Q3 2024 Smith Micro Software Inc Earnings Call
Speaker Change: Good day. Welcome to the Smith MicrosoftWare's financial results for the third quarter ended September 30, 2024. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone.
James Kempton, Charles Messman
Speaker Change: I would now like to turn the conference over to Charles Messman, Vice President of Marketing. Please go ahead.
Charles Messman: Thank you, Operator, and good afternoon everyone. We appreciate you joining us today to discuss Smith Microsoft Words, Finance Results for the Third Quarter.
All for December 30th, 2024.
Charles Messman: On today's call, we have Bill Smith, our Chairman of the Board, President and Chief Executive Officer, and Jim Kempton, our Chief Finance Officer. Please note that some of the information you will hear during today's discussion consists of forward-looking statements, including, without limitation, those regarding the company's future revenue and profitability, financial results and their expectations, new product development and availability, new and expanded market opportunities, future product developments.
Charles Messman: If you do not have a copy or would like one, please visit the event relations section of our website at www.smithmicro.com
Charles Messman: On today's call, we are in no certainty which could cause actual results or trends to differ maturely from those expressed or implied by our forward-looking statement. Please note that some of the information you will hear during today's discussion includes the form most recently filed, Form 10-K, including, without limitation, those who have no obligation to update any forward-looking statement.
Charles Messman: which speak to the manager's belief and assumption only of the product development and availability. I want to point out in the Floyd-Market Comparative Remarks, we refer to specific non-GAAP financial measures and or growth which refer to our impression rates disseminated earlier today for reconciliation of these non-GAAP financial measures.
Charles Messman: With that said, we're looking to see if we can solve real-world uncertainties, which could cause actions to unfold, or trends, to become clearly, for our 2024 Third Quarter Public Enseignment.
Speaker Change: We appreciate your interest. Let me begin the call today with some quick updates on the overall business as we remain very focused and excited about the path forward. Are there any objectives?
Speaker Change: I want to point out the profitability and the generation-specific non-GAAP financial measures.
Speaker Change: Let's begin with our European interior that we have discussed on earlier calls. I hope to be able to announce the interior's name with you today, but we must continue to wait for the official launch, which we expect to happen this summer.
Speaker Change: We are looking forward to sharing details of the launch with our shareholders with some quick updates on the overall business Now let's look at as we remain very focused on exciting things
Speaker Change: First, we expect to sign our first contract for the deployment of our SafePak OS solution with the U.S.-based MD&O in the coming weeks.
Speaker Change: Let's begin with our European carrier that we discussed on an earlier call. I had hoped to be able to have a carrier's name with you today, but we must continue to wait for the official launch, which we expect to happen soon. We are looking forward to hearing from you about the launch.
The kids cannot bypass.
Speaker Change: We accelerated our deployment schedule for SafePathOS given the strong interest we are seeing of our deployment. We expect to see the first deployments of SafePathOS in the first quarter of 2021.
Speaker Change: of 2025. Additionally, we are focusing on building our pipeline for SafePathOS, and we expect it will be a strong contributor to our business going forward.
Speaker Change: We believe that the recurring fees from this deployment model will meaningfully contribute to our 2025 revenues.
Speaker Change: I also want to note that we have accelerated our another team schedule for Safe Path OS that is the recurring drone as we expand our Safe Path offerings, bringing our part-first deployment solutions that they build on core values of vertical depth.
Speaker Change: of 2020 Selling Devices. Additionally, we are focusing on building our pipeline for safety and reliability.
Speaker Change: and Leah discussed that Martin will be a strong contributor to the Competitive Carrier Association.
Speaker Change: CCA. We believe that the return completion of that agreement model Smith might be able to contribute to our partner to buy our revenue.
Speaker Change: to CCA's carrier members under a single brand name of Safe Tools.
Speaker Change: This partnership enables CCA carrier members of any size of what they do to offer this valuable solution to their subscribers under their rapid start-up market model.
Speaker Change: On our last call, we discussed our partnership agreement with the Consolidated Carrier Slave Union under this arrangement.
