Slide 1: Investor Overview
Investor Overview 2024 © 2024 Smith Micro Software, Inc. Confidential. Any unauthorized disclosure or distribution is strictly prohibited. All rights reserved. 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes, and any related discussion may include, forward-looking statements regarding future events or results within the meaning of the Private Securities Litigation Reform Act. All statements other than statements of historical fact may be forward-look
Slide 3: Smith Micro (NASDAQ: SMSI)
SMITH MICRO (NASDAQ: SMSI) Years of Software Expertise Powerful innovation engine trusted by mobile network operators worldwide. Developed deep expertise in mobile platform and operating systems, highly scalable architecture and mobile industry standards. TARGET CUSTOMERS SOLUTIONS LEADERSHIP • Glob
Slide 4: Who We Are at Our Core
WHO WE ARE AT OUR CORE Deliver world-class carrier-grade software solutions Implement strategies and tactics to lead a successful implementation and launch Provide expertise in all aspects of the program from launch through all stages of life Collaborate to make the program a success from tr
Slide 5: Our Mission: Keeping Families and Loved Ones Safe
OUR MISSION KEEPING FAMILIES AND LOVED ONES SAFE IN THE PHYSICAL & DIGITAL WORLD The World becomes increasingly more challenging to navigate every day Escalation of Conflict, Chaos & Violence is driving increased concern for the safety of our loved ones, not only children, but also friends and f
Slide 6: Family Safety Is a Primal Need
FAMILY SAFETY IS A PRIMAL NEED Maslow’s Hierarchy of Needs in a digital world and the technologies that fulfill them SELF-REALIZATION Pinterest, LinkedIn, YouTube ESTEEM Instagram, Snapchat, X (Twitter) BELONGING Bumble, Facebook, Tinder SAFETY Smith Micro, Life 360, Bark PHYSIOLOGICAL Battery, Wi-F
Slide 7: Increased Regulatory Focus on Digital Safety
INCREASED REGULATORY FOCUS ON DIGITAL SAFETY • EU - Digital Services Act (passed) • U.S. - State laws regulating social media (passed) • Italy - AGCOM regulation (passed) • U.S. - COPPA 2.0 (pending) • U.S. - Kids Online Safety Act (pending) • U.S. - Parents Bill of Rights Act (pending) • U.S. - Tik
Slide 8: SafePath Is the Right Tool at the Right Time
SAFEPATH® IS THE RIGHT TOOL AT THE RIGHT TIME © 2024 Smith Micro Software, Inc. Confidential. Any unauthorized disclosure or distribution is strictly prohibited. All rights reserved. 8
Slide 9: The Journey on the SafePath Platform Starts with SafePath Family
THE JOURNEY ON THE SAFEPATH PLATFORM STARTS WITH SAFEPATH FAMILY SafePath Familyteaches SafePath Family teachesusers the interface users and opens the interface the door and to enhanced learned features that navigation respond to current market and consumer needs © 2024 Smith Micro Software, Inc. Co
Slide 10: Connected Life Vision
CONNECTED LIFE VISION Family is more than just people – it’s also every connected device that is a part of the everyday family digital lifestyle Children Car Elderly Home Network Pets/Things © 2024 Smith Micro Software, Inc. Confidential. Any unauthorized disclosure or distribution is strictly prohi
Slide 11: Enhancements to Make a Strong Product Platform Even Better
ENHANCEMENTS TO MAKE A STRONG PRODUCT PLATFORM EVEN BETTER SafePath Drive - Provides behavior monitoring and analysis and alert functions SafePath Home – Delivers peace of mind on any device in the home SafePath Premium* – Will introduce Social Network Monitoring and Physical Location Intelligence u
Slide 12: Go to Market Strategy: Sell Solutions Through Mobile Network Operators
GO TO MARKET STRATEGY SELL SOLUTIONS THROUGH MOBILE NETWORK OPERATIONS Leveraging Strong, Long Term Strong Relationships Master agreements throughout the world Why MNO’s? They are the gatekeepers of people's internet access and location Why MNO’s? Broad reach delivering connectivity to mobile
Slide 13: Our Customers
OUR CUSTOMERS © 2024 Smith Micro Software, Inc. Confidential. Any unauthorized disclosure or distribution is strictly prohibited. All rights reserved. 13
Slide 14: The Tremendous Opportunity
THE TREMENDOUS OPPORTUNITY FOCUS ON FAMILY … Families – most profitable, … VALUE ADDED long-term subscribers SERVICES ARE STICKY … They depend on/trust our customers … ACHIEVING Family services are sticky GREATER VALUE Tremendous value and upside Family should be the mechanism that anticipating and
Slide 15: Investment Thesis
INVESTMENT THESIS • Dominant Player in white-label Family Safety Mobile application space • Existing contracts with Tier One Wireless Carriers in the United States & Europe • Significant untapped available market will allow for significant growth potential • Recurring revenue stream with ~70% Gross
Slide 16: Revenue Trends
REVENUE TRENDS REVENUE Family Safety Other Commsuite ViewSpot • Family Safety revenues decreased sequentially quarter over quarter $ 11,001 primarily due to subscriber $10,338 decreases on the legacy Sprint $1,073 $ 8,593 Safe & Found product. $855 $749 $734 $573 • Family Safety revenues declined in
Slide 17: Operating Expense Trends
OPERATING EXPENSE TRENDS OPERATING EXPENSES – NON GAAP Selling & Marketing Research & Development General & Administrative • Decrease in Operating Expenses $8,259 $7,983 $8,088 during 2nd quarter of 2024 due $7,748 $7,533 to cost reduction initiatives undertaken. $2,365 $2,262 $2,089 $2,185 $2,104 •
Slide 18: Operating Expense Reconciliation
OPERATING EXPENSE RECONCILIATION © 2024 Smith Micro Software, Inc. Confidential. Any unauthorized disclosure or distribution is strictly prohibited. All rights reserved. 18
Slide 19: Thank You
Thank You ©©2024 2024Smith SmithMicro MicroSoftware, Software, Inc. Inc. Confidential. Confidential. Any Any unauthorized unauthorized disclosure disclosure or distribution or distribution is strictly is strictly prohibited. prohibited. All rights All rights reserved. reserved. 19