Phunware Reports Record Second Quarter 2022 Financial Results

AUSTIN, Texas, August 11, 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 financial results for the quarter ended June 30, 2022.

“After previously guiding investors to an upwardly revised top-line revenue growth exceeding 275% year-over-year for Q2, we are thrilled to have outperformed that target with a new second quarter record for reported revenues as a public company, delivering actual revenues exceeding 282% growth to close the first half of our fiscal year,” said Alan S. Knitowski, President, CEO and Co-Founder of Phunware. “We continue 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, PhunCoin and PhunVerse, commercializing a truly decentralized global data economy in both the physical and virtual worlds. Importantly, and in tandem, we are reiterating our forward revenue guidance for 2022 of up roughly 250% year-over-year, or $25M. In parallel, we also expect that the back-end of 2022 will represent a new second half record for reported revenues as a public company for its comparable period.”

Second Quarter 2022 Financial Results
Net Revenues for the quarter totaled $5.5 million
Multiscreen-as-a-Service (MaaS) Platform Revenues were $1.6 million
Hardware Revenues were $3.9 million
Net Loss was $(17.1) million, inclusive of $(12.2) million impairment of digital assets
Net Loss per Share was $(0.17), inclusive of $(0.12) per Share impairment of digital assets
Non-GAAP Adjusted EBITDA Loss was $(6.6) million

“We continued to build on the momentum from Q1 by posting our largest revenue Q2 quarter as a public company,” said Matt Aune, CFO of Phunware. “In addition to the outstanding top line growth of 282% year-over-year, we continued to invest in the business to further bolster our product offerings and enable us to deliver our solutions even faster and more efficiently. We are pleased with the sequential improvements made to our gross margins and expect to see continued improvement as we bring the new Lyte by Phunware facility online in Q3 in Austin. Rolling forward, we expect to close the third quarter strong sequentially, activate PhunCoin for trading on Securitize 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 and Product Developments:
PhunToken Now Available on Uniswap
Appointed Christopher Olive as Executive Vice President, General Counsel and Chief Legal Officer
Partnered with Accion Labs to Provide Mobile Solutions for Digital Transformation
Appointed Matt Lull as Executive Vice President & Chief Cryptocurrency Officer
Engaged Moneta Advisory Partners
Phunware’s PhunToken to Co-Sponsored Consensus 2022 in Austin
Released PhunWallet Version 1.3 Mobile App Update
Announced Twitter Integration for Smart Advocacy Solution

Conference Call Information

Phunware management will host a conference call today (August 11, 2022) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its financial results for the quarter ended June 30, 2022.

Interested parties may access the conference call by dialing 888-506-0062 in the United States, or 973-528-0011 from international locations with access code: 575582. 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) 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:
Laura Simpson
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)
June 30, 2022December 31, 2021
Current assets:
Cash$2,705 $23,137 
Accounts receivable, net of allowance for doubtful accounts of $0 and $10 at June 30, 2022 and December 31, 2021, respectively803 967 
Inventory3,528 2,636 
Digital assets, net12,592 32,581 
Prepaid expenses and other current assets1,188 686 
Total current assets20,816 60,007 
Property and equipment, net145 — 
Goodwill33,142 33,260 
Intangible assets, net2,858 3,213 
Deferred tax asset1,278 1,278 
Right-of-use asset2,595 1,260 
Other assets402 276 
Total assets$61,236 $99,294 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$7,510 $6,589 
Accrued expenses6,953 9,621 
Lease liability614 399 
Deferred revenue1,715 3,973 
PhunCoin deposits1,203 1,202 
Current maturities of long-term debt, net2,031 4,904 
Warrant liability1,136 3,605 
Total current liabilities21,162 30,293 
Deferred tax liability1,278 1,278 
Deferred revenue859 1,299 
Lease liability2,244 1,147 
Total liabilities25,543 34,017 
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at June 30, 2022 and December 31, 2021; 98,137,070 and 96,751,610 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively10 10 
Additional paid-in capital267,465 264,944 
Accumulated other comprehensive loss(469)(352)
Accumulated deficit(231,313)(199,325)
Total stockholders’ equity35,693 65,277 
Total liabilities and stockholders’ equity$61,236 $99,294 

