Smith Micro Software Inc (SMSI) 2024 Q4 法說會逐字稿

Good day, and welcome to the Smith Micro fourth-quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Mr. Charles Messman, Vice President and Marketing. Please go ahead, sir.

大家好，歡迎參加 Smith Micro 2024 年第四季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在我想將會議交給行銷副總裁查爾斯‧梅斯曼先生。先生，請繼續。

Thank you, operator, and good afternoon to everyone. We appreciate you joining us today to discuss Smith Micro Software's financial results for the fourth quarter and year ended December 31, 2024. By now you should have received a copy of the 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. 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.

謝謝接線員，大家下午好。感謝您今天加入我們，討論 Smith Micro Software 截至 2024 年 12 月 31 日的第四季和年度財務表現。現在您應該已經收到了一份包含財務結果的新聞稿副本。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。今天的電話會議由我們的董事會主席、總裁兼執行長比爾史密斯 (Bill Smith) 和財務長吉姆肯普頓 (Jim Kempton) 主持。

Please note that some of the information you will hear during today's discussion consists of forward-looking statements, including without limitations, those regarding the company's future revenue and profitability, our plans and expectations, new product development and availability, new and expanded market opportunities, future product developments, migrations and/or growth by new and existing customers, operating expenses, and company cash reserves. Forward-looking statements involve risk 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 the risk factors included in our most recently filed Form 10-K. Smith Micro assumes no obligation to update any forward-looking statements, which speak to the management's beliefs and assumptions only as 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.

請注意，您在今天的討論中聽到的一些資訊包括前瞻性陳述，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、新產品開發和可用性、新的和擴大的市場機會、未來產品開發、新舊客戶的遷移和/或增長、營運費用和公司現金儲備的陳述。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所表達或暗示的結果或趨勢有重大差異。欲了解更多信息，請參閱我們最近提交的 10-K 表中包含的風險因素。Smith Micro 不承擔更新任何前瞻性聲明的義務，這些前瞻性聲明僅代表管理階層在作出之日的信念和假設。我想指出的是，在我們即將發表的準備好的發言中，我們將參考具體的非公認會計準則財務指標。

Please refer to our press release disseminated earlier today for a reconciliation of these non-GAAP financial measures. With that said, I'll turn the call over to Bill.

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準則財務指標的對帳。話雖如此，我會把電話轉給比爾。

Thanks, Charlie. Good afternoon and thank you for joining us today for our fourth quarter and fiscal year 2024 conference call. We appreciate your interest. Let me begin by looking back at 2024 and reviewing some of the significant changes we made to position the company to return to a state of growth and profitability. Also speak a little about the substantial shift in focus we are making as a company to move us even further ahead.

謝謝，查理。下午好，感謝您今天參加我們的 2024 財年第四季和年度電話會議。感謝您的關注。首先，讓我回顧一下 2024 年，並回顧我們為使公司恢復成長和獲利狀態所做的一些重大改變。另外，請簡單談談我們公司為取得更大進步所做的重大轉變。

Throughout the history of Smith Micro, the company has been recognized as a leading business partner with mobile operators around the world. We have distinguished ourselves by offering white label over the top applications with our SafePath and CommSuite platforms, which we have traditionally sold as value added services through our mobile partners. More recently, our latest innovations in the SafePath platform focus instead on aligning with mobile operators' core business, beating them with solutions that support what they sell best. With our latest innovations in SafePath Kids and SafePath OS, carriers can now leverage the strength of our SafePath solutions to offer devices and rate plans aimed at creating a safer mobile experience. Not as value added services, but as an integral component of the carrier's core offerings.

在 Smith Micro 的發展歷程中，該公司一直被公認為全球行動營運商的領先業務合作夥伴。我們憑藉 SafePath 和 CommSuite 平台提供白標頂級應用程式而脫穎而出，這些應用程式傳統上是透過我們的行動合作夥伴作為增值服務出售的。最近，我們在 SafePath 平台上的最新創新重點是與行動電信商的核心業務保持一致，並提供支援他們最暢銷產品的解決方案來擊敗他們。透過我們在 SafePath Kids 和 SafePath OS 方面的最新創新，營運商現在可以利用我們 SafePath 解決方案的優勢來提供旨在創造更安全的行動體驗的設備和資費計劃。不是作為增值服務，而是作為營運商核心產品的一個組成部分。

When we launched SafePath Kids with Orange Spain TuYo solution during the fourth quarter, we made our first significant deployment under this renewed focus. Kids is a new and innovative SafePath solution. The first of its kind to launch that aligns extremely well with our customers' vision of offering a rate plan just for kids aimed at a safer first mobile user experience. This deployment SafePath is not offered as a value added service but is integrated directly into the carrier's offering. Every device on the TuYo rate plan is sold with our built in SafePath powered protections.

當我們在第四季度推出 SafePath Kids 與 Orange Spain TuYo 解決方案時，我們在這項新重點下進行了首次重大部署。Kids 是全新且創新的 SafePath 解決方案。這是同類產品中首次推出的，它非常符合我們客戶的願景，即為兒童提供專門的資費計劃，旨在為首次行動用戶提供更安全的體驗。此部署 SafePath 並非作為增值服務提供，而是直接整合到營運商的產品中。TuYo 定價方案中的每台設備均配備我們內建的 SafePath 保護功能。

SafePath Kids and TuYo, the strength of SafePath is fully aligned with the carrier's key strengths and core business, selling new rate plans and supports their vision of offering a safer solution to kids for their first phone experience. SafePath Kids, Orange can offer parents the peace of mind that comes with starting a child's mobile journey the correct way by keeping them safer online, limiting screen time, teaching healthy online habits from the get-go. We believe that this will prove to be a recipe for success. Launch is in its early stages. And while we can't reveal too much, we do note that SafePath Kids and its unique ability to support a child focused rate plan has enough appeal to attract subscribers from other carriers.

SafePath Kids 和 TuYo，SafePath 的優勢與運營商的關鍵優勢和核心業務完全一致，銷售新的資費計劃並支持他們的願景，即為孩子們的第一次手機體驗提供更安全的解決方案。SafePath Kids, Orange 可以讓父母安心地以正確的方式開始孩子的移動旅程，透過確保孩子的上網安全、限制螢幕時間、從一開始就教導健康的上網習慣。我們相信，這將會是成功的秘訣。發射尚處於早期階段。雖然我們不能透露太多，但我們確實注意到 SafePath Kids 及其支持以兒童為中心的資費計劃的獨特能力具有足夠的吸引力來吸引其他運營商的用戶。

Parents want a safer mobile experience for their kids, and they will change carriers to get it. Our experience thus far is completely aligned with our hypothesis of what could happen by offering this type of solution. More notable, however, is that we continue to demonstrate our ability to innovate and adapt our SafePath platform to align with our mobile operators' core strengths and principal business objectives, selling new rate plans and devices and adding new subscribers.

