Smith Micro's Q4 Loss In Line With Estimates, Revenues Decrease Y/Y

Smith Micro Software Inc SMSI reported a fourth-quarter 2024 non-GAAP loss of 11 cents per share, which was narrower than a loss of 18 cents in the prior-year quarter. The bottom line matched the Zacks Consensus Estimate. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues in the quarter totaled $5 million, missing the Zacks Consensus Estimate by 2.6%. Despite innovative product launch strategy and cost-cutting initiatives, revenues plunged 42% year over year due to continued downtrends across various revenue segments. In the reported quarter, the Family Safety segment’s revenues declined nearly $3.7 million or 49% to $3.8 million on a year-over-year basis. This downside resulted from the conclusion of the Verizon Family Safety contract in the fourth quarter of 2023. Also, persistent weakness in Sprint Safe & Found revenues had an adverse impact. CommSuite segment’s revenues were $1.1 million, up $0.6 million year over year. On a sequential basis, CommSuite sales increased $0.5 million, driven by healthy subscriber engagement on the Boost CommSuite premium visual voicemail platform and favorable adjustment to revenue recognized during the fourth quarter.Smith Micro Software, Inc. Price, Consensus and EPS Surprise Smith Micro Software, Inc. price-consensus-eps-surprise-chart | Smith Micro Software, Inc. QuoteRevenues from the ViewSpot segment were nominal for the quarter, declining $0.5 million year over year, mainly due to the conclusion of one of the ViewSpot contracts. For 2024, revenues of $20.6 million declined 50% from 2023. Non-GAAP loss was $1.11 per share compared with a loss of 65 cents in the prior-year quarter.Following the announcement, shares are down 25.6% in the premarket trading session today. In the past year, shares have lost 60.2% compared with the Computer software industry’s decline of 5.9%.Image Source: Zacks Investment ResearchSMSI’s Margin DetailsGross margin for the December quarter increased to 75.6% from 74.9% of the prior-year quarter.Non-GAAP operating expenses for the fourth quarter were $5.8 million, down nearly 27.1% year over year. SMSI anticipated quarterly savings in the range of $2.4 million to $2.8 million in the fourth quarter and it surpassed this expectation with a decrease of $3.1 million. Total operating expenses were $8.2 million, down 32% year over year.SMSI's Balance SheetAs of Dec. 31, 2024, SMSI had total cash and cash equivalents of $2.8 million compared with $1.5 million as of Sept. 30, 2024.For the year ended Dec. 31, 2024, SMSI used $14.3 million of cash from operating activities compared with $7 million in the previous-year period.SMSI’s Q1 OutlookSMSI estimates revenues in the band of $4.6-$5 million.Gross margin is expected in the range of 72-75%.Management now expects non-GAAP operating expenses to increase 4% to 7% compared with the fourth quarter of 2024, owing to an increase in costs associated with a couple of major trade shows in the first quarter and higher payroll benefit costs. Also, the recognition of a one-time benefit to occupancy costs in the fourth quarter will lead to higher expenses.SMSI’s Zacks RankSMSI 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 in the Software SpaceCadence Design Systems CDNS reported fourth-quarter 2024 non-GAAP earnings per share (EPS) of $1.88, which beat the Zacks Consensus Estimate by 3.3%. The bottom line increased 36.2% year over year, exceeding management’s guided range of $1.78-$1.84. Revenues of $1.356 billion topped the Zacks Consensus Estimate by 0.6% and increased 26.9% year over year. The figure was within management’s guided range of $1.325-$1.365 billion. The top line was driven by broad-based demand for its solutions amid robust design activity and solid execution.It ended the quarter with a backlog of $6.8 billion and current-remaining performance obligations of $3.4 billion.ANSYS, Inc. ANSS reported fourth-quarter 2024 earnings of $4.44 per share, which beat the Zacks Consensus Estimate by 11%. The bottom line also increased 12.7% year over year. Revenues of $882.2 million surpassed the Zacks Consensus Estimate by 1%. The top line rose 9.6% year over year on a reported basis and 11% on a constant currency (cc) basis. This revenue growth was driven by a solid rise in maintenance and subscription lease revenues.Adobe Inc ADBE reported fourth-quarter fiscal 2024 non-GAAP earnings of $4.81 per share, beating the Zacks Consensus Estimate by 3.22%. The figure improved 12.6% on a year-over-year basis. Total revenues were $5.61 billion, which beat the consensus mark by 1.24% and increased 11.1% year over year, both on a reported and a cc basis.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Smith Micro Software, Inc. (SMSI): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report ANSYS, Inc. (ANSS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks