Phunware Inc (NASDAQ:PHUN) announced Monday it clocked up $2.2 million in second-quarter revenue as it looks to accelerate revenues for the remainder of 2020.
The company, which offers a fully integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide, said $2 million in revenue came from platform subscriptions and services. Gross margin was 65.3%.
However, Phunware said the ongoing coronavirus (COVID-19) pandemic affected sales in the quarter ended June 30, 2020.
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The Texas-based company, as a result, recorded a net loss of $3.5 million, or a loss of $0.08 a share, and a Non-GAAP Adjusted EBITDA loss of $1.8 million.
Phunware said it “believes that the most recent quarter represents a quarterly, annual and historic bottom for its revenue recognition as a public company.”
CEO Alan Knitowski said that despite the pandemic the company is moving ahead with its operational model and business strategy, adding that Phunware closed the quarter with nearly $10 million in backlog and deferred revenue for its Multiscreen-as-a-Service (MaaS) platform.
“While we do not expect our customers or partners to be back to normal operations until a COVID-19 vaccine becomes widely available, we are already seeing much more business activity with each passing week and month and believe that there is a lot of pent up demand tied to pending MaaS bookings that will be released throughout the balance of the year,” he said in the results statement.
Notably, the company said it expects an acceleration of net revenues for both the coming quarter and the balance of the year sequentially.
“As we manage through the uncertainty of the ongoing pandemic, we are encouraged that we have been able to position ourselves for success in the future by strengthening our balance sheet and lowering our operational expenses,” said Matt Aune, CFO of Phunware.
“In addition to our efforts reducing operational expense, we are pleased to see an improvement of nearly 1,500 basis points to year-over-year gross margin as we continue to focus on our higher-margin longer-term software customers.”
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