Q2 2024 Phunware Inc Earnings Call
Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Phunware second quarter conference call.
Operator: All participants are in a lesson-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. Please help you with your question, Pillars of Stardom, and one again.
Speaker Change: All participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.
Speaker Change: To ask a question, you may press star, then 1 on your telephone keypad.
Speaker Change: To withdraw your question, press star and 1 again.
Operator: Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call through August 8, 2025. I would now like to turn the call over to Joey Delahousie of CoreIR, the company's investor relations firm.
Speaker Change: Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes.
Speaker Change: A webcast replay of the call will be available approximately one hour after the end of the call through August 8, 2025.
Joey Delahousie: I would now like to turn the call over to Joey Delahousie of CoreIR, the company's investor relations firm. Please go ahead, sir.
Joey Delahousie: Thank you, operator. Good afternoon, and thank you for participating in today's conference. Earlier this afternoon, the company released its financial results for the quarter ending June 30, 2024. A copy of that press release can be found on the company's website at www.funware.com by selecting investors under the about tab from the corporate homepage. Joining me on today's earnings call from Phunware's management team are Mike Snavely, Chief Executive Officer, and Troy Reisner, Chief Financial Officer.
Joey Delahousie: Thank you, operator. Good afternoon, and thank you for participating in today's conference call. Earlier this afternoon, the company released its financial results for the quarter ended June 30, 2024.
Joey Delahousie: A copy of that press release can be found on the company's website at www.phunware.com by selecting Investors under the About tab from the corporate homepage.
Speaker Change: Joining me on today's earnings call from Phunware's management team are Mike Snavely, Chief Executive Officer, and Troy Reisner, Chief Financial Officer.
Joey Delahousie: During this call, management will be making forward-looking statements, including statements that address the company's future performance or operational results. Forward-looking statements involve risk and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Funware's most recently filed annual report on Form 10K, in subsequent reports filed with the SEC, and Funware's press release that accompanies this call, particularly the cautionary statement in it.
Speaker Change: During this call, management will be making forward-looking statements, including statements that address fundraisers' expectations for future performance or operational results.
Speaker Change: Forward-looking statements involve risk and other factors that may cause actual results to differ materially from those statements.
Speaker Change: For more information about these risks, please refer to the risk factors described in FundWare's most recently filed annual report on Form 10-K and subsequent periodic reports filed with the SEC and FundWare's press release that accompanies this call.
Joey Delahousie: The content of this call contains time-sensitive information that is accurate only as of today, August 8, 2024. Except as required by law, Funware disclaims any obligations to publicly update or revise any information to deflect events or circumstances that occur after this call. Now, it is my pleasure to turn the call over to CEO Mike Snavely.
Speaker Change: particularly the cautionary statements in it.
Speaker Change: The content of this call contains time-sensitive information that is accurate only as of today, August 8, 2024.
Speaker Change: Except as required by law, FundWord disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.
Speaker Change: It is now my pleasure to turn the call over to CEO Mike Snavely.
Mike Snavely: Thanks, Joey. Good afternoon to everyone on the call. During the second quarter of 2024, we continued building upon the momentum begun during our first quarter. In quarter two, we delivered 100% customer retention, strengthened our bench of advisors within the hospitality sector, and most recently became part of the FTSE Russell MicroCap Index. In the first half of 2024, our customer bookings, which are signed contracts with clients that generate revenues over the course of the multi-year contract period, have already exceeded bookings for all of 2023, even as we preserve cash by reducing our team.
Mike Snavely: Thanks, Joey. And good afternoon to everyone on the call.
Mike Snavely: During the second quarter of 2024, we've continued building upon the momentum begun during our first quarter. In quarter two, we delivered 100% customer retention, strengthened our bench of advisors within the hospitality sector, and most recently became part of the FTSE Russell MicroCap Index.
Mike Snavely: In the first half of 2024, our customer bookings, which are signed contracts with clients that generate revenues over the course of the multi-year contract period, have already exceeded bookings for all of 2023, even as we preserve cash by reducing our team.
Mike Snavely: This is a testament to the effectiveness and efficiency of our revamped sales and our evolved sales model, which continues to drive a strong and consistent pipeline, including over $7 million in new pipeline identified so far in the third quarter. As leaders in the mobile applications platform industry, I think it's valuable to take a moment and review what sets us apart. We provide location-based services, content management, mobile engagement, audience monetization, and application analytics to help our clients at every stage of the mobile application life cycle maintenance.
