Business
Phunware Provides 2022 Revenue Guidance & Revises Investment Policy for Cash Management
AUSTIN, Texas, Nov. 18, 2021 (GLOBE NEWSWIRE) -- Phunware, Inc. (NASDAQ: PHUN) (the “Company”), a fully-integrated enterprise cloud platform for mobile that
About this update from Phunware, Inc.
[{"type":"text","content":"AUSTIN, Texas, Nov. 18, 2021 (GLOBE NEWSWIRE) -- Phunware, Inc. (NASDAQ: PHUN) (the “Company”), a fully-integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide, announced today revenue guidance of $25 million for 2022, including a revised corporate investment policy providing even more flexibility for diversifying and maximizing returns on cash reserves that are not immediately required for operating liquidity. “We were thrilled to announce over $65 million cash on-hand and are committed to leveraging a healthy balance sheet to support long-term organic and inorganic growth initiatives that seek to mitigate an operational backdrop of rapid inflation,” said Matt Aune, CFO of Phunware. “While we expect to more than double organic revenues to $25 million in 2022, our board has also taken a forward-thinking approach to managing our cash reserves and has chosen to leverage Decentralized Finance (DeFi) as a strategic and tactical competitive advantage, including bitcoin, stablecoins and alternative cryptocurrencies.” As part of the updated corporate cash management policy, Phunware may save and/or invest cash reserves in certain specified alternative reserve assets to include, but not limited to: Bitcoin. Phunware currently holds approximately 127 bitcoin, which were acquired at an aggregate purchase price of approximately $7.75 million and an average purchase price of approximately $61,238 per bitcoin, inclusive of fees and expenses. The Company expects to add to its bitcoin total as a routine part of corporate operations and treasury management for the foreseeable future.Stablecoins. Phunware expects to use reserve-backed stablecoins, including stablecoin collateral loops, to maximize its savings yields in digital US dollar equivalents that can be far more attractive than traditional legacy banking yields in Annual Percentage Yield (APY) terms. The Company will not use Tether (USDT) stablecoins as any part of this strategy and fully expects to concentrate its stablecoin exposure on assets such as US Dollar Coin (USDC) and Gemini Dollar (GUSD) amongst other equivalents.Alternative cryptocurrencies. Phunware expects to initiate numerous diversified DeFi positions and techniques to generate financial returns consistent with financial lending, borrowing, market making, yi...