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

Three Months Ended
June 30,
Six Months Ended
June 30,
Net revenues$5,485 $1,436 $12,263 $3,082 
Cost of revenues3,965 1,124 8,972 1,816 
Gross profit1,520 312 3,291 1,266 
Operating expenses:
Sales and marketing1,928 639 3,413 1,195 
General and administrative5,251 3,021 9,556 5,779 
Research and development1,876 846 2,879 1,898 
Total operating expenses9,055 4,506 15,848 8,872 
Operating loss(7,535)(4,194)(12,557)(7,606)
Other income (expense):
Interest expense(273)(1,845)(654)(4,064)
Loss on extinguishment of debt— (2,184)— (7,952)
Impairment of digital assets(12,158)(776)(21,511)(776)
Fair value adjustment of warrant liability2,682 1,180 2,469 (1,649)
Other income (expense), net213 43 265 (36)
Total other expense(9,536)(3,582)(19,431)(14,477)
Loss before taxes    (17,071)(7,776)(31,988)(22,083)
Income tax expense— — — — 
Net loss(17,071)(7,776)(31,988)(22,083)
Other comprehensive income (loss):
Cumulative translation adjustment(85)(117)15 
Comprehensive loss$(17,156)$(7,771)$(32,105)$(22,068)
Net loss per share, basic and diluted$(0.17)$(0.11)$(0.33)$(0.32)
Weighted-average common shares used to compute net loss per share, basic and diluted97,742 71,620 97,293 68,103 

Condensed Consolidated Statements of Cash Flows
(In thousands)

Six Months Ended
June 30,
Operating activities
Net loss$(31,988)$(22,083)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and deferred financing costs259 2,770 
Loss on change in fair value of warrant liability(2,469)1,649 
Loss on extinguishment of debt— 7,952 
Impairment of digital assets21,511 776 
Stock-based compensation1,270 2,438 
Other adjustments284 142 
Changes in operating assets and liabilities:
Accounts receivable178 237 
Prepaid expenses and other assets(631)(416)
Accounts payable920 (1,282)
Accrued expenses(386)(3,334)
Accrued legal settlement— (1,500)
Lease liability payments(347)(434)
Deferred revenue(2,698)(1,286)
Net cash used in operating activities(14,989)(14,371)
Investing activities
Acquisition payment(1,125)— 
Purchase of digital assets(923)(1,497)
Capital expenditures(158)— 
Net cash used in investing activities(2,206)(1,497)
Financing activities
Proceeds from borrowings, net of issuance costs— 9,981 
Payments on borrowings(3,132)(25,095)
Proceeds from exercise of options to purchase common stock16 70 
Proceeds from sales of common stock, net of issuance costs— 29,670 
Net cash (used) provided by financing activities(3,116)14,626 
Effect of exchange rate on cash and restricted cash(121)16 
Net decrease in cash and restricted cash(20,432)(1,226)
Cash and restricted cash at the beginning of the period23,137 4,031 
Cash and restricted cash at the end of the period$2,705 $2,805 

Six Months Ended
June 30,
Supplemental disclosure of cash flow information:
Interest paid$408 $1,287 
Income taxes paid$— $— 
Supplemental disclosures of non-cash financing activities:
Issuance of common stock in connection with acquisition of Lyte Technology, Inc.$1,125 $— 
Proceeds not received related to sales of common stock$— $867 
Issuance of common stock for payment of board of director fees$— $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 June 30,Six Months Ended June 30,
(in thousands)2022202120222021
Net loss$(17,071)$(7,776)$(31,988)$(22,083)
Add back:  Depreciation and amortization182 25 368 58 
Add back:  Interest expense273 1,845 654 4,064 
Add back: Stock-based compensation706 1,383 1,270 2,438 
Add back: Loss on extinguishment of debt— 2,184 — 7,952 
Add back: Impairment of digital assets12,158 776 21,511 776 
(Less) Add back: Fair value adjustment of warrant liability(2,682)(1,180)(2,469)1,649 
Less: Gain on sale of digital asset(168)— (194)— 
Adjusted EBITDA$(6,602)$(2,743)$(10,848)$(5,146)

Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except percentages)2022202120222021
Gross profit$1,520 $312 $3,291 $1,266 
Add back:  Amortization of intangibles— — 
Add back:  Stock-based compensation49 323 95 532 
Adjusted gross profit$1,569 $638 $3,386 $1,805 
Adjusted gross margin28.6 %44.4 %27.6 %58.6 %

Supplemental Information
(In thousands, except percentages)

Three Months Ended June 30,Change
(in thousands, except percentages)20222021Amount%
Net Revenues
Platform revenue$1,628 $1,436 $192 13.4 %
Hardware revenue3,857 — 3,857 100.0 %
Net revenues$5,485 $1,436 $4,049 282.0 %
Platform revenue as percentage of total revenue29.7 %100.0 %
Hardware revenue as percentage of total revenue70.3 %— %

Six Months Ended June 30,Change
(in thousands, except percentages)20222021Amount%
Net Revenues
Platform revenue$4,120 $3,082 $1,038 33.7 %
Hardware revenue8,143 — 8,143 100.0 %
Net revenues$12,263 $3,082 $9,181 297.9 %
Platform revenue as percentage of total revenue33.6 %100.0 %
Hardware revenue as percentage of total revenue66.4 %— %