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Smith Micro Software Inc SMSI reported a fourth-quarter 2024 non-GAAP loss of 11 cents per share, which was narrower than a loss of 18 cents in the prior-year quarter. The bottom line matched the Zacks Consensus Estimate.
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Revenues in the quarter totaled $5 million, missing the Zacks Consensus Estimate by 2.6%. Despite innovative product launch strategy and cost-cutting initiatives, revenues plunged 42% year over year due to continued downtrends across various revenue segments.
In the reported quarter, the Family Safety segment’s revenues declined nearly $3.7 million or 49% to $3.8 million on a year-over-year basis. This downside resulted from the conclusion of the Verizon Family Safety contract in the fourth quarter of 2023. Also, persistent weakness in Sprint Safe & Found revenues had an adverse impact.
CommSuite segment’s revenues were $1.1 million, up $0.6 million year over year. On a sequential basis, CommSuite sales increased $0.5 million, driven by healthy subscriber engagement on the Boost CommSuite premium visual voicemail platform and favorable adjustment to revenue recognized during the fourth quarter.
Smith Micro Software, Inc. Price, Consensus and EPS Surprise
Smith Micro Software, Inc. price-consensus-eps-surprise-chart | Smith Micro Software, Inc. Quote
Revenues from the ViewSpot segment were nominal for the quarter, declining $0.5 million year over year, mainly due to the conclusion of one of the ViewSpot contracts.
For 2024, revenues of $20.6 million declined 50% from 2023. Non-GAAP loss was $1.11 per share compared with a loss of 65 cents in the prior-year quarter.
Following the announcement, shares are down 25.6% in the premarket trading session today. In the past year, shares have lost 60.2% compared with the Computer software industry’s decline of 5.9%.
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SMSI’s Margin Details
Gross margin for the December quarter increased to 75.6% from 74.9% of the prior-year quarter.
Non-GAAP operating expenses for the fourth quarter were $5.8 million, down nearly 27.1% year over year. SMSI anticipated quarterly savings in the range of $2.4 million to $2.8 million in the fourth quarter and it surpassed this expectation with a decrease of $3.1 million.
Total operating expenses were $8.2 million, down 32% year over year.
SMSI's Balance Sheet
As of Dec. 31, 2024, SMSI had total cash and cash equivalents of $2.8 million compared with $1.5 million as of Sept. 30, 2024.
For the year ended Dec. 31, 2024, SMSI used $14.3 million of cash from operating activities compared with $7 million in the previous-year period.