Phunware Inc (NASDAQ:PHUN) (Phunware Inc (NASDAQ:PHUN)) may be more than 12% undervalued at its current $197 million market cap if its two blockchain tokens can take root, according to an analyst at Hardman & Co.
The mobile software company, which analyst Milan Radia notes will be the first US-listed firm to operate both a utility token (PhunToken) and a security token (PhunCoin), has a vision that is “far-reaching, encompassing a cryptotoken-based ecosystem that allows consumers to control and monetize their personal data.”
Because Phunware currently retains 72% of PhunCoin and more than 90% of PhunToken in issue, the value of its cryptocurrency ecosystem could create a valuation discrepancy and drive growth. Hardman & Co’s analysis indicates an implied fair equity value of $222 million.
READ: Phunware hires Matt Lull as the company's first-ever executive vice president and chief cryptocurrency officer
In terms of revenue potential, Radia noted that Phunware’s fourth-quarter guidance estimates revenue growth of more than 250% year-over-year in the first two quarters of 2022. The Hardman report projects revenue growth of 120% in fiscal 2022 and 37% in 2023, driven by backlog and a strong pipeline across verticals.
Mobile engagement is also on the rise, Radia wrote.
“Phunware’s patented mobile engagement and location-based services technologies sit within a comprehensive Multiscreen-as-a-Service product suite,” the report said. “FY21 saw several contract wins in the healthcare vertical, while a major deployment at Atlantis, Bahamas, went live.”
Radia continued, “Management has created exposures to a series of high-growth segments: mobile apps, big data, blockchain and cryptocurrencies. ... The core mobile platform remains well-positioned, with over 15 billion IDs created to date, which creates a compelling starting point for potential PhunToken and PhunCoin mainstream adoption amid a crowded global cryptocurrency landscape.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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