Phunware: Mobile today, a data utility ecosystem for the future

Hardman & Co

Phunware Inc (NASDAQ:PHUN) is a high-growth business selling technologies to enterprises to enhance their engagement with customers over mobile platforms. Its vision is far greater, revolving around a cryptocurrency-based ecosystem that allows individuals to be compensated for the use of their data, and to earn rewards for engaging with incentives and rewards programmes. The launch of a utility token, as well as a regulated security token, will be the first by a US-listed company (NASDAQ in this case), potentially creating a noteworthy valuation disconnect between Phunware’s current market capitalisation of $197m and the value of its holdings in PhunToken and PhunCoin. Our DCF analysis indicates an implied fair equity value of c.$222m.

  • Mobile engagement growing strongly: Phunware’s patented mobile engagement and location-based services technologies sit within a comprehensive Multiscreen-as-a-Service (MaaS) product suite. FY21 saw several contract wins in the healthcare vertical, while a major deployment at Atlantis, Bahamas, went live.
  • Strong revenue growth in prospect: Guidance issued alongside the FY21 results anticipates YoY revenue growth in excess of 250% in each of 1Q22 and 2Q22, continuing the strong momentum seen in 2H21. We forecast revenue growth of 120% in FY22 and 37% in FY23, driven by backlog and a strong pipeline across verticals.
  • Immense breadth of vision: Phunware’s longer-term vision is far-reaching, encompassing a cryptotoken-based ecosystem that allows consumers to control and monetise their personal data, which has become a valuable commodity, yet is today typically accessed by the global technology platforms free of charge.
  • PhunToken and PhunCoin could ultimately dominate group valuation: The company currently retains 72% of PhunCoin and over 90% of PhunToken in issue – so the total value of the currency ecosystem could create a major valuation disconnect and become a primary driver of the value of Phunware.
  • Investment summary: Management has created exposures to a series of high-growth segments: mobile apps, big data, blockchain and cryptocurrencies. Decentralisation and disruption are primary common strands. The core mobile platform remains well-positioned, with over 15bn IDs created to date, which creates a compelling starting point for potential PhunToken and PhunCoin mainstream adoption amid a crowded global cryptocurrency landscape.

DOWNLOAD THE FULL REPORT

You might also enjoy reading  Fidelity Japan Trust, Analyst thoughts on performance and markets for AGM (Analyst VIDEO)
Find more news, interviews, share price & company profile here for:
Hardman & Co

Good news travels fast (but only if you make that happen):

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email
Share on reddit
Reddit

AIM All Share Index