Smith Micro Software (SMSI) 13 Nov 242024 Q3 Earnings call transcript

Good day and welcome to the Smith Micro Software’s Financial Results for the Third Quarter ended September 30, 2024. 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 Marketing. Please go ahead.

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

Chief and forward-looking and Jim Smith, If will please Officer. Please like cash information the company's our hear Financial of growth by website during product Chairman reserves. visit a statements, our product today's call, Kempton, company today's including existing and and President, and section one, at revenue relations of new availability, would limitations, discussion plans www.smithmicro.com. On some you Chief investor we the that have and future operating consists expanded regarding of do and migrations our you expectations, expenses, opportunities, and not our new Executive copy Officer the have of development developments, note those Board, Bill and/or profitability, customers, and without future new market the

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

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

XXXX today conference thank joining us third We your Good you appreciate afternoon, for and Thanks, interest. quarter Charlie. call. for our

the as the forward. overall Let some the remain updates and focused about today with we path business excited very call on quick me begin

return to and is the flow. to of free objective cash profitability primary Our generation

must I calls. which on you to continue wait be that we official had our name to able we European we earlier begin happen have announce carrier with the the but soon. hoped for Let's with discussed to carrier's to expect today, launch,

to are our with We sharing the forward launch shareholders. details of looking

Now let's of business look new on side things. made progress the the at being

phone we to of deployment our our schedule We safer strong for experience or to standard First, at coming OS yet U.S.-based the within the contract with mobile for built-in deployment a our are mobile first tablet operators limits seeing SafePath kid's a OS SafePath enables in accelerated and our sign given SafePath device market. that expect bypass. OS MVNO the in cannot platform another offer solution kids as SafePath aimed we weeks. innovation the a mobile with otherwise that and is interest

quarter XXXX. expect We the of SafePath first the see to first OS of in deployments

our This Family expect across members the our before $X have at expenses in We supports. our the and platform SafeTools. building to going rapid on we business will key CCA U.S. I CCA. committed This reduced turning carrier quarterly This In weeks call to CCA partnered to touch Safety want partners, devices the sign they and in and focusing the model valuable values to believe market our Association, CCA plans. On SafePath over under CCA's the size to name arrangement, are Carrier XXXX engagement cost the on selling market quarterly want members more CCA Micro as for last what quick Smith the eliminating agreement. Competitive best, families of in Global we we will SafePath Jim. bringing build recurring Additionally, offer marketing SafePath the we previous our least partnership structure calls, million and we in this expands we carrier QX and call, QX already namely with Solution subscription of our core SafePath our currently agreement discussed SafePath that by it will revenues. We pleased am single is fees expect do of expand in brand a cost carriers completion with coming forward. to our member enables recurring that that have year. additional of process solution million yet of go-to-market quarterly tell also I theme you realize component and contracts solutions to contribute their under to our be I actions. approach to contributor opportunity, our subscribers these this $X.X the model brand benefit pipeline deployment to it this have to a another note members is Global full from strong the truly OS, market any months. offerings, multiple our to to and that that that on delivering meaningfully this to our I under have achieved and reductions

and have coupled profitability detail. in a in take costs this expansion to the Jim financial review minutes, our deeper dive us with As believe call cash describe more detail, cost positioned company turn million to Jim? in over are for market but execute $X.X $X.X believe million. We during our of positioned to return free our that were and revenue be quarter of results opportunities changes XXXX. I'll responding range we savings a in goal the to that few the actions quarterly a have we into rationalize demands. of let's We we've these Jim targeting to more will for fourth first to flow our more with the taken upping to nimbler to to agility a the

afternoon, the now everyone. of I'll covering the Thanks, Bill, good XXXX. for results and quarter financial be third

