Smith Micro Software (SMSI) 9 Mar 212020 Q4 Earnings call transcript

Good day and welcome to the Smith Micro Fourth 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, Vice President of Investor Relations and Corporate Development. ahead. go Please

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

fund at Chief one, regarding Huffmyer, Mobile announced how Micro’s you’ll reserves, www.smithmicro.com. revenue of the product do note strategy, Company acquisition position hear and Officer; will and profitability, business and have Company’s today’s the our the including, consist Financial new Safety of information a that please discussion like cash our Officer. of primarily visit launch not of of going used would statements, from section new the public market expenses, impact of financial the today offering will future be you have Executive to If Please our operations we and and website Tim On during planned of call, Chairman Bill the the Smith acquisition those acquisition some operating underwritten common limitations, Relations Avast. of forward-looking Chief may which forward, Business from stock, and opportunities, Avast the proceeds the Investor the without copy development, Smith, Family President Board, the and

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

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

Good in Charlie. and joining pleased afternoon, us Overall, I for earnings at for call. quarter everyone, XXXX XXXX. today and Thanks, fourth with you thank team Micro what conference accomplished very Smith am the our year-end

Let’s expectations. which the with look take line in results, came at a our

$XX.X compared For reported fiscal XXXX, to million total million to in XX% fiscal $XX.X year revenue increased XXXX. from operations

of quarter to XXXX, And year was the XXXX. to quarter, for or income fourth $XX.X For in fourth million quarter $XX.X million $X.XX $X.XX per revenue of the earned million per fourth for income XXXX compared net net the was increased non-GAAP or Non-GAAP $X.X slightly share. fiscal million $XX.X when share.

continued from flow achieved the $X.X cash operations of we positive Importantly, for million year.

stores an temporarily business retail our XXXX strong a caused our month-long everyone, shutdowns for paused the year. economic pipeline global a effect COVID-XX The with As business. on of closure the pandemic had definitely as challenging was adverse by revenue carrier

global which the new we customer, features of also through gained This This XXXX enabled the Sprint, launched I significant complex with than and portfolio, is spend This a space. uncertainty initiated bring in largest transaction and and decision the platform. in pandemic, integration Location for includes be The SafePath which of Family announced integration XXXX operator expect cash SafePath $XX includes of order truly of an very assume regarding fiscal the integration enormous that a Our Labs, Safety we growth an the customer, Company to Avast our believe stock the saw exciting platform, more. mobile of T-Mobile we positioning we market Mobile to which U.S., base acquisition in still X in today code both the months a strategic by us XXXX. action will cash, we XXXX. a in cost on undertaking Circle SafePath this Through only less amidst complete the challenges merger more us and combination strong is immediately achievement our acquisition into the accretive. including carriers, than customer including to large million, Home. competitor nine to important that Smith largest in We This European Business accelerate you of profitable several to Not legacy exit SafePath and increase a as our Verizon sheet a significantly remain products investment November the set strategic transformational its T-Mobile-Sprint five revenue our fantastic made news have and along to efforts, businesses. also there’s well. operator we and AT&T. two R&D seen the an mobile with supporting Micro contracts acquisition Drive flow-positive. also a of earlier two from posed completed impact But, with the cash, million and did what had balance PLC, $XX adds unique

the a important is significantly rates, to multiple from new business experiencing valuation While business we while revenues Smith relationships and brings to surprisingly only. low applying Micro discounted legacy the standpoint, churn a core the legacy

most acquisition critical and revenue, feedback This acquisition. teams core base, the we the to million that world’s two in work the safety the the grow is solutions expect and very located forward. Smith of to generate for U.S. deliver as Micro family as that position pave relationships believe through XXX to $XX between We the the work recurring upfront one add to to we carriers globally. with provider accomplishment, label and $XX wireless to these world-class to experienced family number carriers from world comes gained white safety firmly XXXX, customers is it productive safety way there going million will and business than SaaS will when expected and combining Smith more positive we the from and users. Micro For solutions a in to The new be received their both, Europe employees employee what talented digital the

