Phunware, Inc. (NASDAQ:PHUN) Q1 2024 Earnings Call Transcript

Operator: The next question today is coming from Howard Halpern from Taglich Brothers.

Howard Halpern: Hello. Congratulations on the start to the year. In the press release, in the supplemental information, how should we look at as you grow revenues, the breakdown between subscription and services and application transaction going forward, especially with a lot of the action occurring in the second half of the year?

Mike Snavely: Sure. It’s Mike again, and let me speak to our — so we’re focusing very much on our SaaS business. And so that’s one to three year contracts for a software license fee. We do have an application transactions business, which is re-occurring, and not necessarily recurring, from the standpoint of renewal revenue. That’s going to be largely the same, with probably a slight increase in ’24 over ’23. But we’re very much focused on growth in the SaaS business. When I think about services, and that’s really just work for higher services or one-time project work, that will be a very trivial amount of our revenues moving forward.

Operator: The next question today is coming from Ed Woo from Ascendiant Capital.

Edward Woo: Yes, congratulations on the quarter. My question is on the competitive environment. Have you seen any change in competition? And how do you think the sales cycle is going to go throughout this year? Thank you.

Mike Snavely: Thanks Ed. I mean the competitors are who they’ve generally been. I mean there are a number of what I characterize as small app companies that are building wayfinding and other kinds of apps for hospitality. Most of those are very small companies, and we’re not seeing any difference in who they are or in their win rates against us. We’re kind of seeing the same old story. Now what we’re finding is that our ability to start to access multiple properties and portfolios of properties is increasing. So by engaging at the operator level, where they may have, you know, a handful to dozens of properties, we’re able to go in and tell a more interesting, nuanced, and compelling story about generating a delightful guest experience across the entire portfolio.

And that is something that we’re not seeing a lot of the same competitors doing. And I’ll leave it at that. We hope to have some some additional material announcements on that particular prong of our go-to-market market strategy in the next quarter or two.

Operator: Thank you. And there were no other questions in queue at this time. And this does conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.