父母希望他們的孩子獲得更安全的行動體驗，並且他們會更換運營商來獲得它。我們迄今為止的經驗與我們對提供此類解決方案可能產生的結果的假設完全一致。然而，更值得注意的是，我們繼續展示創新和調整 SafePath 平台的能力，以符合我們的行動電信商的核心優勢和主要業務目標，銷售新的費率計劃和設備並增加新用戶。

On our last earnings call, I spoke about our new solution, SafePath OS, another new and innovative expansion of our platform which enables mobile operators to offer an otherwise standard mobile device as a kid's phone or tablet, with built in limits aimed at a safer mobile experience that kids cannot bypass. I also mentioned that we plan to accelerate the development of our schedule for SafePath OS deployments due to the strong interest we saw in the market.

在我們上次的收益電話會議上，我談到了我們的新解決方案 SafePath OS，這是我們平台的另一個新的創新擴展，它使移動運營商能夠提供原本標準的移動設備作為兒童手機或平板電腦，並內置限制，旨在為兒童提供無法繞過的更安全的移動體驗。我還提到，由於我們看到市場對 SafePath OS 的濃厚興趣，我們計劃加快制定 SafePath OS 部署計畫。

I am excited to see that interest continues to broaden. In fact, we are in in-depth discussions with several partners throughout the world. During the call, I will provide a bit more detail around how we plan to maximize this growing interest. I will also introduce you to the newest addition to our SafePath platform, which builds on the same themes of aligning our strategy with the strengths and objectives of our mobile operator partners. Now let's turn the call over to Jim to discuss the results.

我很高興看到人們的興趣不斷擴大。事實上，我們正​​在與世界各地的多個合作夥伴進行深入討論。在通話中，我將提供更多細節，說明我們計劃如何最大限度地提高這種日益增長的興趣。我也會向您介紹我們 SafePath 平台的最新功能，該平台建立在相同的主題之上，即使我們策略與行動電信商合作夥伴的優勢和目標保持一致。現在讓我們把電話轉給吉姆來討論結果。

Jim?

吉姆？

Thanks, Bill, and good afternoon, everyone. I'll now be covering the 2024 financial results for the fourth quarter and full year. During the fourth quarter, we recognized revenue of $5 million compared to $8.6 million for the same quarter of 2023, a decrease of approximately 42%. When compared to the third quarter of 2024 revenue increased by $300,000 or 7%. Revenues for 2024 were $20.6 million versus $40.9 million in 2023.

謝謝，比爾，大家下午好。我現在將介紹 2024 年第四季和全年的財務表現。第四季度，我們確認的營收為 500 萬美元，而 2023 年同期為 860 萬美元，下降了約 42%。與 2024 年第三季相比，營收增加了 30 萬美元，即 7%。2024 年的收入為 2,060 萬美元，而 2023 年的收入為 4,090 萬美元。

The 50% decline compared to the prior year is primarily due to the conclusion of the Verizon Family Safety Contract in the fourth quarter of 2023, coupled with a decline in Safe & Found Family Safety revenue related to the continued attrition of legacy Sprint subscribers driven by T-Mobile's acquisition of Sprint. During the fourth quarter of 2024, Family Safety revenues were $3.8 million, which decreased by approximately $3.7 million or 49% compared to the fourth quarter of the prior year, primarily due to the conclusion of the Verizon Family Safety contract in the fourth quarter of 2023, coupled with the continued decline in legacy Sprint Safe & Found revenue as was expected. Family Safety revenues decreased by approximately $100,000 or 3% compared to the third quarter of 2024.

與上年相比下降 50% 主要是因為 2023 年第四季度簽訂了 Verizon 家庭安全合同，再加上 T-Mobile 收購 Sprint 導致 Sprint 傳統用戶持續流失，導致 Safe & Found 家庭安全收入下降。2024 年第四季度，家庭安全收入為 380 萬美元，與去年同期第四季度相比減少約 370 萬美元，降幅為 49%，這主要是由於 2023 年第四季度簽訂了 Verizon 家庭安全合同，再加上 Sprint Safe & Found 的傳統收入持續下降，這符合預期。與 2024 年第三季相比，家庭安全收入減少了約 10 萬美元，即 3%。

During the fourth quarter of 2024, CommSuite revenues were $1.1 million, which increased by approximately $600,000 compared to the fourth quarter of 2023. Revenue from CommSuite increased by approximately $500,000 compared to the third quarter of 2024 due to a favorable adjustment to revenue recognized during the fourth quarter, coupled with continued subscriber growth on the Boost CommSuite premium visual voice mail platform.

2024 年第四季，CommSuite 營收為 110 萬美元，與 2023 年第四季相比增加了約 60 萬美元。CommSuite 的收入與 2024 年第三季相比增加了約 50 萬美元，這得益於對第四季度確認的收入進行了有利的調整，加上 Boost CommSuite 高級可視語音郵件平台的用戶持續增長。

ViewSpot revenue was nominal for the fourth quarter of 2024 and declined by approximately $500,000 compared to the fourth quarter of the prior year. The decline in ViewSpot revenues compared to the fourth quarter of 2023 was primarily due to the end of one of our ViewSpot contracts earlier this year. ViewSpot revenues decreased nominally compared to the third quarter of 2024.

ViewSpot 2024 年第四季的營收與去年同期相比下降了約 50 萬美元。ViewSpot 營收與 2023 年第四季相比有所下降，主要是因為我們今年稍早終止了其中一份 ViewSpot 合約。與 2024 年第三季相比，ViewSpot 的營收略有下降。

In the first quarter of 2025, we are expecting consolidated revenues to be in a range of approximately $4.6 million to $5 million. This revenue range is driven in part by the expected timing of revenue associated with the opportunities that Bill touched on in his opening remarks, offset by an anticipated decline in CommSuite revenues as compared with the fourth quarter due to a favorable adjustment to revenues recognized in the fourth quarter.

2025 年第一季度，我們預計合併收入將在約 460 萬美元至 500 萬美元之間。這個收入範圍部分是由比爾在開場白中提到的機會相關的收入預期時間所驅動，但由於對第四季度確認的收入進行了有利的調整，預計 CommSuite 收入與第四季度相比將有所下降。

In a few minutes, Bill is going to give you more color on the opportunities that we're pursuing, but the level of engagement and activity that we're currently seeing is very encouraging. For the fourth quarter of 2024, gross profit was approximately $3.8 million compared to approximately $6.4 million during the same period of the prior year, a decrease of approximately $2.7 million, primarily due to the period-over-period decline in revenues.

幾分鐘後，比爾將向你們詳細介紹我們正在追求的機會，但我們目前看到的參與度和活動水平非常令人鼓舞。2024 年第四季，毛利約為 380 萬美元，而去年同期約為 640 萬美元，減少約 270 萬美元，主要原因是同期收入下降。

Gross margin was at 76% for the quarter compared to the 75% realized in the fourth quarter of 2023. The gross profit of $3.8 million in the fourth quarter of 2024 increased by approximately $400,000 compared to the gross profit produced in the third quarter of 2024, driven by the sequential increase in revenues quarter-over-quarter, coupled with the decline in cost of sales. In the first quarter of 2025, we expect gross margin to be in the range of 72% to 75%.

