Phunware Reports Record First Quarter 2022 Financial Results

AUSTIN, Texas, May 12, 2022 – Phunware, Inc. (NASDAQ: PHUN) (“Phunware” or the “Company”), a fully-integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide, today announced record financial results for the quarter ended March 31, 2022.

“After previously guiding investors to top-line revenue growth exceeding 250% year-over-year for Q1, we are thrilled to have significantly outperformed that target with a new first quarter record for reported revenues as a public company, delivering actual revenues exceeding 310% growth to start the fiscal year,” said Alan S. Knitowski, President, CEO and Co-Founder of Phunware. “We are now operating effectively at the intersection of mobile, cloud, big data and blockchain across all lines of business and continue to activate our MaaS Loyalty and Rewards ecosystem through PhunWallet, PhunToken and PhunCoin, to commercialize a truly decentralized global data economy. For Q2, we are pleased to upwardly revise our top-line revenue growth forecast from up more than 250% year-over-year to up more than 275% year-over-year, which would represent another new second quarter record for reported revenues as a public company.”

First Quarter 2022 Financial Results
Net Revenues for the quarter totaled $6.8 million
Multiscreen-as-a-Service (MaaS) Platform Revenues were $2.5 million
Hardware Revenues were $4.3 million
Net Loss was $(14.9) million
Net Loss per Share was $(0.15)
Non-GAAP Adjusted EBITDA Loss was $(4.2) million

“We continued to build on the momentum from Q4 2021 by posting our largest revenue quarter as a public company,” said Matt Aune, CFO of Phunware. “In addition to the progress made with top line growth, we continued to invest in the business to further bolster our product offerings and expand the reach of our digital asset ecosystem. To that end, we were thrilled to not only see PhunToken become available on the decentralized exchange Uniswap, but also to provide additional resources to support decentralized finance through our new PhunToken website. Rolling forward, we expect to close the second quarter strong sequentially, activate PhunCoin for trading and continue to deliver dramatic year-over-year growth for the remainder of the fiscal year.”

Click here to learn more about PhunToken and click here to learn more about PhunCoin.

Recent Business Highlights

Notable Corporate Developments:
PhunToken Now Available on Uniswap
Appointed Christopher Olive as Executive Vice President, General Counsel and Chief Legal Officer
Appointed Matt Lull as Executive Vice President & Chief Cryptocurrency Officer
Engaged Moneta Advisory Partners

Notable Customer and Partner Wins:
Partnered with Accion Labs to Provide Mobile Solutions for Digital Transformation

Conference Call Information

Phunware management will host a conference call today (May 12, 2022) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its financial results for the quarter ended March 31, 2022.

Interested parties may access the conference call by dialing 877-545-0523 in the United States, or 973-528-0016 from international locations with access code: 588640. The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website at

Safe Harbor Clause and Forward-Looking Statements

This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “expose,” “intend,” “may,” “might,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in our filings with the Securities and Exchange Commission (the “SEC”), including our reports on Forms 10-K, 10-Q, 8-K and other filings that we make with the SEC from time to time. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described under “Risk Factors” in our SEC filings may not be exhaustive.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results or operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.

Disclosure Information

Phunware uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company’s Investor Relations website, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

About Phunware, Inc.

Everything You Need to Succeed on Mobile — Transforming Digital Human Experience

Phunware, Inc. (NASDAQ: PHUN), is the pioneer of Multiscreen-as-a-Service (MaaS), an award-winning, fully integrated enterprise cloud platform for mobile that provides companies the products, solutions, data

and services necessary to engage, manage and monetize their mobile application portfolios and audiences globally at scale. Phunware’s Software Development Kits (SDKs) include location-based services, mobile engagement, content management, messaging, advertising, loyalty (PhunCoin & Phun) and analytics, as well as a mobile application framework of pre-integrated iOS and Android software modules for building in-house or channel-based mobile application and vertical solutions. Phunware helps the world’s most respected brands create category-defining mobile experiences, with approximately one billion active devices touching its platform each month when operating at scale. For more information about how Phunware is transforming the way consumers and brands interact with mobile in the virtual and physical worlds, visit,,,, and follow @phunware, @phuncoin and @phuntoken on all social media platforms.

Phunware PR & Media Inquiries:
Phone: (512) 693-4199

Phunware Investor Relations:
Matt Glover and John Yi
Gateway Investor Relations
Phone: (949) 574-3860

Condensed Consolidated Balance Sheets
(In thousands, except share and per share information)
March 31, 2022December 31, 2021
Current assets:
Cash$10,815 $23,137 
Accounts receivable, net of allowance for doubtful accounts of $10 at March 31, 2022 and December 31, 2021, respectively
1,219 967 
Inventory4,699 2,636 
Digital assets24,244 32,581 
Prepaid expenses and other current assets1,294 686 
Total current assets42,271 60,007 
Property and equipment, net77 — 
Goodwill33,227 33,260 
Intangible assets, net3,030 3,213 
Deferred tax asset1,278 1,278 
Right-of-use asset1,186 1,260 
Other assets354 276 
Total assets$81,423 $99,294 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$6,809 $6,589 
Accrued expenses7,114 9,621 
Lease liability424 399 
Deferred revenue3,263 3,973 
PhunCoin deposits1,203 1,202 
Current maturities of long-term debt, net3,493 4,904 
Warrant liability3,818 3,605 
Total current liabilities26,124 30,293 
Deferred tax liability1,278 1,278 
Deferred revenue1,008 1,299 
Lease liability1,023 1,147 
Total liabilities29,433 34,017 
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at March 31, 2022 and December 31, 2021; 97,250,520 and 96,751,610 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively10 10 
Additional paid-in capital266,606 264,944 
Accumulated other comprehensive loss(384)(352)
Accumulated deficit(214,242)(199,325)
Total stockholders’ equity51,990 65,277 
Total liabilities and stockholders’ equity$81,423 $99,294 

Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share information)

Three Months Ended
March 31,
Net revenues$6,778 $1,646 
Cost of revenues5,007 692 
Gross profit1,771 954 
Operating expenses:
Sales and marketing1,485 556 
General and administrative4,305 2,758 
Research and development1,003 1,052 
Total operating expenses6,793 4,366 
Operating loss(5,022)(3,412)
Other income (expense):
Interest expense(381)(2,219)
Loss on extinguishment of debt— (5,768)
Impairment of digital assets(9,353)— 
Fair value adjustment of warrant liability(213)(2,829)
Other income (expense), net52 (79)
Total other expense(9,895)(10,895)
Loss before taxes    (14,917)(14,307)
Income tax expense— — 
Net loss(14,917)(14,307)
Other comprehensive income (loss):
Cumulative translation adjustment(32)10 
Comprehensive loss$(14,949)$(14,297)
Loss per share, basic and diluted$(0.15)$(0.22)
Weighted-average common shares used to compute loss per share, basic and diluted96,844 64,587 

Condensed Consolidated Statements of Cash Flows
(In thousands)

Three Months Ended
March 31,
Operating activities
Net loss$(14,917)$(14,307)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and deferred financing costs155 1,642 
Loss on change in fair value of warrant liability213 2,829 
Loss on extinguishment of debt— 5,768 
Impairment of digital assets9,353 — 
Stock-based compensation564 1,055 
Other adjustments(97)(10)
Changes in operating assets and liabilities:
Accounts receivable(248)(40)
Prepaid expenses and other assets(687)(490)
Accounts payable219 (682)
Accrued expenses(1,489)(2,287)
Lease liability payments(173)64 
Deferred revenue(1,001)(841)
Net cash used in operating activities(10,171)(7,299)
Investing activities
Purchase of digital assets(489)(1,098)
Capital expenditures(80)— 
Net cash used in investing activities(569)(1,098)
Financing activities
Proceeds from borrowings, net of issuance costs— 9,981 
Payments on borrowings(1,566)(11,835)
Proceeds from exercise of options to purchase common stock16 65 
Proceeds from sales of common stock, net of issuance costs— 29,705 
Net cash (used) provided by financing activities(1,550)27,916 
Effect of exchange rate on cash and restricted cash(32)10 
Net (decrease) increase in cash and restricted cash(12,322)19,529 
Cash and restricted cash at the beginning of the period23,137 4,031 
Cash and restricted cash at the end of the period$10,815 $23,560 

Three Months Ended
March 31,
Supplemental disclosure of cash flow information:
Interest paid$204 $567 
Income taxes paid$— $— 
Supplemental disclosures of non-cash financing activities:
Issuance of common stock in connection with acquisition of Lyte Technology, Inc.$1,125 $— 
Issuance of common stock for payment of legal, earned bonus and board of director fees$— $66 

Non-GAAP Financial Measures and Reconciliation
Our non-GAAP financial measures include adjusted gross profit, adjusted gross margin and adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") (our "non-GAAP financial measures"). Our non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue or net loss, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. Our non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations include: (i) Non-cash compensation is and will remain a key element of our overall long-term incentive compensation package, although we exclude it as an expense when evaluating its ongoing operating performance for a particular period, (ii) Our non-GAAP financial measures do not reflect the impact of certain charges resulting from matters we consider not to be indicative of ongoing operations, and (iii) other companies in our industry may calculate our non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations to our non-GAAP financial measures by relying primarily on our GAAP results and using our non-GAAP financial measures only for supplemental purposes. Our non-GAAP financial measures include adjustments for items that may not occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results and operating results of other peer companies over time. Each of the normal recurring adjustments and other adjustments described in this paragraph help management with a measure of our operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses.

Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages)

Three Months Ended March 31,
(in thousands)20222021
Net loss$(14,917)$(14,307)
Add back:  Depreciation and amortization186 33 
Add back:  Interest expense381 2,219 
Add back: Stock-based compensation564 1,055 
Add back: Loss on extinguishment of debt— 5,768 
Add back: Impairment of digital assets9,353 — 
Add back: Fair value adjustment of warrant liability213 2,829 
Adjusted EBITDA$(4,220)$(2,403)

Three Months Ended March 31,
(in thousands, except percentages)20222021
Gross profit$1,771 $954 
Add back:  Amortization of intangibles— 
Add back:  Stock-based compensation46 210 
Adjusted gross profit$1,817 $1,168 
Adjusted gross margin26.8 %71.0 %

Supplemental Information
(In thousands, except percentages)

Three Months Ended March 31,Change
(in thousands, except percentages)20222021Amount%
Net Revenues
Platform revenue$2,492 $1,646 $846 51.4 %
Hardware revenue4,286 — 4,286 100.0 %
Net revenues$6,778 $1,646 $5,132 311.8 %
Platform revenue as percentage of total revenue36.8 %100.0 %
Hardware revenue as percentage of total revenue63.2 %— %