for very We go-forward about a an strategic with excited is multifaceted safety bring on Micro’s on scale. done. for of say, very with case collaboration truly deal deal IoT businesses are collaboration say, to global can to operator-focused and Avast to this security companies and the a this agreement will also reaching went in both a Smith agreement Needless period this deal for both critical the I that markets fruition am enable Avast. partnership contributions component revenue these get and and complex was to business sincerely as both above family time. short I this future It potential. beyond parties penetrate to see transformational a grateful

is next to turn part the Lastly, XXXX for the success Tim, the launch on Afterwards, talk review plans Tim going Tim? public a financial certainly may the of a call for our results out and call Smith I with will close today to market, Frankly, Safety. offering Micro’s With third a also million. newco I more in us. release more this the chapter have Family and $XX provide new to go-forward We announcing before shareholders great unite set a we story. details acquisition. I to said, the made in opportunity Smith of be the a the we now turn existing for at Avast for record that filings believe over press must one to over Micro mention, put of of for about number that I’m the day, the is follow-on it

Bill. you, Thank

the subsidiary. the membership portfolio. certain acquisition U.S. recently substantially some Tier Those renewed will legacy moving on Avast. X ownership further purchase into agreement include are and X Avast States contract license announced which now which the source a includes the and XXXX, Business, Software shared liabilities, contracts, fiscal and of revenue U.S. and locations Avast large Location application Micro; with the fourth platform. new of its European and some definitive will several mobile their including current further comprised service as partnership with Software Labs details acquisition. the an Safety employees contracts, to In to quarter forces locations. We all customers service for we separate join a and review The five assets we year employees Labs, in subsidiaries from let’s patent Family with the potential the along licenses XXX Family of existing Mobile with onto Slovakia, together. which product order customers Business two results out rights and acquire mostly LLC, operator Mobile to one both offerings, are and those Republic Czech SafePath and Bill’s a certain phasing of code strategic interest for Location carriers become of all to the the are of approximately to declining the contracts and entered United Safety these product recently comments, are Serbia, acquire contracts and Before source Smith are customers Tier will The U.S.-based and to Further code, located new review

to acquisition product development talent obligations. impressive $XX stock be stock. Avast Total purchase and escrow markets million, will be can price also post-closing satisfied Smith million. to these be for pool an approximately secure funded company-issued considerations growth. be continue $XX provide in expect and currently and indemnification consideration other an of the All We cash to Micro’s which necessary will to these from There

an the no launch for continue million fund this $XX public is filed, particular corporate expenses. liabilities portion the historical Mobile view paid earn-out, assumed if to financial U.S. one the general renewed and be the next a is X acquired, year. quarter. a close on afternoon early cash expected purposes. based with an forma the sheet Tier of revenues of next operate contract or Pro Family of to end within announced revenue assets direct strong The is offering, Smith there balance will statements within that acquisition consideration Software offering with public launch, million for the Micro Also Additionally, Safety will and of and cash the Today, more performance estimated of near and was to was the of for offering and includes life which debt. abbreviated Business a $XX which the

the As experienced you installations. legacy will the replacing to see, to XXXX Labs XX% relationships Location currently an business partially mentioned due Micro’s previously or from Smith XXXX, this has revenue decline

the evaluation revenue Bill of significantly As our business streams. the legacy mentioned, discounts

will expenses direct the nicely is the The to costs. as facility portion continue should to trend costs support be do business evaluated from revenue this support Smith include to of Avast non-legacy Micro any expected not into work Software to and administrative added Safety legacy the down Family These increase needed opportunity grow customer with and While our new team is or thrilled closing, post to XXXX. portfolio. Mobile have operations. the

financial let’s fourth details quarter Now, fiscal cover the of XXXX. and year the

