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Phunware Inc (PHUN)
NASDAQ:PHUN
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Phunware
(NASDAQ:PHUN)
39Underperform
Positive Factors
AI Development
The development of a generative AI-based platform for custom mobile applications is seen as a positive for small and medium businesses.
Balance Sheet
Improved financials and balance sheet stability provide a platform for future growth, with meaningful reductions in operating expense and cash burn.
Negative Factors
Leadership Changes
A surprise retirement means the company has moved on to its fourth Chief Executive Officer in two years.
Phunware (PHUN) vs. S&P 500 (SPY)
Market Cap
$57.69M
Dividend YieldN/A
Average Volume (3M)420.76K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees25
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-18.36
Shares Outstanding20,170,746
10 Day Avg. Volume367,171
30 Day Avg. Volume420,756
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.40
Price to Cash Flow (P/CF)-5.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside109.79% Upside
Rating ConsensusHold
Number of Analyst Covering0
Phunware Business Overview & Revenue Model
Company DescriptionPhunware, Inc. engages in the development of a Multiscreen-as-a-Service platform, an enterprise cloud platform for mobile. It provides companies the products, solutions, data, and services necessary to engage, manage, and monetize mobile application portfolios and audiences at scale. Its platform also allows for the licensing and creation of category-defining mobile experiences for brands and their application users worldwide. The company was founded by Alan S. Knitowski and Luan Dang in February 2009 and is headquartered in Austin, TX.
How the Company Makes MoneyPhunware makes money primarily through its enterprise cloud platform for mobile, which generates revenue from software licensing, software development, and support. The company offers a range of services including mobile advertising, where it earns revenue through ad placements and data monetization by leveraging user data for targeted marketing. Additionally, Phunware provides location-based services, which attract clients needing precise location analytics and engagement solutions. Key revenue streams include long-term contracts with enterprise customers, subscription fees for its platform services, and strategic partnerships with other technology providers to enhance its mobile solutions.
Phunware Financial Statement Overview
Summary
Phunware faces substantial financial challenges with declining revenue, significant losses, and reliance on financing. Despite improvements in asset management and cash reserves, unprofitable operations persist.Income Statement
Phunware's income statement reflects significant challenges, with declining revenue and substantial negative net income. The TTM (Trailing-Twelve-Months) shows a negative gross profit margin due to negative total revenue, and consistent losses in EBIT and EBITDA margins highlight ongoing profitability issues. Despite these challenges, slight improvements in gross profit are notable.20
Very Negative
Balance Sheet
The balance sheet shows a relatively stable liquidity position with substantial cash reserves and a positive stockholders' equity in the latest TTM. However, a concerning debt-to-equity ratio and negative equity in previous periods indicate a risky financial structure. The equity ratio has improved significantly recently, suggesting better asset management.35
Negative
Cash Flow
Cash flow remains a critical issue, with negative free cash flow and operating cash flow across periods. The company has been heavily reliant on financing activities to support its operations, as shown by fluctuating financing cash flows. The inability to generate positive free cash flow presents a significant risk to financial stability.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| -3.60M | 4.83M | 21.79M | 10.64M | 10.00M | 19.15M | Gross Profit |
| 1.99M | 1.69M | 5.08M | 3.61M | 6.64M | 10.13M | EBIT |
| -20.27M | -45.69M | -27.44M | -16.84M | -13.00M | -12.31M | EBITDA |
| -19.31M | -40.10M | -42.97M | -49.23M | -18.63M | -11.96M | Net Income Common Stockholders |
| -30.70M | -52.78M | -50.89M | -53.52M | -22.20M | -12.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 844.00K | 3.93M | 1.96M | 23.14M | 3.94M | 276.00K | Total Assets |
| 36.88M | 6.73M | 56.80M | 99.29M | 31.84M | 29.05M | Total Debt |
| 1.99M | 6.60M | 13.72M | 6.45M | 8.39M | 1.10M | Net Debt |
| 1.15M | 2.66M | 11.77M | -16.69M | 4.45M | 829.00K | Total Liabilities |
| 31.05M | 18.18M | 31.91M | 34.02M | 33.81M | 25.03M | Stockholders Equity |
| 5.83M | -11.46M | 24.88M | 65.28M | -1.98M | 4.03M |
| Cash Flow | Free Cash Flow | ||||
| -7.92M | -18.43M | -28.02M | -63.80M | -10.97M | -6.21M | Operating Cash Flow |
| -13.12M | -18.43M | -26.83M | -22.51M | -10.97M | -6.19M | Investing Cash Flow |
| -1.00K | 15.38M | -2.29M | -46.38M | 0.00 | 70.00K | Financing Cash Flow |
| 45.69M | 4.97M | 8.05M | 88.02M | 14.60M | 99.00K |
Phunware Technical Analysis
Negative
2.86
Price Trends
4.05
Negative
4.93
Negative
4.72
Negative
Market Momentum
-0.32
Negative
35.24
Neutral
28.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHUN, the sentiment is Negative. The current price of 2.86 is below the 20-day moving average (MA) of 3.19, below the 50-day MA of 4.05, and below the 200-day MA of 4.72, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 35.24 is Neutral, neither overbought nor oversold. The STOCH value of 28.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHUN.
