Smith Micro Software, Inc. (NASDAQ:SMSI) Q4 2022 Earnings Call Transcript

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James McIlree: Great. And I’ll just assume that you’re going to make me wait for those as well.

James Kempton: Yes, sir.

Operator: Your next question will come from Matthew Harrigan with The Benchmark.

Matthew Harrigan: Two questions, actually one on SafePath and one on ViewSpot. Firstly, I know you’re not going to comment on how the mystery Tier 1 mobile carrier is going to replace your product, but clearly, Family Safety is a priority for their business. But can you comment on how you feel about your IP stack? And I know there’s a lot of code that has to be written. It seems like it’s almost pretty inefficient to bump you, even if they had — especially if they had a particularly advantageous contract terms. I know that there’s sort of fixation with having things in-house, but even so, it’s a bit of a surprise to me. And then secondly, on ViewSpot, I mean, clearly, in marketing and advertising, attribution of purchase decisions is really the holy grail that everyone’s worked on for decades, and a lot of that is getting closer to fruition now.

But do you feel like you’re under marketing that product? And there could be a lot more growth if you weren’t so prioritized on getting to profitability overall and haven’t — addressing the noise and in the transition process around SafePath.

William Smith: Yes, Matt. Let me — I’ll take the first part, and I’ll let Charlie handle the second one. So the first part is the — we do not believe, based on what they’ve told us, that they are using a competitive product from a third-party software developer like us. We do believe that they are developing this internally. All the points you make, the fact that they were paying us the smallest amount, and now they have to absorb all of that cost. Yes, there’s lots of reasons to pause and wonder. But you know what, I have to run a business, and we have to get profitable. And we have to start growing, and we got to get our stock price up. So I can’t labor on that anymore. I am totally focused on making AT&T and T-Mobile deliriously happy with the product that they have.

And my goal is to make sure that both AT&T and T-Mobile dominate the space with Tier 1 carriers here in the U.S. And that’s what it’s all about. As far as the marketing stuff, Charlie, do you want to take a shot at that?

Charles Messman: Sure. Thanks, Matt. I think it’s fair to say that we actually do have quite an aggressive marketing campaign going on with ViewSpot. It actually is the same team. It is a bit more — it’s a little bit of a different play because we’re going after a broader market with ViewSpot. We’re not just going after the carriers now, we’re going after the retail setting, and ViewSpot has opened that up. And we’ll continue down that path. We’ve got a really good pipeline right now, and we’re really excited about ViewSpot. So I don’t see it as pulling one from the other. I think it’s both the same going forward, if that makes sense.

Operator: . This will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Charles Messman for any closing remarks. Please go ahead, sir.

Charles Messman: I just want to thank everyone for joining us today. We appreciate you taking the time. We remain very excited. We’re actually going to be at the ROTH conference here shortly. So if you happen to be there, please look us up. We look forward to talking to you, and please give us a call with further questions. And we’ll talk to you on our first quarter conference call not too far away. Have a great day, everybody. Thanks.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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