Phunware FY revenue falls on softening advertising market

Reuters
Mar 20
Phunware FY revenue falls on softening advertising market

Overview

  • US hospitality software provider's Q4 revenue grew 33% yr/yr; FY25 revenue declined

  • Company attributes FY25 revenue decline to softening advertising market, offset by software growth

  • Company launched hospitality-focused AI Concierge and expanded leadership team in FY25

Outlook

  • Company to focus on hospitality market and expand AI-enabled product offerings

  • Phunware plans to invest in sales, R&D, and potential acquisitions to accelerate AI roadmap

  • Company expanding sales and marketing initiatives to drive adoption of AI Concierge and new products

Result Drivers

  • NEW HOSPITALITY PRODUCTS - Co launched two hospitality-specific product tiers aimed at luxury brands and independent property owners, designed to enhance guest experiences and create new revenue opportunities

  • AI CONCIERGE ROLLOUT - Co commercially launched its AI Concierge product, integrating real-time conversational AI with navigation technology to enhance guest engagement and monetization, following a successful pilot

  • AI INVESTMENT - Co continued to invest in artificial intelligence across internal systems and product offerings, aiming to deliver personalized guest experiences and operational efficiencies

Company press release: ID:nGNXNw6q3

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

$2.55 mln

FY Net Income

-$11.40 mln

FY Gross Profit

$1.29 mln

FY Operating Expenses

$21.81 mln

FY Operating Income

-$20.52 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Phunware Inc is $4.00, about 122.2% above its March 19 closing price of $1.80

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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