Smith Micro Software, Inc. (NASDAQ:SMSI) Q1 2024 Earnings Call Transcript

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In Europe, as I mentioned earlier, we expect to launch our Tier 1 carrier partner there in the back half of this year. This family safety solution will be a unique go-to-market approach for SafePath, which we think will drive demand, opening the door for new contracts with other carriers throughout the world. I look forward to providing you with additional insights on this contract later this year. There is much more to come regarding this carrier and the approach that they’re taking to digital family safety. Finally, as I discussed in my opening remarks, we are thrilled to be partnering with DISH for our first delivery of SafePath Global. We believe that the robust go-to-market strategies for this product will position us to see meaningful revenue growth in the near term.

There is excellent alignment with DISH on all the different channels available to promote the solution. We also have enormous flexibility to conduct multiple marketing and feature enrichment activities, which is part of the design of SafePath Global. This gives us the latitude to move rapidly on numerous fronts. Some examples deem the ability to test new pricing models, accelerating updates to the app, new AB testing initiatives and the ability to deliver a fast app-store road map as we add new features and functionality. We also believe that there is a strong demand for this type of deployment of family safety solutions via SafePath Global throughout the world, particularly as we see more and more global demand for children’s online safety.

Our pipeline remains robust not just for SafePath Global opportunities, but across the entire product suite. We have already announced two new carrier wins for SafePath, and we believe more will follow throughout 2024. We have trial programs currently underway as well as in the planning stages at multiple carriers. With new innovative product development initiatives, we are planning to deploy this year. We will bring new technological advancements to the SafePath platform from SafePath Premium and AI-driven tool that will add cyberbullying and social media monitoring to our SafePath family functionality, while also providing physical location intelligence that opens a new market for us. To SafePath OS which will offer another unique go-to-market strategy building from our strong relationships with OEM partners and device teams at carriers around the world.

These enhancements to the SafePath platform reflects a new era of innovation and ingenuity at Smith Micro, which will build a great foundation for 2024 and beyond while offering a path to higher ARPUs for our partners and will provide access to exciting new features to our existing customer base. Additionally, these pioneering products will provide our sales team with a broader portfolio to sell into new and existing customers with a modular deployment strategy to better fit the specific needs of these carriers. We believe we are driving toward a meaningful subscriber growth across multiple carrier customers in the back half of the year. Success should lead to profitability and cash generation in Q4. We realize there has been a lot packed into our remarks today, including the additional color on our recent customer wins, such as the DISH SafePath global deployment in addition to the abundance of sales and marketing activities underway, including recently launched affiliate and influencer program to align the company on a growth trajectory, and to return to profitability.

The team at Smith Micro is extremely dedicated and motivated to the mission to bring new innovative solutions to the market and delivering the technology necessary to keep family safe in the world we live in today. We have a plan in place, and we’ll continue to drive forward to achieve these goals. With that, operator, we can open the call for questions.

Operator:

Charles Messman: Thanks, everybody, for joining. Should you have further questions, please feel free to reach out to us here, and we look forward to speaking to you on another call. Thanks, everybody.

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

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