On Thursday, May 9, 2024, PHUN reported its earnings after the market closed, revealing an earnings per share (EPS) of -$0.00033, which was significantly better than the estimated -$0.46. However, the company’s revenue stood at $921,000, falling short of the expected $1.2 million. This announcement was part of Phunware, Inc.’s (NASDAQ:PHUN) Q1 2024 Earnings Conference Call, which included insights from CEO Mike Snavely and CFO Troy Reisner, as well as questions from analysts from notable firms such as Roth Capital Partners and H.C. Wainwright & Co., as reported by Seeking Alpha.
During the earnings call, CEO Mike Snavely highlighted the company’s achievements, including new logo sales, increased gross margins, and an improvement in its strategic financial position. These accomplishments are particularly noteworthy given the company’s focus on patented wayfinding and mobile engagement solutions. The reported net revenues of $0.9 million, a 5% increase over the company’s internal plan for Q1 2024, and a significant improvement in gross margin to 56.9% from just 5.4% in the first quarter of 2023, underscore the company’s progress in enhancing its financial health and operational efficiency.
The financial details provided further illustrate the company’s journey towards stability and growth. The net loss decreased to $2.3 million from $4.3 million in the same period last year, and the EPS improved to $(0.33) from $(2.07) in Q1 2023.
These figures indicate a solid foundation for Phunware to build upon as it continues to engage, manage, and monetize mobile engagement solutions for brands globally. The gross profit for the quarter was around $524,000, with the operating income also reflecting a loss of $2.29 million, which aligns with the company’s reported net loss and negative EBITDA of $2.29 million, which represents a decrease in losses compared to the $4.3 million reported in Q1 2023.
Despite the revenue falling short of expectations, the significant improvement in EPS and gross margins, along with the reduction in net loss, reflect Phunware’s strategic efforts to improve its financial position and operational efficiency. The company’s focus on increasing sales, enhancing product offerings, and managing costs effectively has begun to yield positive results, setting a promising trajectory for future growth and stability.