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

platform which revenue year, compared Circle to and year-to-year. SafePath million The a was year, earlier were in last XXXX. compared year consistent last increase ViewSpot to revenue the of CommSuite of of to was increase growth, the result relatively in acquisition fiscal related $XX.X $XX.X the is For XX%. some million an

decreased the the XX% fourth During fourth sequentially the decreased to year. of compared SafePath of to This $X.X third to was range X% quarter quarter within last quarter guidance the XXXX, provided. this of year compared and million decrease

offering Sprint The in-store the fiscal million SafePath the guidance This For revenue initiatives decrease XXXX assumes from the XXXX, expect on coming sequential due remain post In SafePath, to products. SafePath the the coming the subscribers. stores year, X% through of the expected continued the through reducing to reduction to a the and the in of quarter XX% be T-Mobile to was $XX.X reopened XXXX. current $XX.X XXXX. and marketing the quarter, the we did quarters. between quarter. activity down to of merger, subscriber And primary in are and focus trending mostly of compared SafePath on shut first to marketing marketing subscriber this merger reason about new We excited launch to down. caused Sprint. initiatives encouraged new new continues the those fourth stores opportunities related million in-store progress Earlier of in for most SafePath the a XX% year status by increased on when the not activities Sprint marketing initiatives COVID-XX number in T-Mobile reduction February, current for is The current of based

fourth the platform this quarter expected fourth quarter from During the guidance with sequentially was increase $X.X of higher increased year. CommSuite the year. was million, revenue the Revenue consistent than to the CommSuite of XXXX, provided. This platform and quarter of was which X% third outperformed last compared

For revenue year XXXX, expected Sprint an in quarter to in XXXX approximately decreased to in revenue decline. better-than-expected $XX.X in subscriber offset ad the million fiscal increase revenue, due resulting platform from was X% seasonal CommSuite by current performance XXXX. $XXX,XXX, advertising $XX.X The of million

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

network, As continue. a natural we these from Sprint Sprint subscribers the expect decrease subscribers in to transition CommSuite

Boost, owned Sprint, the part platform to to of look As DISH the by future, subscribers. our including Boost in increase is comprises now and expanding with approximately formerly goal reminder, DISH the revenue. CommSuite a forward XX% We CommSuite of relationship

third in CommSuite approximately ViewSpot we advertising the higher Sprint of be quarter normal the of up variable quarter XXXX, subscribers the the increase year. to approximately to returns $X.X to to down last primarily XXX% than This This decrease first was outperformed million a with in and $XXX,XXX. the X% customer. the During range includes expect compared higher provided fourth quarter. quarter platform compared expected U.S. due fourth up of a this XX% for revenue of to guidance XX% fourth was Tier compared revenue the subscribers, assumes of and of and X year Boost to run XXXX, rate the revenue an quarter increase revenue to volume our

was revenue consistent XXXX, year XXXX. $X.X fiscal with ViewSpot and was For million

this during released a we COVID. We not customer AT&T ViewSpot to supporting customer we in returns. the were to continued chosen look unfortunately, As Offsetting last store a due future as ViewSpot quarter platform new that in as of the closures in-store this forward XXXX, notified Europe. of has first week, we launched the customer, new renew to Mexico result activity

fees recurring revenue promotional portion variable reminder, our a bursts the be revenue. is revenue. in decrease revenue activity visibility into is is categories, of separate variable to to of revenue generally and This the fourth compared As which the the ViewSpot X related resulting to primarily short we the current quarter. fixed are variable. of The and the revenues XX% portion in campaigns, and lower revenue, of outlook, fixed we related ViewSpot component and license the is volume quarter The to less is device our predictable. related near-term first by Based on to of expect

the first X% compared our to quarter fourth for For by expect XX% to the three all revenue of XXXX. reasons of the approximately with XXXX lower be discussed products, to total quarter we of

