Phunware (NASDAQ: PHUN) reported Q3 EPS of ($0.19), $0.12 worse than the analyst estimate of ($0.07). Revenue for the quarter came in at $3.13 million versus the consensus estimate of $2.77 million.

Third Quarter 2020 Summary Financial Highlights

• Net Revenues for the quarter totaled $3.13 million
• Multiscreen-as-a-Service (MaaS) Platform Subscriptions and Services Revenues were $2.86 million
• Gross Margin was 71.3%
• Net Loss was ($8.57) million, inclusive of a one-time ($4.50) million extraordinary expense for legal settlements
• Net Loss per Share was ($0.19), inclusive of a one-time Net Loss per Share of ($0.10) as an extraordinary expense for legal settlements
• Non-GAAP Adjusted EBITDA Loss was ($1.26) million

“Our solid financial results for the third quarter of 2020 exceeded our upwardly revised financial guidance, highlighted by more than a 40% sequential increase in Net Revenues to $3.13 million,” said Alan S. Knitowski, President, CEO and Co-Founder of Phunware. “Perhaps even more encouraging is our expanded gross margin that exceeded 71%, along with our ability to reduce Adjusted EBITDA loss by nearly 30% sequentially. We have established solid operating momentum for entering 2021, positioning us to capitalize on the demand we’re seeing for our MaaS Smart Workplace solutions for corporations and our MaaS Digital Front Door solutions for healthcare organizations.”

“We are thrilled to see continued sequential progress in our efforts to reduce operational cash burn, eliminate uncertainties and move toward break-even on an Adjusted EBITDA basis despite the ongoing pandemic,” said Matt Aune, CFO of Phunware. “As our Q3 results demonstrate, we are improving our cash position, eliminating our outstanding litigation and liabilities, and expanding our platform sales and related margins.”

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