Phunware, Inc. (PHUN), a company that provides an integrated software platform together with its subsidiaries, has soared a monumental 207.19% in the premarket trading session. As a result, PHUN stock was changing hands at $4.70 when last checked. On Thursday, PHUN closed the day at $1.53 after surging 45.71% during the mid-day session. The surge is presumably the result of former President Donald Trump’s announcement to bring a new social media platform to the public markets. Phunware provided its services regarding the management of the Trump-Pence 2020 Reelection Campaign’s mobile application, and hence, closely relates to the former president.
PHUN closed the acquisition of Lyte
On 19th October, PHUN announced to have formally closed the acquisition of privately held Lyte Technology. Lyte is a fast-growing provider of high-performance computer systems. The company said that it financed the closing consideration of $3.32 million with cash on hand and unsecured, non-dilutive debt. The total consideration for acquisition consisted of cash and the company’s common stock valued up at about $10.98 million. Besides, no company’s common stock was issued at the closing. Lyte enabled Phunware to enter the high-performance PC market. According to estimates, the market value is estimated to stand around $32 billion and is expected to grow at 20.4% CAGR during the next five years.
Q2 2021 financial results
On 12th August, PHUN reported the financial results for the second quarter of the fiscal year 2021 which ended on 30th June 2021. The company had cash and cash equivalents of $2.71 million on 30th June. The total assets in possession of the company were $34.21 million while total liabilities were $23.73 million. The company generated net revenue of $1.43 million during the quarter against $2.21 million for the same period of 2020. The cost of revenue for the period was $1.12 million against $0.76 million for the same period of 2020. The total operating expenses for the period were $4.50 million against $4.41 million for the same period of 2020. The operating loss for the period was $2.97 million. The net loss for the quarter was $8.29 million against $3.51 million for the same period of 2020. The net loss per basic and diluted share was $0.12 against $0.08 for the same period of 2020.
What lies ahead for PHUN?
PHUN has increased more than 41% during the last three months on the back of business expansion endeavours like the acquisition of Lyte etc. The estimates suggest further improvement in the future. It is expected that PHUN EPS would increase more than 60% during the next fiscal year. So, potential investors should keep a close eye on PHUN stock in the near future.