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

million, employee-related for for allow $X.X year. end in last quarter non-GAAP $X $X.X $XX.X million year primarily fiscal These million fiscal to $X.X to expense compared expense comparable $XX.X million $XX.X operating million, was was for to of fiscal of the to for increased to $X.X to of operating an XX% the The compared same compensation in increase development compared million, quarter or fourth last an million year, compared engaged quarter, resulting fourth year. million XX% last and for fourth to increase GAAP last XXX for slightly million non-GAAP XX% the provided. year. third the compared Gross year. an the an expenses quarter expense at of increase last and the $XXX,XXX year, quarter the increase to headcount million of consistent an operating XX% operating For year-to-date gross an margin during fourth increase costs or third-party the the employees decrease is expense $XX expense the year-over-year, increase variable compared The the are operating was of GAAP flexibility XX% operating The quarter guidance costs. as fourth related the year expenses with mix and year. was fourth quarter Non-GAAP last increase to contract year resources. non-GAAP profit to number to and and was of us or the the period XX% $XX.X was $XX.X different though. for increase last we million, of or compared million of expense was $X.X was operating

amount During we continue development to quarter, the the fourth costs of employee costs costs third-party we phase rate and reduced in increased employee contract run as the throughout the quarter.

$X.X $XX.X was diluted million to net share The of earnings income per last non-GAAP $X.XX $XX.X non-GAAP year. or diluted for year. income of employee by $X.XX fiscal fiscal less increase be share earnings We of of million compared $X.X year an increase million is development fourth costs. a costs. in increase to expect compensation the income per million quarter run a for or earnings diluted for non-GAAP for XXXX per operating and rate consistent net $X.XX primarily the development $X.X and compared reduction to quarter of expenses contract or approximately compared an to non-GAAP million third-party The third-party increased contract net $X.XX as costs non-GAAP again expectation This XX% net related the headcount first year fourth a last and $XXX,XXX. year of or The $X.X income employee-related the includes expenses non-GAAP was to than last expenses operating the million share share diluted earnings quarter per

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

quarter, includes amortization and $XXX,XXX, the Moho which animation of following gain fourth intangible noncash adjustments. reconciliation the a on expense of For software the stock of XXX,XXX, $XXX,XXX, some of are the of compensation adjustments, sale

the expense the sale million, stock compensation and quarter of on amortization the acquisition following state reconciliation taxes. fourth For a cumulative million, of primarily includes adjustments. year-to-date, $X.X few the costs and to of adjustments, software the gain the of tax past the $XXX,XXX, foreign $X.X of loss expense GAAP intangible Moho to income years, over some Due is noncash which $XXX,XXX, animation certain are net our of due

we non-GAAP tax for reflects does rate This income XXXX. financial expense a X% period. conclude purposes, non-GAAP and utilize actual my XXXX For the The paid resulting tax taxes each review.

Now back to Bill. you,

Thanks, Tim. I’m Since time on I as Tim will spend many call. have won’t questions. core three sure I them on color on our on this the you has provided acquisition products, Instead, concentrate

Let’s its Avast XXX business market carrier acquisition we technology employs covering software size number Slovakia, digital Business perspective, Once why Micro feature from annual projected Smith in Labs new California IoT positions interest of its Serbia in collaboration easy for SafePath total Smith unit two see acquisition at market mobile Safety base different SafePath more This XXXX. the Connected the line as Czech our further customers transformational we putting acquired Avast patents did Safety separate The give you are has wireless that is consolidation Emeryville, carrier the digest deal product first. to Lifestyle in the completed we base. which which We acquired it a and as how from a very we through for accounts solutions revenue Safety the Circle acquired are growth Family to new in transaction more The the as on of provider enable of the customer some opportunities and to believe acquiring we its with geolocation. and our The safety place than of as in complementary features, double Smith in When the a and for about see the now making acquisition diversifies XXXX. XX,XXX-foot To in as Location individuals, create accretive platform, clearly our look integration to near term offerings and needs with various Safety which that globally to one transaction we in penetrate with base. the the Family in billion the complement including solutions is AVG the Labs customer This approach, of further in XXXX. Business $X Family the has perspective safety full after portfolio. acquired have Location to roots Mobile needs the set XXXX, agreement opportunity, it seamless Mobile transition value safety technology holds the operate based Micro carriers. Avast customers product mobile significant and the Avast our in estimate our customer Safety Platform, approximately is to Family closes, family nearly potential. innovations, Technologies future number for Micro. Republic pioneered and billion Family where us the Safety will lines the than $X.X from was more will Europe this enables learn interest U.S. and and it platform’s we merger a and that our in the is our plan The mobile Family immediately compared in Avast we carrier the of platform, security our

talent confident our revenues Safety us best as blend both are over it carrier from to optimize future allow of this time path We existing maximize portfolio. while teams is contracts the will that Family forward the to we

