Phunware
{{short description|Mobile software company}}
{{Advert|date=July 2022}}
{{Infobox company
| name = Phunware Inc.
| logo = File:Phunware logo.svg
| logo_size = 200px
| type = Public
| traded_as = {{ubl
| {{NASDAQ|PHUN}}
}}
| foundation = {{start date and age|2009}}
| location = Austin, Texas
Irvine, California
San Diego, California
Miami, Florida
| key_people = Stephen Chen (CEO){{cite news |last1=Rogers |first1=James |title=Phunware’s stock tumbles more than 35% after CEO retires |url=https://www.msn.com/en-us/money/topstocks/phunware-s-stock-tumbles-more-than-35-after-ceo-retires/ar-AA1sS423 |work=www.msn.com |agency=Dow Jones |publisher=Marketwatch |date=24 October 2024}}
Chris Olive EVP General Counsel
| industry = Mobile software
Generative AI
Agentic AI
| products = PhunWare
PhunToken
| num_employees = 50+
| homepage = [https://www.phunware.com/ phunware.com]
[https://www.phuntoken.com/ phuntoken.com]
}}
Phunware Inc. is a publicly traded enterprise software company headquartered in Austin, Texas. Founded in 2009, Phunware builds cloud-based platforms that help brands and governments engage users across mobile and digital environments. Its core products include solutions for mobile app development, location-based services, digital advertising, and data-driven engagement.
As of 2025, the company has expanded its platform to include generative AI tools that streamline mobile app creation and personalize user experiences at scale. Phunware is also involved in voter engagement and fundraising platform used by political campaigns and advocacy groups. The company primarily operates in two sectors: hospitality and civic engagement, with a focus on enabling physical spaces—like hotels or precincts—to become digitally intelligent and monetizable.
Phunware is listed on the Nasdaq under the ticker symbol PHUN. The company’s current CEO is Stephen Chen, a turnaround executive who joined in 2025 and has focused on re-aligning the business around high-growth SaaS and Ai opportunities.
Previous clients have included major media companies, healthcare systems, and political organizations. Phunware has raised over $100 million since inception and completed its public listing in 2018 via a merger with Stellar Acquisition III, a special-purpose acquisition company (SPAC).
The company has faced public scrutiny in the past related to its political advertising work. Since 2021, Phunware has focused on governance reforms, product innovation, and diversifying its client base.
In 2020, Phunware was the fifth largest advertising technology company in politics. In November of that year, it had more than 940 million monthly unique active devices and has 5 billion daily transactions, and had raised more than $120 million in capital since its founding.{{Cite web |title=Financially troubled startup helped power Trump's campaign |author=Garance Burke |website=Associated Press |date= 17 November 2020|access-date=17 November 2020 |url= https://apnews.com/article/phunware-app-helped-power-trump-campaign-89ed273f60e37ff9ee020dd2f5d3df04}}
History
In 2014, as part of a $30 million expansion, Phunware acquired Digby Mobile Commerce, also based in Austin. The acquisition included Dibgy's subsidiary Movaya, based in Seattle and Chengdu.{{cite news |last1=Hawkins |first1=Lori |title=Austin software maker Phunware buys mobile developer Digby |url=https://eu.statesman.com/story/business/2014/05/06/austin-software-maker-phunware-buys-mobile-developer-digby/10138065007/ |access-date=16 April 2022 |publisher=Gannett |date=6 May 2014}}
In 2017, the company acquired Odyssey, Simplikate, Digby, Tapit! ($23 million acquisition in 2017) and GoTV. {{citation needed|date=July 2022}}
Their customers in 2019 included Fox Networks Group, HID Global, American Made Media Consultants, Presidio Networked Solutions, and MD Anderson.{{Cite web |title=Prospectus Supplement No. 10 |author= |work=sec.gov |date= |access-date=30 April 2020 |url= https://www.sec.gov/Archives/edgar/data/1665300/000162828020004681/prospectus424b3no10.htm}} Previous customers included Warner Brothers, NASCAR, NFL, and NBC Sports. Applications that send data to Phunware servers include the campus map for Cedars-Sinai Medical Center and GunDealio, an app for gun sales from Gun Talk Media.{{Cite web |title=Political Campaigns Know Where You've Been. They're Tracking Your Phone. |last1=Schechner |first1=Sam |last2=Glazer |first2=Emily |last3=Haggin |first3=Patience |work=WSJ |date=10 October 2019 |access-date=30 April 2020 |url= https://www.wsj.com/articles/political-campaigns-track-cellphones-to-identify-and-target-individual-voters-11570718889}} Phunware's location tracking was used, for instance, to target 2018 Democratic ads at participants in the anti-Trump 2017 Women's March in DC.