Smith Micro Software Inc (SMSI) 2023 Q4 法說會逐字稿

Good day and welcome to the Smith Micro Software fourth quarter 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would like to turn the conference over to Charles Messman Please go ahead.

美好的一天，歡迎參加 Smith Micro Software 2023 年第四季財報電話會議。（操作員說明）請注意此事件正在被記錄。我想將會議轉交給查爾斯·梅斯曼，請繼續。

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Smith Micro's financial results for the fourth quarter and the fiscal year ended December 31, 2023.

謝謝接線員，大家下午好。感謝您今天加入我們討論史密斯微公司截至 2023 年 12 月 31 日的第四季度和財年的財務業績。

By now, you should have received a copy of our press release with the financial results. If you do not have a copy and would like one please visit the Investor Relations section of our website at www.smithmicro.com.

到目前為止，您應該已經收到了我們包含財務業績的新聞稿。如果您沒有副本但想要一份，請訪問我們網站 www.smithmicro.com 的投資者關係部分。

On today's call, we have Bill Smith, our Chairman of the Board, President and Chief Executive Officer, and Jim Kempton, our Chief Financial Officer.

出席今天的電話會議的有董事會主席、總裁兼執行長比爾史密斯 (Bill Smith) 和財務長吉姆肯普頓 (Jim Kempton)。

Please note that some of the information you'll hear during today's discussion may consist of forward-looking statements, including without limitation, those regarding the company's future revenue and profitability, our plans and expectations, new product development, new and expanded market opportunities, future product developments, migrations and our growth by new and existing customers, operating expense and the company's cash reserves.

請注意，您在今天的討論中聽到的一些資訊可能包含前瞻性陳述，包括但不限於有關公司未來收入和盈利能力、我們的計劃和期望、新產品開發、新的和擴大的市場機會、未來的產品開發、遷移以及新客戶和現有客戶的成長、營運費用和公司的現金儲備。

Forward-looking statements involve risks and uncertainties which could cause actual results or trends to differ materially from those expressed or implied by our forward-looking statements. For more information, please refer to our risk factors included in our most recently filed 10-K and our subsequent filings on Form 10-Q.

前瞻性陳述涉及風險和不確定性，可能導致實際結果或趨勢與我們的前瞻性陳述明示或暗示的結果或趨勢有重大差異。如需了解更多信息，請參閱我們最近提交的 10-K 表格和後續提交的 10-Q 表中包含的風險因素。

Smith Micro assumes no obligation to update any forward-looking statements, which speak of our management's belief and assumptions only as of the date they are made. I want to point out that in our forthcoming prepared remarks, we will refer to specific non-GAAP financial measures. Please refer to our press release disseminated earlier today for a reconciliation of these non-GAAP financial measures.

史密斯微公司不承擔更新任何前瞻性陳述的義務，這些陳述僅代表我們管理層截至其做出之日的信念和假設。我想指出，在我們即將發表的準備好的發言中，我們將提及具體的非公認會計準則財務指標。請參閱我們今天稍早發布的新聞稿，以了解這些非公認會計原則財務指標的調節表。

With that said, I'll turn the call over to Bill. Bill?

話雖如此，我會把電話轉給比爾。帳單？

Thanks, Charlie. Good afternoon and thank you for joining us today for our 2023 fourth quarter and year-end conference call. We appreciate your interest. Reflecting on last year, we certainly face challenges, which initiated several decisive changes to build a new path forward for the company. And I believe we have found that path.

謝謝，查理。下午好，感謝您今天參加我們的 2023 年第四季和年終電話會議。我們感謝您的關注。回顧去年，我們確實面臨挑戰，引發了一些決定性的變革，為公司開闢了新的前進道路。我相信我們已經找到那條路了。

The termination of a large customer contract earlier in the year came as a surprise, causing us to quickly pivot and implement necessary changes to better align our resources. It was a large undertaking and difficult task, but I am proud how our team worked collectively to rise to the occasion and accomplish several critical objectives that we absolutely needed to achieve despite this challenge.

今年早些時候，一份大型客戶合約的終止令人意外，導致我們迅速調整並實施必要的變革，以更好地調整我們的資源。這是一項艱鉅的任務，但我感到自豪的是，我們的團隊如何共同努力應對這項挑戰，並實現儘管面臨挑戰，但我們絕對需要實現的幾個關鍵目標。

The most impactful of those achievements was the successful launch of AT&T's secure family on the SafePath platform, while there were some challenges along the way, we got it across the finish line and now have a fantastic opportunity to significantly expand subscriber growth in fiscal 2024.

其中最具影響力的成就是在SafePath 平台上成功推出AT&T 的安全系列，雖然一路上遇到了一些挑戰，但我們已經跨越了終點線，現在有一個絕佳的機會在2024 財年顯著擴大用戶增長。

With the migration efforts finished, we now have the flexibility to further develop and expand our roadmap delivering meaningful innovative enhancements to the SafePath platform that will launch this year, which I expect to broaden our market reach and enable us to add new revenue streams. I will cover several of these enhancements in more detail later in the call.

遷移工作完成後，我們現在可以靈活地進一步開發和擴展我們的路線圖，為今年將推出的SafePath 平台提供有意義的創新增強功能，我預計這將擴大我們的市場範圍，並使我們能夠增加新的收入來源。我將在稍後的電話會議中更詳細地介紹其中的一些增強功能。

But one innovation where I do want to add a bit of color now is SafePath OS, you may have seen in our earlier press release announcing SafePath OS, it will bring yet another new market opportunity to Smith Micro by delivering a unique solution to our M&O partners that build on their strong relationships with handset manufacturers.

但我現在確實想添加一點色彩的一項創新是SafePath OS，您可能已經在我們之前宣布SafePath OS 的新聞稿中看到，它將通過為我們的M&O 提供獨特的解決方案，為Smith Micro 帶來另一個新的市場機會與手機製造商建立牢固關係的合作夥伴。

SafePath OS is a pure software solution that will allow our partners to promote a safe and secure child's phone or tablet. This product will be fully functional and up right out-of-the-box with preloaded software, preconfigured for Android devices to control the functionality of the phone itself to set digital parameters for safe use by the child.

SafePath OS 是一個純軟體解決方案，使我們的合作夥伴能夠推廣安全可靠的兒童手機或平板電腦。該產品功能齊全，開箱即用，配有預裝軟體，針對 Android 設備進行了預配置，可控製手機本身的功能，設置數字參數，以便兒童安全使用。

This new initiative for kids' devices will deliver substantial flexibility to our partners for new go-to-market strategies. In addition, SafePath OS will provide enhanced capability for parents and guardians to adjust features and functionality as their children enter new age groups, allowing them to grow through their digital journey. This is just one of the new initiatives underway for Smith Micro as we enter 2024 full speed ahead.

