Smith Micro Software Q2 2024 Earnings Call Transcript

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August 1, 2024

There are 8 speakers on the call.

Operator

Good day, and welcome to the Smith Micro Second Quarter 2024 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Charles Messman, Vice President of Marketing. Please go ahead.

Speaker 1

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Smith Micro Software's financial results for the Q2 ended June 30, 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, Chief Executive Officer and Jim Kimpton, our Chief Financial Officer.

Speaker 1

Please note that some of the information you will hear during today's discussion consist 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 deployments, migration and our growth by new and existing customers, operating expenses and the company's cash reserves. 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 the risk factors included in our most recent filing Form 10 ks. Smith Micro assumes no obligation to update any forward looking statements, which speak to our management's belief and assumptions only as of the date they are made. I want to point out that in our 4th coming prepared remarks, we refer to non GAAP financial measures.

Speaker 1

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 ball over to Phil. Phil?

Speaker 2

Thanks, Charlie. Good afternoon and thank you for joining us today for our 2024 Q2 conference call. Let me start the presentation today with some quick updates on the business as we continue to work our way back to growth and profitability. On our last call, we announced that DISH would be our first customer to launch SafePath Global. We are very pleased to confirm that DISH launched Boost FamilyGuard, which is powered by SafePath Global during the Q2.

Speaker 2

This was a significant milestone for us, not only for the growth potential of those FamilyGuard, but also because it is our 1st SafePath global deployment and demonstrates the potential of this accelerated deployment model going from contract execution to launch in about 6 weeks. This is a deplicable model for us and we expect to see more SafePath Global wins in the near term. In addition to the faster launch cycle, the SafePath Global model also allows us to move quickly to deploy updates to the app with new features and functionality and offers a significant upgrade path with other tools that can be added to the platform. Marketing activities have begun for Boost Familyguard and we anticipate subscriber growth on that platform over the remainder of this year. Next, we are nearing the completion of our development efforts on the unique SafePath enabled family safety offering with our European Tier 1 carrier partner that we previously referenced.

Speaker 2

We are excited to be in the last phase of this process and expect that our Tier 1 partner will launch an innovative widespread go to market strategy across a multitude of different channels, bringing a new solution to the European market in the early fall. We expect it to be quite visible and open the door to new opportunities for expansion throughout Europe and the rest of the world. Turning to our cost structure, we have completed of approximately $1,000,000 to $1,300,000 per quarter, which I discussed on our last call. Some of that impact is reflected in the Q2 quarter results and the full impact will be reflected in the 3rd quarter results. As we remain focused on returning the company to profitability, we have determined to further streamline our resources and we'll target an additional 1 $1,000,000 to $1,200,000 in cost reductions per quarter, which we will implement in the very near term to better align our resources.

Speaker 2

This action will help position the company for a return to growth and profitability and generation of free cash flow. Like the previous cost rationalizations, there will be some benefit in the Q3 from the second cost reduction with the full benefit of these additional adjustments being recognized in the 4th quarter. We believe these changes will strengthen our company for both the long and short term, enabling us to be more agile and faster to market. As we also discussed on our last call, we plan to add a new wave of enhancements to our SafePath platform. This will include SafePath Premium, which will use enhanced AI machine learning to optimize and customize families online experience and provide cyberbullying protection, social media intelligence and public safety notifications.

Speaker 2

Overall, I believe we are very close to seeing the turn in our business case for the better and our teams are working hard to get us there. But let's turn the call over to Jim to review the financial results in more detail. Jim?

Speaker 3

Thanks, Bill, and good afternoon, everyone. I'll now be covering the financial details of the Q2 of 2024. Please note, all of my comments today regarding per share metrics reflect the impact of the 1 for 8 reverse stock split that was approved by our shareholders and effectuated in April 2024. For the Q2, we posted revenue of $5,100,000 compared to $10,300,000 in the same quarter of 2023, a decrease of approximately 50%. When compared to the Q1 of 2024, revenue decreased by approximately 700,000 dollars or 11%.

