Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We believe that we're going to be in a position to put the company back on a solid financial footing |
| Our traction with some of the largest brands in hospitality combined with our existing integration with Epic, the number one EMR provider in the US, it puts us in a great position to deepen those relationships with embedded software |
| Why do I believe that? First, the product is strong |
| Prospectively, our account health indicators are strong with substantial upsells in the pipeline |
| We believe our pipeline and partner strength are good indicators of future bookings performance as we continue to drive discipline into the sales process |
| Further, the companion product, location marketing, think offers triggered by a combination of who you are and where you are is delivering value to customers today with increasing adoption |
| Our technology in the area of indoor wayfinding is demonstrably superior to that of major competitors like Aruba Meridian and more, according to customers and prospects who have evaluated them head-to-head |
| And I wouldn't be here unless I believe that we have a strong likelihood of success |
| This triangle of value serves as the foundation of our unique proposition that monetizes anyone anywhere, while preserving the value of the consumer’s data |
| In my short time back at Phunware, I've learned a lot and I'll highlight a few accomplishments in the past quarter to illustrate where we are |
| We believe this opens the door to additional business at Marriott branded properties along the lines of our relationship with Gaylord Hotels, which should result in more logos coming from this, the largest hotel chain in the world |
| Now beyond the initial sale, which is typically going to be a fixed contract, annual fee for a term of typically three to five years, we are pretty frequently seeing upsell opportunities in both segments of the business |
| So I've had the opportunity to say no, twice, to Phunware, and here I am because I believe our best days are ahead of us |
| Finally, we are seeing the beginnings of a turnaround in our new logo acquisition as our account-based marketing approach takes hold |
| Our vision is to drive the ubiquitous adoption of Phunware technologies to connect brands, audiences and soon our digital asset holders |
| So, when I was approached to return as the Company's CRO, I embraced this opportunity to get the Company back on track and to finish the mission |
| And then in the hospitality segment, we'll often see, opportunities for us to create more digital engagement with the guest by adding additional features into the application |
| We believe that we're going to be able to be fairly definitive about that within the fourth quarter here, which really means in the next few weeks |
| Happy to do that |
| The initial cost reductions steps we took during Q3 decreased our average monthly operating expense to about $1.5 million which for the quarter with a cash savings of approximately $1.5 million or 25% |
| We will remain active with both financial conferences and investor meetings and our efforts to tell our story and further strengthen our corporate profile in the capital markets |
| In fact, I'm going to be bringing some of the old band back, who are instrumental in helping us drive to the $25 million number that I mentioned earlier on the call |
| Appreciate the call |
| As a result of our streamlined operations in team's ability to successfully work remotely, we've also negotiated an early lease termination of our San Diego office space effective October 31 |
| These partners and others see what we see, a synergy between their hardware and systems integration work and our consumer facing mobile applications |
| Ed Woo Thank you for answering my questions and I wish you good luck |
| We continue to monitor the recent digital assets, regulatory and enforcement actions particularly around utility tokens and are working hard to ensure our ecosystem remains compliant with the evolving regulatory framework |
| We believe we need to do a better job of exposing the value we believe exists within our IP portfolio, and we are taking steps to highlight its value under different scenarios |
| We will continue to move toward creating a decentralized data and engagement economy to put consumers and small businesses in charge of their data and enable customers to reach and engage with them on a mutually beneficial basis |
| Howard Halpern Good afternoon, guys |
| Statement |
|---|
| Upon my return, I found that the technology was sound as ever, the customers we have were happy renewing and buying more, and that the basic issue was a failure of sales execution and a need to think more deeply about how we can monetize our technology advancements |
| Our platform gross margin was 50.4% compared to 46.5% last year, and hardware gross margin was negative 28.3% compared to 6% last year, which is reflective of the inventory write-down at Lyte |
| Why did we pause? The regulatory uncertainty for digital assets, including utility tokens and NFT projects, has been disruptive to our ecosystem |
| A significant impact to Q3's gross margin was a non-cash write-down of Lyte inventory of approximately $500,000 |
| Additionally, as it pertains to cost containment, as previously announced we are winding down our light business, which was non-core and consuming cash |
| Backlog and deferred revenue at the end of the quarter totaled approximately $4.8 million, slightly down quarter-over-quarter from $5.2 million |
| It's the performance of that software business has not been what anybody expected |
| Non-GAAP Adjusted EBITDA loss was $4.3 million compared to a loss of $6.7 million last year |
| Net loss was approximately $19 million or $0.16 per share, compared to a net loss of approximately $8 million or $0.08 per share last year |
| We've also reduced staff headcount overall and Troy will talk more in detail about those numbers, but we preserved many of the key people who formed the brain trust of Phunware technology |
| And then second, on Lyte, I guess I'm a little confused by the commentary on the call |
| Adjusted EBITDA loss was narrowed for the fourth consecutive quarter as we continue executing against our plan to right size our cost structure |
| However, we do expect a significant direct net cash burn related to Lyte to cease by the end of November |
| Examples include restructuring our SaaS product sales, delivery and service model, As Mike mentioned, we have kept our people with the ability to scale other resources as needed |
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