Smith Micro Software (SMSI) 4 Nov 202020 Q3 Earnings call transcript

Good evening and welcome to the Smith Micro Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Charles Messman. ahead. go Please

September and release us operator, results everyone. appreciate copy year We the should now, Thank received the have to good financial discuss joining a ended fiscal XXXX today quarter the financial XXXX. Smith you By third you press you, of of afternoon, XX, with Micro for Software's results.

we a section Financial have will one, please the revenue On company's and investor Officer. relations of you'll today, consist information If the of website new the profitability, new and forward-looking like today's Smith, company's Board, you future product and without that opportunities, visit Chief of Bill would Huffmyer, the call, do Chairman Please regarding and some development, of Executive operating statements, copy and expenses of those cash Chief not discussion Smith www.smithmicro.com. our have Tim hear during market at our President the Micro including reserves. note Officer limitations,

statements implied results differ expressed or those could materially statements. from risks trends or cause actual and Forward-looking our to forward-looking uncertainties, by which involve

non-GAAP financial the of Bill. That today refer measures. in forthcoming earlier like For Smith update over the now our will and assumes Form please filed Please our to prepared most obligation measures. included to XX-K. as that of our I'll only more assumptions turn financial out are certain factors which in I'd to recently we refer they to the said, to non-GAAP point speak statements, made. any information, beliefs reconciliation Bill? release forward-looking to our no remarks, back to Micro risk management's date the a for disseminated call press refer

safe you for extremely Charlie. I staying conference Thanks, XXXX Smith well afternoon, these quarter times. Overall, quarter that third everyone, for was unique productive earnings third our the and challenging hope you call. are thank during all and for joining are today and us Micro. Good

latest led version the efforts our company. milestone and team lifestyle leading enormous significant earlier connected week and more the to greatest our to created the announced this was couldn’t with I as the of continues This a the who Our SafePathX, of of hard an launch undertaking for with has and work be family safety. dedication industry for pleased applications entire be platform.

Going forward, competing be any to application. SafePathX the is standard to measure used

As about continue number call, we and a length to on the focus customers both at ViewSpot. carrier the deployment new spoke last we for SafePath of on of

of new Our efforts are support these all customers. full proceeding the forward with

the previously, we include T-Mobile in attention deployments. of Sky order product R&D would make to a resources. of some of we the both and As said XXXX. mission Circle investment are investment SafePathX to this made of we to now reality, offer additional require turning all has deployments have moving heavy staffing That growing our number customer been also knew in the These a in and half first it

While Micro to be the future exciting I much and still there done, are work look forward these Smith holds. times is what to at

came quarter during $X.X as decline share. quarter same from quarter per $X.XX deliver profitable in Overall, million remains by at revenues cash and to will the balance last look for sequential the revenue cash compared flow $X.X positive quarter. revenue these million call, an was as more million. R&D. our this the more three aggressive now, a continues income results color quarter of Street $XX.X From take of quarter lines, you of $XX.X at million. operations I was let's million am was revenues Now quarter compared The to provide our detailed for call Tim? the profit from results. which When a the quarter our ahead the company with product let's provide to quarter But delivered over Later million update strong Tim for I and last turn year same on expectations. net third year. for Gross main the approximately the $XX.X investment to with in review third XXXX. increased a on third in standpoint, a the $XX million financial Non-GAAP ending of $XX.X $XXX,XXX cash for for for despite the We with flow well in of pleased quarterly the our last results. expectations or

Thanks Bill.

