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New Customer Launches Drive 40% Revenue Growth for Software Subscriptions and Services
Strong Balance Sheet of $109.7 Million Powering R&D Activities in AI-Driven Customer Platform and Corporate Initiatives
AUSTIN, Texas, May 12, 2025 (GLOBE NEWSWIRE) -- Phunware, Inc. (“Phunware” or the “Company”) (NASDAQ: PHUN), a leader in enterprise cloud solutions for mobile applications, today reported financial results for the first quarter ended March 31, 2025.
Financial Highlights
Recent Business Highlights
Management Commentary
“The first quarter of 2025 was underscored by new customers and bookings and continued focus on our AI-related initiatives,” said interim CEO Stephen Chen. “First quarter revenues of $0.7 million and gross margin of 52% were driven by a 40% increase in Mobile software subscriptions and services with delivered customer projects. With an existing hospitality customer, we launched an integrated conference solution including dynamic wayfinding, mobile engagement messaging, events scheduling, and content management. With a well-known resort and entertainment venue customer, we launched our hospitality industry solution application to enhance guest experiences."
“Software bookings for the first quarter were $0.4 million and we continue to accelerate our pipeline while simultaneously shortening the sales cycle. With three new customers in the hospitality vertical during the first quarter, and a $0.5 million multi-location health care facility booking in the second quarter, we believe customer momentum continues to accelerate.”
“We were honored to appoint Quyen Du to our Board of Directors in February. Ms. Du brings 25 years’ experience in strategy and corporate development as an executive at Fortune 500 consumer brands. She has an impressive record of guiding strategic growth and will add tremendous expertise to our Board for Phunware investments, M&A and new business development strategies. We are happy to announce that Ms. Du was elected to three-year term at our most recent stockholders' meeting.”
“While we've seen some softness in the ad market, we are focused on new opportunities in that market and investing in marketing and research and development in generative and agentic AI initiatives, among others. We remain committed to reinforcing our core business units, identifying high-impact investment and M&A opportunities, driving operational excellence, and aligning our cost structure for long-term scalability. We are also committed to enhancing our team with experienced sales, marketing, and technology professionals to amplify market visibility and accelerate customer acquisition.”
“Looking ahead, we are developing additional features and functionalities for our existing products, including AI-related features such as AI Personal Concierge for hospitality customers and their guests and Intelligent Reporting for large real property owners. We expect to launch the initial AI Personal Concierge product in mid-2025. With our leadership position in mobile app development, combined with compelling new technology improvements and AI integration, we are executing on our strategic vision to deliver our solutions globally. I look forward to additional announcements and milestones in the months ahead,” concluded Chen.
Note about Non-GAAP Financial Measures
A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest expense (income), income tax expense, depreciation, and further adjusted for non-cash impairment, valuation adjustments and stock-based compensation expense. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides additional information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company’s internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.
| US-GAAP NET LOSS TO ADJUSTED EBITDA RECONCILIATION (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Net loss | $ | (3,723 | ) | $ | (2,292 | ) | ||
| Add back: Depreciation | 4 | 4 | ||||||
| Add back: Interest expense | 9 | 108 | ||||||
| Less: Interest income | (1,119 | ) | (140 | ) | ||||
| EBITDA | (4,829 | ) | (2,320 | ) | ||||
| Add back: Stock-based compensation | 86 | 630 | ||||||
| Less: Gain on extinguishment of debt | - | (535 | ) | |||||
| Adjusted EBITDA | $ | (4,743 | ) | $ | (2,225 | ) | ||
About Phunware
Phunware, Inc. (NASDAQ: PHUN) is an enterprise software company specializing in mobile app solutions with integrated intelligent capabilities. We provide businesses with the tools to create, implement, and manage custom mobile applications, analytics, digital advertising, and location-based services. Phunware is transforming mobile engagement by delivering scalable, personalized, and data-driven mobile app experiences.
Phunware’s mission is to achieve unparalleled connectivity and monetization through the widespread adoption of Phunware mobile technologies, leveraging brands, consumers, partners, digital asset holders, and market participants. Phunware is poised to expand its software products and services audience through a new Generative AI platform which is in development, utilize and monetize its patents and other intellectual property, and renewed focus on development of a digital asset ecosystem for existing holders and new market participants.
For more information on Phunware, please visit www.phunware.com. To better understand and leverage generative AI and Phunware’s mobile app technologies, visit ai.phunware.com.
Safe Harbor / Forward-Looking Statements
This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” and similar expressions are intended to identify forward-looking statements. For example, Phunware is using forward-looking statements when it discusses the adoption and impact of emerging technologies and their use across mobile engagement platforms. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. These forward-looking statements involve risks, uncertainties, and other assumptions that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in our filings with the SEC. We undertake no obligation to update any forward-looking statements.
By their nature, forward-looking statements involve risks and uncertainties. We caution you that forward-looking statements are not guarantees of future performance and that our actual results may differ materially from those expressed or implied by these forward-looking statements.
