also to significant the aid transition to also coming offer user a feature-rich customer Verizon, opportunity their offer marketing SafePath excited base we We the other new Safety through year. Clearly, revisit addition work proven family to grow initiatives. our their to to in I'm Family prior to platform see good made the progress In by continue and solution. initial customers acquisition. AT&T to see with AT&T customers, A decision acquisition. promoting very in will for which plan to allow growth gained their will We with AT&T

as all business forward. with case opportunity the Smith encrusted an I growth U.S. customers, carriers Now going see X Micro Tier for X

European are robust look Additionally, in forward updates progress to us. closely strong the these that Republic willingness new customers provides. providing on our the These functionality platform impressed in Tre Czech with future SafePath to with been work two Vodafone Wind the on carriers, and by additional carriers the calls. I demonstrating have Italy,

the a strengths a talk Avast team the bit Avast of used Family SafePath. Safety made assess how and with features can proposal, comprehensive label of progress am Now integration Micro detailed each Safety I result let's the has I about the After technology pleased we've having platform white the the technology identified and it our analysis, be platform comparative in of to produce confident most Smith will and that the to am desired I add with the say must functionality on for the SafePath. Family market.

survey to shared research demand maintain of for drivers. provided team in is In insights the their to the we regarding the powerful overall drive. our space addition competitive SafePath of carrier SafePath the carriers advantage Family drive better and market technology, on had impact parents validation results another help unique recent way intelligence X,XXX customers. of Safety useful dozens actionable providing our market American smartphones To our product our have leadership, by of of we generated consumer our safety and This initiative understand

Here or this parents highlights a be of give willing technology are who feel. an of XX% these for said of subscription they you to parents month, a expressed interest a driver a would pay pay be idea in would safety Two-thirds $XX pay said they'd few at willing of monthly to how fee app. a type parents they to month least said while more. XX% $XX

would watch about more last encourage month. our website. hosted webinar you learn to you this like on research, we available to the If I It's

and Now let's two ViewSpot about bit talk other a service our platforms, CommSuite.

will of Carriers back-end provides our continue ViewSpot with We year. deployments existing in-store promotions in the activities edit streamline Smart and deploy create, self-service last promotional to Studio, in grow as Studio near to operational launched only as Technology that to mobile agility in-store importance realtime. to console rebound. value Retail ViewSpot for we them the operators management enables continue it continue This flexibility

the overjoyed back line I'm provide that the rollout strong platform, XXXX their of of three growth. we DISH of all year say, with news a we the make wider that am bottom in On come ensure busy deployment that and Needless many with will and to phenomenal U.S. the Micro. its in negotiations I the T-Mobile network. a for remain to is our of mail extremely of Tier is All to visual front, with news part Micro as services and CommSuite overall at Smith expansion continues pleased have offerings strong fronts, our exploring Smith are on DISH to premium continue and to see significant the Verizon both done a I SafePath been half a the shortly. be fold. reach are ways AT&T for other on at bundled work future, top X from actively contract carriers audience. voice of to future should a being amount laying groundwork The confident our back messaging progress positive, XG

to helped best Operator? questions. wish Together, Lastly, for us will Thanks, for CFO, has endeavors. over Tim, call you your with have as contributions company his the will I Tim greater that, to open a a come With solid many his want call his to build Huffmyer future. be we Smith poised the we very as way years. over last things earnings Tim this thank in X future tenure the that in Micro us. long the is past and I even

Operator

first Please from Scott [Operator go comes ahead. Capital. Our question ROTH Searle Instructions] with

Scott Searle

Tim, congratulations. Best of luck.

to in the in, the you the in Maybe sequentially. see to building the T-Mobile, go. of SafePath terms I the And on that quarter, to T-Mobile? of in I and see terms what to Is about Sorry heard the X% front, for quarter? confirm. guidance correctly deal wanted your growth sequential you during dig wondering, I'm thinking that? just you SafePath signed location, at are you contribution you are expectation of How end XX%