$XX.X When posted compared quarter million to of range for down guidance second X% year, within the to was revenue revenue million an quarter the increase compared provided. this same year which quarter the For the we last $XX.X was third X%. of of

the the compared to SafePath revenue platform Also revenues in growth. the For CommSuite last relatively was $XX.X of revenue compared the ViewSpot million last was and $XX.X of same year-to-date contributing million to XX%. and results to third increase was an year performance and year year-to-date result The increase both quarter consistent. quarter

million to During on provided. decreased to initiatives third Earlier stores to primary of those increased T-Mobile. SafePath SafePath stores compared slightly was this the sequentially Sprint compared did quarter the due X% the to of The $X.X quarter the quarter reopened initiatives from of of platform and reduction for focus not merger and guidance the third the in last between products. caused revenue of decrease Sprint this decrease related outside to when XX% was COVID-XX a marketing in-store This the activities XXXX, year. range to second year. year, Sprint-based sequential most shutdown marketing reason Revenue

new in by new the unemployment around T-Mobile remain the current number launch caused of opportunities current X% and SafePath to the quarter, the the the related believe subscribers. progress quarter. within compared In about SafePath initiatives of coming status October, subscriber continues reduction we also to are based quarter. fourth stores on in third guidance COVID-XX to the a general a excited assumes encouraged of marketing trending expect product. activity has current down to the a This be We XX% subscriber and throughout We the continued that

XX% expected revenue of was quarter revenue was third to X% second and year. $X.X quarter part Revenue the outperformed of was guidance this to subscriber CommSuite the the provided. current in third last and of due down both and base quarter X% is the comprised quarter sequentially subscribers. year. increased in to third of Boost and The platform the CommSuite growth increase compared increase This During CommSuite higher Boost compared the from the now stability approximately quarter. of Dish million, XXXX, Sprint than

T-Mobile as subscribers have the to an the network services. Sprint, We move from option now T-Mobile to navigate merger continue to voice Sprint for

Consequently, with $XXX,XXX, The CommSuite are to the was third quarter. we Revenue of we Boost, approximately was was with Additionally, second work flat during the expect quarter excited to current CommSuite be down quarter in the consistent CommSuite third to the advertising the revenues third fourth line this last less of quarter compared for quarter which subscriber for quarter with relatively amount year. increase base. and to the than of to year Dish XXXX expectations.

is this third on revenue a reminder, activities. a dependent party As stream and variable

second was revenue to approximately the than primarily volume This third to CommSuite the compared up compared the year and advertizing one We ViewSpot guidance third quarter expected revenue higher a of customer. quarter of due with our outperformed and this high tier variable increase year. provided XX% activity revenues of U.S. of for the $XXX,XXX. XXXX, down million to quarter last $XXX,XXX $X.X to of fourth XXXX quarter expect was be and between the X%

which discussed and additional contributed As quarter our the this last added quarters. to coming quarter, to ViewSpot the ViewSpot to increase in XXXX, new we customer during look This revenue forward the in year base. new we in second wins added customer, was of be a the second

our related portion revenues campaigns predictable. of the in reminder, to fixed less X% our and discussed, revenue. variable. quarter. revenue to is variable visibility the down into be is and reasons the we revenue of quarter to compared to primarily and increase a the year. the expect are separate resulting quarter variable is revenue revenue. promotional generally volume Based third to of is outlook, the As This which two revenue fourth by approximately the higher recurring quarter activity short compared for to on The we we near ViewSpot component license the total be revenues the device term fees fixed XX% fourth and related in related expect flat Overall, this ViewSpot to the to XX% third of to The of portion burst of is categories;

Gross XX% third was gross last to For profit quarter year. million was period the $XX.X the to during margin $XX.X same million third last year. for the XX% compared compared quarter

million million quarter increase for decrease last million $XXX,XXX, operating of resources. variable second for was year. higher during to an expenses as XXX million the higher the year-to-date quarter to year for was was allow compared increase for last at guidance year-to-date Non-GAAP and the Non-GAAP XX% year-to-date The The compared costs. the increase or expenses to an compared $X.X of number and $XX.X third in year. an the XX% compared last compared and XX%, of of million profit third operating increase in employees XX% the Gross period operating increase was an non-GAAP compared flexibility of related third resulting to provided last quarter compared quarter of million $X.X was development compensation is XX% $X.X year, quarter, second total the the costs. was year. million, increase costs $XX.X increase for $X.X year-to-date quarter contract $X.X or $XX.X expense, employee quarter gross to end an last are margin non-GAAP third and expense the for the year. year-over-year, million, sequential to for than year. GAAP third of last quarter in last quarterly primarily third same party or to this the and $XX.X to to quarter contract of year. due $X.X million, related party increased expenses quarter or the GAAP $X.X increase to was to XX% expenses $XX.X an operating million, an million compared operating slightly of was development of third headcount expenses increase compared million to increase primarily operating third The third These engaged