{{Cite web |title=Trump 2020 Location-Tracking Firm Cashing in on Coronavirus |author= |work=The Intercept |date= 9 April 2020|access-date=30 April 2020 |url= https://theintercept.com/2020/04/09/coronavirus-trump-smartphone-tracking/}}{{Cite web |title=Austin's Phunware completes merger with Stellar Acquisition III|author=Sebastian Herrera |work=Austin American-Statesman |date=28 December 2020 |access-date=30 April 2020 |url=https://www.statesman.com/news/20181228/austins-phunware-completes-merger-with-stellar-acquisition-iii}}{{Cite news |title=Opinion {{!}} How Your Phone Betrays Democracy |author= |work=The New York Times |date= 22 December 2019|access-date=30 April 2020 |url= https://www.nytimes.com/interactive/2019/12/21/opinion/location-data-democracy-protests.html |quote=In company documents from 2017, Phunware, a Texas-based technology company, describes the race to collect location data to target voters as a “gold rush,” suggesting that “as soon as the first few political campaigns realize the value of mobile ad targeting for voter engagement, the floodgates will open. Which campaigns will get there first and strike it rich?” |last1= Warzel|first1= Charlie|last2= Thompson|first2= Stuart A.}}
During the 2020 US Presidential election, Phunware provided campaign data, including "users' daily digital trail", to the Trump reelection campaign, through a $3 million contract awarded by Brad Parscale's American Made Media Consultants.{{citation needed|date=July 2022}} They also built the Trump{{En dash}}Pence reelection app for the campaign in November 2019.{{Cite web |title=Full interview: Phunware COO discusses recent controversy as they push forward to protect company |author= |work=Proactiveinvestors NA |date= 30 April 2020|access-date=30 April 2020 |url= https://www.proactiveinvestors.com/companies/news/918536/phunware-coo-discusses-recent-controversy-as-they-push-forward-to-protect-company-918536.html}}{{Cite web |title=Phunware, a data firm for Trump's campaign, got millions in coronavirus small business help |author= |work=cbsnews.com |date= 23 April 2020|access-date=30 April 2020 |url= https://www.cbsnews.com/news/phunware-data-collection-trump-campaign-coronavirus-small-business-loans/ |quote=Phunware was paid nearly $3 million in revenue from the Trump re-election campaign in 2020, or roughly 15% of its nearly $20 million in total sales, according to a filing with the SEC. In 2018, 66% of its $31 million revenue at the time came from work for client Fox Networks. }}{{Cite web |title=JPMorgan, Ruth's Chris accused of cheating small businesses out of emergency loans |last1=Egan |first1=Matt |last2=Business |first2=CNN |work=CNN |date=24 April 2020 |access-date=30 April 2020 |url= https://www.cnn.com/2020/04/24/business/ruth-chris-jpmorgan-small-business-ppp/index.html}}
Phunware performed a reverse merger with Stellar Acquisitions III, a special-purpose acquisition company (or shell company) in December 2018, placing Phunware on the NASDAQ exchange.{{Cite web |title=Austin software firm Phunware plans to go public on Nasdaq after merger with Stellar Acquisitions - Austin Business Journal |author= |work=Austin Business Journal |date=28 February 2018 |access-date=30 April 2020 |url= https://www.bizjournals.com/austin/news/2018/02/28/phunware-plansto-go-public-with-301m-value-issue.html}}{{Cite web |title=Behind the deal: The inside story on how Phunware's go-public merger got started - Austin Business Journal |author= |work=Austin Business Journal |date=24 May 2018 |access-date=30 April 2020 |url= https://www.bizjournals.com/austin/news/2018/05/24/behind-the-deal-how-phunware-chose-to-go-public.html}}
The company's non-GAAP adjusted net revenues were stated at $19 million in 2019, down from $22.5 million in 2018. The GAAP gross revenue was $19 million in 2019 and $30.8 million in 2018. Fox Networks Group was 50% of the company's 2019 sales, up from 42% the previous year. Phunware's active Fox contract was completed in 2019, meaning the sales could go to zero. The company had 93 employees at the end of 2019, after reducing their workforce by 44. In March 2020 the company furloughed 37 people.{{Cite web |title=Phunware furloughs 37 because of coronavirus - Austin Business Journal |author= |work=Austin Business Journal |date=31 March 2020 |access-date=30 April 2020 |url= https://www.bizjournals.com/austin/news/2020/03/31/phunware-furloughs-37-due-to-covid-19.html}}
In 2020, Wikipedia co-founder Larry Sanger served on their advisory board.{{Cite web|last=Choudhury|first=Uttara|date=2020-03-03|title=Phunware appoints Wikipedia co-founder Larry Sanger to advisory board|url=https://ca.proactiveinvestors.com/companies/news/914219/phunware-appoints-wikipedia-co-founder-larry-sanger-to-advisory-board-914219.html|access-date=2021-01-19|website=Proactive investors|language=en}}