Speaker Change: and I expect that we'll sign additional CCA member careers in the coming weeks or months. This quick-to-market approach to CCA career and market opportunity, delivering our SafePath platform,
Speaker Change: to more families across the U.S. This partnership enables CCA carrier members I want to touch on a reduced cost offered as a diagonal transition to their subscribers In our previous quarterly calls we committed to eliminating at least $2 million in quarterly excursions by Q4 of this year I am pleased to tell you that this arrangement will be completed by Q4 of this year
Speaker Change: We've already achieved 1.9 million cost per carriers in Q3, and have yet to realize the full quarterly benefit of these actions. As Jim will describe in more detail, we are up in the range of quarterly cost savings that we are targeting for the fourth quarter.
Speaker Change: I want a goal of a reduced cost of 4 to 2.8 million dollars.
Speaker Change: We believe these changes have positioned our company to execute with more agility and to be nimbler in responding to market demands. We believe the actions we've taken to rationalize our costs coupled with the expansion of our revenue opportunities have positioned us for a return to profitability and free cash flow during 2025. I'll take a deeper dive into this in more detail, but first,
Speaker Change: that we return our call over January to review our financial results in more detail.
Speaker Change: and Joe. Thanks Bill and good afternoon everybody. I'll now be covering the financial results for the third quarter of 2024.
Speaker Change: During the third quarter, we recognized revenue of $4.6 million compared to $11 million in the same quarter of 2023, a decrease of approximately 58 percent. When compared to the second quarter of 2024, revenue decreased by approximately $500,000 or 10 percent.
Speaker Change: Year-to-date revenues through September 30, 2024 were $15.6 million versus $32.3 million through the third quarter of last year.
Speaker Change: As that contract concluded in the fourth quarter of 2003, coupled with the continued decline in the legacy Sprint basin found revenue, as was expected, family safety revenues decreased by approximately 300,000, or 7%, compared to the second quarter of 2024.
Speaker Change: During the third quarter of 2024, family safety revenue was approximately $600,000, which decreased by approximately 100,000 compared to the third quarter of 2023.
Speaker Change: primarily due to our efforts to increase nettled prices by nearly $100,000 compared to the second quarter of 2024. As we have been experiencing subscriber growth in the first quarter of 2023, coupled with a continued decline in the legacy spending, we expect that trend to continue in the fourth quarter.
Speaker Change: Viewspot revenue was approximately $100,000 for the third quarter of 2024, which declined by approximately $1 million compared to the third quarter of the prior year. The decline in Viewspot revenue compared to the third quarter of 2023 was primarily due to the previously announced termination of two of our Viewspot contracts.
Speaker Change: These bought revenues decreased by approximately $300,000 compared to the second quarter of 2024.
Speaker Change: primarily due to the period over period increase by approximately $300,000 compared to the January quarter of 2024. In the fourth quarter of 2024, we expect consolidated revenues to be in the range of approximately $5 million to $5.3 million. The anticipated growth in revenues in the fourth quarter is driven apart by a projected increase in family safety revenues.
Speaker Change: driven by the sequential decline in revenues quarter over quarter. In the fourth quarter of 2024, we expect gross margins to be in the range of 72% to 75%. For the year-to-date period ended September 30, 2024, gross profit was $10.7 million compared to $23.9 million during the corresponding period last year. Gross margin was 68% for the September 30, 2024 year-to-date period compared to 74% for the nine months ended September 30, 2023. Gap operating expenses driven by the third quarter of 2024 were $9.8 million.
Speaker Change: A decrease of approximately 800,000, or 8%, compared to the third quarter of 2023, primarily attributable to the cost-reduction activities undertaken during the second and third quarters of 2024, partially offset by summer's related costs. Gap operating expenses for the year-to-date period ended September 30, 2024, for a 55.6 million compared to 36.4 million in the prior year-to-date period, an increase of 19.4 million compared to last year.
Speaker Change: This period-over-period increase was driven by the non-cash goodwill impairment charge of $24 million incurred in the first quarter of this year.
Speaker Change: This was partially offset by reduction in personnel costs primarily associated with the cost reduction activities undertaken in the second and third quarters of 2014 and decreases in marketing related expense.
Speaker Change: Non-GAAP operating expenses for the third quarter of 2024 were $6.8 million compared to $7.7 million in the third quarter of 2023, a decrease of $900,000 in the prior year-to-date period.
