Phunware (PHUN) Q2 2024 earnings summary

Executive summary

• Achieved 100% customer retention in Q2 2024, with SaaS bookings surging 623% year-over-year and 1H24 bookings up 939% year-over-year.

• Q2 2024 revenue was $1.0 million, up 10% sequentially but down 21.9% year-over-year, with gross margin improving to 46.5%.

• Net loss narrowed by 60% to $2.6 million ($0.32/share) in Q2 2024, a significant improvement from $6.5 million ($3.10/share) in Q2 2023.

• Added to the FTSE Russell Microcap Index and appointed a strategic advisor to drive hospitality growth.

• Completed wind-down of Lyte Technology segment, now classified as discontinued operations.

Financial highlights

• Software bookings increased 623% in Q2 2024 and 939% for the six months ended June 30, 2024, versus prior year periods.

• Q2 2024 gross profit was $470,000, with gross margin at 46.5%; six-month gross profit rose 63% year-over-year to $994,000.

• Operating expenses for Q2 2024 were $3.4 million, down 48.6% year-over-year; adjusted EBITDA for Q2 2024 was $(2.2) million, improved from $(4.5) million in Q2 2023.

• Cash balance as of June 30, 2024, was $20.4 million, up from $3.9 million at year-end 2023, with $16.2 million raised in July via ATM share sales.

• No debt outstanding as of June 30, 2024; $4.3 million in borrowings paid down during 1H24.

Outlook and guidance

• Management expects continued operating losses and negative cash flows as investments in growth and product development continue.

• Sufficient cash on hand is expected to fund operations for at least one year following the report date.

• Anticipates continued growth in hospitality and new market penetration, including M&A activity and R&D focus on larger markets.