Speaker 3

Year to date revenues through June 30, 2024 were 10,900,000 dollars versus $21,300,000 through the Q2 of last year. The 48% year to date decline is primarily due to the conclusion of the Horizon Family Safety contract in the Q4 of 2023, coupled with a decline in legacy Safe and Found Family Safety revenue related to the continued attrition of legacy Sprint subscribers driven by T Mobile's acquisition of Sprint. During the Q2 of 2024, Family Safety revenue was $4,200,000 which decreased by approximately $4,500,000 or 52% compared to the Q2 of the prior year, primarily due to our having recognized no Verizon Family Safety revenues during the Q2 of 2024 as that contract concluded in the Q4 of 2023, coupled with the continued decline in legacy Sprint Safe and Found revenue. Family Safety revenues decreased by approximately $200,000 or 5% compared to the Q1 of 2024, primarily driven by the continued decline in legacy Sprint Safe and Found revenue. During the Q2 of 2024, CommSuite revenue was approximately $500,000 which decreased by approximately $200,000 compared to the Q2 of 2023.

Speaker 3

Revenue from CommSuite decreased by approximately $100,000 compared to the first quarter of 2024. However, we have been experiencing subscriber growth on the Boost Comsuite premium visual voicemail platform more recently and expect CommSuite revenue to increase modestly in the Q3 as a result. ViewSpot revenue was approximately $400,000 for the Q2 of 2024, which declined by approximately 5 $100,000 compared to the Q2 of prior year. The decline in ViewSpot revenues compared to the Q2 of 2023 was primarily due to the previously announced termination of 1 of our ViewSpot contracts in the second half of twenty twenty three. ViewSpot revenues decreased by approximately $300,000 compared to the Q1 of 2024.

Speaker 3

In the Q3 of 2024, we are expecting consolidated revenues to be in the range of approximately $4,500,000 to $5,000,000 This anticipated decline in revenue as compared to the 2nd quarter is driven in part by a projected decrease in ViewSpot revenues. For the Q2 of 2024, gross profit was $3,500,000 compared to $7,700,000 during the same period of the prior year, a decrease of approximately $4,200,000 primarily due to the period over period decline in revenues. Gross margin was at 69% for the quarter compared to 75% realized in the Q2 of 2023. The gross profit of $3,500,000 in the Q2 of 2024 decreased sequentially by approximately 300,000 compared to the gross profit produced in the Q1 of 2024, driven primarily by the sequential decline in revenues quarter over quarter. In the Q3 of 2024, we expect gross margins to be in the range of 70% to 73%.

Speaker 3

For the year to date period ended June 30, 2024, gross profit was $7,300,000 compared to the 15,400,000 dollars during the corresponding period last year. Gross margin was 67% for the June 30, 2024 year to date period. GAAP operating expenses for the Q2 of 2024 were 10,500,000 a decrease of approximately $500,000 or 4% compared to the Q2 of 2023, primarily as a result of the effect of cost reduction activities undertaken during the Q2 of 2024, partially offset by severance related costs. GAAP operating expenses for the year to date period ended June 30, 2024 were $45,800,000 compared to $25,600,000 in the prior year's date period, an increase of $20,200,000 compared to the last year. This period over period increase was driven by the non cash goodwill impairment charge of $24,000,000 incurred in the Q1 of this year.

Speaker 3

Non GAAP operating expenses for the Q2 of 2024 were $7,500,000 compared to $8,300,000 in the Q2 of 2023, a decrease of approximately $700,000 or 9%. Sequentially, non GAAP operating expenses decreased by approximately $600,000 or 7% from the Q1 of 2024. As we noted on our last earnings call, we did undertake cost reduction actions in the second quarter as we work to return the company to profitability. We continue to expect to achieve the targeted savings that we had established on our last earnings call. In other words, based on the actions taken to date, we anticipate that our total non GAAP operating expenses and cost of sales for the 3rd quarter will decrease by $1,000,000 to $1,300,000 compared to the Q1 of 2024.

Speaker 3

In addition, as Bill had discussed in his opening remarks, we plan to undertake additional expense reductions in the very near term to further realign our cost structure. As a result of both of these cost reduction initiatives, we expect Q3 2024 non GAAP operating expenses to decrease by 6% to 10% compared to the Q2 of 2024. Given the timing of the actions that we plan to take in the 3rd quarter, a partial quarter effect of these reductions will be realized in Q3 2020 4 and the full quarterly effect of the additional reductions will be realized in the Q4 of 2024. As such, we would anticipate a further decline in non GAAP operating expenses in the Q4 of 2024 as compared to the Q3 of 24. Non GAAP operating expenses for the year to date period through June 30, 2024 were $15,600,000 compared to $19,500,000 for the year to date period ended June 30, 2023, a decrease of $3,900,000 or 20% compared to last year.