這項針對兒童設備的新措施將為我們的合作夥伴實施新的上市策略提供極大的靈活性。此外，SafePath OS 將為家長和監護人提供增強的功能，讓他們能夠在孩子進入新年齡時調整特性和功能，讓他們在數位化旅程中不斷成長。這只是 Smith Micro 在全速邁入 2024 年之際正在進行的新舉措之一。

Our core vision continues to be the creation of safe and healthy digital experiences for families, while allowing operators around the world to add new lines to family accounts, enabling them to build closer and more valuable relationships with their subscribers over time.

我們的核心願景仍然是為家庭創造安全健康的數位體驗，同時允許世界各地的營運商向家庭帳戶添加新線路，使他們能夠隨著時間的推移與訂戶建立更緊密、更有價值的關係。

Now let's turn the call over to Jim for more detail on the financial results. Jim?

現在讓我們將電話轉給吉姆，以了解更多有關財務業績的詳細資訊。吉姆？

Thanks, Bill, and good afternoon, everyone. I'll now be covering the financial details of the fourth quarter and full year 2023.

謝謝比爾，大家下午好。我現在將介紹第四季和 2023 年全年的財務細節。

For the fourth quarter, we posted revenue of $8.6 million compared to $11.4 million for the same quarter of 2022, a decrease of approximately 25%, primarily attributable to a decline in Family Safety revenues period over period.

第四季度，我們的收入為 860 萬美元，而 2022 年同一季度的收入為 1,140 萬美元，下降了約 25%，這主要是由於家庭安全收入同比下降。

As anticipated when compared to the third quarter of 2023, revenue decreased by $2.4 million or 22%, primarily as a result of the conclusion of the Verizon Family Safety post termination transition period with no revenue recognized in December 2023 related to this contract.

如預期，與 2023 年第三季相比，收入減少了 240 萬美元，即 22%，主要是由於 Verizon Family Safety 終止後過渡期結束，2023 年 12 月沒有確認與該合約相關的收入。

Revenues for 2023 were approximately $40.9 million versus $48.5 million produced last year. The approximate $7.6 million decrease was primarily due to a decline in legacy Safe & Found Family Safety revenue related to the continued attrition of [legacy Sprint] subscribers driven by T-Mobile's acquisition of Sprint and the conclusion of the Verizon contract, coupled with the decline in CommSuite revenues.

2023 年的收入約為 4,090 萬美元，而去年的收入為 4,850 萬美元。約 760 萬美元的減少主要是由於 T-Mobile 收購 Sprint 和 Verizon 合約的簽訂導致[傳統 Sprint] 用戶持續流失，從而導致傳統 Safe & Found 家庭安全收入下降，再加上收入下降CommSuite 收入。

During the fourth quarter of 2023, Family Safety revenue decreased by approximately $2.1 million or 22% compared to the fourth quarter of prior year, primarily due to the decline in Verizon Family Safety revenues in the fourth quarter of 2023 and the post-termination transition period for that contract concluded and the continued decline in legacy Sprint Safe & Found revenues.

2023 年第四季度，家庭安全收入較上年第四季減少約 210 萬美元，或 22%，主要是由於 2023 年第四季度 Verizon 家庭安全收入下降以及終止後過渡期該合約的簽訂以及Sprint Safe & Found 遺留收入的持續下降。

Family Safety revenues decreased by approximately $1.7 million or 18% compared to the third quarter of 2023. During the fourth quarter of 2023, CommSuite revenue was $500,000, which decreased by approximately $400,000 compared to the fourth quarter of 2022. This decrease is attributable to a decline in DISH revenue, coupled with a period-over-period decline in revenue generated from the legacy Sprint deployment, which generated no CommSuite revenue in the fourth quarter of 2023.

與 2023 年第三季相比，家庭安全收入減少約 170 萬美元，即 18%。2023年第四季，CommSuite營收為50萬美元，比2022年第四季減少約40萬美元。這一下降是由於 DISH 收入下降，以及傳統 Sprint 部署產生的收入同比下降，該部署在 2023 年第四季度沒有產生 CommSuite 收入。

Revenue from CommSuite decreased by approximately $200,000 compared to the third quarter of 2023. I want to note that in December, we were able to expand our premium Visual Voicemail offering more broadly across the DISH Network and did see an increase in subscribers in that offering post expansion.

與 2023 年第三季相比，CommSuite 的營收減少了約 20 萬美元。我想指出的是，去年 12 月，我們能夠在 DISH 網路中更廣泛地擴展我們的優質可視語音郵件產品，並且確實看到擴展後該產品的訂戶數量有所增加。

We are expecting a further expansion of the PVVM offering across the DISH Network in the first half of 2024, which we anticipate will yield additional growth in subscribers.

我們預計 2024 年上半年，PVVM 產品將在 DISH 網路中進一步擴展，我們預計這將帶來訂戶數量的進一步成長。

ViewSpot revenue was approximately $600,000 for the fourth quarter of 2023, which declined by approximately $300,000 compared to the fourth quarter of prior year and decreased by approximately $0.5 million compared to the third quarter of 2023. The decline in ViewSpot revenues was in line with our expectations.

ViewSpot 2023 年第四季營收約 60 萬美元，較去年第四季下降約 30 萬美元，較 2023 年第三季下降約 50 萬美元。ViewSpot 營收的下降符合我們的預期。

In the first quarter of 2024, we are expecting consolidated revenues to decrease by 32% to 36% or $2.7 million to $3.1 million compared to the fourth quarter of 2023, driven primarily by no further Verizon Family Safety revenues being recognized in the first quarter as the post termination transition period for that contract concluded in the fourth quarter of 2023.

與2023 年第四季相比，我們預計2024 年第一季的合併收入將減少32% 至36%，即270 萬美元至310 萬美元，這主要是由於第一季沒有進一步確認Verizon Family Safety 收入。

For the fourth quarter of 2023, gross profit was $6.4 million compared to $8.1 million during the same period of the prior year, a decrease of approximately $1.7 million. While gross profit declined for the fourth quarter of '23 versus the same period of 2022, gross margin was higher at 74.9% for the fourth quarter of 2023 compared to 70.8% realized in the fourth quarter of 2022.

2023年第四季，毛利為640萬美元，較上年同期的810萬美元減少約170萬美元。雖然 23 年第四季的毛利較 2022 年同期有所下降，但 2023 年第四季的毛利率較高，為 74.9%，而 2022 年第四季的毛利率為 70.8%。

Gross profit of $6.4 million in the fourth quarter of 2023 decreased sequentially by approximately $2 million compared to the gross profit produced in the third quarter of 2023, driven primarily by the sequential decline in revenues quarter over quarter.

2023 年第四季的毛利為 640 萬美元，與 2023 年第三季的毛利相比，環比減少了約 200 萬美元，這主要是由於收入環比下降所致。

In the first quarter of 2024, we expect gross margins to be in the range of 64% to 68%. For the year-to-date period ended December 31, 2023, gross profit was $30.3 million compared to $34.3 million during 2022. Gross margin was 74.2% for the year ended December 31, 2023 versus a gross margin of 70.7% produced in 2022, an improvement of approximately 350 basis points.

