Smith Micro reported revenue of $4.6 million for the third quarter ended September 30, 2024, a decrease from $11.0 million in the same period of 2023. The GAAP net loss was $6.4 million, or $0.54 per share, compared to a net loss of $5.1 million, or $0.61 per share, in the prior year. The non-GAAP net loss was $3.6 million, or $0.30 per share, a decline from a non-GAAP net gain of $0.6 million, or $0.08 per share, in Q3 2023.
Gross profit for the quarter was $3.3 million, down from $8.5 million year-over-year, with the gross margin decreasing to 71.6 percent from 77.0 percent. The company achieved $1.9 million in cost reductions during the third quarter compared to the first quarter of 2024, moving towards a target of $2 million quarterly by Q4 2024. Cash and cash equivalents stood at $1.5 million as of September 30, 2024.
In October 2024, Smith Micro completed a $6.9 million capital raise, which included a $3 million investment from the CEO. Management expressed confidence in the company's outlook for 2025, anticipating a return to profitability on a non-GAAP basis and positive free cash flow during that year. This capital infusion and cost control efforts are critical for supporting ongoing operations and strategic initiatives.
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