Company Reports Sequential Revenue Growth and
$1.5 million of Cash Flow From Operations During the Quarter
Smith Micro Software, Inc. (Nasdaq: SMSI) (“Smith Micro” or the
“Company”) today reported financial results for its third quarter
ended September 30, 2023.
“Launching our flagship SafePath® platform at another Tier 1
carrier during the third quarter was a prerequisite to drive both
marketing investment and anticipated revenue growth with this
customer," said William W. Smith, Jr., president, chief executive
officer, and chairman of the board of Smith Micro. “In today’s
world, carriers recognize the strength and value our technology
provides for protecting their family subscribers, both in the
digital and physical worlds they face.”
“From a financial perspective, I am delighted that we exceeded
the cost reduction targets that we outlined back in March.” Smith
continued, “We created an aggressive plan that improved our gross
margins and further reduced operating expenses. We have executed
rigorously, and, although we have reported a GAAP net loss, we have
achieved non-GAAP profitability while generating cash flow from
operations during the third quarter.”
Third Quarter 2023 Financial Results
Smith Micro reported revenue of $11.0 million for the quarter
ended September 30, 2023, compared to $11.7 million reported in the
quarter ended September 30, 2022. Sequentially, revenue grew by
$0.7 million from the $10.3 million reported in the second quarter
of 2023.
Gross profit for the quarter ended September 30, 2023 was $8.5
million, compared to $8.1 million for the quarter ended September
30, 2022.
Gross profit as a percentage of revenue was 77 percent for the
quarter ended September 30, 2023, compared to 69 percent for the
quarter ended September 30, 2022.
GAAP net loss for the quarter ended September 30, 2023 was $5.1
million, or $0.08 loss per share, compared to GAAP net loss of $5.8
million, or $0.10 loss per share, for the quarter ended September
30, 2022.
Non-GAAP net income for the quarter ended September 30, 2023 was
$0.6 million, or $0.01 income per share, compared to non-GAAP net
loss of $4.9 million, or $0.09 loss per share, for the quarter
ended September 30, 2022. Non-GAAP net income and net loss excludes
the items noted below under "Non-GAAP Measures."
Third Quarter Year to Date 2023 Financial Results
Smith Micro reported revenue of $32.3 million for the nine
months ended September 30, 2023, compared to $37.1 million reported
in the nine months ended September 30, 2022.
Gross profit for the nine months ended September 30, 2023 was
$23.9 million compared to $26.2 million reported for the same
period in 2022.
Gross profit as a percentage of revenue was 74 percent for the
nine months ended September 30, 2023 compared to 71 percent for the
nine months ended September 30, 2022.
GAAP net loss for the nine months ended September 30, 2023 was
$17.7 million, or $0.28 loss per share, compared to GAAP net loss
of $21.3 million, or $0.39 loss per share, for the nine months
ended September 30, 2022.
Non-GAAP net loss for the nine months ended September 30, 2023
was $3.6 million, or $0.06 loss per share, compared to non-GAAP net
loss of $13.6 million, or $0.25 loss per share, for the nine months
ended September 30, 2022. Non-GAAP net loss excludes the items
noted below under "Non-GAAP Measures."
Total cash and cash equivalents as of September 30, 2023 were
$8.0 million.
Non-GAAP Measures
To supplement our financial information presented in accordance
with GAAP, the Company considers, and has included in this press
release, the following non-GAAP financial measures and a non-GAAP
reconciliation from the equivalent GAAP metric: non-GAAP net (loss)
income, non-GAAP gross profit, non-GAAP gross profit as a
percentage of revenue and non-GAAP diluted (loss) earnings per
share in the presentation of financial results in this press
release. Management believes this non-GAAP presentation may be more
meaningful in analyzing our income generation and has therefore
excluded the following items from GAAP earnings calculations: stock
compensation, intangibles amortization, depreciation, fair value
adjustments, amortization of debt issuance costs and
discount, and personnel severance and reorganization
activities. Additionally, since the Company currently has federal
and state net operating loss carryforwards that can be utilized to
reduce future cash payments for income taxes, these non-GAAP
adjustments have not been tax effected, and the resulting income
tax expense reflects actual taxes paid or accrued during each
period. This presentation may be considered more indicative of our
ongoing operational performance. The table below presents the
differences between non-GAAP net loss and net loss on an absolute
and per-share basis. Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information presented in compliance with GAAP, and the non-GAAP
financial measures as reported by Smith Micro may not be comparable
to similarly titled amounts reported by other companies.
