The following is a summary of the Smith Micro Software, Inc. (SMSI) Q2 2024 Earnings Call Transcript:
Financial Performance:
Smith Micro Software reported a Q2 revenue of $5.1 million, a significant decrease from $10.3 million in the same quarter of the previous year, primarily due to the end of the Verizon Family Safety Contract and decline in legacy Safe And Found family safety revenue.
Gross profit was $3.5 million with a gross margin of 69%, reflecting decreased revenues.
The GAAP net loss for the quarter was $6.9 million, worsened from a net loss of $5.7 million year-over-year, largely due to declining revenues and a non-cash goodwill impairment charge of $24 million recorded earlier in the year.
Business Progress:
Launched Boost Family Guard powered by SafePath Global, marking the first deployment of this model with DISH.
Close to launching a unique SafePath-enabled Family Safety offering with a European Tier 1 carrier.
Planning additional cost reductions aiming at returning the company to profitability and generating free cash flow.
Opportunities:
Anticipate subscriber growth for Boost Family Guard following marketing initiatives.
Potential expansion across multiple carriers in Europe and the U.S. using the rapid go-to-market SafePath Global model.
Risks:
Ongoing revenue declines from the legacy Sprint Safe and Found family safety revenue and the concluded Verizon Family Safety contract.
Operational challenges and cost management necessary due to substantial loss in revenue and need for further cost cuts.
More details: Smith Micro Software IR
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