Mike Snavely: This is a testament to the effectiveness and efficiency of our revamped sales team.
Mike Snavely: and our evolved sales model, which continues to drive a strong and consistent pipeline, including over $7 million in new pipeline identified so far in the third quarter.
Mike Snavely: As leaders in the mobile applications platform industry, I think it's valuable to take a moment and review what sets us apart.
Mike Snavely: We provide location-based services, content management, mobile engagement, audience monetization, and application analytics that help our clients at every stage of mobile application lifecycle management.
Mike Snavely: We help businesses create their ideal mobile app, monetize their audiences, and create hyper personalized mobile experiences. All of which are in the interest of ensuring our clients' customers fully utilize their offerings through mobile interactions. We've been in this business for about 15 years, and we are its pioneers. The Phunware platform is a fully integrated enterprise cloud for mobile devices that provides our clients with products, solutions, data, and services necessary to engage with their audiences globally, and manage and monetize their mobile app portfolios globally and at scale.
Mike Snavely: We help businesses create their ideal mobile app, monetize their audiences, and create hyper-personalized mobile experiences, all in the interest of ensuring our clients' customers fully utilize their offerings through mobile interactions.
Mike Snavely: We've been in this business for about 15 years and we are its pioneers.
Speaker Change: The Fundware Platform is a fully integrated enterprise cloud for mobile devices that provides our clients with products, solutions, data, and services necessary to engage with their audiences globally and manage and monetize their mobile app portfolios globally and at scale.
Mike Snavely: Our model provides a faster time to market, requires less investment of resources and technical expertise, and does not require customer management integration. We create a white label product that is fully brandable, industry-specific, configurable, and with reusable modules that offer over-the-air app updates or continuous learning and testing without App Store Group. Unlike other white label application services, the Phunware application framework creates native applications that leverage device-specific capabilities such as location technologies, sensors, and operating system-specific design patterns and guidelines.
Mike Snavely: Our model provides a faster time to market, requires less investment of resources and technical expertise, and does not require customer management integrations.
Mike Snavely: We create a white-labeled product that is fully brandable, industry-specific, configurable, and with reusable modules that offer over-the-air app updates for continuous learning and testing without app store approvals.
Mike Snavely: Unlike other white-label application services, the Phunware application framework creates native applications that leverage device-specific capabilities such as location technologies, sensors, and operating system-specific design patterns and guidelines.
Mike Snavely: Because of the depth and scalability of our platform, we believe there are many other industries that we can serve. During the second quarter, we plan to begin executing on elements of our go-forward strategies to continue our growth and diversify our opportunities. In our core markets, hospitality and healthcare, we will prudently increase marketing spend and build innovative programs to derive awareness and revenue. We are also focused on hiring and making productive new account executives while also partnering with industry leaders to reach additional opportunities and to make the funware at the top of our prospect list.
Mike Snavely: Because of the depth and scalability of our platform, we believe there are many other industries that we can serve. During the second quarter, we plan to begin executing on elements of our go-forward strategies to continue our growth and diversify our opportunities matrix.
Mike Snavely: In our core markets, hospitality and healthcare, we will quickly increase marketing spend and build innovative programs to derive awareness and revenue.
Mike Snavely: We are also focused on hiring and making productive new account executives, while also partnering with industry leaders to reach additional opportunities and to make Phunware the top of our prospects list.
Mike Snavely: Our solution delivers strong ROI, which is driving new sales conversions and cementing the relationships with existing customers, which leads to that hundred percent customer retention rate I mentioned earlier. We're also seeing interest from the operators of multi-property portfolios, from regional resort destinations to some of the largest hospitality brands in the world. In addition to the organic growth strategies mentioned above, we also intend to grow in hospitality and elsewhere by investing in M&A.
Mike Snavely: Our solution delivers strong ROI, which is driving new sales conversions and cementing the relationships with existing customers, which leads to that 100% customer retention staff I mentioned earlier.
Mike Snavely: We're also seeing interest from the operators of multi-property portfolios from regional resort destinations to some of the largest hospitality flags in the world.
Mike Snavely: In addition to the organic growth strategies mentioned above, we also intend to grow in hospitality and elsewhere by investing in M&A. We are actively evaluating several potential transactions and may have announcements shortly.
