Smith Micro Software, Inc.

Good day and welcome to the Smith Micro Second Quarter 2024 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 Marketing. Please go ahead.

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Smith Micro Software's financial results for the second quarter into June 30th, 2024. 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, our Chairman of the Board President, Chief Executive Officer, and Jim Kempton, our Chief Financial Officer. Please note that some of the information you will hear during today's discussion consists of forward-looking statements, including, without limitations, those regarding the company's future revenue and profitability, our plans and expectations, new product development and availability, new and expanded market opportunities, future product deployments, migration, and our growth by new and existing customers, operating expenses, and the company's cash reserves. Forward-looking statements involve risk and uncertainties, which could cause actual results or trends to differ materially from those expressed or implied by our forward-looking statements. For more information, please refer to the risk factors included in our most recent filing, Form 10-K. Smith Micro assumes no obligation to update any forward-looking statements which speak to our management's belief and assumptions only as the date they are made. I want to point out that in our forthcoming prepared remarks, we will refer to non-GAAP financial measures. Please refer to our press release disseminated earlier today for a reconciliation of these non-GAAP financial measures. With that said, I'll turn the ball over to Bill.

Bill? Thanks, Charlie. Good afternoon, and thank you for joining us today for our 2024 second quarter conference call. Let me start the presentation today with some quick updates on the business as we continue to work our way back to growth and profitability. On our last call, we announced that DISH would be our first customer to launch SafePath Global. We are very pleased to confirm that DISH launched Boost Family Guard, which is powered by SafePath Global during the second quarter. This was a significant milestone for us, not only for the growth potential of Boost Family Guard, but also because it is our first SafePath Global deployment and demonstrates the potential of this accelerated deployment model. going from contract execution to launch in about six weeks. This is a duplicable model for us, and we expect to see more SafePath Global wins in the near term. In addition to the faster launch cycle, the SafePath Global model also allows us to move quickly to deploy updates to the app with new features and functionality and offers a significant upgrade path with other tools that can be added to the platform. Marketing activities have begun for Boost Family Guard, and we anticipate subscriber growth on that platform over the remainder of this year. Next, we are nearing the completion of our development efforts on the unique SafePath enabled family safety offering with our European Tier 1 carrier partner that we previously referenced. We are excited to be in the last phase of this process and expect that our Tier 1 partner will launch an innovative, widespread go-to-market strategy across a multitude of different channels, bringing a new solution to the European market in the early fall. We expect it to be quite visible and opened the door to new opportunities for expansion throughout Europe and the rest of the world. Turning to our cost structure, we have completed our cost reduction of approximately $1 to $1.3 million per quarter, which I discussed on our last call. Some of that impact is reflected in the Q2 quarter results, and the full impact will be reflected in the third quarter results. As we remain focused on returning the company to profitability, we have determined to further streamline our resources and will target an additional $1 to $1.2 million in cost reductions per quarter, which we will implement in the very near term to better align our resources. This action will help position the company for a return to growth and profitability and generation of free cash flow. Like the previous cost rationalizations, there will be some benefit in the third quarter from the second cost reduction, with the full benefit of these additional adjustments being recognized in the fourth quarter. We believe these changes will strengthen our company for both the long and short term, enabling us to be more agile and faster to market. As we also discussed on our last call, we plan to add a new wave of enhancements to our SafePath platform. This will include SafePath Premium, which will use enhanced AI machine learning to optimize and customize families' online experience and provide cyberbullying protection, social media intelligence, and public safety notifications. Overall, I believe we are very close to seeing the turn in our business case for the better, and our teams are working hard to get us there. But let's turn the call over to Jim to review the financial results in more detail. Jim?