2024年第一季度，我們預計毛利率將在64%至68%之間。截至 2023 年 12 月 31 日止的年初至今，毛利為 3,030 萬美元，而 2022 年為 3,430 萬美元。截至 2023 年 12 月 31 日止年度，毛利率為 74.2%，而 2022 年毛利率為 70.7%，提高約 350 個基點。

GAAP operating expenses for the fourth quarter of 2023 were $12.1 million, a decrease of $3.1 million or 20% compared to the fourth quarter of 2022. GAAP operating expenses for the year ended December 31, 2023, were $48.4 million, a decrease of $16.9 million or 26% compared to the prior year.

2023 年第四季的 GAAP 營運費用為 1,210 萬美元，比 2022 年第四季減少 310 萬美元，即 20%。截至 2023 年 12 月 31 日止年度的 GAAP 營運費用為 4,840 萬美元，較前一年減少 1,690 萬美元，即 26%。

Non-GAAP operating expenses for the fourth quarter of 2023 were $8 million compared to $11.7 million in the fourth quarter of 2022, a decrease of approximately $3.8 million or 32%. Sequentially, non-GAAP operating expenses increased by approximately $200,000 or 3% from the third quarter of 2023.

2023 年第四季的非 GAAP 營運費用為 800 萬美元，而 2022 年第四季為 1,170 萬美元，減少約 380 萬美元，即 32%。因此，非 GAAP 營運費用較 2023 年第三季增加了約 20 萬美元，即 3%。

We expect first quarter 2024 non-GAAP operating expenses to increase by 1% to 4% compared to the fourth quarter of 2023, partially attributable to an increase in marketing and event activities, including Mobile World Congress, our largest tradeshow event of the year.

我們預計 2024 年第一季非 GAAP 營運費用將比 2023 年第四季成長 1% 至 4%，部分原因是行銷和活動活動的增加，包括我們今年最大的貿易展活動世界行動通訊大會。

Non-GAAP operating expenses for the year ended at December 31, 2023 was $35.3 million, a decrease of $16.2 million or 31% compared to last year. GAAP net loss for the fourth quarter of 2023 was $6.7 million or $0.09 loss per share compared to a GAAP net loss of $8 million or $0.14 loss per share in the fourth quarter of 2022.

截至 2023 年 12 月 31 日止年度的非 GAAP 營運費用為 3,530 萬美元，比去年減少 1,620 萬美元，即 31%。2023 年第四季的 GAAP 淨虧損為 670 萬美元，即每股虧損 0.09 美元，而 2022 年第四季的 GAAP 淨虧損為 800 萬美元，即每股虧損 0.14 美元。

The GAAP net loss for 2023 was $24.4 million or $0.38 loss per share compared to a GAAP net loss of $29.3 million or $0.53 loss per share in 2022. Non-GAAP net loss for the fourth quarter of 2023 was $1.7 million or $0.02 loss per share compared to a non-GAAP net loss of approximately $4 million or $0.07 loss per share in the fourth quarter of 2022.

2023 年 GAAP 淨虧損為 2,440 萬美元，即每股虧損 0.38 美元，而 2022 年 GAAP 淨虧損為 2,930 萬美元，即每股虧損 0.53 美元。2023 年第四季的非 GAAP 淨虧損為 170 萬美元，即每股虧損 0.02 美元，而 2022 年第四季的非 GAAP 淨虧損約為 400 萬美元，即每股虧損 0.07 美元。

The non-GAAP net loss for 2023 was $5.3 million or an $0.08 loss per share compared to a non-GAAP net loss of approximately $17.6 million or a $0.32 loss per share in 2022.

2023 年非 GAAP 淨虧損為 530 萬美元，即每股虧損 0.08 美元，而 2022 年非 GAAP 淨虧損約為 1,760 萬美元，即每股虧損 0.32 美元。

Within today's press release, we have provided a reconciliation of our non-GAAP metrics to the most comparable GAAP metric. For the fourth quarter of 2023, the reconciliation includes adjustments for intangible asset amortization of $2.4 million, stock compensation expense of $1.5 million noted stock offering amortization of $600,000, changes to derivatives and warrants of $300,000 costs related to severance and reorganization activities of approximately $100,000 and depreciation of approximately $100,000.

在今天的新聞稿中，我們提供了非 GAAP 指標與最具可比性 GAAP 指標的調整表。2023 年第四季的調節包括240 萬美元的無形資產攤銷調整、150 萬美元的股票補償費用、60 萬美元的記名股票發行攤銷、30 萬美元的衍生品和認股權證變更費用，與約10 萬美元的遣散費和重組活動相關的費用以及折舊約100,000美元。

For the year-to-date period, the non-GAAP reconciliation include adjustments for intangible asset amortization of $6.8 million, stock compensation expense of $4.8 million, note and stop offering amortization of $6 million, changes to derivatives awards of approximately $200,000. Depreciation of approximately $600,000 and costs related to severance and reorganization activities of approximately $1.1 million.

今年迄今，非公認會計準則對帳包括無形資產攤銷調整 680 萬美元、股票補償費用 480 萬美元、票據和停止發行攤銷 600 萬美元、衍生性商品獎勵變更約 20 萬美元。折舊約為 60 萬美元，與遣散費和重組活動相關的費用約為 110 萬美元。

Due to our cumulative net losses over the past few years, our GAAP tax expense is primarily due to certain state and foreign income taxes. For non-GAAP purposes, we utilize a 0% tax rate for 2023 and 2022. The resulting non-GAAP tax expense reflects the actual income taxes expense during each period.

由於我們過去幾年的累積淨虧損，我們的公認會計準則稅收支出主要是由於某些州和外國所得稅。出於非 GAAP 目的，我們在 2023 年和 2022 年採用 0% 的稅率。由此產生的非公認會計準則稅務費用反映了每個期間的實際所得稅費用。

From a balance sheet perspective, we reported $7.1 million of cash and cash equivalents as of December 31, 2023. During the fourth quarter, use of cash and operating activities amounted to $1 million. I would also note that at the end of 2023, our senior secured convertible notes were retired at maturity.

從資產負債表的角度來看，截至 2023 年 12 月 31 日，我們報告的現金和現金等價物為 710 萬美元。第四季度，現金及經營活動使用額為 100 萬美元。我還想指出的是，到 2023 年底，我們的優先擔保可轉換票據到期了。

This concludes my financial review. Now back to Bill.

我的財務審查到此結束。現在回到比爾。

Thanks, Jim. Okay. I want to get back to the first quarter guidance that Jim provided. But first, let me start out by addressing the preliminary proxy statement that we filed earlier today. It relates to a special shareholder meeting to give our Board the discretion to effectuate a reverse stock split.