本季毛利率為 76%，而 2023 年第四季為 75%。2024 年第四季的毛利為 380 萬美元，與 2024 年第三季的毛利相比增加了約 40 萬美元，這得益於收入環比增長以及銷售成本下降。2025年第一季度，我們預計毛利率將在72%至75%之間。

For the year ended December 31, 2024, gross profit was $14.4 million compared to the $30.3 million during the prior year period. Gross margin was 70% for 2024 compared to 74% for the 12 months ended December 31, 2023. GAAP operating expenses for the fourth quarter of 2024 were $8.2 million, a decrease of $3.9 million or 32% compared to the fourth quarter of 2023, primarily attributable to the cost reduction activities that we executed earlier this year, and a decline in amortization costs associated with our intangible assets.

截至 2024 年 12 月 31 日的年度，毛利為 1,440 萬美元，而去年同期為 3,030 萬美元。2024 年毛利率為 70%，截至 2023 年 12 月 31 日的 12 個月毛利率為 74%。2024 年第四季的 GAAP 營運費用為 820 萬美元，與 2023 年第四季相比減少 390 萬美元或 32%，主要歸因於我們今年稍早執行的成本削減活動，以及與我們的無形資產相關的攤銷成本的下降。

GAAP operating expenses for the year ended December 31, 2024, were $63.8 million compared to $48.4 million in 2023, an increase of $15.5 million. This year-over-year increase was driven by the non-cash goodwill impairment charge of $24 million incurred in the first quarter of 2024, which was partially offset by approximately $7.5 million in cost reductions, primarily related to reductions in personnel costs and decreases in marketing-related expenses, coupled with a $1.1 million decline in depreciation and amortization costs.

截至 2024 年 12 月 31 日止年度的 GAAP 營運費用為 6,380 萬美元，而 2023 年為 4,840 萬美元，增加了 1,550 萬美元。這一同比增長是由於 2024 年第一季發生的 2,400 萬美元非現金商譽減損費用，但部分被約 750 萬美元的成本削減所抵消，主要與人員成本削減和營銷相關費用減少有關，再加上折舊和攤銷成本下降 110 萬美元。

Non-GAAP operating expenses for the fourth quarter of 2024 were $5.8 million compared to $8 million in the fourth quarter of 2023, a decrease of approximately $2.2 million or 27%, sequentially, non-GAAP operating expenses decreased by approximately $1 million or 15% from the third quarter of 2024. As we noted in our last earnings call, we had anticipated recognizing quarterly savings in the range of $2.4 million to $2.8 million in the fourth quarter of 2024 as compared to the first quarter of 2024.

2024 年第四季非 GAAP 營運費用為 580 萬美元，而 2023 年第四季為 800 萬美元，季減約 220 萬美元，降幅 27%，非 GAAP 營運費用較 2024 年第三季減少約 100 萬美元，降幅 15%。正如我們在上次收益電話會議上所指出的，與 2024 年第一季相比，我們預計 2024 年第四季的季度節省將在 240 萬美元至 280 萬美元之間。

And we exceeded this goal with a decrease in total non-GAAP expenses of approximately $3.1 million. In other words, we have decreased our total quarterly non-GAAP operating expenses and cost of sales by $3.1 million when comparing first quarter 2024 costs to the fourth quarter of 2024 based on cost reduction activities executed this year. We did recognize a one-time benefit to occupancy costs of approximately $100,000 in the fourth quarter, which helped us to exceed our goal.

而且我們超額完成了這個目標，非公認會計準則總支出減少了約 310 萬美元。換句話說，根據今年執行的成本削減活動，我們將 2024 年第一季的成本與 2024 年第四季的成本進行比較，將季度非 GAAP 營運費用和銷售成本總額減少了 310 萬美元。我們確實在第四季度實現了約 10 萬美元的一次性入住成本收益，這幫助我們超越了目標。

We expect first quarter 2025 non-GAAP operating expenses to increase by 4% to 7% compared to the fourth quarter of 2024, driven in part by the aforementioned benefit to occupancy recognized in the fourth quarter, coupled with an increase in costs associated with a couple of major trade shows that we attend in the first quarter of the year, Mobile World Congress and CES, as well as an increase in payroll benefit costs in the first quarter due to the annual reset of the 401(k) match and payroll taxes. Non-GAAP operating expenses for the year ended December 31, 2024, were approximately $28.3 million compared to approximately $35.3 million for the year ended December 31, 2023, a decrease of approximately $7 million or 20% compared to last year.

我們預計 2025 年第一季非 GAAP 營運費用將較 2024 年第四季增加 4% 至 7%，部分原因是上述第四季度確認的入住率收益，再加上我們參加的幾場大型貿易展會（世界行動通訊大會和 CES）相關成本的增加，以及由於 401(k) 匹配和工資稅的年度薪資增加導致第一季薪資的年度工資重置。截至 2024 年 12 月 31 日止年度的非 GAAP 營業費用約為 2,830 萬美元，而截至 2023 年 12 月 31 日止年度的非 GAAP 營業費用約為 3,530 萬美元，與去年相比減少約 700 萬美元或 20%。

The GAAP net loss for the fourth quarter of 2024 was $4.4 million or $0.25 loss per share compared to a GAAP net loss of $6.7 million or $0.74 loss per share in the fourth quarter of 2023. GAAP net loss for the 12 months ended December 31, 2024, was $48.7 million or $3.94 loss per share compared to a GAAP net loss of $24.4 million or $3.01 loss per share for the 12 months ended December 31, 2023. The non-GAAP net loss for the fourth quarter of 2024 was $1.9 million, or an $0.11 loss per share compared to a non-GAAP net loss of approximately $1.7 million or an $0.18 loss per share in the fourth quarter of 2023.

2024 年第四季的 GAAP 淨虧損為 440 萬美元或每股虧損 0.25 美元，而 2023 年第四季的 GAAP 淨虧損為 670 萬美元或每股虧損 0.74 美元。截至 2024 年 12 月 31 日的 12 個月的 GAAP 淨虧損為 4,870 萬美元或每股虧損 3.94 美元，而截至 2023 年 12 月 31 日的 12 個月的 GAAP 淨虧損為 2,440 萬美元或每股虧損 3.01 美元。2024 年第四季的非 GAAP 淨虧損為 190 萬美元，即每股虧損 0.11 美元，而 2023 年第四季的非 GAAP 淨虧損約為 170 萬美元，即每股虧損 0.18 美元。

Non-GAAP net loss for the 12 months ended December 31, 2024, was $13.7 million or $1.11 loss per share compared to a non-GAAP net loss of $5.3 million or $0.65 loss per share for the 12 months ended December 31, 2023. 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 2024, the reconciliation includes adjustments for intangible asset amortization of $1.3 million, stock compensation expense of $1 million, depreciation expense of $100,000 and changes to fair value of warrants of $100,000. For the year ended December 31, 2024, the non-GAAP reconciliation includes adjustments for goodwill impairment of $24 million, intangible asset amortization of $5.9 million, stock compensation expense of $4.5 million, depreciation of $400,000, and adjustments for nonrecurring expenses, including severance of $800,000, partially offset by $400,000 in changes to the fair value of warrants and $200,000 in proceeds from licenses and patents. 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.

