Smith Micro's (SMSI) Q1 Earnings Miss, Revenues Down Y/Y
Smith Micro Software SMSI reported a first-quarter 2024 non-GAAP loss of 45 cents per share compared with a loss of 51 cents in the prior-year quarter. The bottom line was wider than the Zacks Consensus Estimate of a loss of 24 cents by 87.5%.
Revenues in the quarter totaled $5.8 million, on par with the Zacks Consensus Estimate. Despite the company’s strategic initiatives and deal wins, revenues declined 46.8% year over year owing to continued weakness across various revenue segments.
In the reported quarter, the Family Safety segment’s revenues declined almost $4.6 million or 51% from the prior-year figure. The downtick was owing to 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 weak demand trends in Sprint Safe & Found revenues contributed to the downfall.
CommSuite segment’s revenues decreased approximately 22% year over year to $0.7 million. However, the sales increased roughly by 16.7% sequentially.
Revenues from the ViewSpot segment declined almost 30% year over year to $0.7 million, mainly due to the termination announcement of the ViewSpot deals in the second half of 2023. Sequentially, it grew by approximately 16.7%
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 March quarter fell to 65.7% from 70% of the prior-year quarter, owing to top-line contraction year over year.
Non-GAAP operating expenses for the first quarter were $8.1 million, down 28.3% year over year.
Total operating expenses were $35.3 million, up 142% year over year.
Balance Sheet
As of Mar 31, 2024, SMSI had total cash and cash equivalents of $6.2 million compared with $7.1 million as of Dec 31, 2023.
During the quarter, SMSI utilized 1.3 billion of cash from operating activities compared with $5.3 billion in the previous-year period.
Outlook
For the second quarter of 2024, SMSI estimates revenues in the band of $5-5.5 million.
Gross margin is projected in the range of 66-70%.
Management expects non-GAAP operating expenses to reduce 6% to 10% from the first 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 Computer-Software Companies
BlackBerry’s BB fourth-quarter fiscal 2024 adjusted earnings of 3 cents per share beat the Zacks Consensus Estimate by 200%. The bottom line improved from the prior-year quarter’s non-GAAP loss of 2 cents per share.
BB has lost 45.3% in the past year against the sub-industry’s growth of 30.7%. In the last quarter, it delivered earning surprise of 200%.
Blackbaud BLKB reported first-quarter 2024 non-GAAP earnings per share of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.
Shares of BLKB have gained 10.2% compared with the sub-industry’s growth of 30.7% in the past year. In the last quarter, it delivered earnings surprise of 9.4%.
Cadence Design Systems CDNS reported first-quarter 2024 non-GAAP earnings per share of $1.17, which beat the Zacks Consensus Estimate by 3.5%. However, it decreased 9.3% year over year.
In the past year, CDNS has gained 38.4% compared with the Zacks sub-industry’s growth of 30.7%. It currently has long-term growth expectation of 17.8%.
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