SMITH MICRO SOFTWARE, INC. Q4 FY2024 earnings call

• Focus on three family safety offerings: SafePath Kids (successfully launched at Orange Spain with child-focused rate plans), SafePath OS for kids phones, and SafePath OS for senior safety phones.
• Orange Spain's Tuyo launch: First significant deployment under renewed focus, with interest from other carriers and marketing campaigns. SafePath Kids was showcased at Mobile World Congress, generating interest.
• Work with AT&T: Ongoing advertising campaigns with new updates to AT&T Secure Family, including improved sign-up flow and broader marketing campaigns.
• Partnership with Boost Mobile: Continued cross-promotion of Boost Family Guard and growth of Boost Premium Visual Voicemail powered by CommSuite platform.

During the fourth quarter of 2024, Family Safety revenues were $3.8 million, decreasing by approximately $3.7 million or 49% compared to the fourth quarter of the prior year, and decreasing by approximately $100,000 or 3% compared to the third quarter of 2024. CommSuite revenues were $1.1 million, increasing by approximately $600,000 compared to the fourth quarter of 2023 and by approximately $500,000 compared to the third quarter of 2024. ViewSpot revenue was nominal for the fourth quarter of 2024, declining by approximately $500,000 compared to the fourth quarter of the prior year and being nominally unchanged compared to the third quarter of 2024.

• First quarter of 2025 consolidated revenues expected in the range of approximately $4.6 million to $5 million.
• First quarter of 2025 gross margin expected to be in the range of 72% to 75%.
• First quarter of 2025 non-GAAP operating expenses expected to increase by 4% to 7% compared to the fourth quarter of 2024.
• Non-GAAP operating expenses for the year ended December 31, 2024 were approximately $28.3 million, a decrease of approximately $7 million or 20% compared to 2023.

• Payment delays from largest customer due to change in payment platform in the fourth quarter, which drove accounts receivable balance up, but successfully transitioned to new platform with no further issues anticipated.
• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed.

Q: Regarding Tuyo, how to frame success and timeline for new carriers?

A: Orange Spain has sign-ups approaching half from competitors. There is strong interest among carriers, with busy demos, trials, and in-house use; goal is to have launches for back-to-school in summer.

Q: On aging in place opportunity, timeline for product commercialization and vision for 5 years?

A: Senior market is underserved; product is in development with strong carrier interest. Vision is for strong future growth aligning with carriers' focus on adding subscribers, aiming for similar success as past periods with high revenues and free cash flow.