AUSTIN, Texas, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Phunware, Inc. ( PHUN) (“Phunware” or the “Company,” “we,” “us” or “our”), the pioneer of Location Based SaaS that offers the only fully integrated enterprise cloud platform for mobile that enables brands to engage, manage and monetize anyone anywhere, today announced financial results for the quarter ended June 30, 2023.
“This past quarter was a pivotal period for Phunware, as we right sized our workforce to an optimal amount, reduced our corporate cash burn, and have refined our sales & marketing strategy to capitalize on opportunities across the multitude of industries where our Location-Based Platform solution can make a significant impact,” said Russ Buyse, CEO of Phunware. “Spearheaded by our newly appointed CFO Troy Reisner, we are working on restructuring our existing debt and negotiating with prospective investors on more favorable terms, in tandem with reducing our cash burn to accelerate our organization toward a path of growth and profitability. As we activate our revamped sales and marketing strategy, we continue to have productive conversations with prospective clients. One of the more recent deals we executed was with Thumper Pond, a resort that is representative of the entire category of mid-market hospitality brands that can affordably and effectively use our Location-Based Platform to offer guests the best and most personalized experience. Looking ahead, we remain laser focused on commercializing our Location-Based Platform across all verticals, with a heavy emphasis on hospitality and healthcare.”
Second Quarter 2023 Financial Results
- Net revenues for the quarter totaled $3.5 million
- Platform revenues were $1.3 million
- Hardware revenues were $2.2 million
- Net loss was $(6.5) million
- Net loss per share was $(0.06)
- Non-GAAP Adjusted EBITDA loss was $(5.2) million
Recent Business Highlights
- Notable Corporate and Product Developments:
- Notable Customer and Partner Wins:
Conference Call Information
Phunware management will host a conference call today (August 10, 2023) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its financial results for the quarter ended June 30, 2023.
Interested parties may access the conference call by dialing 877-545-0320 in the United States, or 973-528-0002 from international locations with access code: 875894. The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website at investors.phunware.com.
Safe Harbor Clause and Forward-Looking Statements
This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “expose,” “intend,” “may,” “might,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in our filings with the Securities and Exchange Commission (the “SEC”), including our reports on Forms 10-K, 10-Q, 8-K and other filings that we make with the SEC from time to time. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described under “Risk Factors” in our SEC filings may not be exhaustive.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results or operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.
Disclosure Information
Phunware uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company’s Investor Relations website, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.
About Phunware, Inc.
Everything You Need to Succeed on Mobile — Transforming Digital Human Experience
Phunware, Inc. ( PHUN), the pioneer of Location Based SaaS that offers the only fully integrated enterprise cloud platform for mobile that enables brands to engage, manage and monetize anyone anywhere. Phunware’s Software Development Kits (SDKs) include location-based services, mobile engagement, content management, messaging, advertising, loyalty (PhunCoin & PhunToken) and analytics, as well as a mobile application framework of pre-integrated iOS and Android software modules for building in-house or channel-based mobile application and vertical solutions. Phunware helps the world’s most respected brands create category-defining mobile experiences, with approximately one billion active devices touching its platform each month when operating at scale. For more information about how Phunware is transforming the way consumers and brands interact with mobile in the virtual and physical worlds, visit https://phunware.com and follow @phunware on all social media platforms.
Phunware PR & Media Inquiries:
Email: [email protected]
Phone: (512) 693-4199
Phunware Investor Relations:
Matt Glover and John Yi
Gateway Investor Relations
Email: [email protected]
Phone: (949) 574-3860
Condensed Consolidated Balance Sheets
(In thousands, except share and per share information)
| June 30, 2023 | December 31, 2022 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 1,105 | $ | 1,955 | |||
| Accounts receivable, net of allowance for doubtful accounts of $100 and $198 at June 30, 2023 and December 31, 2022, respectively | 863 | 958 | |||||
| Inventory | 2,168 | 2,780 | |||||
| Digital assets | 71 | 10,137 | |||||
| Prepaid expenses and other current assets | 624 | 1,033 | |||||
| Total current assets | 4,831 | 16,863 | |||||
| Property and equipment, net | 188 | 221 | |||||
| Goodwill | 29,956 | 31,113 | |||||
| Intangible assets, net | 2,190 | 2,524 | |||||
| Right-of-use asset | 3,258 | 3,712 | |||||
| Other assets | 367 | 402 | |||||
| Total assets | $ | 40,790 | $ | 54,835 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 8,350 | $ | 7,699 | |||
| Accrued expenses | 1,542 | 2,895 | |||||
| Lease liability | 968 | 954 | |||||
| Deferred revenue | 1,092 | 2,904 | |||||
| PhunCoin deposits | 1,202 | 1,202 | |||||
| Current maturities of long-term debt, net | 6,094 | 9,667 | |||||
| Warrant liability | — | 256 | |||||
| Total current liabilities | 19,248 | 25,577 | |||||
| Deferred revenue | 1,050 | 1,274 | |||||
| Lease liability | 2,584 | 3,103 | |||||
| Total liabilities | 22,882 | 29,954 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Common stock, $0.0001 par value; 1,000,000,000 shares authorized; 107,565,124 shares issued and 107,058,624 shares outstanding as of June 30, 2023 and 103,153,337 shares issued and outstanding as of December 31, 2022, respectively | 11 | 10 | |||||
| Treasury stock at cost; 506,500 and 0 shares at June 30, 2023 and December 31, 2022, respectively | (502 | ) | — | ||||
| Additional paid-in capital | 279,837 | 275,562 | |||||
| Accumulated other comprehensive loss | (426 | ) | (472 | ) | |||
| Accumulated deficit | (261,012 | ) | (250,219 | ) | |||
| Total stockholders’ equity | 17,908 | 24,881 | |||||
| Total liabilities and stockholders’ equity | $ | 40,790 | $ | 54,835 | |||
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share information)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net revenues | $ | 3,487 | $ | 5,485 | $ | 8,234 | $ | 12,263 | |||||||
| Cost of revenues | 3,031 | 3,965 | 7,417 | 8,972 | |||||||||||
| Gross profit | 456 | 1,520 | 817 | 3,291 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | 1,472 | 1,928 | 2,600 | 3,413 | |||||||||||
| General and administrative | 4,766 | 5,251 | 9,478 | 9,556 | |||||||||||
| Research and development | 1,212 | 1,876 | 2,984 | 2,879 | |||||||||||
| Impairment of goodwill | 1,203 | — | 1,203 | — | |||||||||||
| Total operating expenses | 8,653 | 9,055 | 16,265 | 15,848 | |||||||||||
| Operating loss | (8,197 | ) | (7,535 | ) | (15,448 | ) | (12,557 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (553 | ) | (273 | ) | (1,090 | ) | (654 | ) | |||||||
| Impairment of digital assets | — | (12,158 | ) | (50 | ) | (21,511 | ) | ||||||||
| Gain on sale of digital assets | 2,096 | 168 | 5,310 | 194 | |||||||||||
| Fair value adjustment of warrant liability | 3 | 2,682 | 256 | 2,469 | |||||||||||
| Other income, net | 127 | 45 | 229 | 71 | |||||||||||
| Total other income (expense), net | 1,673 | (9,536 | ) | 4,655 | (19,431 | ) | |||||||||
| Loss before taxes | (6,524 | ) | (17,071 | ) | (10,793 | ) | |||||||||