Speaker Change: Increase of $19.4 million compared to last year by approximately $700,000, or 10% From the second quarter of 2024, as we noted in our last earnings call, we did undertake further cost production actions in the third quarter as we worked to return the company's cost production activities undertaken in 2024 Through the third quarter, we successfully achieved $1.9 million in quarterly savings as a result of the actions done As done, we now expect to recognize $1.7 million in the third quarter of 2023, which is higher than the targeted range of $2 million to $2.5 million we had established on our prior earnings call
Speaker Change: to the fourth quarter of 2024, based on the cost of production activities executed this year.
Speaker Change: As a result of the timing and the actions undertaken during the third quarter, we expect fourth quarter 2024 non-GAAP operating expenses to decrease by 7% to 12% compared to the third quarter of 2019. Non-GAAP operating expenses for the year-to-date period through September 30, 2024, were approximately $22.4 million, compared to approximately $27.3 million for the year-to-date period ended September 30, 2023, a decrease of approximately $4.8 million, or 18% compared to last year's activities executed this year.
Speaker Change: The gap net loss as a result of the timing of the accident was $6.4 million, or a $0.64 loss per share, compared to a gap net loss of $5.17 million, or a $0.61 loss per share in the third quarter of 2023.
Speaker Change: Gavin Gaffa operating nine months in the year to December 30, 2024, was $44.3 million for $4.17 loss per share, compared to approximately $27.3 million for the year-to-date period down to $2.27 loss per share for the nine months ending December 30, 2020, compared to last year.
Speaker Change: The non-GAAP net loss for the third quarter of 2024 was $3.6 million, or a $0.30 loss per share, compared to a non-GAAP net income of approximately $600,000, or an $0.81 loss per share in the third quarter of 2023.
Speaker Change: Non-Gap Net Loss Monday, September 30, 2004 was $11.8 million or $4.11 loss per share.
Speaker Change: compared to a nine-gap net loss of $3.6 million, or a $0.46 loss per share for the nine months ended September 30, 2023.
Speaker Change: Within today's press release, we have provided a reconciliation of our non-GAAP metrics with the most comparable GAAP metrics.
Speaker Change: or a $0.30 audit per share, or do a non-capital income adjustment for an intangible asset amortization of $1.3 million, stock compensation expense of $1.2 million,
Speaker Change: Severance-related costs of approximately $300,000 Appreciation expense of approximately $100,000 And transaction-related expenses of approximately $100,000 Personally offset by changes in the fair value of warrants of approximately $200,000 For the year-to-date period
Speaker Change: The non-GAAP reconciliation includes adjustments for fiscal impairment of $24 million, intangible asset amortization of $4.6 million, stock compensation expenses of $3.5 million, appreciation of $300,000, and non-recurring expenses including severance-related costs of approximately $800,000, partially offset by approximately $400,000 and changes to the fair value of $100,000.
Speaker Change: and Transaction Related Expenses, net $1,100 over the past few years, partially offset by changes in the Fair Value Warrant to surplus state and foreign income taxes.
Speaker Change: For non-GAAP purposes, we utilize a 0% tax rate for the third quarter of 2024 and 2003. The resulting non-GAAP tax expense million complexes the actual income compensation expense during each period.
Speaker Change: We reported $1.5 million of cash in cash equivalents as of September 30, 2024. As previously announced, we did complete a capital raise at the beginning of October, grossing approximately $6.9 million in cash before doing our transaction-related fees. Bill, our Chief Executive Officer, led the capital raise by investing $3 million via a private placement. The remaining $3.9 million was raised off our existing shelf register. The purchase price per share was $1.165 for both transactions. Unregistered warrants were issued as part of both transactions with an exercise price of $1.04 per share.
Thank you very much.
Speaker Change: Bill, our Chief Executive Officer, lent our capital to us by investing $3 million in private places. The remaining $3.9 million was raised off our existing shelter and carrier partners.
Speaker Change: The purchase price per share on the stock was $1.16.5 for both transactions. Unregistered warrants were issued for both transactions with an extra credit price of $1.04 per share. The warrants issued in these transactions are only sizable six months after the offering date. Six, five, or five and a half years after the offering date.
This concludes my financial review. Now back to work.
Speaker Change: Booth's continues to leverage other avenues to promote Booth's family-oriented customer opportunities throughout its subscriber base using SMS, email, and website promotions.