Mike Snavely: We are actively evaluating several potential transactions and may have announcements shortly. To identify the next growth markets, we are investing in research and development, and we expect to reclaim our crown as an innovation leader. This will resolve the enhancements too, and additional uses for our core product. We envision building more innovation capacity around our team of talented engineers and product managers by utilizing near and offshore engineering resources as needed. We expect this focus to bring forth new and differentiated products to serve markets beyond hospitality and health. Now I'd like to turn the call over to Detroit, who will review our financial results in more detail. Troy?
Mike Snavely: To identify the next growth markets, we are investing in research and development and expect to reclaim our crown as an innovation leader.
Mike Snavely: This will result in enhancements to and additional uses for our core product offering.
Speaker Change: We envision building more innovation capacity around our team of talented engineers and product managers by utilizing near and offshore engineering resources as needed. We expect this focus to bring forth new and differentiated products to serve markets beyond hospitality and healthcare.
Troy Reisner: Now I'd like to turn the call over to Troy, who will review our financial results in more detail. Troy?
Troy Reisner: Thanks, Mike, and good afternoon everyone. I'd like to thank you for joining us today for a review of our second quarter of 2024 financial performance. As usual, I'll be discussing gap financial measures, and let's specifically note that our press release, aka, and website provide a reconciliation of all gap to non-gap financial results.
Troy Reisner: Thanks, Mike, and good afternoon, everyone. I'd like to thank you for joining us today for a review of our second quarter of 2024 financial performance.
Troy Reisner: As usual, I'll be discussing GAAP financial measures unless otherwise specifically noted. Our press release, 8K, and website provide a reconciliation of all GAAP to non-GAAP financial results.
Troy Reisner: As Mike indicated, a particular note is our bookings growth. Bookings is a forward-looking metric that reflects the commitment from our customers to pay Funware money for subscriptions and services that we provide over time. When we use the term bookings, it will reflect the total contract value with the customer that was executed within the period defined.
Speaker Change: As Michael Indicator, a particular note is our booking scrubs.
Michael Indicator: Bookings is a forward-looking metric that reflects the commitment from our customers to pay Phunware money for subscriptions and services that we provide over time.
Speaker Change: When we use the term bookings, it will reflect the total contract value with the customer that was executed within the period defined.
Troy Reisner: Software bookings in 2024 increased approximately 623% and 939% for the second quarter of 2024 and the six-month period that ended, respectively, as compared to the 2023 prior period. Revenues for the second quarter of 2024 were $1 million, nearly a 10% increase over the first quarter of 2024. And for the six-month period into June 30, 2024, revenues were $1.9 million. The decrease of approximately 0.7 million or 26.8% for the 6-month-in-age June 30, 2024, compared to the corresponding period in 2023, was primarily due to a customer break each fee in 2023.
Speaker Change: Software bookings in 2024 have increased approximately 623% and 939% for the second quarter of 2024 and the six-month period that ended, respectively, as compared to the 2023 prior periods.
Speaker Change: Revenues for the second quarter of 2024 were $1 million, nearly a 10% increase over the first quarter of 2024. And for the six-month period into June 30, 2024, revenues were $1.9 million.
Speaker Change: The decrease of approximately 0.7 million, or 26.8% for the six months into June 30, 2024, compared to the corresponding period in 2023, was primarily due to a customer breakage fee in 2023.
Troy Reisner: Gross Prophet for the three months into June 30, 2024 was 470,000, which is consistent with the prior year period. Gross Prophet for the six months into June 30, 2024 was 994,000, an increase of approximately 400,000 or 63% compared to the corresponding period in 2023.
Speaker Change: Gross profit for the three months into June 30, 2024 was $470,000, which is consistent with the prior year period. Gross profit for the six months into June 30, 2024 was $994,000, an increase of approximately 400,000 or 63% compared to the corresponding period in 2023.
Troy Reisner: Total operating expenses for the free month ended June 30, 2024, were 3.4 million, which represents a decrease of over 3.2 million or 48.6% from the same period one year ago. For the six months into June 30, 2024, operating expenses were 6.8 million, which is a decrease of 6.5 million or 49.2% from the same period on June 30, 2023. On previous calls, I shared the nature of our focus areas, and these operating expense reductions have resulted from the new management team's execution of doing what we said we would do.