Investor Conference Call
Smith Micro will hold an investor conference call today,
November 8, 2023, at 4:30 p.m. ET, to discuss the Company’s third
quarter 2023 financial results. To access the call, dial
1-844-701-1164; international participants can call 1-412-317-5492.
A passcode is not required to join the call; ask the operator to be
placed into the Smith Micro conference. Participants are asked to
call the assigned number approximately 10 minutes before the
conference call begins. An internet webcast is available at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=iYPh0ex6.
In addition, the conference call will be available on the Smith
Micro website in the Investor Relations section.
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile
experience, providing solutions to some of the leading wireless
service providers around the world. From enabling the family
digital lifestyle to providing powerful voice messaging
capabilities, our solutions enrich today’s connected lifestyles
while creating new opportunities to engage consumers via
smartphones and consumer IoT devices. The Smith Micro portfolio
also includes a wide range of products for creating, sharing, and
monetizing rich content, such as visual voice messaging, optimizing
retail content display and performing analytics on any product set.
For more information, visit www.smithmicro.com.
Smith Micro, the Smith Micro logo and SafePath are registered
trademarks or trademarks of Smith Micro Software, Inc. All other
trademarks and product names are the property of their respective
owners.
Forward-Looking Statements
Certain statements in this press release are, and certain
statements on the related conference call may be, forward-looking
statements regarding future events or results within the meaning of
the Private Securities Litigation Reform Act, including statements
related to our financial prospects, goals and other projections of
our outlook or performance and our future business plans, and
statements using such words as “expect,” “anticipate,” “believe,”
“plan,” “intend,” “could,” “will” and other similar expressions.
Forward-looking statements involve risks and uncertainties, which
could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. Among the
important factors that could cause or contribute to such
differences are customer concentration, given that the majority of
our sales depend on a few large customer relationships and the loss
of any of them could materially and negatively affect our business,
delay or failure of our customers to accept and deploy our products
and services or new or upgraded versions thereof, delay or failure
of our customers’ end users to adopt our products and services or
new or upgraded versions thereof, our reliance on third party
application stores for the distribution of our software
applications to users and any barriers to such distribution,
including any delay or failure of such third party to approve new
versions of our applications or their implementation and/or
application of policies that may be harmful to our business,
unanticipated delays or obstacles in our development and release
cycles, the degree to which competing business needs may affect our
allocation of resources to planned projects, the risk of harm to
our business resulting from our recent and any future cost
reduction efforts, our ability to attract and retain key technical
personnel that are essential to our product development and support
efforts, changes in demand for our products from our customers and
their end users, changes in requirements for our products imposed
by our customers or by the third party providers of software and/or
platforms that we use, our ability to effectively integrate, market
and sell acquired product lines, new and changing technologies and
customer acceptance and timing of deployment of those technologies,
our ability to compete effectively with other software and
technology companies, and the existence and terms of our
convertible notes and related agreements, including that they may
restrict our ability to obtain additional financing, and adversely
affect our business, financial condition and cash flows from
operations in the future. These and other factors discussed in our
filings with the Securities and Exchange Commission, including our
filings on Forms 10-K and 10-Q, could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements. The forward-looking statements
contained in this release are made on the basis of the views and
assumptions of management, and we do not undertake any obligation
to update these statements to reflect events or circumstances
occurring after the date of this release.
Smith Micro Software, Inc.
Consolidated Balance Sheets
(in thousands except share and par value
data)
September 30,
2023
December 31,
2022
(unaudited)
(audited)
Assets
Current assets:
Cash and cash equivalents
$
7,982
$
14,026
Accounts receivable, net of allowance for
doubtful accounts of $3 and $3 (2023 and 2022, respectively)
10,290
10,501
Prepaid expenses and other current
assets
2,940
1,983
Total current assets
21,212
26,510
Equipment and improvements, net
998
1,498
Right-of-use assets
2,686
3,722
Other assets
475
490
Intangible assets, net
31,901
36,320
Goodwill
35,041
35,041
Total assets
$
92,313
$
103,581
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
3,027
$
3,236
Accrued payroll and benefits
2,502
3,883
Current operating lease liabilities
1,434
1,441
Other current liabilities
1,714
1,589
Current portion of convertible notes
payable
3,456
9,007
Derivative liabilities
46
1,575
Total current liabilities
12,179
20,731
Non-current liabilities:
Warrant liabilities
1,278
3,317
Operating lease liabilities
1,787
2,976
Deferred tax liabilities, net
178
178
Total non-current liabilities
3,243
6,471
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share;
100,000,000 shares authorized; 70,384,838 and 56,197,910 shares
issued and outstanding (2023 and 2022, respectively)
70
56
Additional paid-in capital
376,057
357,875
Accumulated comprehensive deficit
(299,236
)
(281,552
)
Total stockholders’ equity
76,891
76,379
Total liabilities and stockholders'
equity
$
92,313
$
103,581
Smith Micro Software, Inc.