SafePath necessary it of leadership feel and presence our the team. expertise knowledge, we of the to combine will experience is While market this with approach Avast and successfully take time, market

perspective. benefit important, this from also Micro acquisition customer a will and user as Smith marketing Just acquisition

digital blending efficiency teams, optimize customer relationships digital underscored and and more the As of bottom combined retail will our of of by talents, our the we never strategic the line the closures acquisition efforts. been to impact By experiences has product important. due marketing pandemic, XXXX

generated the is our one that completed operations While much Smith I from acquisition. contracts Micro in are this over and ViewSpot, SafePath By on expansion sides more vision so largest couldn’t strengthened than Circle’s integrating opportunities during a million We are into both has revenue XXXX deal controls this be solution was $X the for transactions successfully position made in happier we date. parental operator many Overall, safety years, benefiting to these market, our our that Micro achievements, successfully both loaded fiscal market. remained by family generated diversified Circle’s cash to full-featured competitive a customer and new the very Smith we to On potential. and as year-over-year successful year. family carrier we grew with profitable, year revenue. a that signing base acquired business, accelerated SafePath, of our for good roadmaps greenfield top our bring from SafePath multiple safety

on an sell investment greatly needs to of specific flavors ViewSpot of platform, utility carrier. our market platform us total also based enables the that addressable expanded for diverse and the the We the

as Smith call The expanded we has the player imagine, in pipeline Safety is our move a XXXX, that accelerate the As confident the sales portfolio, scale. Mobile poised as to business we said, position am global and can impressive complete, talented list, diverse you of of we soar global competitive region Once regarding in staff Operator? into of open Family XXXX. dominant our Armed Micro Safety will Smith for With very case will upside I Business. that and States. is United customer resources have our great the also a a positioning vision on signifies Verizon added deal us and broaden Micro greater Family acquisition will Safety European customer to Avast operator-focused the as professionals, business heights Family financial the which our a acquisition with been questions. I even with expansion, extensive for an significantly

first [Operator Riley. go Instructions] Our with Nichols ahead. from Josh Please comes B. question

of coming back Location out also little afternoon. to as well? update and I half the congratulations first want the of the Hi announcement bit this for year that the it represents Bill. with provide a you this think I accretive us briefly, term did Well, on you on on as in off, think hit Company T-Mobile ask, an could longer and about really XXXX opportunity we Labs

meetings team. Josh. lot well are A T-Mobile going of our team joint lots planning going between Things the Sure, really of and on, T-Mobile. with

look offering, continue SafePath which the X that We as for and a planned. be product launch launch called midyear of to FamilyMode, new will will that

allow going forward. quite about excited offering are to We really to family that think it. a single focus this safety We will start on T-Mobile

now get their the I the will Ts-Mobile think the from make simpler just it fact the new that we with the announced unified various have product of SafePath acquisition Avast X. as to even well offerings standpoint all

fabulous we to to half of some just and of we head with part lot into I lot we’re think, back a T-Mobile really of carrier And a of T-Mobile ‘XX, opportunity. a lot this is a of growth out we expect outcomes be offering. is forward. is a FamilyMode going to be growth. be just think a the going excitement, the really great And We Clearly, X.X look pleased big going super that for of energy, it. as

presence, little could a carrier strong really Could providing opportunities for Europe? on and in Micro, interesting are of bit additional really Thanks particularly you for relationships a things create Smith about some Also partnership. there. the really hear talk Good color a lot that. strategic the since here providing did collaboration has Avast particularly you agreement track a with mention that to that on

Yes.

