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• Content META

  Title	Smith Micro Reports Fourth Quarter and Fiscal Year 2024 Financial Results
  ID	7625487
  External ID	7618534538
  Author	Tue Mar
  Published Date	March 11, 2025, 3:11 p.m.
  Summary	Smith Micro Software, Inc. ( Nasdaq: SMSI ) (“Smith Micro” or the “Company”) today reported financial results for its fourth quarter and fiscal year ended December 31, 2024. “Looking back on 2024, it
  Tags	press-release
  URL	http://sogotradedev.websol.barchart.com/?module=topnews&storyid=31354473
  Sentiment	Negative: 0.28194    Neutral: 0.55758    Positive: 0.16048
  Relevance	0.04321

• Content Details

  Content ID	4930733
  Key	75ee8b88-7dcd-4291-966f-405535ae82d9
  Content	Smith Micro Software, Inc. ( Nasdaq: SMSI ) (“Smith Micro” or the “Company”) today reported financial results for its fourth quarter and fiscal year ended December 31, 2024. “Looking back on 2024, it was a transformative year for Smith Micro as we addressed challenges head-on and developed new innovations that have ignited a renewed focus for the Company. We are seeing excitement – both within the company and among our customers and prospects – for the opportunities that we are creating with the latest expansion of our SafePath ® platform,” said William W. Smith, Jr., president, chief executive officer, and chairman of the board of Smith Micro. Fourth Quarter 2024 Financial Results Smith Micro reported revenue of $5.0 million for the quarter ended December 31, 2024, compared to $8.6 million reported in the quarter ended December 31, 2023. Gross profit for the quarter ended December 31, 2024 was $3.8 million, compared to $6.4 million for the quarter ended December 31, 2023. Gross profit as a percentage of revenue was 75.6 percent for the quarter ended December 31, 2024, compared to 74.9 percent for the quarter ended December 31, 2023. GAAP net loss for the quarter ended December 31, 2024 was $4.4 million, or $0.25 loss per share, compared to GAAP net loss of $6.7 million, or $0.74 loss per share, for the quarter ended December 31, 2023. Non-GAAP net loss for the quarter ended December 31, 2024 was $1.9 million, or $0.11 loss per share, compared to non-GAAP net loss of $1.7 million, or $0.18 loss per share, for the quarter ended December 31, 2023. Non-GAAP net loss excludes the items noted below under "Non-GAAP Measures." All share and per share amounts for common stock herein have been retroactively adjusted for all periods presented to give effect to the one-for-eight reverse stock split of our common stock, which became effective April 10, 2024 at 11:59 pm Eastern time. Smith Micro reported revenue of $20.6 million for the twelve months ended December 31, 2024, compared to $40.9 million reported in the twelve months ended December 31, 2023. Gross profit for the twelve months ended December 31, 2024 was $14.4 million compared to $30.3 million reported for the same period in 2023. Gross profit as a percentage of revenue was 70.2 percent for the twelve months ended December 31, 2024 compared to 74.2 percent for the twelve months ended December 31, 2023. GAAP net loss for the twelve months ended December 31, 2024 was $48.7 million, or $3.94 loss per share, compared to GAAP net loss of $24.4 million, or $3.01 loss per share, for the twelve months ended December 31, 2023. Total cash and cash equivalents as of December 31, 2024 were $2.8 million. Non-GAAP Measures To supplement our financial information presented in accordance with GAAP, the Company considers, and has included in this press release, the following non-GAAP financial measures and a non-GAAP reconciliation from the equivalent GAAP metric: non-GAAP net loss, non-GAAP gross profit, and non-GAAP basic and diluted loss per share in the presentation of financial results in this press release. Management believes this non-GAAP presentation may be more meaningful in analyzing the Company's income generation and has therefore excluded the following items from GAAP earnings calculations: stock compensation, intangibles amortization, depreciation, fair value adjustments, amortization of debt issuance costs and discount, goodwill impairment, personnel severance and reorganization activities, and adjustment for non-recurring items. Additionally, since the Company currently has federal and state net operating loss carryforwards that can be utilized to reduce future cash payments for income taxes, these non-GAAP adjustments have not been tax effected, and the resulting income tax expense reflects actual taxes paid or accrued during each period. This presentation may be considered more indicative of the Company's ongoing operational performance. The table below presents the differences between non-GAAP net loss and net loss on an absolute and per-share basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and the non-GAAP financial measures as reported by Smith Micro may not be comparable to similarly titled amounts reported by other companies. Investor Conference Call Certain statements in this press release are, and certain statements on the related conference call may be, forward-looking statements regarding future events or results within the meaning of the Private Securities Litigation Reform Act, including statements related to our financial prospects, goals and other projections of our outlook or performance our cost reduction plans and other future business plans, and statements using such words as “expect,” “anticipate,” “believe,” “plan,” “intend,” “could,” “will” and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the important factors that could cause or contribute to such differences are customer concentration, given that the majority of our sales depend on a few large customer relationships and the loss of any of them could materially and negatively affect our business, delay or failure of our customers to accept and deploy our products and services or new or upgraded versions thereof, delay or failure of our customers' end users to adopt our products and services or new or upgraded versions thereof, our reliance on third party operating systems and other technology for the proper operation and delivery of our solutions and any barriers to our use of such third party technology, our reliance on third party application stores for the distribution of our software applications to users and any barriers to such distribution, including any delay or failure of such third party to approve new versions of our applications or their implementation and/or application of policies that may be harmful to our business, unanticipated delays or obstacles in our development and release cycles, the degree to which competing business needs may affect our allocation of resources to planned projects, the risk of harm to our business resulting from our recent and any future cost reduction efforts, our ability to attract and retain key technical personnel that are essential to our product development and