截至 2024 年 12 月 31 日的 12 個月的非 GAAP 淨虧損為 1,370 萬美元或每股虧損 1.11 美元，而截至 2023 年 12 月 31 日的 12 個月的非 GAAP 淨虧損為 530 萬美元或每股虧損 0.00.05 美元。在今天的新聞稿中，我們提供了非 GAAP 指標與最具可比性的 GAAP 指標的對帳。對於 2024 年第四季度，對帳包括無形資產攤銷調整 130 萬美元、股票薪酬費用調整 100 萬美元、折舊費用調整 10 萬美元以及認股權證公允價值變動調整 10 萬美元。截至 2024 年 12 月 31 日止年度，非 GAAP 對帳包括商譽減損調整 2,400 萬美元、無形資產攤提 590 萬美元、股票薪酬費用 450 萬美元、折舊 40 萬美元以及非經常性費用調整（包括遣散費 80 萬美元），但部分被認股權證和股權證。由於過去幾年的累積淨虧損，我們的 GAAP 稅費主要來自某些州和外國所得稅。

For non-GAAP purposes, we utilized the 0% tax rate for the fourth quarter of 2024 and 2023. The resulting non-GAAP tax expense reflects the actual income taxes expense during each period. We reported $2.8 million of cash and cash equivalents as of December 31, 2024. I would note that in the fourth quarter, we had payment delays from our largest customers due to a change in the payment platform for that client. We successfully transitioned to a new payment platform in early January, resulting in cash receipts of approximately $2.5 million from this customer by mid-January that we had anticipated collecting in 2024.

就非公認會計準則而言，我們對 2024 年第四季和 2023 年採用了 0% 的稅率。由此產生的非公認會計準則稅費反映了每個期間的實際所得稅費用。截至 2024 年 12 月 31 日，我們報告的現金和現金等價物為 280 萬美元。我要指出的是，在第四季度，由於我們最大客戶的支付平台發生變化，導致該客戶的付款出現延遲。我們在 1 月初成功過渡到新的支付平台，截至 1 月中旬，我們從該客戶處獲得了約 250 萬美元的現金收入，我們預計將在 2024 年收回這筆款項。

This issue drove our accounts receivable balance from approximately $3.4 million as of September 30, 2024, to $5.7 million as of December 31, 2024. As we are now fully transitioned to the new platform, we do not anticipate any further issues with the timely collection of our receivables from this customer. This concludes my financial review. Now back to Bill.

此問題導致我們的應收帳款餘額從截至 2024 年 9 月 30 日的約 340 萬美元增至截至 2024 年 12 月 31 日的 570 萬美元。由於我們現在已完全過渡到新平台，我們預計在及時向該客戶收取應收帳款方面不會再出現任何問題。我的財務審查到此結束。現在回到比爾。

Thanks, Jim. Our path forward is clear. We will focus a significant portion of our sales efforts on three family safety offerings. First, we will focus on SafePath Kids, our unique deployment model that enables carriers to offer child-focused rate plans, which has already been successfully launched at Orange Spain. Second, we will devote significant effort to the marketing of SafePath OS for kid's phones.

謝謝，吉姆。我們的前進道路是明確的。我們將把很大一部分銷售精力集中在三種家庭安全產品上。首先，我們將重點關注 SafePath Kids，這是我們獨特的部署模式，使營運商能夠提供以兒童為中心的資費計劃，該模式已在 Orange Spain 成功推出。第二，我們將大力推廣兒童手機SafePath OS。

And finally, we will leverage SafePath OS to enable carriers to deploy a senior safety phone aimed at capturing another expansive market opportunity for Smith Micro. Let's discuss the opportunity provided by SafePath OS to deliver a senior safety phone in more detail. Over the coming months, we plan on launching SafePath OS for seniors, which will target a largely untapped underserved market and which we believe promises great upside. Our research today clearly indicates the senior safety market is one of the fastest-growing segments as the population aged 65 plus is growing up to 4x faster than the younger population growth, both here in the U.S. and across Europe.

最後，我們將利用 SafePath OS 幫助營運商部署高階安全電話，旨在為 Smith Micro 抓住另一個廣泛的市場機會。讓我們更詳細地討論一下 SafePath OS 提供的提供進階安全電話的機會。在接下來的幾個月裡，我們計劃推出針對老年人的 SafePath OS，它將瞄準一個尚未開發的服務不足的市場，我們相信它具有巨大的發展潛力。我們今天的研究清楚地表明，老年人安全市場是成長最快的領域之一，因為無論是在美國還是在整個歐洲，65 歲以上的人口成長速度是年輕人口成長速度的 4 倍。

We also see rapid paradigm shifts in the senior market as their preferences move from purchasing traditional flip phones to upgrading to smartphones. With increases in new seniors purchasing smartphones up to 90% of the time, it is apparent that flip phones are far less desired as a phone of choice today. We believe flip phones will gradually become a micro niche product.

我們也看到老年市場正在發生快速的模式轉變，他們的偏好從購買傳統翻蓋手機轉向升級到智慧型手機。隨著新老年人購買智慧型手機的比例上升到 90%，翻蓋手機顯然不再是當今人們的首選手機。我們相信翻蓋手機將逐漸成為微利基產品。

Personally, I don't believe the term elderly properly defines the targeted market of 65-plus, nor do I believe current phones on the market named elderly phones align with the current market demands. And it is a diverse market that ranges from very active independent seniors to those who want a little extra support to those who want or need assistance from a caregiver.

就我個人而言，我認為「老年人」一詞並不足以準確定義 65 歲以上的目標市場，而且我認為目前市場上名為老年手機的手機也不符合當前的市場需求。這是一個多元化的市場，既有非常活躍的獨立老年人，也有需要額外支持的人，還有想要或需要護理人員幫助的人。

We recently conducted a survey in which we interviewed seniors in this target market and found that they all want the capabilities that smartphones and tablets bring to the table, things like watching videos or linking to their favorite social media sites such as Facebook or having the ability to video chat with their grandkids or friends. While the experience on the senior phone will be different when compared to SafePath OS for kids, it will deliver many of the same important safety tools on the SafePath OS platform that seniors need and want as they age in place.

我們最近進行了一項調查，採訪了這個目標市場的老年人，發現他們都希望擁有智慧型手機和平板電腦所能提供的功能，例如觀看影片或連結到他們最喜歡的社交媒體網站（如 Facebook），或者能夠與他們的孫子或朋友進行視訊聊天。雖然老年人手機的體驗與兒童版 SafePath OS 有所不同，但它將在 SafePath OS 平台上提供許多相同的重要安全工具，這些工具是老年人在居家養老過程中所需要和想要的。

Some key features that will be part of the senior launch will include easy-to-use interface with larger fonts, family safety net, location sharing and geofence, drive and crash protection, online safety suite, check-in and family SOS options, and compatibility with voice assistance. But this is just the beginning, as we have a very robust road map in place for future updates. SafePath OS powered senior safety phones will be preloaded and preconfigured to fit the needs of the senior market.