really about conversations We’re excited this with as Avast. well. on early the in It’s

look looking all guys family safety, got myself counterpart we IoT we we you’re security questions that MSOs wearable the expanded And as that where digital and from wow, lifestyles think What we just in approach did I final space, keeping taking do through compete. I both to need and whether we identified the been a have carriers but really in to that They the together, devices. and IoT run my We we totally idea. work an safety, at were create And family And talks we partner, can a And the and the lead really family I great or security what a standpoint you from think was early we’re hands one the device the a the not only And consumer network there. consumer out look of Ondrej’s we And can safety to them bringing in and wireless Some lead products. was, could viewed we explain both, or are it’s between secure. different will cable I IoT not the area of forward. working very home compete, forward really thought service this them, process. into safety security, at is us. amazing well joining hands joined had goes, this thing. And whole device than new he we going and okay, then And single said, for app, family we are. we we you that think how said the have and the that they to network. a

baton the let Thank questions. Thanks Bill, and I’ll pass you. someone again. some ask congrats

Josh. Thanks,

go Scott from Please ahead. is Capital. question next Roth Searle The with

Congratulations Bill. on the deal,

Scott. Thanks,

are clarify, Real carriers. that per I pan-European terms some Avast some model, you about us could or we along as give of of should referenced that? want correct? that of relationships Avast carriers, idea the in how of there then, you’ve -- the an come thinking you size is Are these subscription But, model. I think these carriers? the that Avast think to or quickly, named European I don’t with Is And be has just in well terms Circle, unlike a user-driven it.

Yes.

Okay.

Avast first that’s mode a was Let’s of there, Yes, it compatible the question us. all in take part It Scott. subscriber marketed your a very fee. with monthly

So, It it’s a business. is do SaaS with it’s model, we just very how recurring. consistent

transaction. So, be this Yes, carriers as a result well. that very a lineup are joining works our that very, will couple of there

also they is well be family Italy, working as in First our off, be Wind be the be Hutchinson the there’ll safety of will will group Vodafone going using software then us. forward, Group, with Czech as Tre, and based part offering and

product. in there’s weeks look that’s we’re heavily And ago, So, a well. And carriers. a SafePath lineup Middle add it’s opportunities mean, a off on of our there. beyond and at as East. market. the running. even And for very of that, think energy And our Ordu many, We more more think the I there’s Middle announced few European East the we launch we lot in nice I focused to lot the also And many of a

forward, So, combine think when see transaction and us the East with this bit. we growth really markets, some significant we a helped Middle European quite going you the just

bit up, couple Bill, pipeline, little I of just Hey follow queue. a and announced just a think I’ll in that then ago. quickly terms of referenced you in off of weeks the Ordu, to get you back the But, which with

had You’ve TELUS.

be competitive the landscape. continent landscape American But, You’ve the got of rest terms opportunities to at look looking there? to competition in chasing DISH a wondering products? relates now the up greenfield how I’m SafePath the of I starting that you’ve does like broad Thanks. is. Is to know the bit as ramp mostly of North family little it pipeline, well. you’re the going as now, you out early. talk it it’s What it the And consolidated if about European could

but think some had they’ve we think many we somewhere also find can I Look, we Sure. efforts find will greenfield underway. opportunities,

a is able of talking think We European at And a customer put new first running. release really still looking in country just contracts, to we carrier. and out and both. very the in our large it’s the wishes that in because talked we that’s name can’t off carrier names we’re the about. the last have signed weren’t So, We’ve ViewSpot call four one We area.

So, look growth off for of that. we

about talked and out signed We that also new fact deals there. SafePath the we have customers. named now Ordu is three with

we’ll be -- are hope the to The things process. can, that are have we’re able going But you you’ll We in going just well. stay quite not to I’m yet convinced give others tuned. we to names. and

Location a We’re control of all them pretty at as Labs excited the U.S. one result, the business years We of are in all -- we now, owned And that point. Avast they started company side. all in have our carriers general. is the clearly, where this ago, about of adding and

whole thing. I’m about excited the So, pretty

Martinuzzi Eric from is with question go next Please The Street. Lake ahead.