support efforts, changes in demand for our products from our customers and their end users, changes in requirements for our products imposed by our customers or by the third party providers of software, hardware and/or platforms that we use or operate with, our ability to effectively integrate, market and sell acquired product lines, new and changing technologies and customer acceptance and timing of deployment of those technologies, and our ability to compete effectively with other software and technology companies. These and other factors discussed in our filings with the Securities and Exchange Commission, including our filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release. Smith Micro Software, Inc. Consolidated Balance Sheets (in thousands except share and par value data) December 31, December 31, (unaudited) (audited) Assets Current assets: Cash and cash equivalents Accounts receivable, net of related allowances of $3 and $3 at December 31, 2024 and 2023, respectively Prepaid expenses and other current assets Total current assets Equipment and improvements, net Right-of-use assets Other assets Intangible assets, net Goodwill Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued payroll and benefits Current operating lease liabilities Other current liabilities Total current liabilities Non-current liabilities: Warrant liabilities Operating lease liabilities Deferred tax liabilities, net Total non-current liabilities Commitments and contingencies Stockholders' equity: Common stock, par value $0.001 per share; 100,000,000 shares authorized; 17,673,404 and 9,347,979 shares issued and outstanding 2024 and 2023, respectively Additional paid-in capital Accumulated comprehensive deficit Total stockholders' equity Total liabilities and stockholders' equity Smith Micro Software, Inc. Consolidated Statements of Operations (in thousands except share data) For the Three Months Ended December 31, For the Year Ended December 31, (unaudited) (unaudited) (unaudited) (audited) Revenues Cost of revenues (including depreciation of $1, $11, $15, and $50 in the years ended December 31, 2024 and 2023, respectively) Gross profit Operating expenses: Selling and marketing Research and development General and administrative Depreciation and amortization Goodwill impairment — — — Total operating expenses Operating loss Other income (expense): Change in fair value of warrant and derivative liabilities Loss on derecognition of debt — — Interest income (expense), net Other income (expense), net Loss before provision for income tax (benefit) provision (Benefit) provision for income tax expense Net loss Loss per share: Basic and diluted Weighted average shares outstanding: Basic and diluted Smith Micro Software, Inc. Consolidated Statements of Cash Flows (in thousands) For the Year Ended December 31, (unaudited) (audited) Operating activities: Net loss Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization Goodwill impairment charge — Non-cash lease expense Change in fair value of warrant and derivative liabilities Loss on derecognition of debt — Non-cash transaction costs including amortization of debt discount and issuance costs — Stock based compensation Deferred income taxes Gain on license of patents, net — Loss on disposal of assets — Changes in operating accounts: Accounts receivable Prepaid expenses and other assets Accounts payable and accrued liabilities Other liabilities Net cash used in operating activities Investing activities: Capital expenditures, net Proceeds from license of patents, net — Other investing activities, net — Net cash provided by investing activities Financing activities: Proceeds from Common Stock, Private Placement, Warrants, Pre-Funded Warrants Offerings, net — Proceeds from financing arrangements Repayments of financing arrangements Other financing activities Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period Smith Micro Software, Inc. Reconciliation of GAAP to Non-GAAP Results (in thousands, except per share data) - unaudited Three Months Ended December 31, 2024 GAAP Stock Compensation Intangibles Amortization Depreciation Fair Value Adjustments Non-GAAP Gross profit — — — Selling and marketing — — — Research and development — — — General and administrative — — — Depreciation and amortization — — — Total operating expenses — (Loss) Income before provision for income taxes Net (Loss) Income (Loss) earnings per share: basic and diluted — — Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate. Three Months Ended December 31, 2023 GAAP Stock Compensation Intangibles Amortization Depreciation Fair Value Adjustments Amortization of Debt Issuance Costs and Discount Personnel Severance and Reorganization Activities Non-GAAP Gross profit — — — — — Selling and marketing — — — — — Research and development — — — — — General and administrative — — — — Depreciation and amortization — — — — — Total operating expenses — — (Loss) Income before provision for income taxes Net (Loss) Income (Loss) earnings per share: basic and diluted Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate. Smith Micro Software, Inc. Reconciliation of GAAP to Non-GAAP Results (in thousands, except per share data) - unaudited Year Ended December 31, 2024 GAAP Stock Compensation Intangibles Amortization Depreciation Fair Value Adjustments Goodwill Impairment Personnel Severance and Reorganization Activities Adjustment for Non-Recurring Items Non-GAAP Gross profit — — — — — Selling and marketing — — — — — Research and development — — — — General and administrative — — — — Depreciation and amortization — — — — — — Goodwill impairment — — — — — — — Total operating expenses — (Loss) Income before provision for income taxes Net (Loss) Income (Loss) earnings per share: basic and diluted — Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate. Adjustment for Non-Recurring Items includes costs associated with corporate actions in 2024, including but not limited to special meetings and reverse stock split, offset by licensure of patents. Year Ended December 31, 2023 GAAP Stock Compensation Intangibles Amortization Depreciation Fair Value Adjustments Amortization of Debt Issuance Costs and Discount Personnel Severance and Reorganization Activities Adjustment for Non-Recurring Items Non-GAAP Gross profit — — — — — Selling and marketing — — — — Research and development — — — — General and administrative — — — — Depreciation and amortization — — — — — — Total operating expenses — — (Loss) Income before provision for income taxes Net (Loss) Income (Loss) earnings per share: basic and diluted Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate. Adjustment for Non-Recurring Items includes professional fees associated with office closures and convertible notes. View source version on businesswire.com: This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. 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  Data Source Type	news
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