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Phunware shifts toward long-term subscription revenue in full-year 2019 results; works to address technological needs caused by coronavirus

The company, which offers a fully integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands, brought in $19.2 million in net revenue

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Phunware provides Multiscreen-as-a-Service offerings, including engagement, management and monetization initiatives that help brands create category-defining mobile experiences

Phunware Inc (NASDAQ:PHUN) posted full-year 2019 results after the close on Monday, which revealed the enterprise cloud company transitioning from one-time transaction revenue to multi-year subscription and service revenue.

“Today we are pleased to share our trailing financial results for the company, which included a dramatic year-over-year revenue transformation from one-time, non-recurring application transactions revenue to annual and multi-year recurring platform subscriptions and services revenue tied to the licensing and use of our Multiscreen-as-a-Service (MaaS) enterprise cloud platform for mobile,” CEO Alan Knitowski said in the results statement.

READ: Phunware appoints former Wall Street star Blythe Masters as board chair

The company, which offers a fully integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands, brought in $19.2 million in net revenue in 2019, albeit down from $30.9 million the year prior.

Adjusted revenue from platform and subscription services was $17.2 million in 2019, roughly even year over year, but adjusted revenue from application transactions dropped to $1.9 million from $5.2 million. Overall, Phunware’s adjusted loss was $10.2 million, narrower than nearly $17 million in 2018.

Looking at 2020, the company said it has taken steps to address the ongoing coronavirus (COVID-19) pandemic.

”More importantly, and specific to the subsequent events and recent operational actions taken to address our go-forward business activities while the ongoing COVID-19 coronavirus pandemic continues to unfold worldwide, we have announced a $3 million structured debt financing to address our balance sheet and a furlough of 37 Phunware employees to address our cost structure during the existing governmental stay-in-place orders unique to our business facilities and operations in Central Texas, Southern California and Southern Florida,” Knitowski said.

Maintaining its customer contracts and going after new business, at a time when technologies like video communication and telemedicine are more necessary than ever to keep people connected, is the company's top priority, Phunware's CFO Matt Aune added. 

“While we are releasing our full year financial results for last year as part of today’s announcement and filing requirements, our executive team, board and staff are extremely hyper-focused on our existing and pending activities for the current and future quarters in light of the realities that we and all other businesses face with the unknown macro and operating environment unique to COVID-19,” Aune said. 

“We are executing against our existing customer contracts and are aggressively pursuing new business opportunities where our mobile, cloud, big data and remote expertise intersects directly with the needs of our Fortune 1000 customers, including remote telehealth and telemedicine triage for healthcare patient capacity management, virtual rallies for political advocacy during a presidential election year, remote work optimization for corporate campuses and social distance policy enforcement, communications and people and asset tracking for smart cities and government organizations at the local, state and federal level alike," he added.

Phunware, based in Austin, provides Multiscreen-as-a-Service (MaaS) offerings, including engagement, management and monetization initiatives that help brands create category-defining mobile experiences.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com 

Follow him on Twitter @andrew_kessel

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Price: 0.881 USD

NASDAQ:PHUN
Market: NASDAQ
Market Cap: $38.43 m
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