謝謝，吉姆。好的。我想回到吉姆提供的第一季指引。但首先，讓我先討論我們今天早些時候提交的初步委託書。它涉及一次特別股東大會，以賦予我們董事會實現反向股票分割的酌處權。

As we described in the preliminary proxy statement, there are several reasons why we feel that this is the prudent approach for the company at this point, but our primary goal with the reverse stock split is to increase the per share market price of our common stock to the Nasdaq's minimum bid price requirement.

正如我們在初步代理聲明中所述，我們認為這是公司目前採取的謹慎做法有幾個原因，但我們反向股票分割的主要目標是提高我們普通股的每股市場價格納斯達克的最低買入價要求。

Given the current price of the stock, as we have been trading under $1 since last earnings call, we expect this action would sufficiently increase our share price to help us regain compliance. Additionally, we believe it will create increased flexibility, which we believe position the company to be opportunistic on any strategic opportunities that we identify, including M&A.

鑑於當前股票價格，自上次財報電話會議以來我們的交易價格一直低於 1 美元，我們預計這一行動將足以提高我們的股價，以幫助我們重新獲得合規性。此外，我們相信這將帶來更大的靈活性，我們相信這將使公司能夠抓住我們發現的任何策略機會，包括併購。

We feel strongly that this approach is the appropriate go-forward strategy for the company and our shareholders to ensure the long-term success of the company.

我們強烈認為，這種方法對於公司和股東來說是適當的前進策略，可以確保公司的長期成功。

Now let me circle back to our guidance for the first quarter. We indicated for some time now that the first quarter will be challenging as the Verizon Family Safety revenue will no longer be contributing to our revenue during 2024, which reacted quickly to the termination of the contract last year, and significantly adjusted our cost structure in anticipation of this decline in revenues.

現在讓我回到我們對第一季的指導。一段時間以來，我們表示第一季將充滿挑戰，因為Verizon Family Safety 收入將不再為我們2024 年的收入做出貢獻，該公司對去年合約終止做出了迅速反應，並根據預期大幅調整了我們的成本結構收入下降的影響。

We've been focused on efforts to grow our revenues to fill the gap, including through the expansion of our SafePath product portfolio to drive growth, selling our solutions to additional MNOs and MVNOs and working to grow subscriber bases with our existing customers.

我們一直致力於增加收入以填補空白，包括透過擴展 SafePath 產品組合來推動成長、向更多 MNO 和 MVNO 銷售我們的解決方案以及努力擴大現有客戶的用戶群。

I'll cover the expansion of both our customer and product portfolio shortly, providing a bit more color on our contract win with a major Tier 1 carrier in Europe that we announced in December.

我很快就會介紹我們的客戶和產品組合的擴展，為我們在 12 月宣布的與歐洲一家主要一級運營商簽訂的合約提供更多資訊。

But first, I wanted to address our efforts with our current customers in a little bit more detail. With regard to AT&T, as we previously announced, we have successfully launched AT&T's FirstNet and Family on the SafePath platform and are winding down the legacy of us taught for.

但首先，我想更詳細地介紹我們與現有客戶所做的努力。至於 AT&T，正如我們之前宣布的，我們已在 SafePath 平台上成功推出了 AT&T 的 FirstNet 和 Family，並正在逐步結束我們所受教育的遺產。

Since launch, we have released new updates to continue to improve the product and expanded our addressable market with the launch of AT&T's Secure Family to subscribers of cricket owned by AT&T. We are currently partnering with AT&T for the next phase of marketing activities, including the launch of new initiatives that build on awareness programs, digital campaigns and maximizing the unique sales channels that AT&T has today.

自推出以來，我們發布了新的更新，以繼續改進產品，並透過向 AT&T 擁有的板球訂戶推出 AT&T 的 Secure Family 來擴大我們的目標市場。目前，我們正在與 AT&T 合作下一階段的行銷活動，包括推出以認知計畫、數位行銷活動為基礎的新舉措，並最大限度地利用 AT&T 目前擁有的獨特銷售管道。

Experience has shown us that it sometimes takes longer to get things rolling with large carrier customers, but we believe we've turned the corner on the marketing front, a big step in the progress of the continued rollout of AT&T's Secure Family. We see the excitement building at AT&T and believe there is a significant opportunity to drive new subscriber growth as we look to the remainder of the year.

經驗告訴我們，有時需要更長的時間才能與大型營運商客戶合作，但我們相信我們已經在行銷方面扭轉了局面，這是繼續推出 AT&T Secure Family 的一大進步。我們看到 AT&T 正在變得令人興奮，並相信在我們展望今年剩餘時間時，存在推動新用戶成長的重大機會。

On the T-Mobile front, since the last call, we've released updates to Family Mode to continue to enhance subscriber satisfaction. In addition, we're collaborating with the T-Mobile team, exploring new ways to expand our overall reach. I would characterize our relationship as solid and we continue working to identify areas where we can expand the subscriber base.

在 T-Mobile 方面，自上次通話以來，我們發布了家庭模式更新，以繼續提高用戶滿意度。此外，我們正在與 T-Mobile 團隊合作，探索擴大我們整體覆蓋範圍的新方法。我認為我們的關係是牢固的，我們將繼續努力尋找可以擴大用戶群的領域。

At DISH, we have continued to enhance CommSuite and meet the needs for Android-based Visual Voicemail service. We enjoy a very strong relationship with DISH, and we believe that our business case with DISH wireless will continue to expand throughout 2024 as they grow their business and we expand our reach.

在DISH，我們不斷增強CommSuite 並滿足基於Android 的可視語音郵件服務的需求。我們與 DISH 有著非常牢固的關係，我們相信，隨著 DISH wireless 業務的發展以及我們的影響力的擴大，我們與 DISH wireless 的業務案例將在 2024 年繼續擴大。

Turning to the European market, we were pleased to announce the new contract in Europe in the fourth quarter, in line with the expectations that we had outlined on prior calls. Activity under the new contract is well underway, and we are very excited about the upcoming launch of SafePath with this Tier 1 carrier, which is slated to be in the early second half of the year.

談到歐洲市場，我們很高興地宣布第四季度在歐洲簽訂的新合同，這符合我們先前電話會議中概述的預期。新合約下的活動正在順利進行，我們對即將與這家一級營運商推出 SafePath 感到非常興奮，預計今年下半年初推出。

Our development efforts related to this project remain on track, which brings a truly unique and interesting go-to-market approach, and I will be excited to share more about after the launch. As you can tell from my comments, our customer relationships are very positive, but now let's focus on something that really gets me excited.

我們與該專案相關的開發工作仍在正常進行，這帶來了真正獨特且有趣的上市方法，我將很高興在發布後分享更多資訊。從我的評論中您可以看出，我們的客戶關係非常積極，但現在讓我們專注於真正讓我興奮的事情。

I'm very energized by the growth of our sales pipeline and the impact of this activity on the forward booking success of our business in 2024, we see great momentum in the pipeline in both of our targeted geographies of North America and Europe. As a result, I believe we will deliver new business from both current and new carrier customers in 2024 and there will be multiple announcements to be made.