Tim Huffmyer

in sign those words. for a in thanks close to the that quarter, be haven't expecting just that lot basically, on of we're that we but that assumed upside we kind guidance. Scott, And conservative and

Scott Searle

Verizon there's time. in that terms Circle dive to going and And little It any of was convert commitment, into on XXXX? a detail that we little about then color cetera. the if in front, SafePath maybe bit I then progress marketing et a the How Labs dollars, current bit base. could sounds and I in sounds if there. we big go you're Verizon T-Mobile. of as the is terms it at over making like And like, on be of to that should terms frame Media on you're in pricing, you the initially, wondering thinking wondering how was

Bill Smith

questions. to try me let those both Scott, Yes. take

the one the yes, I first side, old in fashion. with the Circle think T-Mobile base orderly an start the on on others rolling we'll first and start then

that's cause as it's that. feel -- when done carriers that comment fashion the to about this I'm done so orderly to can't that happen times. about slow and do, that As them positive to I they Like in they [SafePath], T-Mobile. I over far can down size very say an I Reorgs really to something at and actual on base, getting and of you very, not worried from transition need get that. getting within things

really for On Verizon am a the think to their Verizon. place. go this and in have exciting, of They Family focused tell people Safety they they're on will into front, and them it's balance I won't think But year. the in of strong initiatives growth. result when That's up excited business, ready to. very nice I about those. a lot to I have growing They planned are team heavily I it

I'm business with. really to tickled to and So they're have work real there, Verizon the joy

positive. it's all So

Scott Searle

initial Congratulations much start our hey, where that don't Could how Do look, integrate the see platform, so would expectation our in on And with I because was, you that relationship That's this then take we some trend occurs? do behind and think do And little continue terms frame a X AT&T. platform? operate? quickly them. to like and How get transition platforms of could. growth to you're on this I and we'll bit news. Because the manage have how approaching manage a last, and to of I contract out expectations they you numbers Verizon you expect if this? the guess, over? you on quickly that Labs big They're Location they currently,

this go how this you've got place, in Now and does quickly that does -- the that in turn how direction? other to relationship

Bill Smith

great question, answers happened, a Scott. all your That's have don't just to questions It and we the yet.

in or think be it. able next so, to really I month probably in the we'll with dig

interest number our one, first, in AT&T. We servicing have expressed

effort, we'd opportunity into signs really we're said as that's undertake great that that. looking us. some And to AT&T that this we like a really two, business we grow. for this buys But strong think for I very number see also that

initial questions have maybe asking. better going I we're think we the more. in that us conversations or And so, can you're give answer confidence a to some month

Operator

next Aman Riley. question with The B. is go ahead. Please from Gulani

Aman Gulani

much Great AT&T? how wondering the here. rate run And was Avast jumping cash the I'm my do expect provide maybe revenue hear generate what how then be for I will with on was the for part think the about if second from do in you coming think much to can company of Josh AT&T earn-out board? to AT&T. payment Or from could AT&T. revenue question you you is,

Bill Smith

good All questions.

AT&T we the the legacy, going Let to fact of Avast. were kind as back to me just show that the talked that capital to about raising terminate acquire road we refer when contract. you We've they the were viewed

evaluating We really that that also that's their into fine side. much an are the that's at place, base conversation that Avast smaller the time the go right earn-out didn't something that. also there We It's was and with we going others, was did an than we said open and now. than details say more in

get I'm really excited look, them back. So to

think I Family be to Safety really market. in they the want

of we pleased I the the think was professional one -- way approached things that them. with they their were

they have a of to nonetheless, And Family now, started want have and more their they wind and for them. they down that we plan gave and have stay. happy probably they them But have to we forward. some very to decided their we're that move Safety offering, to new decision the confidence As partner thoughts second rethought

Aman Gulani

third quarter how fourth what can revenue much was revenue about of about sort we And And assumptions you and the Safety Family Avast? using contribution quarter? be should the Avast maybe when in in from thinking QX talk

Tim Huffmyer

Yes.