高級版推出的一些關鍵功能包括：字體更大的易於使用的介面、家庭安全網、位置共享和地理圍欄、駕駛和碰撞保護、線上安全套件、登記和家庭 SOS 選項以及與語音輔助的兼容性。但這只是個開始，因為我們為未來的更新制定了非常完善的路線圖。SafePath OS 驅動的高階安全手機將預先安裝並預先配置，以滿足高級市場的需求。

We already have received meaningful interest from the carrier market for this offering. As a matter of fact, we are receiving unbelievable interest from carriers, both in North America and Europe for all three of our primary go-to-market SafePath products, SafePath Kids, SafePath OS for kids and SafePath OS for seniors. The number of active sales efforts underway is challenging, but it is a challenge we certainly welcome. Carriers are even calling us. We believe that our pivot away from offering just value-added services and now focusing our innovation efforts on products that carriers can leverage to add new subscribers and sell more devices has the hallmark of being a resounding success.

我們已經收到了來自營運商市場對該產品的濃厚興趣。事實上，我們主要上市的三款 SafePath 產品（SafePath Kids、兒童版 SafePath OS 和老年人版 SafePath OS）都受到了北美和歐洲營運商的極大關注。正在進行的積極銷售活動的數量具有挑戰性，但我們當然歡迎這項挑戰。運營商甚至還在打電話給我們。我們相信，我們不再僅僅提供增值服務，而是將創新重點放在營運商可以利用來增加新用戶和銷售更多設備的產品上，這將取得巨大的成功。

I believe that our SafePath OS offerings also have other competitive advantages. SafePath OS is unique, as it allows mobile operators to leverage existing phone inventory from popular handset manufacturers, such as Samsung, to deliver a phone powered by SafePath OS out of the box. We also can go to market more quickly, as this does not entail a back-end integration. Beyond that, our many years of experience in working with OEMs on behalf of our carrier partners is a critical strength that we believe can translate into a more rapid go-to-market timeline. This pivot and new focus of our company, while still supporting our existing customer base, opens what we believe to be the largest opportunity we have seen in the last 15 years.

我相信我們的 SafePath OS 產品還有其他競爭優勢。SafePath OS 的獨特之處在於，它允許行動業者利用三星等流行手機製造商的現有手機庫存來提供開箱即用的搭載 SafePath OS 的手機。我們還可以更快地進入市場，因為這不需要後端整合。除此之外，我們代表營運商合作夥伴與 OEM 合作的多年經驗是我們的一項關鍵優勢，我們相信這可以轉化為更快的上市時間表。我們公司的這項轉變和新焦點，在仍支持我們現有客戶群的同時，也開啟了我們認為是過去 15 年來最大的機會。

Our sales pivot is generating an extraordinary level of interest and excitement, and we believe that the market is telling us that the right time for this solution is now. Let's drive deeper into Orange Spain's launch of TuYo. The new rate plan was first made available in late November, and Orange launched its multimedia marketing campaigns for the new offering in January.

我們的銷售重點正在引起人們極大興趣和興奮，我們相信市場告訴我們，現在正是實施這項解決方案的最佳時機。讓我們深入了解 Orange Spain 推出的 TuYo。新的資費計劃於 11 月底首次推出，Orange 於 1 月針對該新套餐推出了多媒體行銷活動。

Overall, I am quite pleased with the first wave of marketing campaigns, which included TV commercial advertisements, several digital and social media campaigns, and importantly, in-house promotions throughout the retail network. As a company, they have done a fantastic job of integrating the TuYo experience throughout their retail presence in Spain, where, in addition to prominent signage and strategic placements throughout their stores, they have made the purchase of a child's first phone a memorable event.

總的來說，我對第一波行銷活動感到非常滿意，其中包括電視商業廣告、一些數位和社交媒體活動，以及重要的整個零售網絡的內部促銷活動。作為一家公司，他們出色地將 TuYo 體驗融入了其在西班牙的零售業務中，除了在整個商店中設置顯眼的標牌和戰略位置外，他們還使購買孩子的第一部手機成為一件令人難忘的事件。

Orange Spain has done a great job training their staff on how to set up the phone and ensure all the feature functionality is available at the point of purchase. As with every customer deployment, we work closely with the customer to arm them with training support, resources and recommendations, sharpening our own ability to support future launches. We believe we are still very early in the launch, and we look forward to continued growth from this innovative new deployment. Before I move on, I'd also like to update you on Mobile World Congress, the largest and most influential trade show in the industry, which was just held last week in Barcelona, Spain. TuYo was showcased and demonstrated not only in our Smith Micro meeting suite, but also prominently at the Orange Spain's booth.

Orange Spain 在培訓員工如何設定手機以及確保所有功能在購買時可用方面做得非常出色。與每個客戶部署一樣，我們與客戶密切合作，為他們提供培訓支援、資源和建議，增強我們自身支援未來發布的能力。我們相信我們仍處於發布的早期階段，我們期待這項創新的新部署能帶來持續的成長。在繼續之前，我還想向大家介紹一下世界行動通訊大會的最新情況，這是業界規模最大、最具影響力的貿易展會，上週剛在西班牙巴塞隆納舉行。TuYo 不僅在我們的 Smith Micro 會議套件中展示和演示，而且在 Orange Spain 的展位上也佔據顯著位置。

These demos ignited considerable new interest in SafePath Kids, not only with other Orange properties that we met with, but also with several other mobile operators. We saw tremendous interest across the board, which we believe heightens our credibility as the market leader in the space. In addition, our team had a great week packed with meetings with 30 companies, providing us with significant opportunity to introduce the SafePath platform to a broad array of potential customers. Okay. now let's talk about AT&T.

這些演示激發了人們對 SafePath Kids 的極大興趣，不僅是我們接觸過的其他 Orange 企業，其他幾家行動營運商也對此產生了興趣。我們看到了各界的極大興趣，我們相信這增強了我們作為該領域市場領導者的信譽。此外，我們的團隊度過了愉快的一周，與 30 家公司舉行了會議，這為我們向廣大潛在客戶介紹 SafePath 平台提供了重要機會。好的。現在我們來談談 AT&T。

Overall, we have continued our ongoing advertising campaigns with all the different channels that I mentioned on our last call. We will be adding some new twists in the coming months, particularly around new updates to AT&T Secure family, including a significantly improved sign-up flow that enables subscribers to get up and running much faster. We are working with AT&T on changes that we expect would expand the total addressable market for the solution, while also expanding our reach with broader, more diverse marketing campaigns, such as cross-promotions with other services that AT&T offers today. In addition, we are in discussion with -- about other new initiatives and upgrades of our SafePath solutions. I look forward to sharing more of these developments with you in the coming quarters.

總的來說，我們繼續透過上次電話會議中提到的所有不同管道進行廣告活動。我們將在未來幾個月內增加一些新的變化，特別是圍繞 AT&T Secure 系列的新更新，包括顯著改進的註冊流程，使用戶能夠更快地啟動和運行。我們正在與 AT&T 合作進行變革，預計這些變革將擴大該解決方案的整體潛在市場，同時透過更廣泛、更多樣化的行銷活動擴大我們的覆蓋範圍，例如與 AT&T 目前提供的其他服務進行交叉促銷。此外，我們正在討論 SafePath 解決方案的其他新措施和升級。我期待在接下來的幾季與大家分享更多這些進展。

Let's turn now to Boost Mobile. We continue to work closely together with Boost Mobile in the retail channel to cross-promote Boost Family Guard to assist in attracting more family plans and postpaid subscribers onto their new network. The timing is good, as Boost is undergoing a significant upgrade in their retail footprint, with remodels highlighting a theme of postpaid and family plans. Boost premium visual voicemail powered by our CommSuite platform continues to do well, adding new subscribers, and we expect this trend to continue going forward. They have been conducting several different ongoing promotional activities to drive continued growth to the platform, and we believe there may be some opportunities for additional growth by bundling the service along with other cross-promotion activities.

