Phunware, Inc. (NASDAQ:PHUN) Q2 2023 Earnings Call Transcript

Darren Aftahi: Great. Thank you.

Operator: Thank you. Your next question is coming from Scott Buck from H.C. Wainwright. Scott, your line is live. Please go ahead.

Scott Buck: Hey, good afternoon, guys. I’m curious, you have some nice wins in the hospitality sector. I’m thinking Atlantis, Gaylord, when does this kind of location based services, when does it become mandatory to play in this kind of upscale resort space? I mean, when did the dominoes really start to fall in the industry?

Russell Buyse: Yes, that’s that is the question of the hour, isn’t it? Right. So in early stage markets, it’s all about trying to establish just one foot in front of the other, one win followed by the next And then you get this, you start to see the exponential growth kick in and then in a year or two after that then everybody thinks that they’ve got to have it because it’s just part of table stakes to be in the business that they’re in. So my guess is as good as yours, perhaps maybe a little bit better. But I think that what we’ll see is wins get stock up a little bit more in numbers and then also in bookings and then like by the middle of next year, I expect to see like a noticeable climb. And I don’t mean flat until then. I just mean we’ll start to see like the strong evidence of that climbing. I’m sorry.

Scott Buck: [Indiscernible] current assets that’s [indiscernible].

Russell Buyse: Sorry, someone is talking there in the background.

Troy Reisner: Yes, I didn’t catch that question either, Russ.

Russell Buyse: Yes, I was still in middle of answering a question about growth rates, did everyone here me up to that point?

Scott Buck: Sorry guys. That’s it from me. Thank you.

Russell Buyse: Okay. So we are expecting to see momentum start to build in the later part of the year. The last bit of information I’ll give there is among the new prospects that we see entering the pipeline, we’re finding that a higher proportion of them already have the awareness. They’re tending to the problem of the guest experience, of the patient experience, of the get lost problem, of the lost staff time in trying to give directions and the frustration that causes their visitors and guests and so we’re seeing a more informed set of customers that are coming into our pipeline.

Operator: Thank you. Your next question is, yes your next question is coming from Lucas Ward from Ascendiant. Lucas, your line is live. Please go ahead.

Lucas Ward: Okay thanks. Hi, guys. Yes, this is Lucas Ward in for Ed Woo. Good afternoon. Hello? Yes, so I was wondering if you could give an update on the PhunCoin and PhunToken platform. I’m just curious whether that’s, if there’s still sort of a development path for that that helps grow the company’s business?

Russell Buyse: Yes. Thanks for asking about that. That is definitely a part of our plan. Obviously, we are doing a little bit of a reset this quarter and kind of adjusting our pace of progress. We are still planning to issue PhunCoin this summer per our last quarter statement and you should be hearing more from us about this like in the coming weeks. But it is still part of the strategy and part of the product road map.

Lucas Ward: Okay, great. Thanks. And just one follow-up question. Back to the Thumper Pond win, I was curious just to have a little more color about how that came about, like which channel generated that?