Speaker Change: Total operating expenses for the three-month end of June 30, 2024 were $3.4 million, which represents a decrease of over $3.2 million, or 48.6% from the same period one year ago.
Speaker Change: For the six months ended June 30, 2024, operating expenses were $6.8 million, which is a decrease of $6.5 million or 49.2% from the same period ended June 30, 2023.
Speaker Change: On previous calls, I shared the nature of our focus areas and these operating expense reductions have resulted from the new management team's execution of doing what we said we would do.
Troy Reisner: Excluding non-cash stock-based compensation of approximately $1.3 million from the six-month period in 2024, our monthly operating expense rent rate was approximately $930,000 per month, as compared to approximately $1.8 million per month for the prior year six-month period. As Mike noted above, we've planned to begin investing in sales and marketing, so we do expect a monitoring increase in this run rate over the back half of 2024. The net loss for the second quarter of 2024 was $2.6 million, or a per share loss of 32 cents, as compared to $6.5 million, or a per share loss of $3.10, in the year-ago quarter.
Speaker Change: Excluding non-cash stock-based compensation of approximately $1.3 million from the six-month period in 2024, our monthly operating expense rent rate was approximately $930,000 per month, as compared to approximately $1.8 million per month for the prior year six-month period.
Speaker Change: As Mike noted above, we plan to begin investing in sales and marketing, so we do expect a modest increase in this run rate over the back half of 2024.
Mike Snavely: Net loss for the second quarter of 2024 was $2.6 million, or a per-share loss of $0.32, as compared to $6.5 million, or a per-share loss of $3.10 in the year-ago quarter.
Speaker Change: The net loss for the six months in a June 30, 2024 was $4.9 million, or a first share loss of 65 cents. As compared to a net loss of $10.8 million, or a first share loss of $5.18 from the same period in 2023.
Speaker Change: Our balance sheet remained strong, and as of June 30th, we had cash of $20.4 million. In addition, during July , we opportunistically added approximately $16.2 million of cash through net proceeds from selling approximately 2.7 million shares via our ATM.
Troy Reisner: Our cash position now provides the certainty and stability we need to navigate our path to profitability and to make the investments necessary to accelerate and sustain our growth. That concludes my prepared remarks, and I'd like to turn the call back over to Mike for any remaining comments.
Mike Snavely: Our cash position now provides the certainty and stability we need to navigate our path to profitability and to make the investments necessary to accelerate and sustain our growth.
Speaker Change: That concludes my prepare remarks, and I'd like to turn the call back over to Mike for any remaining comments. Mike?
Mike Snavely: As these numbers demonstrate, we're diligently working on increasing our foothold within the hospitality and healthcare markets while consciously controlling costs. I want to take a moment to acknowledge the tremendous work of management and the great team members who have helped to turn around the future of Phunware. We now look forward to scaling the core of Phunware, reaching new markets, creating new solutions, and continuing to innovate. I also wish to acknowledge and thank our loyal shareholders who have entrusted us with the mantle to drive Phunware forward.
Mike Snavely: Thank you, Troy. As these numbers demonstrate, we're diligently working on increasing our foothold within the hospitality and healthcare markets while consciously controlling costs.
Speaker Change: I want to take a moment to acknowledge the tremendous work of management and the great team members who have helped to turn around the future of Funware.
Speaker Change: We now look forward to scaling the core of Phunware, reaching new markets, creating new solutions, and continuing to innovate.
Speaker Change: I also wish to acknowledge and thank our loyal shareholders who have entrusted us with the mantle to drive fun work forward. Thank you for your trust. We are honored by it and our dedicated delivering lasting, shareholder value.
Mike Snavely: Thank you for your trust. We are honored by it and are dedicated to delivering lasting shareholder value. Now, I'd like to turn the call over to the operator, so that we can begin the question and answer session. Operator?
Speaker Change: Now I'd like to turn the call over to the operator so that we can begin the question and answer session. Operator?
Operator: As a reminder, if you'd like to ask a question, please press star and the number one on your telephone key tag. We will begin the question and answer session. Your first question comes from the line of Darren Aftahi, a rough capital.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you'd like to ask a question, please press star and the number 1 on your telephone keypad.
Speaker Change: Thank you for watching, see you in the next video!
Speaker Change: We will begin the question and answer session.
Speaker Change: Your first question comes from the line of Darren Aftahi of Roth Capital.
