On this page of StockholderLetter.com we present the latest annual shareholder letter from SMITH MICRO SOFTWARE, INC. — ticker symbol SMSI. Reading current and past SMSI letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT
2023
FROM
INTEGRATION
TO INNOVATION
FROM THE CEO
Fellow Shareholders,
As you will recall, late last year we announced the momentous
expansion of the SafePath   platform, driving innovation to further our
leadership with the world   s best digital family safety platform. As we
watch global events unfold on a daily basis, whether through news
feeds, television, or other sources, one truth is evident - The world
is becoming more challenging and daunting. Adding in the layer of
accountability and worry that comes with being responsible for the
safety of loved ones, it becomes clear that people, especially parents,
want a sense of security and peace of mind knowing they have the
right tools to protect their loved ones in a physical and digital world
that is always changing, and not always for the better. SafePath is
that layer of security: it provides a blanket of protection that provides
parents and guardians the peace of mind to let their children explore
these worlds knowing that controls and alerts are in place to help
them navigate and manage the space safely.
William W. Smith, Jr.
Chairman of the Board,
President and Chief
Executive Officer
With Mobile Network Operators (MNOs) as the trusted providers of
families    connectivity, our partnering with those same, trusted providers to deliver reliable and available solutions
to keep families safe is a natural extension. Couple this with the burgeoning legislative and societal attention and
demand, both nationally and internationally, for children   s online safety, I    rmly believe that the world has never
been more ready for, or more in need of, the solutions that the SafePath platform provides. While 2023 was a
challenging year for the Company, we were able to rise to the occasion and accomplish several critical objectives
that we absolutely needed to achieve to establish the foundation for 2024 and beyond. Achieving those targeted
goals has placed the Company on the cusp of future success as we expect to grow our revenues and move the
Company back to pro   tability. As much of the latter half of last year   s activity and development was focused
on a suite of new enhancements to the platform, we continue our mission to keep families safe in the face of
increasing need in today   s often turbulent world. With the    nal migration of our MNO customers to the upgraded
SafePath platform, we have moved    From Integration to Innovation.   
The current progression in 2024 will be about capitalizing on many of the exciting developments that occurred
in 2023 and converting them into tangible results. We are rapidly executing on activities that will replace lost
revenue and bring pro   tability back to the Company. We have seen keen interest and excitement around the new
SafePath Global strategy among MNOs at Mobile World Congress 2024 and by associations that represent them.
They are embracing the viability of a fast go-to-market launch and the value of being able to provide a family
digital safety solution quickly and easily to their customers. In fact, we signed a Tier 1 European MNO who will
use SafePath enhancements to grow its subscriber base and are ready to launch our    rst MNO on SafePath Global
during the second quarter of 2024!
New and innovative products to be available soon, such as SafePath OS and SafePath Premium, have garnered
positive reactions and interest as MNOs see these as opportunities to further embed their products with families,
strengthening that relationship by giving parents and guardians the tools to help their children to begin building
and maintaining healthy digital lifestyles, while potentially setting the foundation for a trusted relationship with
that next generation of customers. As MNOs are recognizing the value of o   ering SafePath applications as a valueadd for their customers, they are also realizing the need and value of creating continual awareness and promotion
of these products to drive subscriber growth. We are poised to launch several robust marketing initiatives that we
expect will drive MNO subscriber growth and revenue by getting white-labeled SafePath applications into more
subscribers    hands. Through a combination of education, awareness, and promotion using several innovative
channels, we are poised to help our MNO customers recognize value from these services.
We are optimistic and excited about where we stand today. With marketing programs poised to be unleashed at
multiple Tier 1 carriers, new market launches planned in 2024, robust product expansion, and a strong pipeline of
prospects in both the U.S. and Europe, we remain undaunted by challenges and setbacks and are on our way back
to pro   tability by o   ering our customers superior solutions that can drive revenue for their business and increase
their customer lifetime value. I am proud of our entire team for the noteworthy objectives they accomplished in
2023 and expect they will pay signi   cant dividends for us in 2024.
We are, without a doubt, at the right time and place to continue building upon our reputation and position as
a trusted and experienced advisor to MNOs worldwide, bringing them solutions that their customers want, that
today   s digital world demands, and that our customers need to continue building that holistic and pro   table
lifetime relationship with their subscribers.
2023 Financial Results
Smith Micro reported revenue of $40.9 million for the year ended December 31, 2023, compared to $48.5 million
reported in 2022, a decrease of 16%. Our Non-GAAP net loss for the year ended December 31, 2023, was $5.3
million, or $0.08 loss per share, compared to non-GAAP net loss of $17.6 million, or $0.32 loss per share, for the
year ended December 31, 2022. We ended the year with a cash balance of $7.1 million. With the migrations to the
SafePath platform now completed, we believe that we have a substantial opportunity to meaningfully grow Family
Safety subscribers through our customers. Coupled with the new opportunities and product enhancements in
queue for 2024, we believe we are poised to return to growth and make substantial progress in returning the
Company to pro   tability.
With momentum in both the U.S. and Europe, we expect 2024 to be a year of progress, as we continue to build
our in   uence and impact within the digital family safety space, as well as with the other solutions that we o   er.
While there is still much work to be done, I am con   dent in our team and in our strategy, and that the year will
yield positive results.
Best Regards,
William W. Smith, Jr.
Chairman of the Board
President and Chief Executive O   cer
 • shareholder letter icon 5/9/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/27/2023 SMSI Stockholder Letter
 • stockholder letter icon More "Application Software" Category Stockholder Letters
 • Benford's Law Stocks icon SMSI Benford's Law Stock Score = 48