Speaker Change: to promote this booze fan upload and attract more Fanatec flam booze subscribers.
Speaker Change: to the Boots mobile network. They provided marketing collateral to the retail stores made with Boots family hardware. Boots for the retail authority was made to serve as an effective tool for premium visual voice awareness.
Speaker Change: which is powered by our ComSuite platform outside of the retail stores.
Speaker Change: The expansion of the Leverage Other Advertisers Boost experience on the premium digital voicemail platform during the third quarter translated that to the meaningful increase in our CommSuite revenues, representing over 20% growth versus the second quarter. Boost is continuing to conduct
Speaker Change: and additional activities for this project, which we mainly believe will help to drive continued subscriber growth in the fourth quarter.
Speaker Change: Overall, we maintain a strong collaborative relationship with Boost and are aligned with them on the goals for the success of those products. Let's talk about AT&T and the new promotional activities for AT&T's career family. In our concept, it is currently happening. In November, we began a new social media influence campaign for AT&T's career family with a group of selected influencers.
Speaker Change: who are constantly driving awareness growth of the products on each order.
Speaker Change: More than just focusing on family, strong, and relative losses faced by parents in those days' world that are aligned with them are also the parents of both products, who have the same concerns as all parents, which makes each of them an outstanding spokesperson for a social media platform.
Speaker Change: to promote the benefit of AT&T to their family. This campaign is just getting started, and we expect AT&T to continue over the coming months with a growth of over 50 influencers.
Speaker Change: who are in addition AT&T's peer family has been recently featured within connected television advertising is advertising content and show
Speaker Change: on five of the wonders of Paramount, Pluto, the Warner Brothers, Discoveries.
Speaker Change: and are looking forward to seeing what growth has been in the coming months resulting in television advertising.
Speaker Change: at T-Mobile. We continue to explore our platform for opportunities to broaden our relationships, just to name a few. Our sales and marketing teams are working together to further our progress by widening our reach within the organization. In the meantime, T-Mobile continues to be a key customer for us. With all these marketing efforts,
Speaker Change: and other folks' devices, whether it's a Wi-Fi-only or connected Android tablet or phone, carriers can offer a customized, child-friendly experience, rather than just a generic device.
Hayes, Zeldin, Smith, Betts, Crickets, Edwards, Henrie, Harris
Speaker Change: crafted to support a set of OS complimentary traditional over-the-top solutions through providing partners with significant partner flexibility in an appropriate way.
Speaker Change: with Carrier's strong track record in device sales. SafePath OS offers exceptional opportunities for differentiation and growth. Whether it's a Wi-Fi only or an SD card or a tablet, SafePath offers a customized, child-friendly experience. We are introducing the SafePath Kid's Device.
Speaker Change: which allows us to evaluate the sale of greats by hand parents.
Speaker Change: would say that a kid's plan on a carrier provides a great plan over glue solvent to enforce the rules of significant market flexibility and sets predetermined time limits and age-appropriate travel records over the value of sales.
These plans are shaped by industry-leading online child safety experts.
Speaker Change: and Thought Visioners here to have done scientific research and leadership in kid-focused technology. Best plans incorporate best practices in digital parenting. We are offering tailored guidance on appropriate schemes which allows us to align the sale of maximum limits.
Speaker Change: for deeming social media and video watch carrier provides a great plan crucially, parents have the flexibility to adjust to these plans.
Speaker Change: and providing preemptive control and patient compliance by giving children safe, asymmetrical online access. They have kids' plans designed to ease parental concerns by addressing the harmful effects of excess screen time, which can impact children's physical and mental health, offering tailored guidance.
Speaker Change: whether it be SafePath OS by 8 or SafePath with maximum limits so that Microsoft's technology enables mobile operators to provide a trusted, balanced approach to digital wellness that also empowers parents.
Speaker Change: Providing them new laws and regulations around online safety for children in various stages of development. Across many countries, Canada's plan is to deny adoption of either of these offerings. Addressing the harmful effects.
Speaker Change: Our sales pipeline is quite strong, which can impact, as I noted, physical marks, the Competitive Carrier Association marketing agreement that we announced during the last earnings call is already yielding positive outcomes. In addition to opportunities for CCA,
Speaker Change: and the Safe Path OS contract under the white that I touched on earlier.