Dylan: Alright, this is Dylan on behalf of Darren, thanks for taking my questions. To start, Mike, we talked about investing in R&D and some new products for other markets. Could you maybe talk about what or exactly you need in terms of technology and why those other markets may be different from the hospitality and..., resort style that you're going after right now?
Speaker Change: The line is open.
Speaker Change: All right, this is Dylan, for Darren. Thanks for taking my questions. To start, Michael, we talk about investing in R&Ds and some new products for other markets.
Speaker Change: Could you maybe talk about what exactly you need in terms of technology-wise and why those other markets might be different from the hospitality and...
Mike Snavely: Yeah, excuse me. Sure enough. We have built, I mean, over the last 15 years, really an enormous capacity to deliver mobile applications at scale globally. And, you know, we have had that scale to 25 million concurrent users in a video-on-demand streaming context and otherwise throughout the history of the company. What we're looking to do is to really point that terrific technology asset toward continually larger markets. So, House Kelly is a terrific market. We like it.
Speaker Change: Resort style that you're going after right now.
Speaker Change: Sure enough, we have built over the last 15 years an enormous capacity to deliver mobile applications at scale globally.
Speaker Change: And, you know, we have had that scale to 25 million concurrent users in a video-on-demand streaming context and otherwise throughout the history of the company.
Speaker Change: What we're looking to do is to really point that terrific technology asset toward continually larger markets.
Mike Snavely: We are really making some progress in the market, as you can see from the numbers that we've just shown, but we believe that there are other and additional and substantially larger markets that we can target with our technology stack. So R&D is going to be more about identifying those additional larger markets that we can point our tech at, and then probably some evolution and modification of the platform to meet the unique needs of those.
Speaker Change: So Hospitality is a terrific market, we like it, we are really making some progress in that market as you can see from the numbers that we've just shown, but we believe that there are other and additional and substantially larger markets that we can point our technology stack at.
Speaker Change: So, R&D is going to be more about identifying those additional larger markets that we can go point our tech ad, and then probably some evolution and modification of the platform to meet the unique needs of those markets.
Mike Snavely: Got it, thank you. And then in terms of bookings, obviously another really strong quarter. I guess when you're looking at three of your largest customers we're newing, is that accounting for most of the strength you're seeing so far or how much is coming from new customers as well and what you need to do to get those across the finish line into sort of top line revenue.
Speaker Change: I guess like when you're looking at three of your largest customers renewing, is that accounting for most of the strength you're seeing so far or how much is coming from new customers as well and what you need to do to get those across the finish line into sort of top line revenue?
Mike Snavely: Yeah, I don't have a specific breakdown in front of me, but what I'll say is that we have, excuse me, worked continually to identify new opportunities and move them down the sales pipeline. I think we identified something like $5.5 million in total contract value last quarter. This quarter we've already identified approximately $7 million on top of that, and we expect to liquidate a reasonable percentage of those over a period of time. So I think the sales machine is really starting to work.
Speaker Change: Yeah, I don't have the specific breakdown in front of me, but what I'll say is that we have Excuse me
Speaker Change: We're continually identifying new opportunities and moving them down the sales pipeline.
Speaker Change: I think we've identified, last quarter I think we identified something like five and a half million dollars.
Speaker Change: In total contract value, this quarter we've already identified approximately $7 million on top of that, and we expect to liquidate a reasonable percentage of those over a period of time. So, I think the sales machine is really starting to work.
Dylan: Great, thank you all, I'll pass it on.
Speaker Change: Great, thank you all, I'll pass it on.
Howard Halpern: Thank you. Your next question comes from the line of Howard Halpern from Taglish Brothers.
Speaker Change: Thank you. Your next question comes from the line of Howard Halper from Taglitch Brothers.
Mike Snavely: Congratulations, great quarter. In terms of implementing those customers, can you talk a little bit about the implementation cycle and what you expect in the second half in terms of deployment?
Speaker Change: The line is open.
Speaker Change: Congratulations, great quarter. In terms of implementing those customers, can you talk a little bit about the implementation cycle and what you expect in the in the second half in terms of deployments?
Mike Snavely: Yeah, you bet. We have... Um...
Mike Snavely: I would say if you think about the Happy Pass for an implementation, it's about 30 days. Now, that assumes that customer dependencies are fulfilled timely. It assumes that we have, you know, the delivery capacity available to deliver those applications. But don't forget that our platform is mostly a configuration. So we ingest customer content. We work with the customer to ensure that the content meets brand standards and is a correct description of the things that they want to display in the application.