Yes. I revenue. had the a question about

Is full $XX an a year, early that XXXX assuming months close? I $XX the is million million. to XX think or remainder, you that said QX

million forecast do year, days. a XX in that portion to close all million to have the to it. for the Yes, entire next of given expect Eric. not reflects We the $XX $XX us that Avast had XX Obviously, of will year. we

kind in So, it’s like looking of April. sometime

that. Clearly, recurring business legacy we’ll still a have legacy will that. And prorate will is revenue standpoint, upon the the to go-forward hope completely the going recurring. based some solely was revenue was we to out. that forward. revenue maximize The so, be and that’s discounted revenue, the of valuation valuation There And from

Okay.

that EV -- just you’re to million that revs, So million. instrument over to blunt million what kind of talking point on $XX $XX you’re the we’re Is $XX making?

Yes. Okay. That’s Scott. correct,

into here. I the customers mobile Charles. that operator contracts. we’re up Okay. getting wanted Obviously, Thanks, dive to you five picked

two the you’ve You carriers, Verizon, mentioned which EU named.

T-Mobile-Sprint, does that that -- to expected is based? there. color the in the mentioned -- give This further also was outlook a gave where XXXX coming in that that is mentioned questions on you Where you XXXX. and kind does within XX XXXX couple of You business include from, there’s then AT&T. decline in decline on, -- guess, decline mentioned detail and us revenues the decline? Can versus of you in any you the I revenue

Sure.

was was a at it doing ours from it to basically they off, were That was of about ‘XX that decline just really First for led T-Mobile-Sprint. was our T-Mobile-Sprint ‘XX with by a was leading their on business where mode decline wind-down there growing. probably was Avast. efforts And -- Avast XX%.

out them. So is nice Verizon re-upped. that negatively recently to thing point impacted One their contract was just with

we the forward. with and And understand a so, and to relationship to prosperous AT&T will working forward include Verizon. better contract, be long try AT&T, also it’s business we look to category, legacy we a in with going multiyear do and their goals

million or in $XX some that that Does AT&T? does ‘XX $XX AT&T, million include to not include

$XX the all revenue. ongoing -- to That million million the $XX are No.

revenues carriers. as the well that’s European Verizon as the So, from

you. Got

to know, of these five customer’s touched here. and the curious carriers, assuming you from perspective, mobile out just all then, I’m the And reached Okay. contracts

obviously, that to introduces You excited me some excited tell mentioned are about they they’re that you can about about why uncertainty. hear What the arrival. your But transaction?

across I think, being going space. carrier into recognized this player as the board the think, to transaction -- are in transaction, is the And With closed, wireless dominant already now number one player we it’s leader the in as vendor from space. the partner, a a we reassuring. the have and their this were I

the lets fact and think, really family the in safety with long I us haul subscriber overall to we’re them the so, and can for we here doing that investing the space know customers. increase work heavily us base, them grow their that they for that our see and both revenues so in

think well. I bodes that really

added we from can roadmaps than even how when think, depth think you capabilities really And about forward Avast, carriers before. over new I now. market. get this something more I at excited We’ve vision gives going and had they real there’s us look that for more that the our can see some that’s which folks XXX

reassuring that’s think, as I well.

impressed. very were they think, I So,

in actually see what girth, I think fired gets pleased the to are grow leader very a really the think the that now that space, expertise, that’s space. them the is a wellbeing dominant I the there leader they with to up. dominant And

you. Got

questions. my announcement. And congrats taking for transaction Thanks on Okay. the

Thanks, Eric.

with question is next ahead. Please Woods. Jim from McIlree Bradley The go

or just surprised -- bit Tim, maybe about and it opened the being you on what’s Is function the on function questions revenues or continue consistently to other a parts you the we’ve -- why A on can been few CommSuite a talk conservative, there? of surprise this of stores of business. the is the being a little upside. not less churn,

Sure.

Yes.

Go ahead.