Phunware Risk Analysis
Phunware disclosed 74 risk factors in its most recent earnings report. Phunware reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Phunware Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.73B | 87,766.67 | -0.25% | ― | 14.50% | ― | |
66 Neutral | $26.76B | 69.11 | 15.37% | ― | 25.63% | 118.49% | |
66 Neutral | $351.77M | ― | -101.69% | ― | -15.51% | -54.09% | |
65 Neutral | $1.80B | 90.84 | 3.10% | ― | 7.82% | ― | |
58 Neutral | $21.86B | 10.10 | -18.37% | 2.42% | 4.91% | -23.24% | |
47 Neutral | $116.39M | ― | -365.12% | ― | -13.43% | 15.63% | |
39 Underperform | $57.69M | ― | -105.39% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
PHUN
Phunware
2.86
-7.60
-72.66%
RAMP
LiveRamp Holdings
26.33
-7.38
-21.89%
MGNI
Magnite
12.60
1.31
11.60%
APPS
Digital Turbine
3.35
0.53
18.79%
TTD
Trade Desk
53.94
-24.41
-31.16%
VERI
Veritone
2.61
-0.84
-24.35%
Phunware Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -55.45% | Next Earnings Date: Mar 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in bookings, gross margin, and a substantial increase in cash reserves while maintaining a debt-free status. However, there was a decline in net revenues and a continuing non-GAAP adjusted EBITDA loss. Overall, while there are positive strides in financial health and strategic positioning, the decline in revenues indicates challenges that need addressing.Highlights
Significant Increase in Software Subscriptions and Service Bookings
Year-to-date software subscriptions and service bookings for the 9 months ended September 30 increased nearly 300% to $2.2 million in 2024 compared to $600,000 in 2023.
Improved Gross Margin and Reduced Operating Expenses
Gross margin improved to 51% in 2024 from 32% in 2023, with non-GAAP gross margin reaching 56% compared to 43% in 2023. Additionally, operating expenses decreased by approximately 28% year-over-year.
Substantial Cash Increase and Debt-Free Status
Phunware closed the quarter with approximately $35.6 million in cash and no debt, with cash reserves boosted to approximately $100 million as of November 6, 2024.
Significant Improvement in Net Loss
Net loss from continuing operations improved by 96% to $2.8 million in Q3 2024 from $13.7 million in Q3 2023.
Lowlights
Decline in Net Revenues
Net revenues for Q3 2024 were approximately $665,000, down from $1.3 million in Q3 2023. Year-to-date net revenues also decreased from $3.9 million in 2023 to $2.6 million in 2024.
Non-GAAP Adjusted EBITDA Loss
Non-GAAP adjusted EBITDA loss was approximately $2.9 million in Q3 2024, compared to a loss of $3.3 million in Q3 2023.
Company Guidance
During the Phunware Q3 2024 earnings call, the company provided comprehensive guidance on its strategic direction and financial performance. Phunware's year-to-date software subscriptions and service bookings increased by nearly 300% to $2.2 million compared to $600,000 in 2023. The company's gross margin also improved to 51% in 2024 from 32% in 2023. Operating expenses decreased by 28% in Q3 2024 compared to Q3 2023, excluding a goodwill impairment expense in the previous year. The non-GAAP adjusted EBITDA loss was approximately $2.9 million for Q3 2024, showing a significant improvement from a $3.3 million loss in the same quarter of 2023. Phunware ended the quarter with $35.6 million in cash and no debt, bolstered by its at-the-market equity program, which raised gross proceeds of $16.8 million. Subsequent to the quarter, the company raised an additional $79.8 million, bringing its cash reserves to approximately $100 million. This strong financial position supports Phunware's strategic focus on integrating AI into mobile solutions and targeting enterprise and federal government contracts, with expectations to launch a next-generation AI-driven SaaS platform by mid-2025.Phunware Corporate Events
Private Placements and Financing
Phunware Ends $30 Million Stock Sale Agreement
Neutral
Oct 28, 2024
Phunware, Inc. terminated its Purchase Agreement with Lincoln Park Capital Fund, LLC, which allowed the sale of up to $30 million in common stock. Over the agreement’s term, Phunware sold 164,106 shares, generating approximately $978,000 in proceeds. Termination was effective on October 25, 2024, with some provisions remaining in effect.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.