Contract conclusion decreased Year-to-date Sprint million September of of a of the XXXX Verizon Found approximately year-to-date million when versus for During revenue and Safe million through of of quarter a in by decline, XXXX, prior Family revenue XX% were second the third third fourth or same we the by $XX.X through driven year quarter of decline quarter with $X.X XX%. Sprint to year. The million, compared $XX.X decrease Family continued due the of the to attrition of is to approximately revenue XX, compared related recognized acquisition the in quarter XXXX, $XXX,XXX legacy coupled $XX Sprint. XX%, to Safety the Safety quarter last the XXXX, the subscribers to compared primarily of T-Mobile's revenues

revenue recognized of quarter during prior Safety of XX%, year, third revenue was As concluded of approximately the expected. Family XXXX. by XXXX, in $X.X Verizon quarter fourth the quarter revenues or Safety decreased with Family was $X.X XXXX Safe compared the in decreased Safety million, third as continued of that decline by Sprint having contract X% to During to due quarter or second revenue the the quarter coupled third to of primarily legacy $XXX,XXX the million, and approximately which Family compared Found the no the XXXX, our

$XXX,XXX we revenues XXXX. In to continue to is contracts. to approximately the CommSuite visual $XXX,XXX, in in million, been CommSuite a the quarter compared $XXX,XXX, increased voicemail of second of that two in ViewSpot which third million. terminations announced Revenue During quarter quarter Family by decline the in revenues. XXXX, quarter growth decreased revenue of the prior The for $XXX,XXX, primarily approximately declined third revenues to quarter XXXX, to quarter compared quarter the consolidated ViewSpot premium platform revenue driven third of of part by was we $X experiencing approximately of This fourth of the to was approximately compared third ViewSpot on year. compared $XXX,XXX the the quarter the to our to XXXX by was boost the by have compared trend subscriber revenues $X.X growth third third of approximately XXXX, the increase of expect as compared approximately fourth anticipated due CommSuite to as decreased which quarter approximately revenues to in quarter. ViewSpot the expect of the projected be XXXX, of the in XXXX. range second and Safety previously by $X million from

the sequential of profit to of margins of compared year, to million to revenues. Gross third Gross XXXX, quarter approximately the gross revenues the quarter quarter $X.X period-over-period was quarter in the decrease for due the was margin quarter to $X.X the XX%. XXXX, the of million same XX% we the during in compared second XXXX. approximately $X.X the gross third quarter-over-quarter. In gross third a in in of in $X.X decline approximately of at XX% by period primarily to XX% compared million of the the range prior XXXX, be in expect approximately the by realized to decline For profit million, XXXX of driven the $XXX,XXX produced quarter of fourth profit decreased

XXXX, X%, margin million, $XX.X period was driven to and the marketing-related to quarter and the reduction quarters third of XXXX. a with the $XX.X million, were by $XX.X to year. million quarter of $X.X For the for of year-to-date non-GAAP expenses period to or XXXX year, year-to-date $XXX,XXX of months compared activities September the undertaken were XX% gross to was the XX%. $XX.X million XX, year-to-date the Sequentially, September nine year. compared in increase incurred XX, the September compared ended XXXX, This $X.X an of reductions the ended operating the profit quarter quarter quarter or Gross compared $XXX,XXX third by offset XX, XX% costs expenses of for period, $XX expenses million was second last during XXXX, XXXX goodwill from the for third period were was in of increase the this of operating compared by the approximately third in cost which XXXX, for XX% associated cost by corresponding $XXX,XXX September million of to prior operating primarily decreased the reduction second $XX.X decreases million partially compared operating during non-cash XXXX. GAAP XXXX expenses personnel in the of period-over-period XXXX, million, undertaken partially year-to-date $X.X impairment a activities approximately charge for of third decrease in or quarter costs. GAAP period, decrease XX, severance-related ended offset XXXX first million, attributable expenses. Non-GAAP the to last in

