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SMSI Nasdaq· Smith Micro Software, Inc
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SMSI Nasdaq· Smith Micro Software, Inc
Earnings report Q3 2023

SMSI Reports 6% Decrease in Revenue for Q3 2023

Segments of revenue

  • Revenues for the three months ended September 30, 2023, were $11.0 million, compared to $11.7 million for the same period in 2022, representing a decrease of $0.7 million or 6%.
  • The decrease in revenue was primarily driven by declines in the Family Safety and CommSuite product lines, which saw decreases of $0.5 million and $0.3 million, respectively.
  • The decline in revenue can be attributed to T-Mobile's efforts to migrate legacy Sprint subscribers to the T-Mobile network, impacting revenues associated with legacy Sprint subscribers for both Family Safety and CommSuite product lines.

Strengths

  • Despite the decrease in revenue, SMSI continues to innovate and evolve its business to respond to industry trends and maximize opportunities in emerging markets.
  • The company focuses on understanding its customers' needs and delivering value, which contributes to its longevity.

Challenges

  • SMSI faced challenges in the third quarter of 2023 due to the decline in revenue, primarily driven by decreases in the Family Safety and CommSuite product lines.
  • The migration of legacy Sprint subscribers to the T-Mobile network had a negative impact on revenues associated with legacy Sprint subscribers.

Noteworthy

  • SMSI's cost of revenues decreased from $3.6 million in Q3 2022 to $2.5 million in Q3 2023, resulting in an increase in gross profit to $8.5 million, compared to the prior year.
  • The decline in cost of revenues contributed to the improvement in gross profit during the third quarter of 2023.

Summary

SMSI reported a 6% decrease in revenue for the third quarter of 2023, with revenues amounting to $11.0 million. The decline was primarily driven by decreases in the Family Safety and CommSuite product lines, which can be attributed to T-Mobile's efforts to migrate legacy Sprint subscribers to their network. Despite the challenges, SMSI continues to focus on innovation and delivering value to its customers. The company's cost of revenues decreased, leading to an increase in gross profit during the quarter.

Source documents

Form 10-Q  filed on Nov 09, 2023
87 pages scanned

Reference data

Company financials Q3 revenue 8.6M
Analyst estimates Q3 EPS missed by -0.00%
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