guided competitive review and there Avast combination than was was a the from Family Rather quarter revenue. we of SafePath last Safety a quite the separately, what to standpoint. So running

us we second XX% revenue report in quarter about guidance year. was So combined We how mostly why last to because versus what this Family We XX% Avast last above that's in you XX% about the The quarter. more quarter also we in this that. Safety, of -- a little that's quarter quarter into better heard quarter. which and second the of additions were quarter did first the revenue than actually first the is the

models competitive that in up back for numbers into can rather different break not, the in, you We in would some purposes, come believe So end. and it's revealing out of But your off the that. numbers. with we too

Aman Gulani

And then last and that Nice margin the see once code question complete? the current got maybe integration to potential is Can me. a progressing for you profitability about you've of that talk smoothly. integration profile of Smith Micro lot

Bill Smith

Yes. said time again what the a little I would raise. mean, for a said would higher to roadshow of I have we look cost back we capital during that until We period the could we 'XX. of like to goal. that, and we'll platform. end date single that of an Clearly, end it you do be we'd given to working We've towards get a the faster

expenses and that's we as should that I our grow growth happen fairly how but thinking back in about from -- do we'll As think that really platforms and flat two be X. means really get to our can we going look AT&T. we now, away the hold to T-Mobile that, some expenses carriers 'XX, our be we and get And can Verizon, key three revenues think running for to overall nice is I what's rationalize it. I able

Operator

from McIlree Please go James. The next question ahead. with is Dawson Jim

Jim McIlree

customer more or to or marketing or require like what for planned R&D retention you either for going something Yes. up AT&T platform, that? Can that's expenses you and operating indicate before, if the had taking the

Bill Smith

like with said, as a transition on operating think, No, better. will to over SafePath come the Jim, fine. and the we're to sooner flattish, up be plan platform stay I them to them with our I well, the expenses get We'll covered AT&T the We're working just business. hard and

Jim McIlree

on you It's they're silent versus said or And can to clarify tell you in you've QX? down, flat, of it. if hard if the just up revenues T-Mobile direction QX were

Tim Huffmyer

the products, the of So rates four now, down. run would or other flat And the base T-Mobile current be Jim. we expectation speaking, based believe, quarter there. consists And in is will legacy slightly generally on Sprint grow the products the general be

Jim McIlree

Okay. And far as as

Tim Huffmyer

that of we me And couple weeks on because forecasted, Let that acquisition quick, Jim. expand the I middle April. part an the really, real the closed extra in growth of get

do out, actually right? rate But too. I a that also, as full that wanted your into of model revenue to we run factor quarter you just Avast get So have So to point well.

Jim McIlree

decision Got the revenues in is that. part AT&T's And the to for Right. QX Safety? of leading -- is Family growth

Bill Smith

No. Not say -- that's we that view I would hold would that but some be would too AT&T it. maybe growth, quick. flattish, would fairly slight that

I really think and it conversations. and their but They that. Everything teams right need understand -- had to need goals initial to with sounds really time where spend we to we their test is. We've this. want grow and

us month so. give So a or

Jim McIlree

to update about if occurring that I'm if there's any was wondering And for specific that. just how about I then share optimism lastly, now, and take-up is your but I know, on are we've Bill, been just talking Boost and more thoughts it, or expressed CommSuite a on number there. more what quarters of you wondering there's

Bill Smith

say Yes. I this. would

will that rather the than ago T-Mobile network, Boost have running also on be First DISH goal a new mean that a as side switching few they deal we AT&T. MVNO an as the be will That cut announced well. will for they've the that more off, It weeks does to expected, bit AT&T mail we part that. And it's that's the will a process. work little interface because was not voice of so to fine. but a it's surprise, totally just will okay. do have we system, of but work -- now through It we to the be That will

build network. their I out DISH continues the XG is think that that to fact

just it's opportunity. part working the with we embrace so of And and them,

say safely with us. in you all think can carriers the Tier working U.S. I X are X

Operator

question next Lake Street The Goldfarb ahead. Please go from Bruce Markets. with Capital is

Bruce Goldfarb

on Congratulations quarter. great a

you provide one his finding updates first is is, can on the you're any Is So in of terms replacement? there Tim, leaving.