discussed of to and previously to markets, approximately our XX operating all around XXXX. in we fourth comments expect the add to in currently hire quarter of and employees provide resources and expenses, continue recruit XX As additional to

customers. new continue additional adding by roadmap expected costs features will firm These are development to originally party engage internal and functionality, the We and and as pursuit needed. were and than SafePath accelerate external necessary support the the contract of third to sooner

length a discussed in quarter, and opportunities is of timing As last we critical. competitive at customer operated very environment highly

We for multiple are currently pursuing platform opportunities both Family sell SafePath our IoT. to and

this additional activity, third is contract a This the to effort pursue increase Based make in quarter. optimistic there of run expenses on are through expectation fourth and expect costs, guarantee quarter operating continue be to revenue, we the enough hire Although equal the costs, the non-GAAP includes result an no this win. we investment third will development of as employees to relatively quarter. and rate party reduction to new employee we

million year. net cash During income earnings $X net share, per this earnings income million earnings million compared million compared $X.X year-to-date the non-GAAP non-GAAP time or third or per $X.XX year. for flow $X.X we per income quarter and $X.XX to net a was share, of profitable diluted expect the was to remain diluted non-GAAP earnings $X.XX income net quarter $X.X last non-GAAP of per positive. last investment $X.XX The for or third share share a or of to The

most recently Within metric. of release, our provided the metrics comparable to a have the we press reconciliation non-GAAP GAAP issued

are quarter third an compensation includes following stock expense reconciliation of the $XXX,XXX, the intangible all adjustments, the of amortization of non-cash. $XXX,XXX, For which

non-cash. cumulative the quarter of our costs expense and net Due income to tax some past the are to $X.X following the expense of certain $XXX,XXX, over amortization $X.X taxes. acquisition years, For third year-to-date, due few of million, million, compensation our intangible includes of the is adjustments; state and primarily stock GAAP reconciliation losses which foreign

closed taxes $XX.X we percent tax purposes, with I XXXX for during the comments up around XXXX. a zero non-GAAP reflects of of expensed some financial actual my rate and resulting expense will period. quarter The each We income tax To wrap For add non-GAAP million cash. review, the third capital. utilize XXXX

the excess concludes During cash evaluate continue utilization quarter will mid-to-long cash $X.X the to capital. term, of the of continue shareholder In generated term maximize operations. review flow my alternatives balance financial capital we the return. preserve million the This from In to invest to we to short strategic for will company Bill.

you. to back Now

Thanks Tim.

talk platform. with let's starting management about products display main Now, our our ViewSpot, three retail

revenues expectations considering already the very ViewSpot quarter, is As current encouraging retail global for Tim the has discussed, of came state above the in marketplace. which

promotions, of just threat capabilities ongoing are and in last is shopping brick-and-mortar aggressively complimentary differentiate surge as buzz advertising Apple's example. out stores, develop marketplace with pervasive continue additional for In hungry created of of advertising a and promotions campaigns carriers and perfect a capitalize advertising pandemic, benefits the through support XG. options, wireless related generate of as of Micro are While COVID-XX many revenues offerings many store to still campaigns ViewSpot crowded to both service wary month in-store by XG in-store in Smith carriers professional to service services they recent people launch the the very new efforts. on the carriers iPhone-XX, these different their promotions. because from promote and The tied their to

we adapting patent retail their face pending I functionality required. concerns available environments As technology detect customer to to on to human and call, related promotions, a interaction and smartphones developed last without COVID. discussed the any launch ViewSpot customers singularly to assist carrier sensors leverages new physical on-device all This on our embedded in meet tablets quarter's

been with powered notify in-store whether We sanitization also a device augmented demo ViewSpot dynamic has notifications shoppers device attract that loops, sanitized.