Speaker 3

The GAAP net

Speaker 2

The

Speaker 3

compared to the GAAP net loss of $5,700,000 or a $0.73 loss per share in the Q2 of 2023. The non GAAP net loss for the Q2 of 2024 was $4,000,000 or $0.38 loss per share compared to a non GAAP net loss of approximately $600,000 or an $0.08 loss per share in the Q2 of 2023. Within today's press release, we have provided a reconciliation of our non GAAP metrics to the most comparable GAAP metric. For the Q2 of 2024, the reconciliation includes adjustments for intangible asset amortization of 1,500,000 dollars stock compensation expense of $1,100,000 depreciation expense of 100,000 dollars and other non recurring charges, including severance related costs of $300,000 partially offset by nominal changes to the fair value of warrants. For the year to date period, the non GAAP reconciliation includes adjustments for goodwill impairment of $24,000,000 intangible asset amortization of $3,300,000 stock compensation expense of $2,300,000 depreciation of approximately $200,000 and non recurring expenses, including severance related costs of approximately $400,000 partially offset by approximately $200,000 in changes to the fair value of warrants.

Speaker 3

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 utilized a 0% tax rate for the Q2 of 20242023. The resulting non GAAP tax expense reflects the actual income taxes expense during each period. We did conduct a capital raise during the Q2, grossing approximately $4,100,000 in cash before transaction related fees. As a result of this equity offering, we reported $5,600,000 of cash and cash equivalents as of June 30, 2024.

Speaker 3

This concludes my financial review. Now back to Bill. Thanks, Jim.

Speaker 2

Let me begin with DISH and provide further color on the activities that I touched on to begin today's call. Boost Family Guard had a successful launch in May and DISH has begun marketing activities on several fronts. DISH has been very collaborative in driving awareness for this new offering and has been receptive to exploring different ways to market this product. We believe the timing is very good for Boost Family Guard right now with the recently launched new branding for DISH mobile services under the Boost brand. This branding campaign is creating a fresh new look and feel for the DISH mobile services business.

Speaker 2

And we are working with DISH on plans to capitalize on the new branding with several new awareness marketing campaigns for Boost Family Guard. Some examples include the use of their internal channels such as SMS, email and website promotions, as well as capitalizing on in house ad inventory that can be distributed among the several different DISH properties. These campaigns will not only promote the new brand, but also promote Boost Family Guard, which could help bring more Family Plan subscribers to the DISH mobile network. DISH has also recently launched our ambassador program, which drives the product promotion directly to consumers and stores and enables different types of SPIFF and bonus programs to incentivize in store promotion of the product. As part of this program, there are also different training modules for Boost employees as well as for authorized retail store representatives to teach them about Boost Family Guard, while also informing them of the bonus opportunities associated with selling this product.

Speaker 2

We have enhanced the ambassador program by adding the ability for store managers and sales representatives to download different promotional materials directly from the platform, such as signage replacement throughout the store, which accelerates the rollout of the latest marketing collateral as compared with the traditional store pack out process that is regularly mailed out to the stores. This is an exciting opportunity for growth of Boost Family Card as Boost Mobile has a large base of stores with approximately 5,000 throughout the United States. Although we are still in the early days of these marketing efforts, we are excited about the progress made in such a short amount of time for Boost Family Guard and we are just getting started. In addition to the process being made with Boost Familyguard, DISH has now fully deployed CommSuite across the Boost network on all Android devices. DISH will also include among its value added services, premium visual voicemail, which is powered by our CommSuite platform.

Speaker 2

As Jim touched on in his remarks, we have seen an uptick in subscribers on the premium visual voicemail platform more recently, which should translate into revenue growth in the Q3 for Compsley. DISH recently conducted some new promotional activities for this product, which we believe is helping to drive the subscriber growth. Overall, we continue to maintain a strong and collaborative relationship with DISH and are aligned with them on our goals for success of both products. Let's talk about AT and T. We remain very optimistic about the opportunity for subscriber growth at both AT and T and Cricket.

Speaker 2

We continue to drive awareness of AT and T Secure Family through different marketing channels. A recent example of which is a new promotion with the National Parent Teacher Association that just launched. AT and T Secure Family is now being promoted on the National PTA's website, helping to raise awareness within our targeted demographic for digital family safety. Additionally, we have also been methodically expanding the affiliate influencer program that was launched during the Q2. We anticipate further expansion of the influencer campaigns in the Q3 to drive more visibility to AT and T's secure family, which we expect will significantly broaden our reach.