Through to taken. achieved the last profitability. reduction third savings as cost did in we earnings of quarterly quarter the a noted in actions company in undertake further we call, we our result worked $X.X actions third As successfully as quarter, million the to we return the

of million we to in $X.X a is established expect quarterly targeted the to million quarter range that prior our which other to savings first the by range now fourth million decrease when quarter our will have activities $X quarterly XXXX, $X.X such, of sales As that we this costs of cost call. In on words, million year. to anticipate cost expenses based comparing $X.X executed $X.X on of and reduction million, total million, earnings to we recognize XXXX non-GAAP operating than $X.X higher the

of As in $X.XX or loss net of or non-GAAP of loss income share, XXXX XX, of share or $X.XX quarter for a gap quarter $X.X we year-to-date operating an per expenses quarter months net per GAAP per the a of $XX.X net the a period loss last in $XXX,XXX nine by XX, the year. The loss XXXX most provided net non-GAAP earnings loss million, third September million, per was comparable or compared undertaken to result September $X.XX metric. $X.XX the compared timing XXXX. Non-GAAP X% the non-GAAP for approximately period million, share, a quarter share, quarter September loss compared of GAAP of approximately non-GAAP for $XX.X million net per the months a fourth or loss the the ended million loss $X.XX to XXXX. Within or decrease $X.XX expect ended XXXX expenses XXXX months reconciliation loss third per nine ended September net per GAAP XX, share the for nine million, quarter third of $X.X a to were XXXX the Non-GAAP or $X.XX compared $XX.X loss $X.X actions of release, to or months was or a XX, for compared XX, a to to quarter, non-GAAP during ended XX%, through approximately share, to decrease net operating million the XX, $X.XX third of million, a the have loss XXXX. the the XXXX XXXX. ended we XXXX, of loss today's was third to of approximately a share for nine was loss the September loss to September XX%, million share metrics million $XX.X year-to-date for $X.X of $XX.X per for press our to $X.X third compared net XXXX. The compared a GAAP

intangible compensation quarter XXXX, by reconciliation warrants amortization transaction-related $XXX,XXX. approximately costs expenses the severance-related For asset expense $XXX,XXX, value approximately and the $X.X approximately of of third of offset of $X.X adjustments expense of for depreciation of the of includes in million, approximately fair changes million, stock of $XXX,XXX, partially $XXX,XXX,

taxes. $XXX,XXX, the expenses few in value fair changes due the intangible $X.X $XX $XXX,XXX certain impairment expenses, million, partially approximately million, our income approximately our net by and non-GAAP period, tax for of primarily of depreciation losses amortization $X.X million, goodwill of year-to-date the and $XXX,XXX, For expense of GAAP over includes the offset reconciliation cumulative to stock to costs non-recurring asset to foreign warrants. Due compensation of of including severance-related state past years, adjustments

non-GAAP XXXX actual XXXX. The million tax XXXX. expense as X% $X.X the non-GAAP utilized a tax we each quarter and taxes period. We expense and cash For reported the reflects September rate XX, for purposes, cash resulting of of equivalents of during third income

As approximately each fees. Bill, grossing was exercise concludes off million Officer, The before Chief exercisable by million October, led did warrants $X.X Unregistered X.X $X.X issued transaction financial date years [$X.XX.X] cash capital part $X.XX both stock the our million in $X from six were the complete warrants expire share. our beginning a of common private of become raise for capital existing Executive the date. This via we of share previously investing registration. months The per raise shelf raised of offering The was (ph) transactions announced, placement. purchase review. transactions. with the price remaining issued per after at offering transaction-related both an and price as my in

Bill. back Now to

Jim. Thanks,

and ramping some opportunities, you Family its are As the Boost its by updates about marketing retail providing to me Guard in spits in of the provided talking pivot our their promote partners. is leverage drive the retail with an up subscribers we Family employees, offering. Outside subscriber customer throughout let I to some Network. ongoing their is providing marketing its promotions base, retail Boost tool effective new of retail of attract product more promote to SMS, started carrier of which website on new call our Family avenues Boost Guard awareness Guard the to believe for other Boost the stores, to and Boost to Boost They Mobile to plan footprint. continues stores email, using SafePath-based and September collateral family

help with increase third QX. Boost Family In platform voicemail, addition the service experienced into value-added premium visual premium subscribers progress made by we with is continued success to the expansion growth aligned our strong the platform second activities continuing believe revenues, on being The for voicemail versus goals of XX% our which the collaborative powered Guard, products. promotional a is has Boost CommSuite will during subscriber the product, growth we of in as them grow CommSuite this during and fourth representing Overall, visual over quarter are which drive the translated Boost meaningful maintain to on our relationship Boost to and quarter. to for in both quarter. Boost with conduct the continued