現在讓我們來看看 Boost Mobile。我們繼續與 Boost Mobile 在零售通路密切合作，交叉推廣 Boost Family Guard，以幫助吸引更多家庭計畫和後付費用戶加入他們的新網路。時機很好，因為 Boost 正在對其零售業務進行重大升級，改造重點突出後付費和家庭計劃。由我們的 CommSuite 平台提供支援的 Boost 優質視覺語音郵件持續表現良好，增加了新用戶，我們預計這一趨勢將持續下去。他們一直在進行幾種不同的持續促銷活動，以推動平台的持續成長，我們相信，透過將該服務與其他交叉促銷活動捆綁在一起，可能會有一些額外的成長機會。

We have very meaningful discussions and progress on how to expand our reach throughout the organization and have been working diligently on several different potential opportunities beyond Boost Family Guard and Visual Voicemail. We are also engaged in discussions related to our newer offerings that I spoke of earlier in this call. I am pleased with the direction of these discussions and confident that we will get to the finish line for one or more of our new offerings. Our partnership with T-Mobile continues to broaden. We have recently made great strides with the introduction of our newest SafePath offerings with key stakeholders throughout the organization, whose objectives align very well with the focus and go-to-market strategies of these innovative family safety products.

我們就如何擴大我們在整個組織的影響力進行了非常有意義的討論並取得了進展，並且一直在努力尋找 Boost Family Guard 和 Visual Voicemail 之外的幾個不同的潛在機會。我們也參與了有關我之前在電話會議中提到的新產品的討論。我對這些討論的方向感到滿意，並相信我們將會完成一項或多項新產品的研發。我們與 T-Mobile 的合作關係不斷擴大。我們最近與整個組織的關鍵利益相關者一起推出了最新的 SafePath 產品，取得了長足的進步，他們的目標與這些創新家庭安全產品的重點和行銷策略非常一致。

I am quite excited with the headway we have made to date and believe that we are on the correct path forward as we look to 2025 and beyond. In conclusion, we are bringing an enhanced and powerful new portfolio of our Family Safety solutions to market. I have already tried to put in perspective just how large an opportunity this is. Just one new win with SafePath OS offerings would be a game changer for our entire company. And impressively, we have many opportunities, which should lead you to think about a lot more than just one customer win.

我對我們迄今為止的進展感到非常興奮，並相信，展望 2025 年及以後，我們正走在正確的道路上。總之，我們將向市場推出增強型、功能強大的全新家庭安全解決方案組合。我已經嘗試去說明這是多麼大的機會。SafePath OS 產品僅取得一次新的勝利就足以改變我們整個公司的格局。令人印象深刻的是，我們有很多機會，這應該讓你思考的不僅僅是贏得一個客戶。

Now these are mobile operators. And of course, we must be mindful of how things can take longer or some of their processes and corporate structures. Heck, we know better than most. But when aligned together with a purpose and a timeline, we know things can get done more quickly. We have proven throughout our history that things can quickly change for the better, and that is our mission.

現在這些都是行動電信商。當然，我們必須注意事情可能需要更長的時間，或註意某些流程和公司結構。哎呀，我們比大多數人都了解。但當目標和時間表一致時，我們知道事情可以更快完成。我們的歷史已經證明，事情可以迅速變得更好，這就是我們的使命。

I really can't give justice to how excited I am, and the company truly is about the path we are on. We believe the opportunity is immense. We are laser-focused to capitalize on it now. Timing and alignment of goals is always critical for success, and I truly believe the pivot we have made position us to the tipping point needed for profitability and considerable growth. With that, operator, I'll open the call for questions.

我真的無法表達我有多興奮，公司也真正關注著我們所走的道路。我們相信這個機會是巨大的。我們現在正全心全意地利用這一點。目標的時機和一致性對於成功始終至關重要，我堅信，我們所做的轉變使我們處於實現盈利和大幅增長所需的臨界點。接線員，現在我開始回答問題。

(Operator Instructions) Scott Searle, ROTH Capital.

（操作員指示） ROTH Capital 的 Scott Searle。

It seems like you had a lot of good things going on as we enter 2025, Bill. Maybe to start on TuYo, I had the opportunity to see the booth and the level of activity there. I'm wondering, while it's still early, if you could help us kind of frame how you guys are going to think about success as we look out towards the end of this year into '26. I think in the first 18 months of the initial launch at Sprint, you got to 7% penetration. Is this the same type of magnitude of opportunity?

比爾，當我們進入 2025 年時，你似乎有很多好事要做。也許從 TuYo 開始，我有機會看到展位和那裡的活動水平。我想知道，雖然現在還為時過早，但你們是否可以幫助我們概括一下，當我們展望今年年底和 2026 年時，你們將如何看待成功。我認為，在 Sprint 首次推出該服務的前 18 個月內，滲透率達到了 7%。這是否是同類型的巨大機會？

And in terms of other customers, I'm wondering if you could help us understand the number of carriers maybe that you're talking to. It sounds like Orange is going to roll it out into additional markets. But I'm wondering how quickly you can bring up new customers on a TuYo type service?

對於其他客戶，我想知道您是否可以幫助我們了解您正在與之交談的運營商數量。聽起來 Orange 即將將其推廣到更多市場。但我想知道您能多快透過 TuYo 類型的服務吸引新客戶？

Okay. Let me try to tackle that. First off, there was a lot of positive interest throughout Europe now that is being driven by TuYo. I mean, all the other carriers are watching what's going on. And there's some numbers that I think are really compelling.

好的。讓我嘗試解決這個問題。首先，在 TuYo 的推​​動下，整個歐洲現在都表現出了濃厚的興趣。我的意思是，所有其他業者都在關注著事態的發展。我認為有些數字確實令人信服。

For instance, of the sign-ups that Orange Spain has been able to attract so far, it's approaching half of those sign-ups are coming from competitors. These are families that did not buy from Orange Spain. They were buying from somebody else. And this is an exciting number for carriers. And when they can see that kind of penetration, this is a very good sign for them.

例如，Orange Spain 迄今吸引的註冊用戶中，近一半來自競爭對手。這些家庭沒有從 Orange Spain 購買產品。他們是從別人那裡購買的。對於營運商來說，這是一個令人興奮的數字。當他們看到這種滲透力時，這對他們來說是一個非常好的跡象。

I would say that overall penetration in Spain, we look to be very strong. We think that they have hit on a real need. I think parents recognize the fact that, there is a need for online safety for children, and that they are able to claim the opportunity to be the first one to have an answer. And I think they're really trying to capitalize on that. I also think it was not lost on other Orange properties, the success that Spain has had is very positive. So I think we should look to see further growth that way. Now another part of your question, do you want to come back on that?