Speaker Change: There are several new laws and regulations on online safety for children in various stages of development. We have ongoing discussions with several carriers in various countries and truly believe that our E-European Tier 1 carrier launch
will ignite today's conversation quite strong.
Speaker Change: We are also in discussions here in the U.S. because we are curious to launch a state-of-the-art degree and a strategy to attract new families described last earnings call. Overall, we believe that these new opportunities bring significant upsides and the potential for AT&T to secure families in several ways that I touched on earlier.
possessions of other growth-setting outcoming quarters.
Speaker Change: I am very confident in Europe that the business case for SafePAD is strong. Coupled with a significantly reduced cost from a Tier 1 carrier launch, I believe that we are on the path back to front of the conversation and positive cash flow. In fact, I'm so confident in our prospects, our business case, and our mission that in addition to the style we're always dreaming of, I invested an additional $3 million in the company last month as part of our $6.9 million capital raise.
positions, I believe, in our team and our mission.
Speaker Change: and in the provisions that we offer to our carriers and their subscribers around the world. With that operator, I believe that we are on the path back to profitability and positive cash flow. We will now begin the question and answer session.
You may press star, then one.
Speaker Change: on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question,
Speaker Change: and in the solutions that we offer to our carriers and their subscribers around the world.
to ask a question.
Speaker Change: At this time, we will pause momentarily and end our session.
Speaker Change: To ask a question, you may press star, then 1 on your telephone keypad.
If you are using a speakerphone,
Please pick up your hands and start pressing the key.
Please go ahead.
Speaker Change: If at any time your question has been addressed, and you would like to withdraw your question, please press star then 10. Once again, it is star then 1. Last question.
Speaker Change: If your expectation is still to see the launch in the coming quarter, and then any other updates that you've got in terms of Safe Path Global, what we could be expecting over the next couple of quarters.
[inaudible]
Speaker Change: Yes, Scott, I fully expect the European carrier to launch before the end of the year and we just have to be patient. It's part of a process.
Speaker Change: when carriers of this size are launching new offerings. As far as other opportunities, I'm very excited about the Safe Path OS opportunity that I mentioned. We're seeing good traction through the CCA with a number of different member carriers now in the process and expect more to follow.
Speaker Change: So, overall, I feel I'm very bullish about the overall growth of our sales going forward and the breadth of our customer relationship.
Speaker Change: add that growth to the fact that we're going to continue to reduce the overall expenses will allow us to narrow the losses that we will see in Q4 and lead us to a trend that will take us to profitability in 2025.
Speaker Change: and just to clarify that in terms of our gym it sounds like the rate in the ballpark of around 7 million or so is coming from a given level of collection of activities
with current customers as well as current customers.
Speaker Change: We feel very comfortable with it, and I think we're going to continue to reduce the overall expenses. We'll allow us to narrow the losses that we have, and then we will see in Q4 and lead us to a trend that will take up the profitability and fortify it. And just to clarify, are you charging for the one-time sale upfront? Is this a friction-based model, or are there advertising opportunities as well in terms of controlling content and otherwise on an ongoing basis?
Speaker Change: on this front in terms of managing content to use. Is that where you expect us to see some of the first traction? And lastly, if I could, you know, Safe Path OS sounds like it's in very good shape. Okay, Scott, you know, first off, it is a subscription model, so it's a fee that we'll collect month after month as long as the device is still active and in use. So it's a gift that keeps on giving. It is a fee that, frankly, can be a little bit higher than what we get for value-added services because it's actually part of the device of the phone.
is a specialized version of the Android operating system.
I'm James Kempton. We'll see you next time.
Speaker Change: And we think that probably the most salient point is that there's one thing that carriers know how to do really, really well is sell new devices and to be able to align our business case with that activity.
Speaker Change: I think increases our chances a little bit higher for really positive growth.
Speaker Change: It is possible we might be able to book some revenue in the current quarter, but we're really focusing on a first quarter launch, so that's where we see this opportunity.
Speaker Change: There were other parts of your question you may have to come back on. Let me answer that last question.
Speaker Change: I think it's just a Europe, you know, just in terms of the inter-social character. There's a lot of activity in Europe, but there's still an awful lot of activity here in North America. So I don't think one trumps the other. I think both are complementary. The biggest difference between
Speaker Change: North America and Europe have more greenfield opportunities. They have not been active in the family safety market in general. We've seen in Europe before where that is more prevalent.
