Smith Micro Software, Inc.

Good day and welcome to the Smith Microsoftwares financial results for the third quarter ended September 30, 2024. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. 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 Microsoftware's financial results for the third quarter ended September 30, 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.smithmiker.com. On today's call, we have Bill Smith, our Chairman of the Board, President and 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 limitation, 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 developments, migrations and or growth by new and existing customers, operating expenses, and company 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 recently filed Form 10-K. This micro assumes no obligation to update any forward-looking statements, which speak to the management's beliefs and assumption only as the date they are made. I want to point out in the forthcoming prepared remarks, we refer to specific non-GAAP financial measures. Please refer to our press release disseminated earlier today for reconciliation of these non-GAAP financial measures. With that said, I'll turn the call over to Bill.

Bill? Thanks, Charlie. Good afternoon and thank you for joining us today for our 2024 third quarter conference call. We appreciate your interest. Let me begin the call today with some quick updates on the overall business as we remain very focused and excited about the path forward. Our primary objective is to return to profitability and the generation of free cash flow. Let's begin with our European carrier that we have discussed on earlier calls. I had hoped to be able to announce the carrier's name with you today, but we must continue to wait for the official launch, which we expect to happen soon. We are looking forward to sharing details of the launch with our shareholders. Now let's look at the progress being made on the new business side of things. First, we expect to sign our first contract for the deployment of our SafePath OS solution with a US-based MVNO in the coming weeks. SafePath OS is yet another innovation within our SafePath platform that enables mobile operators to offer an otherwise standard mobile device as a kid's phone or tablet with built-in limits. aimed at a safer mobile experience that kids cannot bypass. We accelerated our deployment schedule for Safe Path OS given the strong interest we are seeing in the market. We expect to see the first deployments of Safe Path OS in the first quarter of 2025. Additionally, we are focusing on building our pipeline for Safe Path OS and we expect it will be a strong contributor to our business going forward. We believe that the recurring fees from this deployment model will meaningfully contribute to our 2025 revenues. I also want to note another key component that is the recurring theme as we expand our Safe Path offerings, bringing our partners solutions that build on the core values of what they do best, namely selling devices and subscription plans. On our last call, we discussed our marketing engagement agreement with the Competitive Carrier Association, CCA. Since the completion of that agreement, Smith Micro and CCA have partnered to market our Safe Path Global family safety solution to CCA's carrier members under a single brand name of Safe Tools. This partnership enables CCA carrier members of any size to offer this valuable solution to their subscribers under the rapid go-to-market model that Safe Path Global supports. We currently have contracts in process with multiple CCA members under this arrangement, and I expect it will sign additional CCA member carriers in the coming weeks and months. This quick-to-market approach truly expands our brand and market opportunity, delivering our SafeFast platform to more families across the U.S. I want to touch on our reduced cost structure before turning the call over to Jim. In our previous quarterly calls, we committed to eliminating at least $2 million in quarterly expenses by Q4 of this year. I am pleased to tell you that we've already achieved $1.9 million in cost reductions in Q3 and have yet to realize the full quarterly benefit of these actions. As Jim will describe in more detail, we are upping the range of quarterly cost savings that we are targeting for the fourth quarter to a goal of $2.4 to $2.8 million. We believe these changes have positioned our company to execute with more agility and to be nimbler in responding to market demands. We believe the actions we've taken to rationalize our costs, coupled with the expansion of our revenue opportunities, have positioned us for a return to profitability and free cash flow during 2025. I'll take a deeper dive into this in a few minutes, but first, let's turn the call over to Jim to review our financial results in more detail.