Tim. ahead, Go

Jim. Yes,

was So, quarters It’s had, ever quarter the best this years one to in anyway. ad many we’ve revenue. seasonal related of

down that So, glide year. talked really predicted. will on that We do base we’ll And offset then, unusual of are that item not revenue. the the components hopeful build expect about decline, was Boost but the going be we path that continue throughout have to we’re the the to on I’ve business, side that couldn’t maybe CommSuite those complete to try. Sprint that And the that continue of we’re Sprint

And actually, the it’s launch help, it Boost, I a start sometime DISH it’s get this to think, -- business they yes, but that also to as going from postpaid year. is

at with DISH excited forward. really what about pretty we partnering CommSuite going let’s we’re can with DISH. And So, see do

you you of characterize in customer to of customer can the subscribers ViewSpot Mexico lost? up, subscriber terms customer the relative that AT&T or that And size picked you the

Yes.

a by just momentary reopen. AT&T just I problem the think, their fact by stores caused Mexico the the is can’t way, that’s loss, that

back in think they business get once in stability some can pandemic in is think, largest with chance Europe we’re let can and there’s But, that reengage doing Mexico that the with us. one an excellent multinational of very the stores open, The your I they’ll carrier the get Europe. question. back carriers to they answer with come and and I me

their a hopefully broader if well, Because will the and first prime country, It look going products goes target new to and of launching new one in plan are in one typically, very in that We technologies. deploy really trend it to to countries, used very continues. test that is often platform. is they well

growth see forward. be wins So, it’s we where driver Europe also activity a great ‘XX. of ‘XX for account and it think I additional lot should lead that we think going for could and a to a throughout it reference into in carrier ViewSpot,

growth So, our there’s think get it’s through this, think and we say all as starts big product not work Family we we Safety. down, we as would shots can a to think ViewSpot, in We profile. to has very that as it’s the I wind some for growth as general, there. nice a growth start the pandemic potential nice

growth the Micro addressable huge of just going total SafePath new forward. immensely market the a Smith think has really I should drive and

business up out And of think Scott was the the this from to potential what serving lines similar the a my it’s that or at trying to last acquisitions there I large more be going or building is to get maybe there, are Asian up? for or ground you, markets Europe one is, -- product companies are is

model. it that other might we Is Jim? that So, question, fit get into what value-added to that your products what SaaS you’re our -- service was want

a I Sure. to Yes. rephrase think Yes, that’s good it. way

fine. Okay,

the have that XX acquisitive. in months have what and demonstrated We’ve Look, get of between your very deals acquisition I Now, XXXX significant is. the quarter acquisition been two first Avast now. we now in Yes. Circle last we the question the now done

always we are the really solidify for But, a family to careful trying there opportunities. apply. that looking also market. we criteria very are But, is We other safety

in be for are We player opportunities looking where the one or number the market enter either can segments marketplace. two we we the can number where

just would there oh, not, the a instance, between us by -- non-compete is very and strong Avast. for way, we so, And

ever or it market. to never X we So, If were enter number X. get security the fit you we’d attempt to would But be. place the never we not is into want security the be market, X, to that would That model. ever

always new are for looking we So, opportunities.

want point talk a conversations on. nothing really there’s But We number have that about. started a we have we’re we that at to that

think XX incredible I of most think, the of upside our has one deals our probably the digest history. have is largest And in this We it we done. now. any hands acquisition. It we’ve I years’ the need full to

get at at a other to think, this So, want happy bunch be heap do the number of I’ll and to But the of be and right really top one be get and customers. done We it we’ll of done be or we getting opportunities, one bunch but number do customers looking yes, get I want new happy there. two. a

Messman session. back like closing over Charles to any would to turn This our concludes the question-and-answer remarks. I conference for

everyone to great day. feel I Hope please forward, to a we look want a going about. bit us. joining the And we’ll a of talk little a questions of this longer any lot have to because a should you us. for But free talking got out near to to know I call future. thank has everyone reach to was you forward in Okay.

The conference presentation. attending has for now today’s concluded. Thank you

You may now disconnect.