Speaker Change: in North America, but both are great market for us, and we expect to see real meaningful growth.
Speaker Change: I think the point that should be clear to all of you listening is the level of activity that we have ongoing right now on our sales growth has really ratcheted up and I think it will continue to do so.
Speaker Change: in Europe. It's more of a range of opportunities. They have not been active in the family safety market in general in Europe before, where that is something that is more prevalent in North America. Both are great markets for us, and we expect to see a lot of people grow. I think the point that should become clear to all of you listening is the level of activity that we have ongoing right now on the sales front has really ratcheted up, and I think it will continue to do so.
Speaker Change: I would say that as we went through the activities we undertook in the third quarter, we achieved more savings through that process than we had initially targeted. And so you're going to see the full effect of that in Q4.
Speaker Change: In 2025, at the current time, we would not contemplate additional reductions or anything of that nature.
and James Kempton.
Speaker Change: I would say that as we went through the activities that we undertook in the third quarter,
Speaker Change: Well, we finished third quarter at $1.5 million in cash, and we ended up with approximately $6.4 million of additional cash out of the capital, right, to give you some flavor. And then if you model it out from there, you know, in terms of, like, how we're cutting down on the profitability, or cutting down on the loss.
Speaker Change: here as we go forward, you know, you can kind of infer where that leads us.
Speaker Change: Glitchtrack following. Third quarter at $1.5 million in cash. What is the average... ...relatively small parent with a few million subs, so we expect in the fall, as we see a number of these periods going through the process, executing contracts and launching them.
Speaker Change: the Safe Tools product that will see a very nice collective increase for us going forward.
It was on the CCA.
Speaker Change: In total, as we see a number of these curators going through the process of executing contracts and launching the Safe Tools product, that will be a very nice collective increase for us going forward.
Speaker Change: costs, you know, for what you're doing on a de novo basis, you know, presumably that's enough.
Speaker Change: The next question comes from Matthew Harrigan with Benchmark. Please go ahead. I know in Europe, sometimes it's curious, do things feel on a market-by-market basis, but I assume that's a correct assumption given the guidance you've given before and for 2025 as well. I have two more questions after that.
Speaker Change: Yes, when you see launches in Europe, it'll be launched, a carrier may operate in a number of countries, but they will launch country by country, so it will be a stair-step approach.
Speaker Change: As to how it rolls out, it doesn't roll out over their entire footprint all at once.
the right alright well
Thank you for your questions.
That's a good point.
Speaker Change: You know, we talk about the various SafePath offerings, whether it's SafePath Global, SafePath Family, SafePath OS, SafePath Kids Plan, but they're all different offerings, but at the core, they're all the same project, they're all the same focus. So we went through that very difficult period where we were incorporating different acquisitions. That's all behind us.
Speaker Change: and you know the core to Safe Path is all the same. So this is a much more manageable process.
Speaker Change: And that's one that can be done in a very cost-effective manner, and that's why you see us being able to reduce expense, while at the same time, launching more products. It all makes sense, but you just have to work your way through how we go about doing that.
Speaker Change: We, you know, we went through a very difficult period where we were incorporating different acquisitions. That's all behind us, and, you know, the core to SafePath is all the same. So this is a much more manageable process, and it's one that can be done in a very cost-effective manner. And that's why you see us, you know, being able to reduce expense while at the same time launching more product offerings. It all makes sense, but you just have to kind of work your way through how we go about doing that.
Speaker Change: and the family thought that we'd regard them. No, I don't know, Verizon has come.
Speaker Change: I will say this, if you look at the app ratings for the various SafePath offerings today,
They're all in the
you know, the upper floors.
Speaker Change: you know pushing up towards five. If you look at the offering that was created in-house at one of the large tier ones here in North America, you'll notice that their app ratings are very low. The acceptance of the product is not great.
Speaker Change: So, while they may think they did a, you know, the right thing bringing it in-house,
The numbers don't prove that out.
Speaker Change: Our app ratings are growing and getting better all the time. And the acceptance of the product by the user base is something that's really critical. Now as we move into more capabilities and our mass market was created with in-house sales coupling with large tier one sales, having those high app ratings going in I think we're going to make a big difference. I think we're on the right path, so while they think they did a strong growth, the latest in profitability...