我想說，我們在西班牙的整體滲透率看起來非常高。我們認為他們已經滿足了真正的需求。我認為父母認識到了這樣一個事實，即孩子需要網路安全，並且他們能夠抓住機會成為第一個獲得答案的人。我認為他們確實想利用這一點。我還認為，Orange 的其他房地產也同樣如此，西班牙取得的成功是非常積極的。所以我認為我們應該期待透過這種方式實現進一步的成長。現在回到您問題的另一部分，您想再談談這個問題嗎？

Just, Bill, in terms of the timeline, how long does it take to bring up a new carrier? Yes.

比爾，就時間表而言，建造新航母需要多長時間？是的。

Yes. Okay. You actually asked the question, I assume one of you guys would ask, and that is, well, just how many opportunities are you working with? Well, if you use the fingers on both your hands, you wouldn't have enough fingers. And you might borrow somebody else's hands, and you might be able to get pretty close.

是的。好的。你實際上問了這個問題，我想你們有人會問，那就是，你到底有多少個機會？嗯，如果你用雙手的手指，你的手指就不夠了。你也可以藉用別人的手，這樣你也許就能非常接近了。

So that gives you an idea of the magnitude of what we're talking about. There is a strong interest among carriers to be able to launch a product for back-to-school. So that's a summer launch. And that's what we are really busy on. Now we have been doing a lot of demos.

這讓你了解我們正在談論的事情的重要性。營運商對於推出開學產品有著濃厚的興趣。這是夏季推出的。這就是我們真正忙碌的事情。現在我們已經做了很多示範。

We've done a lot of trials. We've -- in-house use with a number of these carriers, and they come to us with things that they would like to see added before launch. You just make it that much more of a complete offering. So we are really busy right now getting that done. But our goal is to have everything done so launches can happen this summer.

我們已經做了很多試驗。我們已經與許多營運商進行了內部合作，他們向我們提出了他們希望在產品發布前添加的功能。你只是讓它變得更加完整。所以我們現在真的很忙，要完成這件事。但我們的目標是完成所有工作，以便今年夏天能夠進行發射。

And so that should give you some sort of rational look at how this can roll out. It is a lot of work, and the team is being stressed. But you know what, we've had some tough years. This is good stress. And so the upside is there, and the future should be very bright.

這樣，您就能理性地看待這件事將如何展開。工作量很大，團隊壓力很大。但你知道嗎，我們經歷了一些艱難的歲月。這是一種好的壓力。因此，好處是存在的，而且未來應該非常光明。

Very good. That's very helpful. And maybe shifting to the aging in place opportunity. This is certainly a nice adjacency that makes a lot of sense. But how far along is the product?

非常好。這非常有幫助。或許可以轉向居家養老的機會。這確實是一個非常有意義的好鄰接。但該產品目前進展如何？

When could we expect commercialization and the first customer to go along with it? It's a huge market. I think the numbers are $40 million to $50 million that are directly addressable in the United States. So if you could frame maybe the TAM for us, and then the timeline to this reaching commercialization with your first customer?

我們什麼時候可以實現商業化並獲得第一位客戶的認可？這是一個巨大的市場。我認為在美國可直接解決的數字是 4,000 萬至 5,000 萬美元。那麼，您能否為我們規劃 TAM，然後介紹一下與第一位客戶實現商業化的時間表？

Well, it is a big opportunity. And the market is grossly underserved. This is a senior market that really covers a broad spectrum of people. I mean, you've got a lot of really active seniors that are out and about, and they just are looking for ways to establish a safety network between them and their family and their friends, where they can each all -- take care of each other. And so the core SafePath OS product does all that.

嗯，這是一個很大的機會。且市場服務嚴重不足。這是一個真正覆蓋廣泛人群的老年市場。我的意思是，有很多非常活躍的老年人外出活動，他們只是在尋找方法在他們和家人、朋友之間建立安全網絡，以便他們可以互相照顧。因此核心 SafePath OS 產品可以完成所有這些工作。

That it's already there. What you don't need for seniors is you don't need parental controls. So we just take that out. And we add in the drive and crash detection because those are the other things that seniors -- I am one of those people. So I kind of know what this is all about.

它已經在那裡了。對於老年人來說，你不需要家長監護。所以我們把它拿出來。我們添加了駕駛和碰撞檢測功能，因為這些是老年人需要注意的其他事項——我就是其中之一。所以我大概知道這是怎麼回事。

And this is a very exciting market, and we're getting very strong reaction from not only carriers that are primarily focused on the senior market, but also from some of the large carriers that just have no offering for seniors at the present time. So not only are we talking to them about, okay, let's launch SafePath OS for kids. Well, while you're at it, why don't you also launch SafePath OS for seniors. And I just think it's an incredible opportunity for our future.

這是一個非常令人興奮的市場，我們不僅從主要關注老年市場的運營商那裡得到了非常強烈的反應，而且從一些目前還沒有為老年人提供服務的大型運營商那裡也得到了非常強烈的反應。因此，我們不僅在與他們討論，好吧，讓我們為孩子們推出 SafePath OS。好吧，既然如此，為什麼不也為老年人推出 SafePath OS 呢？我認為這對我們的未來來說是一個難得的機會。

Great. And maybe one last one, and I'll get back in the queue. In terms of returning to growth sequentially, we saw a little bit of that in the fourth quarter. I'm wondering if you adjusted for the guidance in the first quarter for the onetime catch-up in CommSuite, are we up sequentially?

偉大的。也許還有最後一個，然後我會回到隊列。就連續恢復成長而言，我們在第四季度看到了一些跡象。我想知道您是否針對第一季的指導方針進行了調整，以實現 CommSuite 的一次性追趕，我們是否會連續上漲？

And then just as we look out into the second quarter, there are a lot of positive trends that are developing, whether it's Orange TuYo or others that could be coming on shortly. Do you expect going forward then from March to June, we should start to return to periods of sequential growth?

然後，當我們展望第二季時，我們發現許多積極的趨勢正在發展，無論是 Orange TuYo 還是其他可能即將出現的產品。那麼，您是否預計從三月到六月，我們將開始恢復連續成長期？

Yes, I think so. I think what we're looking for is in the back half of the year showing some very nice growth based on the launching of various customer offerings, as we've spoken about. We had to take a pause on this quarter because we can't bring on these new users yet or new customers yet, because we had to finish some of these product issues that we needed to just really address. So it's a little bit of a slowdown, but it's just a push out, there's no other issues that anybody should take from this. I think that you'll see the growth, you'll see the return to profitability and the generation of free cash flow in the back half of the year.

是的，我認為是這樣。我認為，我們所期待的是在下半年透過推出各種客戶產品實現非常好的成長，正如我們所說的那樣。我們不得不暫停本季的工作，因為我們還無法吸引這些新用戶或新客戶，因為我們必須解決一些我們真正需要解決的產品問題。因此，這確實有點慢，但這只是一種推動，不會給任何人帶來其他問題。我認為你會看到成長，你會看到獲利能力的恢復以及下半年自由現金流的產生。

(Operator Instructions) Matthew Harrigan, Benchmark.