Speaker Change: Yeah, you bet. We have...
Speaker Change: I would say, if you think about the happy path for an implementation, it's about a 30-day process.
Speaker Change: Now, that assumes that customer dependencies are fulfilled timely. It assumes that we have, you know, the delivery capacity available to deliver those applications. But don't forget that our platform is mostly a configuration engine.
Speaker Change: So we ingest customer content, we work with the customer to ensure that the content meets, you know, brand standards and is the correct description of the things that they want to display in the application. And so for that we are, you know, substantially reliant upon the customer.
Mike Snavely: And so for that, we are substantially reliant upon the customer. We've seen implementations go as quickly as a week; we've seen other implementations 6x6. So I would say that our average is in that 30 to 45 day range, probably shading a little closer to the 45.
Speaker Change: We've seen implementations go as quickly as a week. We've seen other implementations take six months. So I would say that our average is on in that 30 to 45 day range, probably shading a little closer to the 45.
Mike Snavely: Okay, I believe in the previous call this year you talked about, you know, seeking, I guess, customers within the hospitality vertical but in the event space for conventions and such. Have you had any success in that area, or is it coming in the pipeline?
Speaker Change: Okay, I believe in the previous call this year you talked about
Speaker Change: You know, seeking, I guess, customers within the hospitality, vertical, but in the events, customers for conventions and such have you had any success in that area or is it coming in the pipeline?
Mike Snavely: Yeah, it's coming in the pipeline. And so let me speak about that. So the bullseye of our hospitality market is really going to be a destination property. Now, it could be a destination property for a couple of reasons. Reason number one could be that it's a beautiful beach resort. And reason number two could be that it's a convention center.
Speaker Change: Yeah, it's coming in the pipeline, so let me speak about that. So the bullseye of our hospitality market is really going to be a destination property.
Speaker Change: Now, it could be a destination property for a couple of reasons. Reason number one could be that it's a beautiful beach resort. Reason number two could be that it's a convention property.
Mike Snavely: And so our relationship with Gaylord Hotels, for example, kind of falls into more of the convention category. And we're actually expanding our relationship with those guys to accommodate certain of their convention-related facilities and activities. And we are also partnering with a couple of major players in the hosting of conventions to really penetrate that market. And the convention market is actually really interesting for us. And I'd say that we're making good progress, and we'll certainly keep you apprised of that progress as those customer wins come in. And, well, thanks and keep up the great work.
Speaker Change: And so our relationship with Gaylord Hotels, for example, kind of falls into more of the convention category.
Speaker Change: and we're actually expanding our relationship with those guys to accommodate certain of their convention-related facilities and activities.
Speaker Change: and we are also partnering with a couple of major...
Speaker Change: players in the hosting of conventions to really penetrate that market. And the convention market is actually really interesting for us. And I'd say that we're making good progress, and we'll certainly keep you apprised of that progress as those customer wins come in.
Speaker Change: Okay, well, thanks and keep up the great work.
Operator: Again, if you'd like to ask a question, press star one on your telephone keypad, and our next question comes from... Alright, my apologies. Our next question comes from the line of Ed Boom from Accentian Capital. The line is open.
Speaker Change: [inaudible]
Speaker Change: Thank you.
Speaker Change: Again, if you'd like to ask a question, press star 1 on your telephone keypad.
Speaker Change: And our next question comes from...
Speaker Change: Alright, I apologize. Our next question comes from the line of Ed Boom from Accentian Capital.
Ed Boom: Yes. Congratulations on the progress. My question is, have you seen any changes in the sales cycle, whether customers have been more cautious, or has it been about the same in the past?
Ed Boom: My question is, have you seen any changes in the sales cycle whether customers have been more cautious or has it been about the same in the past quarter?
Mike Snavely: It's really about the same. I mean, we're looking at it, roughly speaking, a 90-day sales cycle. Sometimes it's shorter, sometimes it's faster.
Speaker Change: It's really about the same. I mean, we're looking at a roughly speaking 90 day sales cycle.
