Phunware is redefining the way Fortune 500 brands engage with the public on mobile

Offers fully integrated enterprise cloud platform for mobile Multiscreen-as-a-Service platform offering includes software development kits, vertical solutions, a mobile application framework, and data products Top-tier customers and partners What Phunware does: Phunware Inc (NASDAQ:PHUN), which launched in 2009, provides a fully integrated enterprise cloud platform for mobile that provides products, solutions, data, and services for brands, companies, and governments. The company’s Multiscreen-as-a-Service (MaaS) offerings include engagement, management, and monetization initiatives that help the world’s most respected brands create category-defining mobile experiences. The platform is also targeted at four other verticles: Healthcare, Smart Cities, Corporate Campus, and Political Advocacy. The platform is currently largely focused on providing solutions to healthcare workers and cities confronting the coronavirus (COVID-19) crisis fallout.  The Austin, Texas-based company also operates PhunCoin and PhunToken, cryptocurrencies that let users monetize their digital identity. Phunware's Software Development Kits (SDKs) include location-based services, mobile engagement, content management, messaging, advertising, loyalty and rewards (PhunCoin and Phun), and analytics, as well as a mobile application framework of pre-integrated iOS and Android software modules for building an in-house or channel-based mobile application and vertical solutions. Since inception, Phunware has created more than 2.5 billion Phunware IDs representing mobile devices connected to networks. Phunware’s Knowledge Graph uses machine learning and proprietary algorithms to curate over five terabytes of data every day from approximately one billion of these active devices each month. Phunware’s data offerings enable brands to more accurately reach their target consumers. How is it doing: In May, Phunware reported that it ended its first quarter of 2021 with a record $23.5 million in cash as of March 31, after generating net revenue of $1.6 million during the period. It also realized Multiscreen-as-a-Service (MaaS) platform subscriptions and services revenue of $1.5 million in the March quarter, with a gross margin of 58%.  Earlier in the month, the company announced the launch of its PhunToken Purchase Portal to begin selling PhunToken to consumers, developers and brands.  Consumers will also have an opportunity to receive PhunToken from brands who integrate the PhunToken MaaS Loyalty SDK into their mobile applications for Apple iOS and Google Android, which will allow any publisher to track and reward in-app customer behavior. PhunToken, as well as PhunCoin, will be managed by PhunWallet on Apple iOS and Google Android, which was expected to be released later in the month following application approvals by the Apple App Store and Google Play, respectively. PhunToken is an innovative cryptocurrency utilized by a blockchain-enabled Mobile Loyalty Ecosystem to help drive engagement by unlocking the features and capabilities of Phunware’s Multiscreen-as-a-Service (MaaS) platform. It is designed to promote profitable behavior by rewarding consumers for their activity, such as watching branded videos, completing surveys designed to understand purchase intent and visiting points of interest. On April 21, Phunware said it had released its Data Software Development Kit (SDK) for Apple iOS and Google Android on GitHub so third-party mobile applications can reward consumers with PhunCoin for their data.  By integrating this lightweight SDK, Phunware said that any mobile application publisher can monetize and reward their audiences by signing them up to be compensated any time their data is purchased by brands. A week earlier, Phunware had released its Loyalty Software Development Kit (SDK) for Apple iOS and Google Android on GitHub to support the issuance of PhunToken by third-party mobile applications. By integrating this lightweight SDK, any mobile application publisher can track and reward in-app customer behavior on Apple iOS and Google Android.  And at the start of April, Phunware said its board had authorized bitcoin purchases in preparation for the commercial launch of its blockchain-enabled Multiscreen-as-a-Service (MaaS) Customer Data Platform (CDP) and MaaS Mobile Loyalty Ecosystem. The company noted that it had completed an initial purchase of 25.8 bitcoin at an average price of $58,133 per bitcoin. Phunware has also continuing to see strong demand for its MaaS platforms. During full-year 2020, the company posted revenue of $10 million -- $9 million of which was derived from its MaaS platform subscriptions and services. The firm reported a net loss of $22.2 million for the year or $0.50 per share. Phunware kicked off 2021 with a big contract expansion in hand – widening its MaaS platform and MaaS Location Based Services (LBS) at Baptist Health South Florida (BHSF) through its channel partnership with Presidio. The company said Presidio’s expanded deployment of Phunware’s MaaS platform at BHSF enables even more patients, staff members, and visitors to seamlessly engage with critical healthcare functions and navigate across an additional 3.1 million square feet of medical facilities, bringing the total MaaS LBS coverage to 6.3 million sq/ft and the total contract value to more than $1 million. In March, the company announced a partnership with Vizzia Technologies to offer its digital front door solution on mobile to leading healthcare organizations that leverage Vizzia’s real-time location systems (RTLS) technology. And in the same month the firm revealed that it had been selected by Dignity Health, Yavapai Regional Medical Center in Arizona for its MaaS Location-Based Services in a five-year expanded deployment. And on May 4, Phunware announced that it has partnered with Infinite Leap as a reseller of its digital front door on mobile. Phunware noted that Infinite Leap enables healthcare organizations to fully leverage the Internet of Things (IoT) through the seamless implementation of RTLS-enabled solutions and services. On the financing front, in February, the company launched a $25 million public offering to satisfy obligations to redeem outstanding convertible debt and for working capital and general corporate purposes. Inflection points: List Phun Tokens on initial exchange(s) to support the compliant trading of utility tokens List PhunCoin on initial Alternative Trading System (ATS) platform(s) to support the compliant trading of security tokens on a licensed exchange Release MaaS PhunWallet mobile application portfolio update to enable staking and expand feature set to enhance the user experience (UX) What the broker says: On June 3, 2021, in a note to clients, Roth Capital Partners analysts repeated a 'Buy' rating and $2.50 price target on Phunware stock (current price: $1.40). Analysts noted that Phunware had now "formally" named Carrier Fire & Security Americas Corp, a subsidiary of Carrier Global Corp (NYSE: CARR), as its distribution partner. Security systems group LenelS2 is part of CARR and Phunware has already pre-integrated its Location Based Services (LBS) SDK technology into LenelS2’s BlueDiamond mobile application. Now, Phunware has licensed its Location-Based Services SDK (and potentially other services) to CARR and its affiliates for integration into 'some or all' of its existing mobile platforms, noted Roth analysts. CARR is expected to initially begin marketing PHUN’s LBS SDK and other services across its LenelS2 customer base of around 100,000, although this could lead to much larger distribution down the road, they added. "We believe much, if not all of the potential customers gained through this indirect sales distribution channel would be incremental to 2H21 revenue assumptions and lead to potential better growth overall in FY21 (currently modeled at around 21% y/y)," said Roth. What the boss says: In the company's statement on April 21, Phunware’s CEO Alan Knitowski said: “It’s no secret that data has become the most valuable asset on the planet, yet consumers continue to be exploited for this vital resource without consideration and often without permission." “As a pioneer in customer data monetization, we look forward to leveraging PhunCoin to usher in a new era of transparency and accountability that enables consumers to determine not only what data they share and who they share it with, but also what that data is worth,'" he added. Contact Sean at sean@proactiveinvestors.com