Investor Relations Contact:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
949-491-8235
[email protected]
www.mzgroup.us
Phunware Media Contact:
Joe McGurk, Managing Director
917-259-6895
[email protected]
| Phunware, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) | |||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Assets: | (Unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 109,719 | $ | 112,974 | |||
| Accounts receivable, net of allowance for credit losses of $264 and $166 as of March 31, 2025 and December 31, 2024, respectively | 697 | 276 | |||||
| Digital currencies | 82 | 103 | |||||
| Prepaid expenses and other current assets | 588 | 406 | |||||
| Total current assets | 111,086 | 113,759 | |||||
| Non-current assets: | |||||||
| Property and equipment, net | 20 | 24 | |||||
| Right-of-use asset | 770 | 840 | |||||
| Other assets | 158 | 158 | |||||
| Total non-current assets | 948 | 1,022 | |||||
| Total assets | $ | 112,034 | $ | 114,781 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 4,073 | $ | 3,754 | |||
| Accrued expenses | 492 | 148 | |||||
| Deferred revenue | 1,124 | 1,034 | |||||
| Lease liability | 320 | 313 | |||||
| PhunCoin subscription payable | 1,202 | 1,202 | |||||
| Total current liabilities | 7,211 | 6,451 | |||||
| Deferred revenue | 660 | 528 | |||||
| Lease liability | 537 | 619 | |||||
| Total noncurrent liabilities | 1,197 | 1,147 | |||||
| Total liabilities | 8,408 | 7,598 | |||||
| Commitments and contingencies (See Note 7) | - | - | |||||
| Stockholders' equity | |||||||
| Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 20,180,875 shares issued and 20,170,745 share outstanding as of March 31, 2025 and 20,166,665 shares issued and 20,156,535 shares outstanding as of December 31, 2024 | 2 | 2 | |||||
| Treasury Stock | (502 | ) | (502 | ) | |||
| Additional paid-in capital | 421,169 | 421,003 | |||||
| Accumulated deficit | (317,043 | ) | (313,320 | ) | |||
| Total stockholders' equity | 103,626 | 107,183 | |||||
| Total liabilities and stockholders' equity | $ | 112,034 | $ | 114,781 | |||
| Phunware, Inc. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share information) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| Net revenues | $ | 688 | $ | 921 | |||
| Cost of revenues | 329 | 397 | |||||
| Gross profit | 359 | 524 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 896 | 443 | |||||
| General and administrative | 3,464 | 2,471 | |||||
| Research and development | 813 | 484 | |||||
| Total operating expenses | 5,173 | 3,398 | |||||
| Operating loss | (4,814 | ) | (2,874 | ) | |||
| Other income (expense): | |||||||
| Interest expense | (9 | ) | (108 | ) | |||
| Interest income | 1,119 | 140 | |||||
| Gain on extinguishment of debt | - | 535 | |||||
| Other (expense) income, net | (19 | ) | 15 | ||||
| Total other income | 1,091 | 582 | |||||
| Loss before taxes | (3,723 | ) | (2,292 | ) | |||
| Income tax expense | - | - | |||||
| Net loss | (3,723 | ) | (2,292 | ) | |||
| Net loss per share, basic and diluted | $ | (0.18 | ) | $ | (0.33 | ) | |
| Weighted-average shares used to compute net loss per share, basic & diluted | 20,169,640 | 6,864,226 | |||||
| Phunware, Inc. Consolidated Statements of Cash Flows (In thousands) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| Operating activities | |||||||
| Net loss | $ | (3,723 | ) | $ | (2,292 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Gain on extinguishment of debt | - | (535 | ) | ||||
| Stock-based compensation | 86 | 630 | |||||
| Other adjustments | 132 | 329 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (444 | ) | (82 | ) | |||
| Prepaid expenses and other assets | (182 | ) | (11 | ) | |||
| Accounts payable and accrued expenses | 663 | (2,893 | ) | ||||
| Lease liability payments | (89 | ) | (185 | ) | |||
| Deferred revenue | 222 | (286 | ) | ||||
| Net cash used in operating activities from continued operations | (3,335 | ) | (5,325 | ) | |||
| Net cash used in operating activities from discontinued operations | - | (205 | ) | ||||
| Net cash used in operating activities | (3,335 | ) | (5,530 | ) | |||
| Investing activities | |||||||
| Net cash provided by (used in) investing activities | - | - | |||||
| Financing activities | |||||||
| Proceeds from sales of common stock, net of issuance costs | 80 | 23,204 | |||||
| Net cash provided by financing activities | 80 | 23,204 | |||||
| Effect of exchange rate on cash | - | (41 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | (3,255 | ) | 17,633 | ||||
| Cash and cash equivalents at the beginning of the period | 112,974 | 3,934 | |||||
| Cash and cash equivalents at the end of the period | $ | 109,719 | $ | 21,567 | |||
| Supplemental disclosure of cash flow information | |||||||
| Interest paid | $ | 9 | $ | 4 | |||
| Income taxes paid | $ | - | $ | 26 | |||
| Supplemental disclosures of non-cash financing activities: | |||||||
| Issuance of common stock upon conversion of the 2022 Promissory Note | $ | - | $ | 4,505 | |||
| Issuance of common stock for payment of bonuses and consulting fees | $ | - | $ | 35 | |||
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