Bill Smith

appropriately We have to It anticipate fairly time thoughtfully more us search on interim go CFO bring an through still is would give underway. active early. process. that and I to the we search an will that

else nothing have to at I'd I that. for that tuned stay this can publicly. you like So say point

Bruce Goldfarb

talk you some just... the more bit how of can little feel outside do then pipeline I the -- U.S.? a And about that mean, about about you

Bill Smith

activity I focused that a Spain, that think have target. both embraced Yes. lot dealing that also go SafePath activity it the the normal came Vodafone two I'm not but ViewSpot, leverage around acquisition I that the you opportunities excited the I carriers a lot did the a to really ViewSpot. that. we're I think it and we of that the lot see as in Middle both Look, well. we on place start, the us, would those Republic. like a as we'd and you of of with case start we have would East, But are start really in of see Czech Europe and in with and geos for relationship through likely, in More it's Clearly, a should is well. that

Vodafone earn we'd So very, the they right well and for in perform as like be to lot very countries other the serve to of a well.

Bruce Goldfarb

working that's just feel contract new items? gating you're through with the kind just Or it's like -- working sort through? going system then bureaucratic you just underway that the on, there are T-Mobile of you're that And do of

Bill Smith

in did think I a place they those longer reorganization. that people, leadership number the the no Well, people large while in is agreements big a had we And had, very role. are with issue of

now, an process not that. be That an to I It effort. well. it folks. going unfortunate to is had anything ongoing about that and new the with just can't do believe is And going do any issues. there's I so delay, Right redo we is

Operator

Benchmark. The Please question Joe go is next with from Bernardo ahead.

Joe Brunetto

luck and one on quarter, you on get and endeavors. making Tim, front? Avast, a on progress Are when had Schappel. just Joe your XX%. for future against, margins is you I EBITDA actually boost acquired goals is margins congratulations But Mark And Bill, congrats questions, to on adjusted about to -- my to good that This great of any believe the

Bill Smith

doable, care could to we XX%, to of Well, goal. that we've quarters me take into to this of try EBITDA It fall the X.X think very cost, time. I the to points. I've some them that sure to don't duplicitous we get owned out. that have of you've the believe all give believe of some to gross work But look, up we I the that months, clear duplicitous squeezing only of be so couple a and our that's care and margins that, closer out make just takes for back very got of start XX -- may margin bit got we'll very, we it were rest naturally get the itself. that to would need and take And and will still things we a contracts, through it little

Joe Brunetto

working And question, to CommSuite, that Is I of the efforts any the guess next with its increase you conversion that subscribers? obtain DISH's marketing to on to with can out? the progress free respect comment trial

Bill Smith

would I say think the way we effort. that it's ongoing that is an now

is side the AT&T I the there on a and think is think issues some DISH move switch trying are to from their bigger there's build that they're with you've T-Mobile just then out with doubled just that XG focused Clearly, the MVNO that I and bigger on. go fact on. they're issues working network, so many challenge, to away

they're great customer. think be I going to a

think we'll have I lot think with I opportunity And of a just them. fine. be we

Joe Brunetto

then the that for more CommSuite. growing? you is to up Can follow on one And comment just Mobile is portion if Boost

Bill Smith

are it. growing of on it's that's fairly I flat, it. think think they and working way to Yes, the think I

Operator

closing like concludes This any Charles remarks. question-and-answer over the to our back would to session. conference for turn Messman I

Charles Messman

us joining thank our for to day. conference be any next further We'll you chat to everyone us on we'd to to happy Well, to call. today. Hope please than talking a and you forward with Thanks. you, call. give have questions, has like great we more look free everyone a feel Should

Operator

The conference today's has now attending concluded. Thank you for presentation.

You may disconnect. now

Smith Micro Software (SMSI) 5 Aug 212021 Q2 Earnings call transcript