Speaker 2

The campaign will include some great new activities for back to school, which we are very excited about as this timing aligns very nicely with the utility of AT and T's secure family. I am encouraged with the progress we are making and I'm looking forward to seeing growth in the coming months because of these efforts. At T Mobile, we continue to see strong interest in our expanded roadmap enhancements that we believe could help springboard new activities to drive subscriber growth. We are continuing to work on expanding the portfolio of products that we are supporting at T Mobile. Our sales and marketing teams are working together to further our progress with widening our reach throughout the organization.

Speaker 2

In the meantime, T Mobile continues to be a key customer for In Europe, we expect to launch our Tier 1 carrier partner in the next few months. This family safety solution will be a unique go to market approach for SafePath and we believe it will drive new demand, opening the door for new contracts with carriers throughout the world. I look forward to providing you with additional insight on this contract soon. There's much more to come regarding this carrier and the approach that they're taking to digital family safety enabled by SafePath and the opportunities we believe the launch of this product will create for us in Europe. Our sales pipeline is also quite strong.

Speaker 2

We are also in the final stages of concluding a marketing engagement agreement with the competitive carrier association, CCA. Upon completion of this agreement, Smith Micro and CCA will partner to market our SafePath Global Family Safety solution to CCA's carrier members under a single branded application. This partnership will enable CCA carrier members of any size to offer this valuable solution to their subscribers under the rapid go to market model this SafePath Global supports. We believe this agreement will provide access to a collectively large number of subscribers from the many smaller carriers operating in the United States. Without this agreement, reaching these carriers would be a difficult task.

Speaker 2

In addition to the expected completion of the CCA agreement, there are several other exciting opportunities in the sales pipeline. In Europe, we have opened discussions with another Tier 1 carrier interested in launching SafePath on an accelerated schedule. We also are in advanced discussions here in the U. S. With carriers to launch SafePath as a strategy to attract new family subscribers.

Speaker 2

Overall, these opportunities combined with our recent successes at DISH and our upcoming launch with our major Tier 1 European carrier give us strong confidence that our strategy will be effective. Before I close, I would like to briefly introduce you to our plans for a new expansion of the SafePath platform that we are calling SafePath Live. While I don't want to go into detail about the product, I do want to mention that this product will utilize our technological strength for family location controls. The offering will provide a premium model for our carrier partners that we believe will greatly expand their reach and further enhance their competitive position. The addition of this product to our portfolio builds on a key focus to expand our reach and market opportunities while leveraging strong relationships with our existing carrier partners.

Speaker 2

We also see SafePath Live as a strong marketing opportunity to drive users to our full featured SafePath family safety offerings. We are truly excited about this next wave of innovation. We are already in the market discussing SafePath Live with our growing list of carrier customers and they like it. We remain confident that the business case for SafePath is strong. It is our core belief that the overall family safety market is expanding, particularly in the current environment as we continue to see new initiatives and legislation across the United States and around the world with a clear focus on online safety.

Speaker 2

We plan to capitalize on this momentum and leverage it to expand the reach of our solutions. We have a solid base to build from and believe that we are driving toward meaningful subscriber growth across multiple carrier customers, which is key to putting us on a path to growth and profitability. With that said, operator, let's open the call for questions. Operator?

Operator

We will now begin the question and answer session.

Speaker 4

Hey, Phil, maybe to jump right in, timing has really been the headwind in terms of carrier launches, but it seems like as we're looking into the Q3, we're starting to see the bottom here in SafePath. I'm wondering if you could talk directionally about what you're expecting for SafePath into the Q3? And then given the anticipated launch schedules of the European carrier ramping up at DISH and some potential other carriers getting a little bit more aggressive. Should we expect SafePath to be rebounding then into the Q4?

Speaker 2

Yes. Look, I would say this. I would say that we will get the launch behind us in Europe. It will happen hopefully before the end of Q3 and that will put us on a strong direction for growth for Q4. I expect Q4 to show some meaningful leverage of the SafePath revenues.

Speaker 2

And I think that will be the sign that everybody's been waiting for.

