Phunware Inc ( NASDAQ:PHUN , FRA:2RJA ) CEO Dmitry Kroshka laid out a strategy to transform the company from a wayfinding and enterprise app developer into an AI-enabled intelligence platform for hotels, resorts and hospitals, in his first letter to shareholders.
Kroshka, who became CEO just over five months ago, said the "Phunware 2.0" strategy starts with hospitality and healthcare customers.
Phunware already has technology installed inside marquee brands' properties under multi-year contracts.
"We help the people who run complex physical properties understand what is happening on their properties, anticipate guests' needs and preferences, and act on them," Kroshka wrote.
The company has launched AI Concierge, which reached 70% adoption among app users at its launch property, with guest question volume 40% above plan. Itinerary Planner is in beta, and a new Operator Console will be demonstrated to prospects in early November.
Because the modules now work independently, Phunware can serve properties regardless of who built their app, website or kiosk. That expands its addressable hospitality market from roughly 3,000 to 4,000 spatially complex North American resorts to about 30,000 to 40,000 properties rated three stars and above in the US, the letter said.
Kroshka said the company's technology is about 90% shared between hospitality and healthcare, where it already guides patients through hospital systems including Mount Sinai and VHC Health.
Marketing and sales have generated nearly 300 leads and more than 50 meetings since June, and the company is in talks with four major hotel flags and ownership groups.
Phunware said its balance sheet is healthy, with ample liquidity and no debt. Kroshka said organic growth is the first priority, followed by selective acquisitions that speed Phunware 2.0 to market and add to earnings. The company wound down its advertising business to focus on the new platform.
"We build first, announce when we can demo, and launch commercially when customers are live," Kroshka wrote.
Shares of Phunware advanced around 2.7% on Thursday morning.