Speaker Change: Sometimes it's shorter, sometimes it's faster, and we, you know, continue to work on our sales process to see if we can reduce the cycle time. Now, notably, we are also highly focused
Mike Snavely: And we continue to work on our sales process to see if we can reduce the cycle time. Now, notably, we are also highly focused on identifying one-to-many relationships, and here's what I mean by that. So, it's one thing to sell an individual property. That's terrific, and we love our cousin.
Speaker Change: on identifying one-to-many relationships. And here's what I mean by that. So it's one thing to sell an individual property. That's terrific, and we love our customers.
Mike Snavely: It's another thing altogether to approach management companies, property portfolio owners, and others in such a way as to penetrate multiple properties at once. And so we have some very interesting conversations going on right now with such groups where we could potentially do so. Spanned a similar amount of time on the sales cycle, but picked up five properties, ten properties of it. So that's where I think that you're going to see what I would characterize as the pace of rooftop winds increasing because we're looking at those one-to-many relations.
Speaker Change: It's another thing altogether to approach management companies, property portfolio owners, and others in such a way as to penetrate multiple properties at once. And so we have some very interesting conversations going on right now.
Speaker Change: with such groups where we could potentially...
Speaker Change: spend a similar amount of time on the sales cycle, but pick up five properties, 10 properties at a time. So that's where I think that you're gonna see what I would characterize as the pace of rooftop wins increasing because we're looking at those one-to-many relationships.
Ed Boom: Great. Well, thank you for answering my questions, and I wish you guys good luck. Thank you.
Speaker Change: Great. Well, thank you for answering my questions and I wish you guys good luck. Thank you.
Operator: Seeing as there are no more questions in the queue, that concludes our question and answer session. I will now turn the call back over to Mike Snavely for closing remarks. Yeah, and I wanted to do these closing remarks live, I...
Speaker Change: Thank you. Seeing as there are no more questions in the queue, that concludes our question and answer session. I will now turn the call back over to Mike Snavely for closing remarks.
Mike Snavely: Yeah, and I wanted to make these closing remarks live. I want to acknowledge that we've had a tough 21 through 23. And we've had to bat down the hatches, we had to shed costs, and we had to buy time for the company. As you can see, we're off to a good start here in 2024. We've delivered a couple of successive quarters of growth and improvement to our bottom line, which is impressive when you look at it in comparison to the previous year.
Mike Snavely: Yeah, in order to do these closing remarks live, I want to acknowledge that we've had a tough 21 through 23, and we've had to batten down the hatches. We had to shed cost, and we had to buy time for the company.
Mike Snavely: As you can see, we're off to a good start here in 2024. We've delivered a couple of successive quarters of growth and improvement to our bottom line, particularly when you look at a comparable to the previous year. We've stored up our balance sheet and we've gotten our sales rhythm down.
Mike Snavely: We've built up our balance sheet, and we've gotten our sales rhythm down. Now we have the benefit of time, capital, and great interest amongst our loyal investors, along with the season management team and a board with a big vision. We also have a track record of value delivery to the best brands in the world, including Fox NBC, Dallas Cowboy Stadium, along with more recent customers like Raymond Entertainment and various. From this platform, we could not be more excited about what markets we can tackle and the plays that we can run in software, innovation, crypto, and AI. We intend to turn the attentions of tens of millions of eyes back on Phunware and our solutions and make Phunware great again.
Mike Snavely: Now, we have the benefit of time, capital, and great interest amongst our loyal investors, along with a seasoned management team and a board with a big vision.
Mike Snavely: We also have a track record of value delivery to the best brands in the world, including Fox, NBC, Dallas Cowboy Stadium, along with more recent customers, like Rymond Entertainment and various properties.
Speaker Change: From this platform, we could not be more excited about what markets we can tackle, and the plays that we can run in software innovation, crypto, and AI. We intend to turn the attentions of tens of millions of eyes back on funware and our solutions and to make funware great again.
Speaker Change: Thanks a lot, everybody.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.
Speaker Change: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
Howard Halpern: Okay, well, thanks and keep up the great work. Thanks, sir.
Troy Reisner: The net loss for the six months ending June 30, 2024 was $4.9 million, or a per share loss of $65. This is as compared to a net loss of $10.8 million, or a per share loss of $5.18 from the same period in 2023. Our balance sheet remains strong, and as of June 30th, we had cash of $20.4 million. In addition, during July, we opportunistically added approximately $16.2 million of cash through net proceeds from selling approximately 2.7 million shares via our ATM.