Phunware Inc (NASDAQ:PHUN) reported that it strengthened its balance sheet during the first quarter ended March 31, 2024, which notably included the elimination of its remaining debt of $5 million, increasing its margins, and reducing its losses.
The provider of wayfinding and mobile engagement solutions said its quarterly revenue of $0.9 million topped its internal expectations by 5%.
Gross margins increased from 5.4% to 56.9% year-over-year.
It reduced its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss to $2 million from $5.2 million in the year-ago quarter, marking a 61.1% improvement.
Phunware exited the quarter with $21.6 million in cash.
“We’ve had a strong start to our year,” Phunware CEO Mike Snavely commented.
“New logo sales, gross margins and improvement in the strategic financial position of the company are the bright spots. We have the product, the team, and the pipeline to continue to make a global difference in mobile.”
Troy Reisner, Phunware CFO, said the company “substantially completed the stabilization of its balance sheet” during Q1 as it strategically raised cash through equity, paid off its debt, and settled a litigation matter through the payment of past due accounts payable, avoiding additional expenses.
“As we build on the first quarter’s sales momentum, we are making strategic investments in our sales and marketing capabilities, while maintaining financial discipline,” he said. "We believe we are well positioned to execute our vision both financially and operationally.”