QR how line codes platform. development ViewSpot expectations the third product capabilities our Near Field team Like as other such the explore CommSuite to product above the could continues touchless Communication and technologies enhance further of Our ViewSpot, quarter. in performed

Mobile and profit generate revenue Our to the legacy company. CommSuite Boost and at Sprint subscriber base continue for

position. revenues, pleased I creates of CommSuite am ongoing with is the Dish generally which very for of I carrier relationship and with As some in current X especially I am Sprint compete T-Mobile have discussed This this true bullish U.S. and regarding seeks potential uncertainty merger as back the before, but a our as overall to share, tier market in July. Dish this the new win newest acquired

established are positioned As Dish. partner, well with an we very

the and overall base launch to While service future. Boost look they postpaid build customer in a offering

voicemail services, the SafePath voice-to-text have base great Boost knowledge base as the support market visual such also it comes [ph] The that We our to value transcription. a added when particularly to prepaid is how them, grow is and benefit. added and to leading subscriber platform and fact deployed market an

additional build All of these relationship factors and are working in our favor as with we continue explore a to opportunities. partnership Dish

was new Smith and business now Now are both milestone and back It lifestyle was Full Android several and iOS. culmination well let's we that of product. these This discuss flagship Monday's as of release functionality systems with for of the SafePathX. SafePathX Circle's parental-control a a SafePath, vision, hours What's of parity operator company between thousands work. a and announcement for goal development all as includes our Micro's operating more, for the has integration features, of ours, features of whole. been as the all the connected a of is in reality long gained available through acquisition February. major feature

to and exactly location one based Now family request where enables on let's of members tracking, such SafePathX history as real-time their at parents feature an SafePath's children new of family the map. look click. view that location a With a history location provides location, pick-me-up activity. highlights the the can are other with tracking, users The family a location see and a real-time feature and take features based breadcrumbs ride introduces release. several event

if made between view when SafePath provides The use to child greater them events left will school arrived or to to enhanced and their school This they mind, traveled So enroute. specific child their location to on the down stop path of location events, after know enables provides parents SafePath and feature child see feature important as such locations. they unplanned activity. at breadcrumbs the when parents as with quickly peace can an two visibility drill users

provides with robust our on of strength functionality With functionality that location have the the features par long offering. now of control parental SafePath complete, the been integration based the Circle

position provider on the inside as home dead kids the features, everywhere in are made such devices schedule networks. and as help parental-controls with limits, high content, new important offline screen filters, it to SafePath these time a manage and such white well been parents our comes features that screen socialization, of discussing XX the functionality in family well our mobile space. survey home these is are SafePath at as and parental-controls extensive are TV's, during New feel time on available the seek conducted it's tablets, about provide that kinds both connected to of more time, content entertainment, out concerned pandemic, laptops digital the of The helpless X all Home, time used to the to app. more block added This screen more acute considered enables the only of as online also while smart are When tools gaming outside same important in as parents inappropriate home. their cellular time XX% know to are schooling to outside parents the extend the differentiator that solution SafePath. within of an space, powerful being restrictions kids children. safety and spending that family are rely in-home holistically, have easy that to devices for on COVID-XX as app to addresses online devices, ever digital and challenges it consoles, based time that with of safety People fact and these education. their made age have the from concerns. powerful demand potential According them for parental-controls, the has to about only ability to leadership connected features, their internet same we interface improve social by connected is agree Micro when children. components forced imposed When all safety we excited Smith is August, directly limiting the as have The get solution SafePathX devices parenting parents mode, our reinforces parental-control The than in of untapped connected new we label

