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Smith Micro Software, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in revenues to $4.6 million for the third quarter of 2024, compared to $11.0 million in the same quarter of the previous year. The decline is attributed primarily to the loss of a Family Safety contract with a Tier 1 carrier and decreases in ViewSpot revenues.
Cost of revenues for the quarter was $1.3 million, representing 28.4% of sales, compared to 23.0% in the same quarter of the previous year. The gross profit for the quarter was $3.3 million, down from $8.5 million in the previous year.
Operating expenses for the quarter totaled $9.8 million, compared to $10.7 million in the previous year. This includes selling and marketing expenses of $2.1 million and research and development expenses of $3.6 million.
The company reported an operating loss of $6.5 million for the quarter, compared to a loss of $2.2 million in the previous year. The net loss for the quarter was $6.4 million, or $0.54 per share, compared to a net loss of $5.1 million, or $0.61 per share, in the previous year.
Cash used in operating activities was $9.4 million for the nine months ended September 30, 2024. Cash provided by investing activities was $0.2 million, while cash provided by financing activities was $3.6 million.
Smith Micro reported cash and cash equivalents of $1.5 million as of September 30, 2024. The company raised additional funds through a registered direct offering and a private placement in October 2024.
The company acknowledges its dependence on subscriber growth and potential financing to meet future obligations. Management is taking actions to expand subscriber growth and raise additional capital if necessary.
Smith Micro implemented a one-for-eight reverse stock split in April 2024 to regain compliance with Nasdaq's minimum bid price requirement.
The company continues to focus on its Family Safety, CommSuite, and ViewSpot product lines, with efforts to expand its subscriber base and generate increased revenues.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Smith Micro Software Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.