我對我們銷售管道的成長以及這項活動對我們 2024 年業務提前預訂成功的影響感到非常振奮，我們在北美和歐洲的目標地區看到了巨大的發展勢頭。因此，我相信我們將在 2024 年為現有和新的營運商客戶提供新業務，並將發布多項公告。

Our efforts over the last three years to establish Smith Micro as the premier provider of Family Safety software appears to have positioned us well. With all the turmoil around the world today, we see both governmental and societal pressures coming to bear to provide for both the digital and physical safety of our loved ones. And as a result, we are seeing strong interest in our SafePath platform.

過去三年來，我們努力將 Smith Micro 打造成家庭安全軟體的首要供應商，這似乎使我們處於有利地位。隨著當今世界各地的動盪，我們看到政府和社會都面臨著為我們所愛的人提供數位和人身安全的壓力。因此，我們看到人們對我們的 SafePath 平台產生了濃厚的興趣。

We will be attending the upcoming 2024 at Mobile World Congress in Barcelona, one of the largest wireless tradeshows in the world and has lined up a great scheduled of meetings. Our participation in Mobile World Congress is aligned with our goal of growing the awareness of Smith Micro as a provider of solutions that are sorely needed in the EMEA region.

我們將參加即將在巴塞隆納舉行的 2024 年世界行動通訊大會，這是世界上最大的無線貿易展之一，並已安排了一系列精彩的會議。我們參加世界行動通訊大會的目標是提高 Smith Micro 作為歐洲、中東和非洲地區急需的解決方案提供者的知名度。

I am pleased to share the announcement from earlier this week of Smith Micro winning the Gold Barrett Award in the Tech for Good category for telecom and wireless at Mobile World Congress for our industry leading SafePath Family Safety platform. This award further solidifies our position as the premier provider of Family Safety Solutions.

我很高興與大家分享本週早些時候的消息：Smith Micro 在世界行動大會上憑藉業界領先的 SafePath 家庭安全平台榮獲電信和無線技術公益類金巴雷特獎。該獎項進一步鞏固了我們作為家庭安全解決方案主要提供者的地位。

From a product perspective, we have expanded our portfolio to drive opportunities for revenue growth. On the last call we spoke about if new do offerings coming to the market this year. Let me touch on those products again briefly.

從產品角度來看，我們擴大了產品組合，以推動收入成長的機會。在上次電話會議上，我們談到了今年是否有新產品上市。讓我再次簡單地談談這些產品。

SafePath Premium broadens our SafePath portfolio, adding new unique functionality that we believe is responsive to current market demand. It is well known that significant risks are not just prevalent, but are expanding in frequency and sophistication in both digital and physical worlds.

SafePath Premium 擴大了我們的 SafePath 產品組合，並增加了新的獨特功能，我們認為這些功能能夠滿足當前的市場需求。眾所周知，重大風險不僅普遍存在，而且在數位世界和實體世界中的頻率和複雜性都在不斷擴大。

Safepath Premium will bring AI driven experiences that will enable users to manage risks associated with cyber bullying and inappropriate content on existing social media platforms and other digital communications channels. Additionally, this solution brings improved physical location intelligence and safety features to the application.

Safepath Premium 將帶來人工智慧驅動的體驗，使用戶能夠管理與網路霸凌以及現有社交媒體平台和其他數位通訊管道上的不當內容相關的風險。此外，該解決方案還為應用程式帶來了改進的實體位置智慧和安全功能。

We see great potential with this upgrade and expect this product to be available for launch in the second half of the fiscal year. We're already receiving great feedback from both existing customers and new prospects in the field regarding SafePath Premium, which has been very positive, creating a new value proposition while expanding our market opportunity.

我們看到了此次升級的巨大潛力，預計該產品將在本財年下半年推出。我們已經從該領域的現有客戶和新潛在客戶那裡收到了有關 SafePath Premium 的大量反饋，這些反饋非常積極，在擴大我們的市場機會的同時創造了新的價值主張。

We also announced SafePath Global, a new streamlined deployment model, which we have targeted to be available for launch in the next few months. SafePath Global delivers a quick-to-market SafePath solution with very low dependency on IT resources and other integration efforts from our carrier partners.

我們還宣布了 SafePath Global，這是一種新的簡化部署模型，我們計劃在未來幾個月內推出。SafePath Global 提供快速上市的 SafePath 解決方案，對 IT 資源和營運商合作夥伴的其他整合工作的依賴性非常低。

This product provides an expedited path to revenues via SafePath for both our customers and Smith Micro while quickly delivering a Family Safety solution to that operator's subscribers. We believe this offering will expand our brand while providing significant flexibility and launching new instances of SafePath.

該產品透過 SafePath 為我們的客戶和 Smith Micro 提供了一條快速獲得收入的途徑，同時向該營運商的訂戶快速提供家庭安全解決方案。我們相信，這款產品將擴大我們的品牌，同時提供顯著的靈活性並推出 SafePath 的新實例。

This SafePath deployment model will also reach a much larger untapped market, including the only Tier 1 MNOs, but also Tier 2 and Tier 3 carriers as well as the ever-expanding market of MVNOs around the world.

這種 SafePath 部署模式也將觸及更大的未開發市場，包括唯一的 1 級 MNO，也包括 2 級和 3 級營運商以及全球不斷擴大的 MVNO 市場。

I'm pleased to say that we already have a good idea as to where the first deployments of both Premium and Global will be, a great start in 2024 for Smith Micro. SafePath Global and SafePath Premium, coupled with our newly announced SafePath OS solution will provide our company with a significant opportunity to expand our relationships with our existing customers and to develop new customers with this broader suite of digital family lifestyle offerings.

我很高興地說，我們已經很清楚 Premium 和 Global 的首次部署地點，這對 Smith Micro 來說是 2024 年的良好開端。SafePath Global 和SafePath Premium 加上我們新發布的SafePath OS 解決方案將為我們公司提供一個重要的機會，以擴大我們與現有客戶的關係，並透過這個更廣泛的數位家庭生活方式產品套件開發新客戶。

We will continue the expansion of our product portfolio with innovative functionality as we align with our MNO and MVNO partners, creating new distribution methods for a broader reach around the world, all based on the SafePath platform.

我們將繼續與 MNO 和 MVNO 合作夥伴合作，透過創新功能擴展我們的產品組合，創建新的分銷方法，以擴大全球範圍，所有這些都基於 SafePath 平台。

In closing, I'm as excited as ever with our path forward as we continue expanding our vision for Family Safety. As we move into 2024, I remain both excited and confident about the new chapter we are writing for our company, our partners and our shareholders.

最後，隨著我們繼續擴大家庭安全的願景，我對我們前進的道路一如既往地感到興奮。邁入 2024 年，我對我們為公司、合作夥伴和股東書寫的新篇章仍然感到興奮和充滿信心。

With that, operator, let's open the call for questions.

