Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Successful launch of Boost Family Guard powered by SafePath Global, demonstrating a rapid deployment model.
- Nearing completion of a unique SafePath-enabled family safety offering with a European Tier 1 carrier, expected to launch in early fall.
- Completed cost reduction initiatives, with further reductions planned to better align resources and return to profitability.
- Introduction of SafePath Premium with enhanced AI and machine learning features, including cyberbullying protection and social media intelligence.
- Strong sales pipeline with advanced discussions for new SafePath deployments in Europe and the US, including a marketing engagement agreement with the Competitive Carrier Association (CCA).
Negative Points
- Revenue for the second quarter of 2024 decreased by approximately 50% compared to the same quarter in 2023.
- Conclusion of the Verizon Family Safety contract and decline in legacy Sprint Safe & Found revenue negatively impacted overall revenue.
- Gross profit and gross margin both declined compared to the same period last year, primarily due to the period-over-period decline in revenues.
- GAAP net loss for the second quarter of 2024 was $6.9 million, an increase from the $5.7 million loss in the second quarter of 2023.
- ViewSpot revenue declined significantly, with further declines expected in the third quarter.
Q & A Highlights
Q: Timing has been a headwind in terms of carrier launches. What are your expectations for SafePath in the third and fourth quarters?
A: We expect to complete the European launch by the end of the third quarter, setting us up for growth in the fourth quarter. Q4 should show meaningful leverage of SafePath revenues, signaling a positive turn.
Q: Can you frame the success of the SafePath global launch with DISH and discuss the pipeline in Europe?
A: The DISH launch was rapid and successful, and we expect similar quick deployments with other carriers. The European pipeline includes another Tier 1 carrier, and all opportunities are based around SafePath global, promising rapid market entry and growth.
Q: Can you provide details on the CCA agreement and its potential impact?
A: The CCA agreement gives us access to about 40-50 carriers in the US, excluding T-Mobile. This represents tens of millions of subscribers and allows us to market SafePath global effectively, expecting rapid deployment and growth.
Q: Why are you pursuing aggressive cost reductions despite an equity raise and operational inflection point?
A: SafePath global's deployment requires minimal customization, allowing us to streamline operations and reduce headcount. We are also eliminating substantial running costs from the ring platform, optimizing our cost structure for growth.
Q: How will the European Tier 1 carrier launch impact your market penetration?
A: The launch will start in one country with significant size, followed by rapid expansion to other countries. Customization is minimal, mainly involving language changes, allowing for quick scaling across multiple regions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
