Summary by Futu AI
Phunware, Inc. (Phunware) reported its financial performance for the quarter ended June 30, 2024. The company experienced a decrease in net revenues, which fell by 21.9% to $1.01 million compared to $1.295 million in the same quarter of the previous year. This decline was attributed to lower development fees and the timing of advertising campaigns. Gross profit also saw a reduction, dropping by 12.1% to $470,000, while gross margin improved to 46.5% from 41.3% year-over-year. Operating expenses decreased significantly, with sales and marketing expenses down by 46.7%, general and administrative expenses by 46.1%, and research and development expenses by 59.1%. The company recorded other income of $303,000, primarily due to interest income. Phunware's cash position stood at $20.4 million, all within the United States. The company's financial strategy included various common stock sales, resulting in aggregate gross cash proceeds of $4.2 million. Despite the financial challenges, Phunware is committed to improving its internal control over financial reporting and is actively working on remediation efforts to address identified material weaknesses.