Speaker 4

Great. And maybe just to follow-up on SafePath Global, it's nice to see the rapid launch on DISH. I'm wondering if you could frame that a little bit in terms of how you're going to characterize success there in terms of penetration of that base? And then it sounds like the pipeline continues to grow there and I think you referenced another opportunity in Europe, but it wasn't clear to me if that was SafePath Global or if that's a more traditional type deployment. So specifically on the SafePath Global front, I'm wondering how big is that pipeline in terms of carriers and your expectations in terms of what you can close this year?

Speaker 2

Yes. I would say that all of the opportunities I talked about is being in process. The added Tier 1 carrier in Europe as well as others here in North America will be based around SafePath Global. So the time to market should be very rapid. And so that's another positive sign.

Speaker 2

As we move into Q4 and then into Q1 of 'twenty five, that should provide the leverage that we're looking for to turn us into a profitable company and start to really grow our revenues. The only exception to that is the launch of the 1st Tier 1 carrier in Europe that I'm alluding to is going to be using a slightly different product and we can't talk about it yet. As soon as it launches, we will announce what that product is and what its purpose is. It is an exciting market opportunity in and of itself and it is repeatable. So I think that's the really strong message that we have here.

Speaker 2

I think that we have reached the point now where we've consolidated everything. We've streamlined our operations and we're on a course for meaningful growth.

Speaker 4

Okay, great. And lastly, if I could, CCA is a very interesting, a little bit of a stealth growth agreement there. I'm wondering if you could frame that in terms of size, how many subscribers are contained with CCA carriers? And it sounds like you could ramp this up pretty quickly. So I'm wondering when you would expect to see some of the results with SafePath Global and CCA?

Speaker 4

Thanks.

Speaker 2

Okay. Yes, we're pretty excited about the CCA opportunity. It provides us an access to a large number about 40, 50 different carriers around the U. S. And I'm not including T Mobile who is also a member of CCA.

Speaker 2

So that's they're excluded from this opportunity because we already do business with them. So collectively, we're talking about tens of millions of subs. And individually, there are a number of carriers that are smaller that would be very difficult to market to without this marketing arrangement. And we're very, very excited as is CCA to be able to leverage their footprint to find some more meaningful growth. Again, we will focus on SafePath Global with all of these accounts.

Speaker 2

We are looking for very rapid deployment and we'll be back talking about that in the weeks to come.

Operator

The next question comes from Matthew Harrigan of Benchmark. Please go ahead.

Speaker 5

Thank you. One really broad question and one fairly narrow one.

Speaker 2

Matt, we can't hear

Speaker 3

you. Can you get louder?

Speaker 5

Sure. Hopefully you're in an inflection point now for SafePath really both here and in Europe. And you certainly honed down your costs repeatedly now. And you just did an equity raise last quarter. So how is it that you're really embarking on some more fairly aggressive cost reductions just as you did the equity raise and you seem to be hopefully be hitting an operational inflection point and then I'll save the next question perhaps your answer.

Speaker 2

First, the power of SafePath Global is that it does not require a lot of customization to reach the deployment. The first deployment was done in 6 weeks. We actually believe we could deploy in less than that. And so that's part of our overall strategy. Because we're not doing a lot of heavy customizing and we're looking to deploy a number of other carrier customers, we have looked at our resources and determined that we can do this with less headcount.

Speaker 2

We also have been able to streamline the cost structure in that all of the ring costs for the Ring platform, which were substantial, can now be ended and are in the process of having that happen. So we're talking about multiple 100 of 1,000 of dollars that was involved in running the Ring platform and that is being rung out of our business model and has been rung out over the course of this year. So we've done a lot to streamline our go to market, to streamline what it takes to bring new carrier customers into the fold and we look forward to talking about a number of new names and showing you some meaningful growth.

Speaker 5

And I guess this is also relevant to SafePath Global, basis. And I know that your product introduction to some time basis. I know that your product introduction has sometimes been in select markets. I don't know how much customization Greece to Spain or wherever. But is this something that's really going to allow you with a TIFF or Vodafone to really hit the math much faster when you have operating in 15 or 20 countries and you might have a trial in one country and other in the old world maybe a 3 year process to have broad adoption?

Speaker 2

Yes. Look, what I can say is this, this launch will be launched in a first country. It is a country where they have meaningful size and we are already in conversations about who the next countries will be. So this is just the beginning. So when we launch in a couple of months, yes, that's just the 1st country and there's more to follow and they can be and that can be done in rapid fashion.

Speaker 2

Really, the only difference is just changing the language and so that the users can read the props.

Operator

And our next question comes from Leo Capriol of Joseph Gunnar. Please go ahead.