continue with new a family new for we talk Secure issues group focusing influencers, an features. all campaign who happening. who just outstanding same the coming Let's media of currently a and promote world. More product's just Secure as makes concerns to into XXXX. today's which purposely for the awareness and AT&T AT&T relevant started on expect promotional selected social of faced Family began is that In campaign are influencer This than the about the are spokesperson November, AT&T platforms activity also influencers on we Family. social each driving to AT&T of the by media and and benefits months parents Family parents, Secure parents, have in of them These getting is over it

to Family Disney, recently looking These remain name the fresh and as platform Discovery, shown AT&T are efforts, activities addition been the marketing in Pluto, such this ongoing to are is relationship. from This these broaden advertising. awareness app. of optimistic Secure to Paramount, featured T-Mobile, Brothers With growth just SafePath AT&T forward on approach connected addition, efforts. At has for few. these our all advertising raising to This to to content opportunity the we advertising. opportunities a expanded in within about explore digital the platforms and very our another Warner with continue seeing of resulting months In has coming television benefits we

by working reach us. organization. are progress In Our the be to continues marketing teams for sales to together customer the our meantime, our key within T-Mobile and further widening a

in rate mentioned my I that with selling customers. sales remarks, As carriers things plans do aligning those their are best, focused our SafePath on namely beginning we and phones to

our carriers strong offers connected start sales. or market support First, flexibility. align for young generic an it's to a traditional OS experience and powers, solution, OS rather They for for device, and their sales, than we positioning Wi-Fi growth, with value a offer partners way. age-appropriate and delivery how child-friendly launch and device over-the-top users journey the as opportunity differentiation phone, Safe connected with just through Path kid-focused technology. exceptional both record in customized, can providing enhancing With parents. SafeFath in leaders tablet with a experience track kids OS carriers MDNOs carriers complements them that significant SafePath we first a kids-focused OS groundbreaking secure, crafted is and or platform devices. dedicated have Android in carriers, a phone can Whether only to MDNOs guides digital

a harmful software the SafePath safe, SafePath that align social of for Plan, SafePath the settings, sets adjust sense a rate ease age-suitable which provides filters media of These Second, Crucially, includes plan screen plans. with us and to enforce that parents age designed that leaders the age-appropriate can Kids peace of field. Special parenting, health. Whether rules watching. physical sale which concern plans child are and approach [giving] time rate also to done content we online With on children's the SafePath addressing enables time, children flexibility experts to excess while appropriate have maximum are access. tailored the (ph) SafePath Plan, guidance kids. time plan to mind, these rate wellness introducing screen plans of parents. with allows have scientific limits online carrier empowers predetermined to to thought and video providing OS limits incorporate digital is with for by or giving effects Kids by digital be practices Micro's safety in Plan, operators in the offering this best industry-leading shaped by them of impact and Technology trusted, the parental mental mobile balanced provide a control Kids it Plan and and Smith Kids research

around regulations these the act either catalyst can development and safety many countries of of adoption of for for stages offerings. laws as online across children various New in a

strong. is Our sales quite pipeline

As we call in opening is my marketing earnings outcomes. positive yielding I that noted carrier the remarks, agreement last the competitive during announced already association

ignite earlier. believe other in the various opportunities several carriers truly that our touched way Europe, sales opportunities launch contract In discussions with will CCA exciting that conversations. further European OS several with countries addition and pipeline. In Tier on we X to under carrier the SafePath and in There ongoing have are I

bring believe new SafePath a believe quarters. I us to over business also strong. I to growth Overall, the the am upside significant AT&T case potential profitability Secure a in we launch the positive We reduced on cash strategy SafePath in we coming flow. several discussions U.S. new that confident Coupled with family with for is are subscribers. carriers that marketing opportunities with are here significantly attract new path that structure, initiatives and the these and for that Family to very as positions cost for back the

our $X prospects, the part million into to I in an our to the confident our the team our that, let's the so for around that last company already million additional addition business subscribers in mission the capital in questions. and of world. With in our raise. in I invested I operator, believe our I'm the case, as fact, their mission company $X.X and open In we month offer solutions stock carriers our and and call that own,

the session. question-and-answer Instructions] We from [Operator with Scott ROTH Searle Please Capital. go will question now First comes begin ahead.

