Smith Micro Software, Inc.

Good day and welcome to the Smith Micro Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Charles Messman, Vice President of Investor Relations and Corporate Development. Please go ahead.

Thank you, Operator, and good afternoon, everyone. We appreciate you joining us today as we discuss Smith Micro's financial results for the third quarter of 2021, ended September 30th, 2021. By now, you should have received a copy of the press release with the financial results. If you do not have a copy and would like one, please visit the investor relations section of our website at www.smithmicro.com. On today's call, we have Bill Smith, Chairman of the Board, President and Chief Executive Officer of Smith Micro, Michael Fox, Interim Vice President of Finance, and Jim Kempton, our new CFO, who joined November 3rd, 2021. Please note that some of the information you will hear during our discussion today consists of forward-looking statements, including, without limitations, Those regarding the company's future revenue and profitability are future plans, new product development, new and expanded market opportunities, future product deployments, migration, and or growth by new existing customers, operating expenses, company cash reserves, and the expected impact of our recently completed acquisition on our business strategy, operation, and financial position going forward. Forward-looking statements involve risk and uncertainties, which could cause actual results or trends that differ materially from those expressed or implied by our forward-looking statements. For more information, please refer to the risk factors included in our recently filed Form 10-K and the final perspectives filed with respect to our recent public offering. Smith Micro assumes no obligation to update any forward-looking statements, which speak to our managers' belief and assumption only as a date they are made. I'd like to point out that in our forthcoming prepared remarks, we'll refer to certain non-GAAP financial measures, please refer to our press release disseminated earlier today for the reconciliation of these non-GAAP financial measures. That said, I'll now turn the call over to Bill. Bill?

Thanks, Charlie, and good afternoon, everyone. Thank you for joining us today for our third quarter 2021 earnings call. Our third quarter was very busy for us on several fronts. I am pleased with the overall progress and the significant milestones we achieved since our last earnings call. First, I am excited to announce that we have come to an agreement with T-Mobile US on commercial terms for Family Mode 3, which is powered by our Safe Path platform. As we are all aware, coming to this agreement took much longer than we originally expected due to multiple delays outside of our control. Unfortunately, these things tend to happen when two giant corporations like T-Mobile and Sprint merge. I am very pleased with the team for getting the agreement done. We are now looking forward to the launch of Family Mode 3, which will soon start driving revenue for Smith Micro. There are several other T-Mobile related activities that I will discuss later in the call. On the AT&T front, I am delighted with the progress we've made working closely with their team to build a plan to fuel new subscriber growth for their secure family app. We are developing a plan to launch AT&T on our SafePath platform before the end of 2022. During his remarks, Mike will provide more specifics on the earn-out related to the AT&T contract. I expect to see great opportunity ahead with AT&T in the coming quarters. We also advanced on several fronts with Verizon, which became the first Tier 1 carrier in the U.S. to launch driver monitoring functionality as part of a family safety offering. Working with Verizon and our technology partner, CMT, we were able to launch the first major new family safety feature since our acquisition of the Avast family safety business. We also launched new marketing efforts to promote Verizon Smart Family during the quarter as we continue to drive new subscriber growth for the app. This was all accomplished while we continue to plan to merge the existing Smart Family user base onto the Safe Path platform. Our vision goes far beyond offering just a white label family safety application. we strive to provide a comprehensive solution for the family's entire digital lifestyle, including the smart home and the consumer internet of things, two markets that are in the infancy stage of their life cycles. We're particularly focused on the digital lifestyle strategy because it would increase the total addressable market for our carriers and would generate more revenue opportunities. Now, let's take a look at the financial results for the third quarter. Revenue came in at $16.4 million, compared to $12.6 million for the same quarter last year, a 30% increase. Revenue, when viewed on a quarter-over-quarter basis, increased approximately $524,000. Non-GAAP net loss for the quarter was $258,000, which equates to zero cents per share or break-even. Our cash balance at the end of the quarter was $32.4 million. The subsequent earn-out paid to a boss for the AT&T contract occurred after the end of the quarter. Okay, let's now turn the call over to Mike, who served as our interim CFO during the third quarter, for a more in-depth analysis of the third quarter financials.