Trump-Linked Phunware Climbs After-Hours As FY24 Loss Narrows, AI Hopes Rise: Retail Sees A Steal Despite Revenue Miss

Phunware, Inc. (PHUN) shares rose in Thursday’s session after the enterprise software company specializing in mobile app solutions announced a narrower annual loss and revenue that trailed expectations. The company said its new artificial intelligence (AI)-driven software platform will launch in mid-2025.

Austin, Texas-based Phunware reported a net loss of $0.94 for the fiscal year 2024, wider than the year-ago loss of $17.62 per share. The company noted that the year-ago loss included a $4.56 net loss per share from discontinued operations.

The net loss from continuing operations was $10.3 million compared to $41.9 million last year, and the adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss narrowed to $10.3 million from $15.5 million.

Revenue fell 34% year over year (YoY) to $3.19 million, missing the Finchat-compiled consensus estimate of $3.53 million.

Phunware noted that software and subscription bookings for 2024 jumped 232%, with the company attributing the strength to the effectiveness of its revamped sales team and evolving sales model.

 It ended the quarter with a cash position of $113 million.

During the quarter, the company appointed former chairperson of the board Stephen Chen as its interim CEO following the retirement of its former CEO, Michael Snavely.

Chen said, “Fiscal year 2024 was highlighted by significant growth in bookings, a strengthened balance sheet, and the commencement of development of our new generative AI-powered software development platform.”

Looking ahead, the company said it plans new features and functionalities to its existing products, including AI features such as an AI Personal Concierge for hospitality guests and Intelligent Reporting for large real property owners. 

It expects to launch the AI Personal Concierge and its new AI-driven software development platform in mid-2025. 

The company also confirmed it is moving forward its previously announced plan to acquire an interest in MyCanvass, LLC, a software-as-a-service (SaaS) platform command center designed for political campaigns and advocacy organizations.

MyCanvass is a subsidiary of Campaign Nucleus founded by Brad Parscale, the digital director of President Donald Trump’s 2016 campaign and the manager of his 2020 campaign.

On Stocktwits, retail sentiment toward Phunware stock turned to ‘extremely bullish’ (75/100) by the close of trading on Thursday, from the ‘bullish’ mood that prevailed a day ago. The message volume stayed ‘high.’

PHUN  sentiment and message volume March 20, as of 10:50 am ET | Source: Stocktwits

A bullish watcher said just with the cash in hand, the stock is worth $6. This is more than double the level at which the stock closed Thursday.

Another user called the quarterly report “huge” and said the news of the Trump partnership will send the stock to the moon.

Phunware stock ended Thursday’s session down 2.03% at $2.89 and rallied 3.42% in the after-hours session.

The stock has lost over 44% for the year-to-date period.

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