Phunware revenue jumps as company invests in AI-led growth strategy

Mobile-first enterprise software company Phunware Inc (NASDAQ:PHUN, FRA:2RJA) said on Thursday it is accelerating its transformation into an AI-enabled guest intelligence platform, as new leadership and a strong cash position support investments aimed at expanding its hospitality business and entering adjacent markets.

The company, which provides location-aware mobile engagement technology for hospitality, healthcare and other physical venues, said it is focused on executing its "2.0 Strategy" following the appointment of Dmitry Kroshka as CEO in May.

Kroshka said the company is building a platform that helps hospitality operators engage with guests in real time by combining mobile applications, location technology and artificial intelligence.

"Our focus has been on translating our technology, expertise, customer relationships and strong balance sheet into disciplined execution of our 2.0 Strategy," he said, adding that the company sees opportunities to expand beyond hospitality into healthcare and other complex physical environments.

Phunware ended the second quarter with $92.1 million in cash and cash equivalents and no debt, giving it flexibility to continue investing in product development, intellectual property and growth initiatives.

The company has expanded its leadership team in recent months, hiring hospitality technology executives Nick Farrell and Brent McMahan to strengthen sales while bringing in AI product specialist Michael Cerdá and his Build Something Product Group to accelerate product development.

Phunware said its AI Concierge product, launched in January, continues to generate stronger-than-expected customer engagement and was among the products showcased alongside its AI Itinerary Builder and forthcoming Location-Aware Data Layer at the Hospitality Industry Technology Exposition and Conference (HITEC) earlier this year.

The company also said its trailing 12-month customer retention rate remained above 95%.

Second-quarter revenue rose 76% to $0.8 million from a year earlier, although the company said the comparison was affected by a customer-initiated early contract termination in the prior period. Gross margin improved to 69% from 41.8%.

Net loss widened to $5.2 million from $3.1 million a year earlier as the company increased spending on product development, sales and marketing, research and development, and other initiatives supporting its strategic transformation.

Looking ahead, Kroshka said Phunware plans to increase investor engagement through regular updates, webinars and conference appearances as it advances its AI-focused growth strategy. The company believes its unified guest intelligence platform can create new revenue opportunities for customers while positioning Phunware for long-term growth across multiple industries.