Speaker Change: and all that should be worn out for the stock price going forward. Our app ratings are growing and getting better all the time. And the acceptance of the product by the user base is something that's really critical. Now as we move into more capabilities to enter mass markets through coupling with handsets sales, coupling with rate plan sales, having those high app ratings going in, I think we're going to make a big difference. I think we're on the right path. I think it will lead us to...
Speaker Change: Strong growth, elitist profitability, and all that should be blown up in stock price coming forward.
Speaker Change: As a U.S. guy, as a U.S. carrier, when you look at that, because you have so much uncertainty in terms of getting into all the markets and the timeline and all that, it's usually discounted to an AT&T or a T-Mobile.
Speaker Change: I'll take that, Matt. Nice to talk to you. I think that
Speaker Change: When we look at Europe, one of the things that's interesting as Bill said, it is country to country, but the countries work and talk to each other so we see that as a good stepping stone and it's all green to you.
Speaker Change: There just isn't a large base there. In the U.S., yes, there's still great opportunity with that as well. I mean, that TAM is huge as well. But I think with Europe, since it's so new, we think there's as big of an opportunity there as there is in the U.S.
Speaker Change: Does that make sense? Great. Thank you. No thanks. Thank you.
Speaker Change: Hey, I'll take that. Matt, nice to talk to you. Again, if you have a question, please press star then 1. When we look at Europe, one of the things that interests me the most when it comes to the country, is by countries that work and talk to each other. We see that as a good stepping stone, and it's for all green fields.
Speaker Change: There just isn't a large base there. In the U.S., yes, there's still great opportunity with that as well. I mean, that dam is huge as well. But I think with Europe, since it's so new, we think there's as big of an opportunity there as there is in the U.S. Does that make sense?
T-Mobile, AT&T
Speaker Change: Again, if you have a question, please press star then 1. The next question comes from Brian Lewis with Security Research Associates. Please go ahead.
Speaker Change: What kind of marketing, what might be different, what's going on with that launch that could be different than what our experience has been up to this point? Can you give us a little bit of color? I mean, the history of launching a new...
Speaker Change: We've talked about this a couple times down to today and the fact is that we are aligning our activities with the things that carriers do and they do it incredibly well. They sell rate plans and they sell devices. You should take this as, you know, as we look to Europe we're looking to really leverage that concept and that brings you very quick access to a mass market versus going in and trying to sell a value-added service offering.
Speaker Change: Thanks Brian, that's a great question. It builds slowly over time. Look, I think that's the answer. Talk about this a couple of times. I'd rather just leave it at that. And the fact is that... I think that's the answer. Talk about this a couple of times.
Speaker Change: We are aligning our activities with the things that carriers do, and they do them incredibly well. They sell rate plans, and they sell devices.
you should take on really, you know,
Speaker Change: as we look to Europe, we're looking to the European game. We can't talk about who they are or what country it is or whatever. I would just say that it's all marketing versus going in and trying to sell a value-added service offering.
Speaker Change: So how long do you think it would take to get meaningful revenue?
and the
By the end of this fourth quarter.
Anything else? No, sir. We're good.
Speaker Change: and I'm like, what the five history debasements are in terms of parking opportunity. You know, I really, that was part of the rules of the game. We can't talk about who they are or what their history is or whatever. I've just played it and it's something that we would see almost immediately.
Speaker Change: Okay, thanks. So how long would you think it would take to get meaningful revenues out of that therapy?
and Kirsten.
Thank you.
Speaker Change: This concludes our question-and-answer session. I would like to turn the conference back over to Charles Messman for any closing remarks So that's something that you know, because we don't have I want to thank everyone for joining us today We appreciate your little in the company as always Please reach out to us further questions the ball note that we'll be in New York next week I think what happens to be in New York is the last conference to reach out a very strong growth driver for us and it's something that we would see all of the year ahead. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect
Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to Charles Messman for any closing remarks. I want to thank everyone for joining us today. We appreciate your interest in the company. As always, please reach out to us if you have further questions. A note that we'll be in New York next week, so if anyone happens to be in New York at the Ross conference, please reach out. We'd love to sit and chat with you. And with that, have a great day everybody. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.