那麼，接線員，讓我們開始提問。

(Operator Instructions) Josh Nichols, B. Riley.

（操作員說明）Josh Nichols、B. Riley。

Yeah, thanks for taking my question. I just wanted to touch on the new European customer. I realize you weren't able to put too much out, obviously in the press release. But just curious, anything you could say does this customer have an existing solution or is this going to be the first Family Safety solution and are there many deliverables on the company's part that Micro has to do before this launch in the second half? Or is it most of it on the carrier side of it of this point?

是的，謝謝你回答我的問題。我只是想談談新的歐洲客戶。我意識到你沒能透露太多內容，顯然是在新聞稿中。但只是好奇，您可以說這個客戶是否有現有的解決方案，或者這是否將成為第一個家庭安全解決方案，以及在下半年推出之前，Micro 公司是否需要完成許多可交付成果？或者說目前大部分是在營運商方面？

Okay, Josh, let's approach this first by saying most opportunities in the European market are going to be greenfield. They typically will not have existing Family Safety bases built up. So we're going to have to build them with the launch.

好吧，喬什，我們首先要說的是，歐洲市場上的大多數機會都是未開發的。他們通常不會建立現有的家庭安全基地。所以我們必須在發佈時建立它們。

I really can't say a whole lot about this that exactly how this is going to work. It is a unique and a very innovative approach that we are jointly taking with this carrier, I think, it's going to be exciting and I'm really looking forward to being able to talk about it in more detail once the launch has actually happened. But we are building some additional capabilities on SafePath for this, and they will all be part of the launch that I spoke about.

我真的不能說太多關於這到底是如何運作的。這是我們與這家運營商共同採取的一種獨特且非常創新的方法，我認為這將是令人興奮的，我真的很期待在發射真正發生後能夠更詳細地討論它。但我們正在為此在 SafePath 上建立一些附加功能，它們都將成為我談到的發布的一部分。

Thanks, Bill, and great to hear you mention that you think that you've kind of turned the corner in terms of marketing efforts at AT&T. Just to dive into that a little bit, what gives you the confidence that you expect those efforts to ramp up in the near term, is it the upcoming implementation of like spiffs to in-store salespeople? Or are there marketing efforts that give you confidence that that business is likely to see a more material ramp this year?

謝謝，比爾，很高興聽到您提到您認為您在 AT&T 的營銷工作方面已經走出了困境。稍微深入探討一下，是什麼讓您有信心預期這些努力會在短期內加大力度，是即將對店內銷售人員實施類似的服務嗎？或者是否有行銷活動讓您相信該業務今年可能會出現更多實質成長？

Hey, Josh, it's Charlie. Yeah, I think that now that the migration efforts are done, there's been an enormous amount of things that we've had to get in place prior to really starting to turn the channels on. And yeah, it is going to be a multifaceted approach.

嘿，喬什，我是查理。是的，我認為現在遷移工作已經完成，在真正開始打開頻道之前，我們必須先做好大量的事情。是的，這將是一種多方面的方法。

I think we're doing some unique things with AT&T as well that I think will be quite visible, which is something that we're very excited about. And I think that you can sense the excitement around it now that the launch is behind us, and we're all Secure Family going forward. So, I think that gives me a lot of confidence in AT&T and us, I can see it happening.

我認為我們正在與 AT&T 一起做一些獨特的事情，我認為這些事情將是非常明顯的，這是我們非常興奮的事情。我認為，既然發布已經過去，您可以感受到圍繞它的興奮，我們都是 Secure Family 的前進者。所以，我認為這讓我對 AT&T 和我們充滿信心，我可以看到它的發生。

Appreciate the detail. Thanks.

欣賞細節。謝謝。

Thanks, Josh.

謝謝，喬許。

Jim McIlree, Dawson James.

吉姆麥克里、道森詹姆斯。

Yeah, thanks. Just a follow up on Josh's question about the European customer. When you say that a launch is going to be early second half, obviously, the carriers have a habit of pushing things to the right, but are there significant technological issues that need to be addressed at this point? Or is it more of a, it's just, you just need time to get things done?

是的，謝謝。只是喬希關於歐洲客戶的問題的後續。當你說下半年早些時候發佈時，顯然，運營商有把事情推向正確方向的習慣，但此時是否有需要解決的重大技術問題？或者更多的是，只是，你只是需要時間來完成事情？

Okay. I think the best way to answer this is the beginning launch at a new Tier 1 carrier in Europe that has never had a Family Safety app before. So there are a number of steps that to be completed in order to set this up for a very successful business opportunity.

好的。我認為回答這個問題的最佳方法是在歐洲一家新的一級運營商開始推出，該運營商以前從未有過家庭安全應用程式。因此，為了創造一個非常成功的商業機會，需要完成許多步驟。

In addition, they have created a concept that is new. This is a little different approach than what has traditionally been done here in North America. And so that does require some technology to be developed and tested and implemented.

此外，他們還創造了一個新的概念。這與北美傳統上採取的做法略有不同。因此，這確實需要開發、測試和實施一些技術。

So it's a mixed bag, it's really a little bit above, but the carrier is very energized, they are really putting a lot of effort into this, and I think they have high expectations. And we like that, there's something we always look for. So just going to have this stand standby. It's not that much longer anyway. And we'll be able to talk about it.

所以這是一個魚龍混雜的情況，確實有點上面，但是運營商非常有活力，他們確實為此付出了很多努力，我認為他們有很高的期望。我們喜歡這樣，總是有一些東西是我們一直在尋找的。所以就讓這個支架待命。反正也沒有那麼長了。我們將能夠討論它。

Okay. Thank you for that. And can you characterize the attrition of the legacy Sprint customers, its impact on your revenue? Is it kind of at a steady quarter to quarter decline or is it accelerating or diminishing in it's decline?

好的。謝謝你。您能否描述一下 Sprint 傳統客戶的流失及其對您收入的影響？是逐季穩定下降還是下降加速或減弱？

Okay. I think we talked about this some time ago on earlier conference calls, you can no longer sign up for the old Sprint Safe & Found services, it's a capped-out product offering. So it just slowly declines quarter over quarter, and that's what you should expect.

好的。我想我們不久前在早期的電話會議上討論過這一點，你不能再註冊舊的 Sprint Safe & Found 服務，這是一個有上限的產品。所以它只是逐季緩慢下降，這就是你應該預料到的。

There will be a point in time where it just ceases, but that's part of the process. All the interest and all the efforts at T-Mobile will be focused on the Family Mode product, and we're starting to see some very strong interest there. So I feel passed.

會有一個時間點它會停止，但這是這個過程的一部分。T-Mobile 的所有興趣和所有努力都將集中在家庭模式產品上，我們開始看到一些非常強烈的興趣。所以我感覺已經過去了。

(multiple speakers) I will also note Jim, just real quick, the CommSuite revenues that have been affecting some of that, they're completely gone at this point. So this is really just on the Family Safety what Bill talked about, the CommSuite is now fully out of the numbers. And you won't hear that in terms of the comparisons going forward.

