Smith Micro Software SMSI reported a second-quarter 2024 non-GAAP loss of 38 cents per share compared with a loss of 8 cents in the prior-year quarter. The bottom line was wider than the Zacks Consensus Estimate of a loss of 35 cents by 8.57%.

Revenues in the quarter totaled $5.1 million, missing Zacks Consensus Estimate by 4.8%. Despite innovative product launch strategy and cost-cutting initiatives, revenues plunged 50.5% year over year due to continued downtrends across various revenue segments. 

In the reported quarter, the Family Safety segment’s revenues declined nearly $4.5 million or 52% to $4.2 million from the prior-year quarter. The downside resulted from the conclusion of the Verizon Family Safety contract in the fourth quarter of 2023, due to which no amount of revenue was generated from this segment. Also, persistent weakness in Sprint Safe & Found revenues had an adverse impact. 

CommSuite segment’s revenues decreased roughly 28.6% year over year to $0.5 million. However, management expects third-quarter CommSuite sales to increase marginally, driven by healthy subscriber engagement on the Boost CommSuite premium visual voicemail platform.

Revenues from the ViewSpot segment fell almost 55.6% year over year to $0.4 million, mainly due to the termination announcement of the ViewSpot deals in the second half of 2023.

Smith Micro Software, Inc. Price, Consensus and EPS Surprise

Smith Micro Software, Inc. price-consensus-eps-surprise-chart | Smith Micro Software, Inc. Quote

Margin Details

Gross margin for the June quarter fell to 69% from 75% of the prior-year quarter, owning to top-line contraction year over year.

Non-GAAP operating expenses for the second quarter were $7.5 million, down nearly 9% year over year.

Total operating expenses were $10.5 million, down 4.4% year over year.

Balance Sheet

As of Jun 30, 2024, SMSI had total cash and cash equivalents of $5.6 million compared with $6.2 million as of Mar 31, 2024.

For the six months ended Jun 30, 2024, SMSI utilized $5.6 billion of cash from operating activities compared with $7.5 billion in the previous-year period.

Q3 Outlook

SMSI estimates revenues in the band of $4.5-$5 million.

Gross margin is projected in the range of 70-73%.

Management expects non-GAAP operating expenses to decline 6% to 10% from the second-quarter reported figure.

Zacks Rank

SMSI currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Performance of Other Companies

BlackBerry’s BB first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. 

Shares of BB have lost 53% in the past year. 

Badger Meter, Inc BMI reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.

Shares of BMI have gained 18.2% in the past year. 

SAP SE SAP reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.

In the past year, shares of SAP have gained 50.8%.