a put to shortly. Thanks guys. launch first here. I for the taking good the see in, Global, on the just other European guide in in expectation expecting of what the if then any current little to Looks up, terms be sequential Bill, see Nice to the that expecting afternoon. in next dig we've operator Hey, the want of it bit in you've over and launch questions. quarters? of you're could your to that, still like to sounds the dive couple quarter, SafePath we bottom like Maybe is updates got

part Yes, to Scott, of It's when of be the launch before offerings. carriers have the process And European size I we launching this patient. just carrier a the end are new of expect year. to fully

As the the SafePath now to number excited and seeing in I'm about opportunity of OS traction CCA far member more a process expect very carriers other mentioned. different I as with opportunities, that follow. through We're good the

bullish overall overall, the of and forward about customer of feel relationships. the very growth So breadth our sales I our going

and you a sequential for us December, if bit to little the further, I that else that, Maybe guidance where an carrier that dig I front you're like to from. give of uplift. a is at increase? of is a midpoint wonder looking the that of idea think in providing trajectory who $XXX,XXX contributing at sounds about positive It part comes European but on

new into to well as the current a as with customers. it's activities want coming on of name from really the by but collection don't name Yes, thing, I get customers,

allow see fact a we mind it. profitability us we the feel us in think with I to the in to us to and in that that will other is to overall take the comfortable to trend ‘XX. reduce to to lead keep you the QX that will will add growth continue expenses we're losses so narrow And part And very that going

it clarify level? to break the of kind sounds just ballpark or so million new we're the Jim, like in And that the even, around break-even in $X of terms is

how into of as when you far range it's cost you? take in Scott, break-even, effect are As Hey sales. you mid-X probably the know the

And lastly, could, it. if could Got guys. I'm very I it's about sounds the you itself bit OS SafePath you a a model talk if wondered little to more opportunity. like exciting

and You of well but up talked about opportunity controlling content you know, it of on are content the gets where an on see of is Thanks. it to then implemented, sale terms I otherwise Is basis? And some ongoing you that further are Europe the there front as terms first Is charging also advertising traction. curious, where for model? youth. ahead this the in subscription-based expect to You front? Bill, in one-time and a opportunities guess managing us

Scott. Okay,

is off, subscription First a model. it

as and is active use. month-after-month, fee collect that still device the it's long as a in we'll So

business and growth. chances because positive is with case think, a know it's that the keeps operating It really to can is we a And activity, little we what be most devices. how I if point actually know, specialized version for that salient that, the really fee there's do frankly, higher part increases is on of the probably for new system. that thing really, services, a So carriers phone. value-added than align gift bit sell of of well, get And device our it's the our to giving. you Android it's one It think be able that do to that a

We to device either sale think we're to In either selling plans base. also talked Kids the which carriers the software difference. actual tying sale I rate And or sale. a rate with about case, is SafePath their aligns plan the plan, this

it that a very And it's lot well I forward. I us a think think of going will serve sense. difference makes

to relationship and a you said that quarter. Bill, this get beginning then Hey I a follow-ups think sign But queue. expect just I'll at quick couple back the in of the you

and is itself. So quarter the relationship revenue on the see then of as Thanks. to MVNO two you'll the on of expect or a just where then follow-ups theater this not, And we are that you or commercial in it? actually kind I'm European product an curious whether level in other you see becoming top interest should know, that future? just to the

becoming answer an that last MVNO, no. Well, quick. No, not me really question are let we

SafePath So what that we the quarter. say close will this opportunity believe OS will is I

in prepared stated first XXXX. quarter, be quarter able is in we're we book possible a really the the in might revenue have that We but for remarks on focusing current looking revenue we're It some begin to to launch.

we where opportunity. you that's know, this to on. you were So, see there back And come may other have parts questioned

it's of you think know, carriers? Europe, just interest I from European level in terms the just the

activity Europe, of lot a There's an America. there's activity but in still awful lot of here in North

Trump’s one the I think don't So other.

