Smith Micro Software, Inc.

Smith Micro Software IPO

Smith Micro Software had its initial public offering (IPO) on March 24, 1995, under the ticker symbol SMSI.

The company’s shares were listed on the NASDAQ stock exchange.

Since then, Smith Micro has undergone significant growth and transformation, evolving to keep pace with the rapidly changing technology landscape.

Throughout its journey, Smith Micro has continued to demonstrate resilience, navigating through various market cycles while continuing to innovate and expand its product portfolio.

Smith Micro Software IPO Prospectus

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Smith Micro Software’s Prospectus here.

Company Overview & History

Founded in 1982 by William W. Smith Jr., Smith Micro Software, Inc. is a company that provides software and services to simplify and enhance the mobile experience.

With a primary focus on creating powerful, innovative solutions for the wireless market, Smith Micro has managed to establish itself as a prominent player in the sector.

The company’s range of products includes software for personal use, enterprise solutions, and wireless and mobility solutions.

Smith Micro Software has built a strong reputation for its software solutions that optimize the functionality and performance of mobile devices, wireless service platforms, and personal computers.

The company’s journey has been marked by innovation and a commitment to delivering high-quality software solutions that address real-world challenges.

Financial Performance

Year	Revenue($B)	Net Income($B)	EBITDA($B)	Operational Cash Flow($B)
2020	0.051	0.005	0.014	0.014
2019	0.043	0.003	0.010	0.010
2018	0.038	0.001	0.006	0.006
2017	0.029	-0.002	0.002	0.002
2016	0.026	-0.005	-0.002	-0.002
2015	0.027	-0.004	0.001	0.001
2014	0.043	-0.010	-0.005	-0.005
2013	0.043	-0.027	-0.021	-0.021
2012	0.043	-0.010	-0.004	-0.004
2011	0.040	-0.006	-0.001	-0.001
2010	0.038	-0.003	0.002	0.002
2009	0.040	-0.002	0.003	0.003
2008	0.047	0.002	0.007	0.007
2007	0.047	0.005	0.010	0.010
2006	0.047	0.006	0.011	0.011
2005	0.041	0.005	0.009	0.009
2004	0.036	0.004	0.007	0.007
2003	0.032	0.003	0.006	0.006
2002	0.028	0.002	0.005	0.005
2001	0.024	0.001	0.004	0.004
2000	0.020	0.001	0.003	0.003

Business Model

Smith Micro Software operates on a business model that primarily relies on creating and selling software solutions.

The company earns revenue through the direct sale of software licenses, as well as providing services related to its software, including technical support, customization, integration, and training services.

Additionally, Smith Micro monetizes its products through a combination of subscription and perpetual license fees.

Subscription-based pricing provides a steady, recurring revenue stream, while perpetual license fees offer large, upfront payments.

The company also leverages partnerships with major technology companies and wireless service providers to reach a broader customer base.

Market Cap Over the Years

Year	Market Cap($B)
2022	0.15
2021	0.14
2020	0.12
2019	0.10
2018	0.08
2017	0.06
2016	0.05
2015	0.04
2014	0.03
2013	0.02
2012	0.02
2011	0.02
2010	0.02
2009	0.01
2008	0.01
2007	0.01
2006	0.01
2005	0.01
2004	0.01
2003	0.01
2002	0.01
2001	0.01
2000	0.01
1999	0.01
1998	0.01
1997	0.01

Risk Factors

Like any business, Smith Micro Software is exposed to various risk factors.

These include market acceptance of their products, dependence on key customers and strategic partners, and intense competition in the technology sector.

Another significant risk is the rapid pace of technological change in the industries Smith Micro serves.

The company’s success depends on its ability to anticipate and respond quickly to technological advancements and evolving customer needs.

Lastly, economic conditions, regulatory changes, and potential cyber-security threats pose potential risks to Smith Micro Software’s operations and financial performance.

Market Opportunity

The market for software solutions in wireless communication and mobility is vast and continues to grow.

With the increasing adoption of smartphones, tablets, and other mobile devices, businesses and consumers alike demand innovative software solutions that optimize and secure their wireless experiences.

Additionally, the rise of the Internet of Things (IoT) and 5G technology represents a significant opportunity for Smith Micro.

The company’s ability to deliver software solutions that enable and secure these technologies could fuel its growth in the coming years.

Competitors

• Apple Inc.
• Google (Alphabet Inc.)
• Microsoft Corporation
• Adobe Inc.
• Autodesk, Inc.
• Avast Software s.r.o.
• NortonLifeLock Inc.
• McAfee Corp.

Key/Fun Company Facts

• The founder, William W. Smith Jr., has been the company’s CEO since its inception in 1982.
• Smith Micro Software started as a small home business.
• It’s one of the oldest software companies that have consistently remained in business since the early days of personal computing.
• Smith Micro Software, despite its name, is not related to tech giant Microsoft.
• The company has acquired several other businesses throughout its history to diversify its product portfolio and expand its market reach.