Smith Micro Software (SMSI) Q4 Earnings in Line With Estimates
Smith Micro Software SMSI reported fourth-quarter 2022 non-GAAP earnings of 8 cents per share, which met the Zacks Consensus Estimate. The company reported a non-GAAP loss of 4 cents in the year-ago quarter.
Total revenues of $11.4 million beat the Zacks Consensus Estimate by 1.6%. However, the top line fell 22% on a year-over-year basis due to a decline in CommSuite and Family Safety revenues.
Family Safety’s revenues decreased 17% year over year due to a decline in the Safe & Found platform’s revenues, pertaining to the attrition of legacy Sprint subscribers.
Revenues from CommSuite were $0.9 million compared with $2.2 million reported in the year-ago quarter due to a decline in legacy Sprint subscribers on the CommSuite platform.
Smith Micro Software, Inc. Price, Consensus and EPS Surprise
Smith Micro Software, Inc. price-consensus-eps-surprise-chart | Smith Micro Software, Inc. Quote
Revenue contribution from ViewSpot was $0.8 million, unchanged year over year.
For the first quarter of 2023, the company expects revenues to decline 2-5% from that reported in the fourth quarter of 2022.
Margins
The gross margin for the fourth quarter was 71%, which contracted 100 basis points (bps) from the year-ago quarter.
Non-GAAP operating expenses were $12 million, down 7.5% year over year.
Balance Sheet
As of Dec 31, 2022, Smith Micro Software’s cash and cash equivalents were $14 million compared with $16.1 million as of Dec 31, 2021.
In the fourth quarter, cash used in operating activities was $4.8 million compared with the $15.2 million used in the previous-year quarter.
A Look At 2022 Numbers
Smith Micro Software reported total revenues of $48.5 million in 2022, down 17% from 2021.
The company reported a non-GAAP loss of 34 cents per share in 2022 compared with a loss of 4 cents per share reported in 2021. Smith Micro Software’s gross margin contracted 700 bps to 71%.
For the full year, cash used in operating activities was $19.3 million compared with the $12.9 million used in the previous year.
Zacks Rank & Other Stocks to Consider
Smith Micro Software currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology space are Arista Networks ANET, Perion Network PERI and Pegasystems PEGA, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 11.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have gained 24% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have gained 69.3% in the past year.
The Zacks Consensus Estimate for Pegasystem’s 2023 earnings is pegged at $1.31 per share, rising 96% in the past 60 days.
Pegasystem’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 37.2% in the past year.
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