We great on fronts, as respective make continue discussions have in interest of carriers subscriber related bases. SafePath to world the progress with our sales to many several their in solution shown parts deploying

work its with new partners and will diverse value our enhance us to explore the our enable progress continue for features of use closely will that cases to We further continue to sales carrier SafePath and efforts. proposition

will continue initiatives XXXX. for the of We invest in to balance R&D

XX during invested operations nine million approximately have than Through aggressively cash While first three from $XX quarters, million and the generated flow marketing have of cash people profits in in sales we we and the healthy. remained more hired year, $X flow have and and cash our reserves. months initiatives, in

are for and fantastic both shareholders. times well our are Micro to for with solutions its positioned should growth a make for XXXX. Overall, We which carriers Smith as these launch we prepare extremely additional exciting

that pipeline the While has and term our for to the sales said I’d impact our open like company tempered the profitable, of are With of our merger in and is healthy, demand. global growth, operator, economic short products largest the questions. call COVID-XX remains customer

The Capital. Thank be Searle of first Scott will Instructions] you. from Roth [Operator question

and start, in doing families current and of quarter. CommSuite. the numbers Hey, Good on on questions. for missed I well quickly afternoon. your my real you one to and job environment Hope are the the team nice taking Thanks

was Dish do mean what boost ups growth What's the this the front, mix. outside that related Boost Dish a time formal CommSuite? a the the then in sequential at then in was I terms quarter? outlook And you as bit of to the SafePath. front, mix the And perspective in they XG of little on How to if fourth XX% said XXXX does their on in network the quarter? roll with start clarify have I the period? the now guidance dig you MVNO Looking did quarter couple follow I And those that a of fourth the for could had of out as third relationship to on in the thought around XXXX for

handle so the relationship. Okay, and and about Tim let listen, I'll back talk numbers let's the come

quarter Hey down was third Scott, thanks. to The for basically the fourth quarter. the guidance related to CommSuite next flat after quarter for

Got you.

flat our speed some population sprint the maybe may So T-Mobile single we the and know on up point, may low down it. digits could that's migrate, T-Mobile you population based the as to down, migrate at but I'm to as that sorry way see visibility

congrats. the on front SafePath Okay and

for that Now out, big SafePathX got you've guys. a you milestone

to model? guess Circle model I pricing to you and it the be year. Bill, You mentioned some in subscription actually is Thanks. going more of them first indicate transition of fixed subscribers the how was this Media in part and that's of from transition, T-Mobile occur? Sky of to terms boarding moving T-mobile put may fee half now then number I based more as the relates Labs, formal the there in that a And this could that previous quickly if then, related on to wondering a around relationship that and color does as that

of Yes, about all companies. both comment the is of that us really it, discussed works. these it being I as and can't between in just is

say all not with schedule, working set So us. we on can carriers. we They are the that is plans the

So to them. have boss. They're we respond yes, the to

to will which the are be T-Mobile because bit of more you a the looking they base code little that moved Circle the away transition offering SafePathX. code safe marketed they a also complicated they transitioned all or need in kick large original is The of product, Circle this SafePathX customers case T-Mobile T-Mobile in. to of end obviously, long some like is the news, we're have that safety be very product also efforts of going complete, there will users, T-Mobile. and In to users good and from as base the single are be once and can a to will that really Sprint first start the a acquired found customers, the of the these marketing will and family it's be base product on and from can for forward, at whether half year both to Sprint use So customers,

So done focused. we're quite about the get excited and we're to very opportunity this

we a do You side, asked working as with answer. from on earlier well. strong a question with in postpaid We facets, side very didn't that And prepaid the plan also Dish yes, we all relationship are on working from both but Dish. the

that way quantify you're in I Great, related just with? to get there's the of couldn’t if pipeline a wondering that terms your I the queue, in engaging carriers was represented qualify are was by Thanks. for around activity of carriers, some any SafePath, sounds it. or maybe and subscribers, like other back comments there of of it lot if of to number number geographies, the