Speaker 6

Good afternoon, gentlemen. I actually have two quick questions. The first one regarding the operating expenses. It seems like you're doing a great job in terms of reducing the costs. It sounds like the second round is coming in.

Speaker 6

How much more have 3rd or 4th round envision? And then secondly, in terms of the pipelines of opportunity, CCA sounds like an exciting opportunity. Are there other similar associations that are out in the market available either in Europe or in the U. S. That you haven't reached out to and could be a possibility?

Speaker 6

Thanks.

Speaker 2

Yes, Leo. I mean, we're pretty excited about getting the first one done with CCA. We are always looking to work with other industry organizations to broaden our reach and do it in a much more effective manner. So you'll have to stay tuned for that. But the CCA opportunity, I think, will bode very well for us.

Speaker 2

And it's a section of the market that we haven't really been able to focus on and it's pretty exciting. So let's just wait and see. Let's get them launched with some new names and see how it grows.

Speaker 1

Did we lose you, Leo? We can't hear you.

Speaker 6

Oh, David, just quickly as a follow-up on the cost question. As much as you can extract from ops at this point?

Speaker 3

Well, we always look at our cost and look to optimize it. But at this point, that between the two reduction initiatives, we're talking about $2,000,000 to $2,500,000 in total. So that's what we're targeting currently.

Operator

The next question comes from Brian Swift of Security Research. Please go ahead.

Speaker 7

Yeah, I have a couple of questions. First, just to clarify, I think, Jim, in your comments, you guided Q3 to $4,500,000 to $5,000,000 dollars And I think you also said that much of that decline was your anticipated results from ViewSpot. And since the ViewSpot went down 300,000 to 400,000, is it going to 0 or what maybe you can give me a little color on that?

Speaker 3

We certainly expect it to decline further from where it's at now. I will say that we don't expect it to go all the way to 0, but we are expecting a decline there.

Speaker 2

Yes, let me add that we also have new opportunities for ViewSpot that we are exploring and they're with meaningful names. So let's just we'll monitor the process. We'll report it safely every quarter. But I think it's a nice product. It's had sort of a checkered role in the market in the last year or so, but that doesn't mean that we can't turn it around.

Speaker 2

So we'll

Speaker 1

see. Okay.

Speaker 7

And secondly, we've had a continual slide in the Sprint revenues that seems to be consistently more than offset offsetting in any way whatever gains you were getting at T Mobile. What can you give us a little bit more color on each quarter? It seems like you're optimistic about what T Mobile is doing in terms of promotions and such. I remember when you really started accelerating with Sprint was when you had a program where they were really doing a lot of training with the in store people doing promotions and such. Do you see any kind of activity like that at T Mobile and as well as at AT and T where we could see because it seems like we should be seeing some uptick here, but when you guide to 4.5%, 5%, it means we haven't hit the trough yet.

Speaker 7

So it's a little discouraging to say the least. Anyway, I'd like to see what your thoughts are on how you plan to get this thing moving in the right direction here other than what you've already talked about?

Speaker 2

Well, I think you brought up Sprint and you brought up the success we had at Sprint. And we've always thought it would be very repeatable based on the commentary I've already made. I think you can see that DISH is doing everything that Sprint did plus more. So I think where you really want to watch is to watch the growth for DISH and the Boost Family Guard. And I believe that's going to be rather exciting event.

Speaker 2

Haven't said much, I didn't say much about T Mobile on this call. The decline of Sprint users is getting down to a fairly small number overall. So I think that issue is one that's probably going to just sort of take its course. But look, watch what happens at DISH and I think you're going to see some meaningful growth there and that's what you ought to be looking for And then we'll launch the European carrier. These new carriers are excited.

Speaker 2

They're full of energy. They want to be very successful. They believe family safety is right for the time. I mean, look at all the laws that are being talked about and being passed. I mean, the Senate passed a bill to today is got to we're waiting for the House, but there's all kinds of things going on, not only in the U.

Speaker 2

S, but also in Europe. This is an exciting market and yes, we've tested your patience, Brian, but I know you're a patient guy. So we'll work our way through it.

Speaker 7

All right. Thank you.

Operator

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

Speaker 1

Well, I thank everyone for joining us today. If you have any follow-up questions, please feel free to reach out to us. We appreciate you taking the time, and we'll look forward to talking to you on our next earnings call. Thanks, everybody.

Operator

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

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