（多個發言者）我還要指出 Jim，很快，CommSuite 的收入一直在影響其中的一些，但現在它們已經完全消失了。所以這實際上只是比爾談到的家庭安全問題，CommSuite 現在完全沒有數字了。在未來的比較中你不會聽到這樣的說法。

Understood. Thank you and just to make sure I understand your answer, Bill, but the quarter-to-quarter decline of those legacy customers is stable right now. Some point, it won't be at some point, it will just drop to zero, but (multiple speakers) steady decline.

明白了。謝謝你，只是為了確保我理解你的答案，比爾，但這些傳統客戶的季度同比下降目前是穩定的。在某個時刻，它不會在某個時刻，它只會下降到零，但是（多個發言者）穩步下降。

It is a quarter-over-quarter decline as users get new T-Mobile phones and move them offers safe and sound. They have the great opportunity to move the Family Mode and that's part of the process.

隨著用戶購買新的 T-Mobile 手機並安全可靠地移動這些手機，這一數字比上一季有所下降。他們有很好的機會改變家庭模式，這是這個過程的一部分。

Got it. And then on gross margin in Q1, is the quarter-to-quarter decline solely a function of scale or are there costs that you're going to incur in Q1 that will be eliminated in subsequent quarters, costs associated with the Verizon termination and or the vast platform?

知道了。然後，就第一季的毛利率而言，季度環比下降是否僅僅是規模的函數，還是您在第一季將產生的成本將在隨後的季度中消除，與 Verizon 終止相關的成本和/或廣闊的平台？

Well, I guess the best way is, first Q1 always is the quarter that has the marketing costs from Mobile World Congress, and that is something that happens each year. So that cost is in there, but I'll kick it to Jim, he might want to take us there.

嗯，我想最好的方法是，第一個第一季始終是世界行動大會的行銷成本季度，而這種情況每年都會發生。所以費用就在那裡，但我會把它踢給吉姆，他可能想帶我們去那裡。

Yeah. From gross margin perspective, Jim, it's really driven by scale in terms of the revenues coming down to where we have certain fixed costs embedded in the cost of sales that are impacting that.

是的。從毛利率的角度來看，吉姆，這實際上是由收入規模驅動的，因為我們在銷售成本中嵌入了某些固定成本，從而影響了收入。

Now the second part of your question in terms of like cost coming out relates to the platform, that is correct. And in future periods, we are driving out some of those legacy ring costs and they will not fully be out in Q1 and that will be coming out over the course of Q1, and some will even tail into Q2. And then we would expect to have them completely out of the cost structure by the end of second quarter.

現在，您問題的第二部分就類似成本而言與平台有關，這是正確的。在未來的時期，我們將消除一些遺留環成本，它們不會在第一季完全消除，而是在第一季中消除，有些甚至會拖到第二季。然後我們預計到第二季末它們將完全脫離成本結構。

Okay. That's it for me right now. Thanks a lot.

好的。現在對我來說就是這樣。多謝。

Thanks, Jim.

謝謝，吉姆。

Scott Searle, ROTH MKM.

斯科特·塞爾，羅斯 MKM。

Hey, good afternoon. Thanks for taking my questions. Maybe to dive in on Europe, I just wanted a quick clarification in terms of the Tier 1 customer that has already been one, is that SafePath Global or is that more of a traditional SafePath solution?

嘿，下午好。感謝您回答我的問題。也許為了深入了解歐洲，我只是想快速澄清一下已經成為的一級客戶，是 SafePath Global 還是傳統的 SafePath 解決方案？

And then I was wondering if you could elaborate a little bit more in the pipeline, Bill, it sounds like you're optimistic about some of the opportunities there. I was wondering if you could give us an idea about where you're seeing the strength?

然後我想知道你是否可以在管道中詳細說明一下，比爾，聽起來你對那裡的一些機會感到樂觀。我想知道您能否告訴我們您在哪裡看到了優勢？

Because at other Tier 1s, you've called out that SafePath Global's really targeted to Tier 2s, Tier 3s is that's where you're seeing the strength? And do you expect to have announceable deals and our other launches in the 2024 timeframe?

因為在其他 1 級，您已經指出 SafePath Global 真正針對的是 2 級，那麼您在 3 級中看到了優勢嗎？您預計在 2024 年的時間範圍內會有宣布的交易和我們的其他產品發布嗎？

Okay. Let's start with your last question. Absolutely, yes, I expect that we will be making additional announcements and at existing and the new carrier customers about many of the products that we've talked about on this call.

好的。讓我們從你的最後一個問題開始。絕對，是的，我希望我們將在現有和新的營運商客戶中發布更多公告，涉及我們在本次電話會議中討論的許多產品。

As far as the SafePath Global part, though, the European customer is not watching SafePath Global. And as I said in my comments, we pretty much know who the first customer will be for SafePath Global. And we also believe we have a really good idea of who the first customer will be for SafePath Premium. So down and give you some idea that there are other players.

不過，就 SafePath Global 而言，歐洲客戶並沒有關注 SafePath Global。正如我在評論中所說，我們幾乎知道誰將是 SafePath Global 的第一個客戶。我們也相信，我們非常清楚 SafePath Premium 的第一個客戶是誰。所以下來讓你知道還有其他玩家。

From a standpoint of the types of carriers, it covers a broad swath. We continue to focus heavily on the Tier 1 carriers in North America as well as in the European marketplace. But we're also seeing activity from Tier 2s, Tier 3s and from some really impactful MVNOs.

從載體類型的角度來看，它涵蓋的範圍很廣。我們繼續專注於北美和歐洲市場的一級營運商。但我們也看到了來自二級、三級以及一些真正有影響力的行動虛擬網路營運商的活動。

So I think, what is happening in this world. I've talked about it on previous calls, we are just in the right spot at the right time with all the turmoil and all the chaos that you see around the world today. The need to keep our loved ones safe is becoming really a major driver. And a product like SafePath which is designed to help do that, it really tends to benefit from it. So there's a lot to be excited about.

所以我想，這個世界上正在發生什麼事。我在之前的電話中談到過這一點，我們只是在正確的時間出現在正確的地點，面對當今世界各地所看到的所有動盪和混亂。確保我們所愛之人安全的需要正在成為真正的主要驅動力。像 SafePath 這樣的產品旨在幫助做到這一點，它確實會從中受益。所以有很多事情值得興奮。

Some of the new product ideas are really quite innovative. And with the SafePath OS, carriers will be able to launch kids' phones and kids' tablets which will not require anybody to buy a different brand phone, it can be a brand phone that the carrier already sells, but it will come pre-loaded with SafePath OS which will then just out of the box, make everything work, there's nothing that has to be done to get the thing up and running. This becomes an exciting market.