Yes, that. of say North from Middle from will I the answer large, and customers come from America new East. I the can that, Europe can and by part

hold So as far the have we focus. be primary the subs that. won't either, will can yes, that to we And, on do are. you that, things able some to, and we cases, kind allowed like to customers tell who the we be that the able where we're until In new if of of have off I are to as Geos number those

have we'll deal with on case-by-case to just it basis. a So

you. thank Okay,

question of Eric is Street. next The Martinuzzi Lake from

think largest for T-Mobile had I transaction number on had quarter. a I Thanks. had the QX, in the forma a question I regarding on or think customer July disclosed we Dish was on Congrats happened for modeling pro your X. the Boost QX, you then I XX%, was and basis with

that plus So is kind significantly from is safe say, of XX% to XX or for the it eight number equals the QX? we're different is

That's a reasonable correct. assumption,

right. all an the at then, we're at talking $XX.X midpoint. right Okay, outlook now million about And

we're feels $XX.X but there at lot quarter and understand like basing, a stated just a I takes. million. of It is puts You

half. SafePathX in You of in Are weight are all commercialization with the kind to takes puts or about it those a QX talking is anticipating is first troughing of predict revenue that? the and too soon you

the I the that of our would say off. Yes, question. It troughing can guided we carriers growth and see hope, be we can at in would is be to to for that then and schedules question start the It's exact you various that that's this we answer schedules will to some with think until certainty. some the know QX that staff that. best by that deploy difficult I

what throttle should of be the normalized getting guess Delta can number but on of the that that number? would revenue to contractors, Okay, we that the there it's to two expense these asking side? on then back kind months the to we is there's what's with to can't back time, R&D side, going a back in anticipate throttle knowing unpredictability same outside expense some for but R&D the the announcement and on get but knowing made we've of troughing, at I also I at to where start investments least, questions the going we're at point really months assume carriers, three six of, we

would kind at I guess, of way. I in look that this

that. of the like are are features that new With yet required features heavy SafePath, are completion well. These that not all doing around still required announced we have other there's other for and and completed the being that things accounts because lifting are as more we're that

the the said. as I still investment balance for of heavy You'll year a see

in to the number of of that first But the expenses. and will we point the second We the first at will in in a done deployments this also outside get where might be look time reduce driven some quarter be to quarter. able we by need

So this to I and a that's see this as a well. cost comes much you'll very mean, to business require as with people soon business. growing a there's able growing be going that

Do And you XXXX? one a new the next the confidently days, least recommit number in then awaiting you've a that in signings of pretty to customers, lastly, I'm at same anxiously those customer about carrier, third end. by XX announcement couple perhaps year new of talked

That's our game plan.

the for thanks taking Okay, questions.

Okay.

is from Josh Riley. Nichols of The next question B.

thanks would for congrats SafePathX from follow Hi, platform was in off and question year. to release. the next without Sky the to beforehand, be expect? the T-Mobile agreement earlier Circle on concurrently to guys, those we be T-Mobile? agreement I potential on I a of a taking platform what big a move like about what undertaking. expectation? a had that I guess, know first assume, that an timing should my the Is fair or question on Would to new you transition customers know, the with and of SafePath start new I it the half alluded to up announced Would or new the

new expect would be we deal to and signed Yes, executed. a

So the question. that to answer that's

far the they commentary Sky the new launch of As actual T-Mobile the by move as will that forward. be product, driven obviously as, from and

are and with working plans things on very like We closely marketing lot a of their them that.

heavily are we So overall invested in these efforts.

efforts. a efforts, carriers or Bill, little bit and follow their Thanks, time to ramp start a place? once provide lag to could the through start all train you of offering the to up takes marketing take in the a there's some SafePath an that color this getting some additional know selling on Any on up carriers how then up have marketing right really just and I staff. retail it of new quick individual ramp agreement you these

the maintain into place best launched, it as if they look growth strong really probably look can started the before able a Sprint to we months XX at were about took go. history go that to they And curve merger. you until when and Well, to usually at