Consolidated Statement of
Operations
(in thousands except share data)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Revenues
$
11,001
$
11,699
$
32,269
$
37,108
Cost of revenues (including depreciation
of $12, $25, $40, and $85 in the three and nine months ended
September 30, 2023 and 2022, respectively)
2,528
3,629
8,400
10,882
Gross profit
8,473
8,070
23,869
26,226
Operating expenses:
Selling and marketing
2,449
2,986
8,631
9,687
Research and development
3,704
7,409
13,276
22,756
General and administrative
2,934
4,208
9,448
11,885
Depreciation and amortization
1,567
1,822
4,872
5,665
Total operating expenses
10,654
16,425
36,227
49,993
Operating loss
(2,181
)
(8,355
)
(12,358
)
(23,767
)
Other income (expense):
Change in fair value of warrant and
derivative liabilities
73
3,457
3,486
3,457
Loss on derecognition of debt
(1,583
)
—
(2,985
)
—
Interest expense, net
(1,443
)
(896
)
(5,740
)
(898
)
Other income (expense), net
15
9
(62
)
(22
)
Loss before provision for income taxes
(5,119
)
(5,785
)
(17,659
)
(21,230
)
Provision for income tax expense
14
27
25
77
Net loss
$
(5,133
)
$
(5,812
)
$
(17,684
)
$
(21,307
)
Loss per share:
Basic and diluted
$
(0.08
)
$
(0.10
)
$
(0.28
)
$
(0.39
)
Weighted average shares outstanding:
Basic and diluted
67,354
55,722
62,297
55,140
Smith Micro Software, Inc.
Consolidated Statements of Cash
Flows
(in thousands)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Operating activities:
Net loss
$
(5,133
)
$
(5,812
)
$
(17,684
)
$
(21,307
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,580
1,849
4,912
5,751
Non-cash lease expense
(82
)
(220
)
(160
)
(374
)
Non-cash transaction costs including
amortization of debt discount and issuance costs
1,343
1,422
5,398
1,422
Change in fair value of warrant and
derivative liabilities
(73
)
(3,457
)
(3,486
)
(3,457
)
Loss on derecognition of debt
1,583
—
2,985
—
Stock based compensation
1,341
1,095
3,316
3,849
Loss on disposal of assets
1
31
12
31
Changes in operating accounts:
Accounts receivable
1,581
2,083
208
1,108
Prepaid expenses and other assets
151
713
220
186
Accounts payable and accrued
liabilities
(682
)
(540
)
(2,224
)
(1,526
)
Other liabilities
(69
)
(15
)
553
(161
)
Net cash provided by (used in) operating
activities
1,541
(2,851
)
(5,950
)
(14,478
)
Investing activities:
Capital expenditures, net
(8
)
27
(5
)
(85
)
Other investing activities
—
11
71
94
Net cash (used in) provided by investing
activities
(8
)
38
66
9
Financing activities:
Proceeds from notes and warrants
offering
—
15,000
—
15,000
Proceeds from stock and warrants
offering
—
3,000
—
3,000
Stock, notes, and warrants offering
costs
—
(1,227
)
—
(1,227
)
Proceeds from financing arrangements
539
250
981
1,541
Repayments of financing arrangements
(514
)
(587
)
(1,156
)
(978
)
Other financing activities
7
21
15
56
Net cash provided by (used in) financing
activities
32
16,457
(160
)
17,392
Net increase (decrease) in cash and cash
equivalents
1,565
13,644
(6,044
)
2,923
Cash and cash equivalents, beginning of
period
$
6,417
$
5,357
$
14,026
$
16,078
Cash and cash equivalents, end of
period
$
7,982
$
19,001
$
7,982
$
19,001
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP
Results
(in thousands, except per share data) -
unaudited
GAAP
Stock Compensation
Intangibles
Amortization
Depreciation
Fair Value Adjustments
Amortization of Debt Issuance
Costs and Discount
Personnel Severance and
Reorganization Activities
Non- GAAP
Three Months Ended
September 30, 2023
Gross profit
$