一些新產品的創意確實非常有創意。透過 SafePath 作業系統，營運商將能夠推出兒童手機和兒童平板電腦，這不需要任何人購買不同品牌的手機，它可以是營運商已經銷售的品牌手機，但會預先安裝SafePath 作業系統，開箱即用，一切正常，無需執行任何操作即可啟動並運行。這成為一個令人興奮的市場。

As you see kids growing and they get their first phone. And this is when parents really have to take a moment and they go, wow, now I'm exposing my kid to all sorts of things that I'm really not sure he'll really like it that are on the internet. So now I better figure out a way to keep them safe.

當你看到孩子們成長並獲得他們的第一部手機。這時父母真的必須花點時間，他們會說，哇，現在我讓我的孩子接觸網路上的各種東西，我真的不確定他是否真的喜歡這些東西。所以現在我最好想辦法確保他們的安全。

Well, in this case with SafePath OS, they can get a tablet, which may be the first device or a phone, and they can have it pre-loaded, and all the safety features are there from the minute you power up the device, the first time.

好吧，在這種情況下，使用SafePath 作業系統，他們可以獲得平板電腦，這可能是第一個裝置或手機，他們可以預先載入它，並且從您啟動裝置的那一刻起，所有安全功能都已存在，第一次。

Hey Bill, maybe to just follow up on that front, specifically in Europe, what is the competitive landscape look like considering that there are additional security requirements and privacy requirements, particularly around young adults. Does that changed the competitive landscape in the European theater? Or are there no competitors on that front?

嘿比爾，也許只是在這方面跟進，特別是在歐洲，考慮到有額外的安全要求和隱私要求，特別是針對年輕人，競爭格局是什麼樣的。這是否改變了歐洲劇場的競爭格局？或者說在這方面沒有競爭對手？

And then just a quick question on pricing. Premium pricing -- you will have premium pricing, but our SafePath Global is that the expectation that's going to place in the same range of what you're seeing today? Or how are you thinking about that?

然後是一個關於定價的簡單問題。溢價－您將擁有溢價，但我們的 SafePath Global 的預期是否會與您今天看到的價格範圍相同？還是你怎麼想的？

Let me parse it apart and then come back if I missed one. First off on the global product will price exactly the same, same prices the current safe as off-rate. The premium product will be priced at a premium price. So that deal gives both the carrier and Smith Micro a opportunity to enhance revenue. Give me your packaged up a half a lot of questions.

讓我把它拆開，如果我錯過了，然後再回來。首先全球產品的價格將完全相同，與當前安全價格相同。優質產品將以溢價定價。因此，這項交易為營運商和 Smith Micro 提供了增加收入的機會。給我你打包的一半問題。

Well, just the competitive landscape in Europe, given what you had to do in new SafePaths to have any kind of upgrade the security features. You've mentioned a couple of times about cyber bullying, I'm just kind of wondering what is the competitive landscape in Europe right now? Because it sounds like you check all the boxes. Is there anyone else who's able to do that?

好吧，這就是歐洲的競爭格局，考慮到您必須在新的 SafePaths 中執行哪些操作才能升級安全功能。您多次提到網路霸凌問題，我只是想知道歐洲目前的競爭格局如何？因為聽起來你勾選了所有的方框。有其他人能夠做到這一點嗎？

Well, honestly, from a carrier marketing standpoint, we really are the only serious player of this marketing directly to carriers. The over-the-top players like Life360 and Bark, they also have presence in Europe just the same as they do here in the US. So I think from a competitive landscape point of view, it's pretty much the same in both geographies.

好吧，老實說，從運營商行銷的角度來看，我們確實是直接向運營商進行行銷的唯一認真的參與者。像 Life360 和 Bark 這樣的頂級玩家，他們在歐洲也有影響力，就像他們在美國一樣。因此，我認為從競爭格局的角度來看，這兩個地區的情況幾乎相同。

From a privacy issue, we have as many growing privacy laws here in North America as they already have in Europe. And so this is something that we pay a lot of attention to. We are constantly making sure that our software meets the needs and the spirit of the law, whatever it needs to be done is all built into the product before the priority even launches.

從隱私問題來看，北美和歐洲都有越來越多的隱私法。所以這是我們非常關注的事情。我們不斷確保我們的軟體滿足需求和法律精神，無論需要做什麼，都在優先級啟動之前就內建到產品中。

So the privacy issues are paramount and really pretty much around the world, but definitely in the geos that we're focused on. So we are really on that. That's a big effort.

因此，隱私問題至關重要，而且在世界各地幾乎都是如此，但絕對是在我們關注的地理區域。所以我們確實在這方面。這是一個很大的努力。

And lastly, if I could, and I apologize if you covered this earlier, I hopped on the call little bit late, but the AT&T ramp, if we look back to history and the sprint ramp, you really started to gain some momentum about 18 months plus. And how are you thinking about AT&T a little bit longer?

最後，如果可以的話，我很抱歉，如果你早些時候報道過這一點，我有點晚了，但是 AT&T 斜坡，如果我們回顧歷史和衝刺斜坡，你真的開始在 18 左右獲得一些動力幾個月以上。您對 AT&T 的看法如何？

Does it really start to get that meaningful inflection when we think about your sprint was 18 to 24 months into the ramp? Or are there some headwinds that are going on in terms of marketing deployment or otherwise that it takes a little bit of a more muted trajectory? Thanks.

當我們考慮到您的衝刺是在 18 到 24 個月後進入斜坡時，它真的開始出現有意義的變化嗎？或者在行銷​​部署方面是否存在一些阻力，或者需要採取更溫和的軌跡？謝謝。

Yeah. So I think what we talked about on the call. This is Charlie, Scott, we talked about on the call was that now that the migrations efforts are done, we're starting to see this next wave beginning to start. And we're doing some very unique things that AT&T -- that I think is going to start, it builds upon itself once it gets going. These things like going and getting all the employees is that. There's lots of different activities that are going on right now to get the ball rolling and we start to see -- Now again, we're past migration. We think that we've turned the corner.

是的。所以我想我們在電話中討論了什麼。我是查理，史考特，我們在電話中談到，現在遷移工作已經完成，我們開始看到下一波浪潮開始開始。我們正在做一些 AT&T 非常獨特的事情——我認為這些事情將會開始，一旦開始，它就會建立在自身之上。諸如去招募所有員工之類的事情就是這樣。現在正在進行許多不同的活動來推動工作，我們開始看到——現在，我們再次超越了遷移。我們認為我們已經度過了難關。

Yeah, perfect. Thanks, Charles.

是的，完美。謝謝，查爾斯。

This concludes our question-and-answer session. I would like to turn the conference back over to Charles Messman for any closing remarks.

我們的問答環節到此結束。我想將會議轉回查爾斯·梅斯曼（Charles Messman）發表閉幕詞。

Well, thank you everybody for joining us today. Should you have any further questions, please reach out to us and I'll look forward to talking to you pretty soon here on first quarter. Thanks.

好的，謝謝大家今天加入我們。如果您有任何其他問題，請與我們聯繫，我期待第一季很快與您交談。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。