（操作員指示）馬修哈里根，基準。

My questions were already largely addressed, but I had a couple or at least one dangling. The Black Sheep Verizon, which caused a lot of the dislocation over the last two years, I mean, I know they have kind of an institutional imperative to try to do everything in-house. But what's your sense for how they're faring? And who's out there as far as competition? Because clearly, there's manifestly a very nice TAM, both on the youth side and then the senior side I think is also a great opportunity?

我的問題大部分已經得到解答，但還有幾個或至少一個懸而未決的問題。害群之馬 Verizon，在過去兩年中造成了很多混亂，我的意思是，我知道他們有一種制度上的要求，試圖在內部完成所有事情。但您對他們的表現有何看法？那麼，有哪些公司可以參與競爭呢？因為顯然，無論是青年隊還是成年隊，都擁有非常優秀的 TAM，我認為這也是一個很好的機會？

And then do you have any -- I know everything is kind of lumpy and step function, but do you have any vision for where you'd like to be five years from now in the sense of where you are on revenues without providing any guidance for '25 or even '26?

然後你有什麼——我知道一切都有點不平衡和階梯式的功能，但是你對五年後的收入有什麼願景嗎？在沒有提供任何關於 25 年甚至 26 年的指導的情況下，你的收入是多少？

Okay. Well, five years is a long time. I have to say, I got to think that one through. Look, we've had some periods in our history that have just been unbelievably successful. There was a period where we did over $100 million in sales in a year or well over that.

好的。嗯，五年是一段很長的時間。我必須說，我必須仔細考慮這一點。你看，我們的歷史上曾經有過一些令人難以置信的成功時期。有一段時間，我們一年的銷售額超過 1 億美元，甚至遠遠超過這個數字。

We were generating free cash flow like handover fist. I believe this business case can do that again. And I think that's the course that we're on. I think that while it was disappointing that we weren't able to really grow the value-added service side to the level I thought we could, I think making this pivot and going more in line with how the carriers think about things and really their whole focus is adding subs. So they want to grab these kids with their first fund.

我們就像交接拳頭一樣產生了自由現金流。我相信這個商業案例可以再次做到這一點。我認為這就是我們正在走的路。我認為，雖然我們無法真正將增值服務提升到我想像的水平，這令人失望，但我認為做出這一轉變並更符合運營商的想法，而他們的整個重點實際上是增加訂閱量。所以他們想用他們的第一筆基金來吸引這些孩子。

They want to offer a peace of mind offering for seniors. These are things that can really help their overall business case. It's not like a value-added service. It's core. It's mainstream.

他們希望為老年人提供安心的服務。這些事情確實可以對他們的整體業務案例有所幫助。這不像是一項增值服務。這是核心。這是主流。

It's the stuff they're in business to do. And that way, we're more aligned with, I think, where the real growth is. So I can't overstate this. I mean, I just think there's a bright future, and we're working diligently on it, and we're going to get it done.

這是他們做生意要做的事。這樣，我認為我們就更加了解真正的成長所在了。所以我不能誇大這一點。我的意思是，我只是認為未來是光明的，我們正在努力工作，我們將會實現它。

And what's your sense for how -- I mean, clearly, Verizon has to have a product in the category because as you said, they'd be implied, they'd be hamstrung and what's your sense? And is there even -- I guess, not black swan, but white swan chance that they could come back to you? I mean, I know you can't answer that explicitly, but just thinking about, is there any real alternative that's viable for them, either what they're doing in-house on the software of the app -- in other words, you almost never mentioned your competitors. And clearly, in Europe, I would assume that people are either having to do things in-house or there's someone else who's also showing up in Barcelona trying to attract folks.

您對此有何看法？我的意思是，顯然，Verizon 必須在該類別中擁有一款產品，因為正如您所說，他們會受到暗示，他們會受到束縛，您對此有何看法？而且，我猜，他們是否還有可能回到你身邊，這不是黑天鵝事件，而是白天鵝事件？我的意思是，我知道你無法明確回答這個問題，但想想看，是否有任何真正可行的替代方案，無論是他們在應用程式軟體上內部做什麼 - 換句話說，你幾乎從未提及你的競爭對手。顯然，在歐洲，我認為人們要么在公司內部做事，要么有其他人出現在巴塞隆納試圖吸引人們。

Yes. Look, I think we have the strength in this servicing carriers that nobody else has. So I think if there's somebody that's going to win in a carrier, it's most likely going to be us. In the case of Verizon, they built their own products. They took it in-house and they created their own product.

是的。看，我認為我們在服務運營商方面擁有其他任何人都沒有的優勢。所以我認為如果有人能在航空母艦上獲勝，那最有可能的就是我們。就 Verizon 而言，他們打造了自己的產品。他們將其帶回公司並創造了自己的產品。

Go look at the app ratings on all the SafePath products that are out there, whether it's at T-Mobile or with AT&T or with Boost Family Guard and now even TuYo. I mean, our app ratings are about as high as you could find. I don't know that others that try to do it themselves are able to achieve that. There are people that build great apps and there are people that run great carriers. And maybe there's a role for both those.

查看所有 SafePath 產品的應用程式評級，無論是 T-Mobile、AT&T、Boost Family Guard 還是現在的 TuYo。我的意思是，我們的應用程式評級是你能找到的最高水平。我不知道其他嘗試自己做這件事的人是否能夠實現這一目標。有些人開發了出色的應用程序，有些人經營著出色的運營商。也許這兩者都有其作用。

When we talk about SafePath OS, where we're operating at the operating system level, there's some other carriers, but none of them are really focused on the -- there are some other competitors, but none are really focused heavily on the carrier market. So I think whether you're talking about a kid's phone or a senior safety phone, these are unique opportunities that we can lean on.

當我們談論 SafePath OS 時，我們在作業系統層面進行運營，還有一些其他運營商，但他們都沒有真正關注——還有一些其他競爭對手，但沒有一個人真正專注於運營商市場。因此我認為無論您談論的是兒童手機還是老年人安全手機，這些都是我們可以依靠的獨特機會。

Great, Bill. That's great, great, great on the apps. Look forward to particularly the second half of this year.

太好了，比爾。對於應用程式來說這真是太棒了。特別期待今年下半年。

(Operator Instructions) And this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Charles Messman for any closing remarks. Please go ahead, sir.

（操作員指示）我們的問答環節到此結束。我想將會議交還給查爾斯·梅斯曼先生，請他作最後發言。先生，請繼續。

Thanks, everybody, for joining us today. As always, we appreciate your interest. If anyone has any questions or comments that they'd like to chat with us about, please feel free to reach out to us. We also will be attending the ROTH Conference next week. So if anyone is there, please come and say hello to us, and have a great afternoon. Thanks, everybody.

感謝大家今天加入我們。一如既往，我們感謝您的關注。如果有人有任何問題或意見想要與我們討論，請隨時與我們聯繫。我們還將參加下週的 ROTH 會議。所以如果有人在那裡，請過來和我們打個招呼，祝大家下午愉快。謝謝大家。

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。