America is prevalent markets and not America, been North more that are see but meaningful is Europe us in They real we for is growth. they general you both more in complementary. Europe in North The are something the Family in Safety difference to expect that Europe active in biggest and greenfield both I between opportunities. great have before, where think market see

the listening think is you to and to level do that the be that should will really on it now point sales all ratcheted has clear of I we so. I front of continue coming the right have think activity up ongoing

in so Great, much. thanks I'll the queue. get back

Leo comes go from with Joseph next The Gunnar. ahead. question Please Carpio

quick A of afternoon Good gentlemen. questions. couple

and left savings incremental it And into Could opportunities extract you terms XXXX? in just found you savings stone? realized. there First staff is what what's for cost that to that in regarding be is of cost more this reductions? possibly the How sounds like one achieved more by operating cutting automation and

targeted. went initially the I through through activities third the undertook that would had that than achieved process we we quarter, we we say more savings that as in

QX. going And contemplate in anything of see of current time, to effect would or In we nature. XXXX, that at the so you're full that the not additional reductions

now? terms what are how at runway, cash Okay. of And runway and right type cash of your you cash then much situation in looking

finished the third and of up quarter the we $X.X capital then $X.X in out we with raise. cash million Well, approximately cash, ended additional million of at

some how So cutting infer flavor. there, of us. you you that kind where leads we forward, gives like terms we're you you know, out could in down model if go it And the then of that loss from here as on

of lastly, you're of in size seeing terms CCA, terms and what's Okay, contemplating? there deal the average the then in your

was the That CCA. on

CCA, yes.

Yes, carriers with they from small carriers in few relatively up subs. vary and size a to million

of Safe contracts total launching of forward. us the these going collective expect will Tools as number nice carriers and very through process see a for we increase a product executing see in So we that going the

Matthew The Harrigan from go next question Benchmark. Please with ahead. comes

Thank Probably actually It do revenue a the three. side cost like the path side. now easier. feels you. have have you on nice individually, and it's both little a them just I bit

costs as that. I then firstly, on implementation assume just for given really activity, I new So the you're like a it's But after sometimes assumption carry nice questions given congratulations. and for doesn't other I piecemeal what of and clients. a inflection I more correct the in terms basis, QX function things guidance both some improvements XXXX a have in markedly well? all of doing you Feels of know for Presumably SafePath of in like Global start the market-by-market lot and have made. the a introduction terms And have Europe And that's a novo But that. on you few low products of point. de lot you've a and of guess you've but you costs a it a two basis. that's feel of kind

they countries, in operate in country-by-country. of carrier will it'll launches see launch number you When a Europe, be launched. A but Yes. may

So entire footprint be as roll to doesn't out how out. it at a It their stair-step it over rolls will approach all once.

But Is it feels country assumption? new or could apart client have new things have from like even fair that to a when the issue, product. months just and now than faster you're you you done XX cheaper able ago or do XX a

good That's a point.

same product. they're They're at core, SafePath talked SafePath SafePath Family, the SafePath whether we offerings, the it's Kids base. know, the Global, Plan, offerings, You the all code they're different same various SafePath OS, but all about all

period us. we to all acquisitions. very know, that we, core same. all the we were So different you is went incorporating That's where you difficult know, the And, SafePath behind through

more effective sense, work you And cost manageable but you us through time So go your the a that how launching to about way expense, while kind at that's of being much done that. one doing And a this able why we have to in be It process. it's reduce is manner. makes very all see can product just offerings. more same

