In This Article:
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Smith Micro Software Inc (NASDAQ:SMSI) is making significant progress with its SafePath OS for kids and senior phones, which aligns with mobile operators' core business strengths.
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The company is optimistic about closing new customer deals and expanding agreements with its current customer base for new and expanded offerings.
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Smith Micro Software Inc (NASDAQ:SMSI) is introducing SafePath 8, which will include AI-centric features to enhance family safety solutions.
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The company has seen positive reception and interest from operators in Europe, particularly with Orange Spain, and is planning new initiatives for the back-to-school timeframe.
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Smith Micro Software Inc (NASDAQ:SMSI) is actively engaging with major U.S. carriers like AT&T and T-Mobile, with ongoing discussions about expanding SafePath platform offerings.
Negative Points
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Smith Micro Software Inc (NASDAQ:SMSI) reported a revenue decrease of approximately 20% compared to the same quarter in 2024.
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Family safety revenues decreased by 15% compared to the first quarter of the prior year, partly due to the decline in legacy Sprint Safe and Found revenue.
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The company experienced a GAAP net loss of $5.2 million for the first quarter of 2025.
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Viewspot revenue declined significantly by approximately $600,000 compared to the first quarter of the prior year.
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Smith Micro Software Inc (NASDAQ:SMSI) is facing challenges with the timing of selling, contracting, and launching new offerings with global operators, which can take longer than desired.
Q & A Highlights
Q: Can you provide any metrics on the performance of Tuyo since its launch? How do you view its success and potential penetration in the youth market? A: Bill Smith, CEO: Tuyo is off to a strong start with good adoption rates. We expect better adoption during the summer and back-to-school periods. Despite launching at a challenging time, the product is well-received, and we are optimistic about its future growth.
Q: Regarding SafePath Kids, can you share any metrics on engagements and the timing of pilots? Is the third quarter still a potential inflection point? A: Bill Smith, CEO: Yes, the third quarter remains a potential inflection point for meaningful launches. We expect to see growth driven by our AI initiatives, which are well-received by operators. We aim to lead the market with continuous product advancements.