So, it. look I way think to that's one at

will opportunity the said, a with some at the carriers of which from bringing new larger go. cases, people competitive be platforms, will to in get us give the start some over base that However,

if the to the easier too So what are names different, be there do the is it's to try you're now. then really what it and think to until and rates. easy carriers, to get the we of trying right know evaluate have public can growth not going will I hands wait you I into to

and customer me info there. that additional I then still for mentioned back I'll a know hop features you're providing out detail until looking thanks some may Right, company's queue. of all features can requesting from or least understood, are current features as provide? new at or on be Anything you'd and talk roll question long and how the done some Any what completed? potential couple the are well base. you Last to you those additional those that about

you're think to it. have about a don't learn to going long time to wait I

safe some things hands stay we'll get public releases. and via [ph] So into John formal

queue. Thanks, back in the guys. I’ll hop

of The question Jim Bradley next from is Woods. McIlree

about And talk focused on ViewSpot? -- you you. if about relative Good evening. Thank seasonal to QX, I'm QX? happens in any versus mostly that's seasonality it's with impact, QX QX what to think Can reasonable if

in finish to third so to that XXXX. from there the on through then near going fourth up, our through down were that Jim, first we're the little then typically, bit expect term model year you up this color quarter, a the And quarter, visibility that strong as works, ramp down sequentially pretty projects in be second the ViewSpot do in and the fourth would that's going to be a quarter. the based I see perspective. and in summer, quarter, we

and I it a has shutting year any this to trying weird is mostly, understand going in that sequential know, quarter COVID involved? Okay and the with decline And been This the of to declines. the - down merger. is is be SafePath. price and third the stores I'm there Is

I hard mean the hoping was disaggregate it? but maybe you take sources I decline, a So, it's at could to the of stab

straightforward a billing are the that there's today came rather And be only that system. on The sold over question. to answer. Yes, a, think to Sprint, customers can T-Mobile sell from we Jim, that product Sprint product that it's good I

SIM they number and the from they makes service also that financial that very But standpoint us. can after does, doesn't market of is case have So that are grow yet. really both base in offering, go limits different to it the of because one, be service they the But, to new the difficult difficult and it found a for get yellow T-Mobile them that Circle to the or products, two it product your put promote And really to more a offerings don't help and one in you from a the a from worry you to we on, safe people sold us very you have it new whether the until customers. about have can all phone Magenta the for same SIM all look and can forward and factor really where switch to decline because phone, that's now, see is in causal you it's the over. all been something it your also will the trend to, this

customers, sell customer opportunity time, see, launching and to and that you customers, us provide revenue. the the we opportunity new with will to Now, as told we new will SafePath we've these are to bases, launch overall an at new you, our also grow to same carriers, start

can to a to kind is are. moment of it it's as in and we Hopefully and So we're unfortunate, but do that's it helps. time, it's that where just, what we remedy limited

that's and to And order needed, a SafePathX, that when an with two announced is is you enough? for be Is again you Circle does. need to fair simplistic from happen still migrating agreement that need done, standpoint, it things to that's in grow T-Mobile, and you No, announced. for to one come but now

think I say now. way that, that. the think to is Yes, everything works about would I that's the in

I can are think waiting longer. meaningful We having through discussions We're any and now. drive this not we

appreciate Okay, Thanks very good. I lot, a it.

Seeing for like no conference now remarks. would closing further over Instructions] any Messman back [Operator I to turn the to Charles questions,

great today. any everybody. forward We Have have to out a the safe in Thanks, look reach questions, Should everybody. XXXX. to you Stay free feel time you day. I to and us further taking appreciate updating listen thanks us to to directly. you please

for today's conference Thank all now The you you. presentation. concluded. attending is Thank

You may day. a now disconnect. Have great