8,473
$
—
$
—
$
12
$
—
$
—
$
—
$
8,485
Selling and marketing
2,449
(300
)
—
—
—
—
—
2,149
Research and development
3,704
(290
)
—
—
—
—
—
3,414
General and administrative
2,934
(749
)
—
—
—
—
—
2,185
Depreciation and amortization
1,567
—
(1,454
)
(113
)
—
—
—
—
Total operating expenses
10,654
(1,339
)
(1,454
)
(113
)
—
—
—
7,748
(Loss) income before provision for income
taxes
(5,119
)
1,339
1,454
125
1,510
1,343
—
652
Net (loss) income
(5,133
)
1,339
1,454
125
1,510
1,343
—
638
(Loss) earnings per share: basic
(0.08
)
0.02
0.02
—
0.02
0.02
—
0.01
(Loss) earnings per share: diluted
(0.07
)
0.02
0.02
—
0.02
0.02
—
0.01
Three Months Ended
September 30, 2022
Gross profit
$
8,070
$
—
$
—
$
25
$
—
$
—
$
—
$
8,095
Selling and marketing
2,986
(180
)
—
—
—
—
(49
)
2,757
Research and development
7,409
(279
)
—
—
—
—
—
7,130
General and administrative
4,208
(636
)
—
—
—
(630
)
(3
)
2,939
Depreciation and amortization
1,822
—
(1,545
)
(277
)
—
—
—
—
Total operating expenses
16,425
(1,095
)
(1,545
)
(277
)
—
(630
)
(52
)
12,826
(Loss) income before provision for income
taxes
(5,785
)
1,095
1,545
302
(3,457
)
1,421
52
(4,827
)
Net (loss) income
(5,812
)
1,095
1,545
302
(3,457
)
1,421
52
(4,854
)
(Loss) earnings per share: basic and
diluted
(0.10
)
0.02
0.03
0.01
(0.06
)
0.03
—
(0.09
)
Note: (Loss) earnings per share: basic and diluted - may be
impacted by rounding to allow rows to calculate.
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP
Results
(in thousands, except per share data) -
unaudited
GAAP
Stock Compensation
Intangibles
Amortization
Depreciation
Fair Value Adjustments
Amortization of Debt Issuance
Costs and Discount
Personnel Severance and
Reorganization Activities
Non-GAAP
Nine Months Ended
September 30, 2023
Gross profit
$
23,869
$
—
$
—
$
40
$
—
$
—
$
183
$
24,092
Selling and marketing
8,631
(653
)
—
—
—
—
(93
)
7,885
Research and development
13,276
(753
)
—
—
—
—
(471
)
12,052
General and administrative
9,448
(1,907
)
—
—
—
—
(210
)
7,331
Depreciation and amortization
4,872
—
(4,419
)
(453
)
—
—
—
—
Total operating expenses
36,227
(3,313
)
(4,419
)
(453
)
—
—
(774
)
27,268
(Loss) income before provision for income
taxes
(17,659
)
3,313
4,419
493
(501
)
5,397
957
(3,581
)
Net (loss) income
(17,684
)
3,313
4,419
493
(501
)
5,397
957
(3,606
)
(Loss) earnings per share: basic and
diluted
(0.28
)
0.05
0.07
0.01
(0.01
)
0.09
0.02
(0.06
)
Nine Months Ended
September 30, 2022
Gross profit
$
26,226
$
2
$
—
$
85
$
—
$
—
$
—
$
26,313
Selling and marketing
9,687
(336
)
—
—
—
—
(769
)
8,582
Research and development
22,756
(808
)
—
—
—
—
—
21,948
General and administrative
11,885
(2,124
)
—
—
—
(630
)
(3
)
9,128
Depreciation and amortization
5,665
—
(4,766
)
(899
)
—
—
—
—
Total operating expenses
49,993
(3,268
)
(4,766
)
(899
)
—
(630
)
(772
)
39,658
(Loss) income before provision for income
taxes
(21,230
)
3,270
4,766
984
(3,457
)
1,421
772
(13,474
)
Net (loss) income
(21,307
)
3,270
4,766
984
(3,457
)
1,421
772
(13,551
)
(Loss) earnings per share: basic and
diluted
(0.39
)
0.06
0.09
0.02
(0.06
)
0.03
0.01
(0.25
)
Note: (Loss) earnings per share: basic and diluted - may be
impacted by rounding to allow rows to calculate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108029866/en/
IR INQUIRIES: Charles Messman Investor Relations
949-362-5800 IR@smithmicro.com
Smith Micro Software (NASDAQ:SMSI)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Smith Micro Software (NASDAQ:SMSI)
Gráfica de Acción Histórica
De May 2023 a May 2024