Phunware Inc (NASDAQ:PHUN) saw its quarter-over-quarter revenue rise by 40% to $3.1 million during its third quarter, according to its financial results reported Monday.
Net revenue for the three-month period ended September 30, 2020 totaled $3.13 million, with its Multiscreen-as-a-Service (MaaS) platform subscriptions and services accounting for $2.86 million.
The enterprise cloud platform company also posted health gross margins of just over 71% during the quarter as it worked to reduce its cash burn and improve its cash position, which resulted in a 30% decrease in adjusted EBITDA loss of $1.3 million.
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CEO Alan Knitowski called the results “solid” in a statement accompanying the release, adding that the revenue figure exceeded the group’s upwardly revised guidance for the quarter.
“We have established solid operating momentum for entering 2021, positioning us to capitalize on the demand we’re seeing for our MaaS Smart Workplace solutions for corporations and our MaaS Digital Front Door solutions for healthcare organizations,” Knitowski told investors.
CFO Matt Aune singled out the company’s financial prudence amidst the ongoing coronavirus pandemic.
“We are thrilled to see continued sequential progress in our efforts to reduce operational cash burn, eliminate uncertainties and move toward break-even on an Adjusted EBITDA basis despite the ongoing pandemic,” said Aune. “As our 3Q results demonstrate, we are improving our cash position, eliminating our outstanding litigation and liabilities, and expanding our platform sales and related margins.”
Austin, Texas-based Phunware inked several new customer and partner deals over the last three months, including an MaaS licensing agreement with a leading US pediatric hospital and a smart workplace mobile app contract with Norfolk Southern. The group also expanded its partnership with Cisco on a number of fronts and launched a handful of new products.
The firm’s net loss came in at $8.6 million, or $0.19 per share. It ended the quarter with just over $1.1 million in cash.
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