Phunware Posts Mixed Third Quarter Results; Shares Rise 5.4%
Fully-integrated enterprise cloud platform for mobile devices Phunware Inc. (PHUN) has reported mixed results for the quarter ended September 30, 2021. Following the earnings, shares of the company gained 5.4% to close at $4.12 in the extended trading session on Thursday.
Revenue & Earnings
Quarterly net revenues declined 29% year-over-year to $2.2 million and failed to surpass the consensus estimate of $2.6 million. The decline witnessed in revenues was primarily due to a 38.1% year-over-year fall in platform subscriptions and services revenues to $1.7 million.
Meanwhile, quarterly earnings of $0.01 per share compare favorably with the previous year’s loss of $0.19 per share and the consensus estimate of a loss of $0.04 per share.
Other Operating Metrics
The company reported an adjusted EBITDA loss of $2.5 million for the quarter, wider than the loss of $1.3 million reported in the previous year.
The CEO of Phunware, Alan S. Knitowski, said, “We are extremely excited to post 50% sequential organic growth in net revenues quarter-over-quarter, demonstrating that we are now reaping the benefits of our direct and indirect go-to-market strategies for our MaaS enterprise cloud platform for mobile. Our team executed strongly over the past quarter on multiple fronts, executing deals with several prominent new customers and partners across different verticals, including scaling our dual token economy while actively pursuing our inorganic growth strategy and closing the acquisition of Lyte Technology.”
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Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 unanimous Buys. The average Phunware price target of $1.88 implies that the stock has downside potential of 51.9% from current levels. Shares have gained about 483.6% over the past year.
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