seeing know has someone to do multi they that had I to And any clearly Verizon to in-house if be I kind trying mean, doing clumsily then thoughts me. about to trying have that would And how But you TAM are maybe I and in-house? still manages million to anything secondly, do demand issue. kind competitive but of what Because kind frankly, you it there helpful? the want but around everything, give willing fronts, Is that, to the on not of that's to that's is do feels biggest fill. Maybe information, like are you you you you competitive rather emulate in that of the is you so just don't Are every everything on than anything? know a risk seeing $XXX the it fumbling I much. abating. MNOs increasing seem company multiple regard, side? as mean, talk

all pushing look they're in various the would app I up at this, ratings upper for SafePath if Sure. X. say that today, Xs, you the the towards offerings

of If not notice you North that the offering acceptance The is great. large of their that America, the in-house at one the ratings product low. you'll in app here created are Tier very Xs at look was

numbers may the they right think while in-house, thing it the bringing prove did they out. don't So that

Our the are product that's by app better ratings really time. all growing And getting is acceptance of something user the and base the the critical.

in, more through into I having to high make ratings big going going we're sales, move coupling we as sales, those capabilities to handset mass enter with a markets think difference. Now, rate app coupling plan with

on think right I we're the path.

growth, profitability, in all should going forward. us it to to I the be will lead and borne stock us it think will strong that lead price out

as carrier, with as you a a of least implicit that tens in U.S. you as U.S. per at potentially you into have XX% do do when U.S. in valuable look substantial that that a half carrier, know, guy, opportunity, clearly so then timeline lastly, And very you like or you of European of XX, uncertainty terms I MNO, markets all time know, in you the Europe, is European have that, is millions valuable a and you a Vodafone know, that at U.K., T-Mobile, really hugely you But or full-blown or Telefonica, on of discounted an thanks? the mean, and I lot Teff think you relationship when I a or at as focused many or think much look all carriers. spend it's AT&T know the especially market, my where a getting have that the that the to whoever, TAM, you too relationship because

that, Hey, Nice you. to Matt, I'll talk to take

one countries think that's I it but Europe, work is we that to said other. talk things interesting when and country-to-country, of look the the at each is Bill

So since just see and opportunity new, is it's that well. stone all base camp There is think good Does mean, huge as I with great the there. an there's think U.S. make with in But we as that stepping big U.S., a Europe In as we that large there there's Greenfield. as sense? the so there of I that as isn't opportunity still it's yes, well. a

you. Thank does. Great. It Thank you.

Associates. next from Please Instructions] Swift go question Security [Operator ahead. Research with Brian The comes

get to has could that of but taking color? customer different a seems matter, have of point? with for which bit been to know, history Sprint you always launching be Thanks. carriers little different? launch Most going to us been do who though of with that I Can to you forever what say than then, give -- significant doesn't mean, one is, What named of what, be What's customer. tell you can't you kind new revenue ramps asked, getting up be my Can out I European T-Mobile, of the you on really AT&T, on us might experience questions your marketing? these? this and even the it have be what our yet

couple with a and now carriers we this the sell Thanks, Brian. today, a it great do, they that devices. They are do of question. well. times is talked they and aligning things the about activities I've That's fact sell our incredibly Look, that and rate plans,

Europe, you mass sell as, that this quick as access market take brings we to to to at really in value trying that and should versus leverage a offering over a slowly going you You And we're to look a very builds that concept. looking know, service time.

that's the answer that think just rather leave I that. I'd it at

size of first Anything terms like market on in the of country the opportunity? what

talk say the I meaningful. Yes, is what was part who can't all of the that country and I are they rules that or of game the No, really. or it's would whatever. about we just

So how would you it, take get to of end launch quarter? long would European they think revenues customer if meaningful out fourth it the by of this

strong Well, immediately. smoke very ball. get have it's this, capability of a I that's driver on for out something to something has would us that we a see growth yet, difficult and that that crystal being base say the this almost a of is the that because think But will this we the bit I to history don't little

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

the your thank us want to for I company. everyone in joining today. appreciate interest We

to we'll further As in York questions. New us if please have reach out be week. note you next that always, I'll

ROTH in you. So the and out. And to great New please chat with you. everybody. if day reach be have anyone We'd to with a York love at sit Thank that, Conference, happens

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

disconnect. You may now