Smith Micro Software Reports 50% Revenue Decline and $48.7 Million Net Loss for Fiscal Year 2024

Smith Micro Software, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenues falling by 50% to $20.6 million, down from $40.9 million in 2023. This decline was primarily attributed to the loss of a Tier 1 Family Safety contract, which accounted for approximately 36% of the company's total revenues in 2023. The company recognized no revenue from this contract in 2024, alongside a decrease in revenues from its ViewSpot product line. Gross profit also decreased to $14.4 million, reflecting a drop of $15.9 million compared to the previous year.

In response to the revenue decline, Smith Micro undertook significant restructuring efforts, resulting in a workforce reduction of approximately 48%. Despite these efforts, operating expenses increased by $15.5 million, largely due to a non-cash goodwill impairment charge of $24 million. The net loss for the year was reported at $48.7 million, translating to a loss of $3.94 per share, compared to a net loss of $24.4 million, or $3.01 per share, in 2023.

Strategically, Smith Micro launched new products within its SafePath suite, including SafePath Kids and SafePath OS, aimed at enhancing its offerings in the family safety sector. The company also expanded its customer base by introducing SafePath Global, which is designed to facilitate quicker deployment of family safety solutions to smaller mobile network operators. As of December 31, 2024, the company had 164 employees, a reduction from previous years, reflecting its ongoing efforts to streamline operations.

Geographically, Smith Micro's revenues were primarily generated from the Americas, totaling $20 million, while revenues from the Europe, Middle East, and Africa (EMEA) region amounted to $538,000. The company continues to face challenges related to customer concentration, with three customers accounting for 58%, 20%, and 14% of total revenues in 2024. The company has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for additional capital to support operations and growth initiatives.

Looking ahead, Smith Micro remains focused on expanding its subscriber base and enhancing its product offerings to drive revenue growth. The company is optimistic about its strategic positioning in the family safety market, particularly with the recent launch of new solutions aimed at Tier 1 carriers. However, the ongoing impact of the loss of significant contracts and the need for effective execution of its growth strategies will be critical to its future financial performance.