SMSI Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2023
FROM
INTEGRATION
TO INNOVATION


FROM THE CEO
Fellow Shareholders,
As you will recall, late last year we announced the momentous
expansion of the SafePath   platform, driving innovation to further our
leadership with the world   s best digital family safety platform. As we
watch global events unfold on a daily basis, whether through news
feeds, television, or other sources, one truth is evident - The world
is becoming more challenging and daunting. Adding in the layer of
accountability and worry that comes with being responsible for the
safety of loved ones, it becomes clear that people, especially parents,
want a sense of security and peace of mind knowing they have the
right tools to protect their loved ones in a physical and digital world
that is always changing, and not always for the better. SafePath is
that layer of security: it provides a blanket of protection that provides
parents and guardians the peace of mind to let their children explore
these worlds knowing that controls and alerts are in place to help
them navigate and manage the space safely.
William W. Smith, Jr.
Chairman of the Board,
President and Chief
Executive Officer
With Mobile Network Operators (MNOs) as the trusted providers of
families    connectivity, our partnering with those same, trusted providers to deliver reliable and available solutions
to keep families safe is a natural extension. Couple this with the burgeoning legislative and societal attention and
demand, both nationally and internationally, for children   s online safety, I    rmly believe that the world has never
been more ready for, or more in need of, the solutions that the SafePath platform provides. While 2023 was a
challenging year for the Company, we were able to rise to the occasion and accomplish several critical objectives
that we absolutely needed to achieve to establish the foundation for 2024 and beyond. Achieving those targeted
goals has placed the Company on the cusp of future success as we expect to grow our revenues and move the
Company back to pro   tability. As much of the latter half of last year   s activity and development was focused
on a suite of new enhancements to the platform, we continue our mission to keep families safe in the face of
increasing need in today   s often turbulent world. With the    nal migration of our MNO customers to the upgraded
SafePath platform, we have moved    From Integration to Innovation.   
The current progression in 2024 will be about capitalizing on many of the exciting developments that occurred
in 2023 and converting them into tangible results. We are rapidly executing on activities that will replace lost
revenue and bring pro   tability back to the Company. We have seen keen interest and excitement around the new
SafePath Global strategy among MNOs at Mobile World Congress 2024 and by associations that represent them.
They are embracing the viability of a fast go-to-market launch and the value of being able to provide a family
digital safety solution quickly and easily to their customers. In fact, we signed a Tier 1 European MNO who will
use SafePath enhancements to grow its subscriber base and are ready to launch our    rst MNO on SafePath Global
during the second quarter of 2024!

New and innovative products to be available soon, such as SafePath OS and SafePath Premium, have garnered
positive reactions and interest as MNOs see these as opportunities to further embed their products with families,
strengthening that relationship by giving parents and guardians the tools to help their children to begin building
and maintaining healthy digital lifestyles, while potentially setting the foundation for a trusted relationship with
that next generation of customers. As MNOs are recognizing the value of o   ering SafePath applications as a valueadd for their customers, they are also realizing the need and value of creating continual awareness and promotion
of these products to drive subscriber growth. We are poised to launch several robust marketing initiatives that we
expect will drive MNO subscriber growth and revenue by getting white-labeled SafePath applications into more
subscribers    hands. Through a combination of education, awareness, and promotion using several innovative
channels, we are poised to help our MNO customers recognize value from these services.
We are optimistic and excited about where we stand today. With marketing programs poised to be unleashed at
multiple Tier 1 carriers, new market launches planned in 2024, robust product expansion, and a strong pipeline of
prospects in both the U.S. and Europe, we remain undaunted by challenges and setbacks and are on our way back
to pro   tability by o   ering our customers superior solutions that can drive revenue for their business and increase
their customer lifetime value. I am proud of our entire team for the noteworthy objectives they accomplished in
2023 and expect they will pay signi   cant dividends for us in 2024.
We are, without a doubt, at the right time and place to continue building upon our reputation and position as
a trusted and experienced advisor to MNOs worldwide, bringing them solutions that their customers want, that
today   s digital world demands, and that our customers need to continue building that holistic and pro   table
lifetime relationship with their subscribers.
2023 Financial Results
Smith Micro reported revenue of $40.9 million for the year ended December 31, 2023, compared to $48.5 million
reported in 2022, a decrease of 16%. Our Non-GAAP net loss for the year ended December 31, 2023, was $5.3
million, or $0.08 loss per share, compared to non-GAAP net loss of $17.6 million, or $0.32 loss per share, for the
year ended December 31, 2022. We ended the year with a cash balance of $7.1 million. With the migrations to the
SafePath platform now completed, we believe that we have a substantial opportunity to meaningfully grow Family
Safety subscribers through our customers. Coupled with the new opportunities and product enhancements in
queue for 2024, we believe we are poised to return to growth and make substantial progress in returning the
Company to pro   tability.
With momentum in both the U.S. and Europe, we expect 2024 to be a year of progress, as we continue to build
our in   uence and impact within the digital family safety space, as well as with the other solutions that we o   er.
While there is still much work to be done, I am con   dent in our team and in our strategy, and that the year will
yield positive results.
Best Regards,
William W. Smith, Jr.
Chairman of the Board
President and Chief Executive O   cer



shareholder letter icon 5/9/2024 Letter Continued (Full PDF)
 

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