On April 10, 2020, Phunware received $6.1 million in federally backed small business loans from JP Morgan Chase as part of the Paycheck Protection Program. The company received scrutiny over this loan for its connections to Donald Trump and Fox News.{{Cite news |title=Large, Troubled Companies Got Bailout Money in Small-Business Loan Program |author= |work=The New York Times |date= 26 April 2020|access-date=28 April 2020 |url= https://www.nytimes.com/2020/04/26/business/coronavirus-small-business-loans-large-companies.html|last1= Silver-Greenberg|first1= Jessica|last2= Enrich|first2= David|last3= Drucker|first3= Jesse|last4= Cowley|first4= Stacy}}{{Cite web |title=FORM 8K |author= |work=sec.gov |date= |access-date=30 April 2020 |url= https://www.sec.gov/Archives/edgar/data/1665300/000162828020005070/a20200414-ppp.htm}} In defense, Crowder (COO) said companies that didn't apply "aren't doing their fiduciary duty", and said "Banks aren't loaning to unprofitable tech companies. There is no access to capital".{{Cite web |title=Texas Publicly Traded Companies Accept PPP Loans Meant for Small Businesses |author= |work=spectrumlocalnews.com |date= |access-date=30 April 2020 |url= https://spectrumlocalnews.com/tx/san-antonio/news/2020/04/30/texas-publicly-traded-companies-accept-ppp-loan-meant-for-small-businesses}}
On April 17, 2020, the company received a delisting notice from NASDAQ due to the stock trading below a dollar. However, the company's shares increased to above a dollar before the stock was delisted.{{Cite web |title=FORM 8-K |author= |work=sec.gov |date= |access-date=30 April 2020 |url= https://www.sec.gov/Archives/edgar/data/1665300/000162828020005120/a20200417-nasdaq.htm}}{{cite web |last1=McEnery |first1=Thornton |title=Phunware's stock was up 1,000% on Friday. What in the world is Phunware? |url=https://www.marketwatch.com/story/phunware-stock-was-up-1-000-on-friday-what-the-heck-is-phunware-11634924484 |website=MarketWatch |access-date=28 December 2021}}
On October 19, 2021, Phunware acquired computer system provider Lyte technology for $10.98 million to support their blockchain research and development efforts.{{Cite press release|date=2021-10-19|title=Phunware Closes Acquisition of High Performance Computer Provider Lyte Technology|url=https://www.globenewswire.com/news-release/2021/10/19/2316554/0/en/Phunware-Closes-Acquisition-of-High-Performance-Computer-Provider-Lyte-Technology.html|access-date=2021-11-10|website=Globe Newswire|language=en}}
In October 2024, Phunware announced that it had developed a new generative AI platform intended to simplify mobile app design and content creation and “drastically reduce” the need for expensive and time-consuming design and development investments. The company’s new AI-powered software-as-a-service platform is said to launch in mid-2025.{{cite news |last1=Rogers |first1=James |title=MSN |url=https://www.msn.com/en-us/money/topstocks/phunware-stock-climbs-18-after-mobile-advertising-company-touts-generative-ai/ar-AA1somh6 |work=www.msn.com |agency=Marketwatch |publisher=Dow Jones |date=22 October 2024}}
In November 2024, Phunware partnered with Parscale and his company, Campaign Nucleus, acquiring a controlling share of the voter engagement app "MyCanvass." This agreement was intended to strengthen Phunware's capabilities in providing voter engagement solutions to clients for advocacy, political campaigns, and fundraising initiatives.{{cite news |last1=Insider |first1=Business |title=Phunware to acquire controlling interest in MyCanvass for $1.02M |url=https://markets.businessinsider.com/news/stocks/phunware-to-acquire-controlling-interest-in-mycanvass-for-1-02m-1033945785?op=1 |work=markets.businessinsider.com |agency=Business Insider |publisher=Thefly.com |date=4 November 2024 |language=en}} MyCanvass, along with the Generative AI platform will be able to personalize experiences based on demographic information, behavioral information and location.{{cite news |last1=Rogers |first1=James |title=Phunware — which soared as a ‘Trump trade’ — preps AI-driven canvassing tool |url=https://www.marketwatch.com/story/phunware-which-soared-as-a-trump-trade-preps-ai-driven-canvassing-tool-1830f7d5 |work=MarketWatch |agency=Marketwatch |publisher=Dow Jones |date=12 December 2024 |language=EN-US}}
Court cases
On September 26, 2017, Phunware sued Uber Technologies for $3 million in unpaid services, accusing the ride-sharing company of failing to pay its invoices, court records from The Superior Court of California show. In response, Uber filed suit against Phunware, alleging the software company committed fraud by, among other things, allowing ads for the ride-sharing app to show up on unauthorized third party sites. Former employees said the startup looked for "new ways to diversify its revenue stream."{{Cite web |title=Financially troubled startup helped power Trump campaign |author=AP News |work=AP News |date=2020-11-17 |access-date=2021-12-08 |url=https://apnews.com/article/donald-trump-coronavirus-pandemic-elections-campaigns-124d914bb082575aeec8042629aa932c }}
An October 9, 2020, SEC settlement shows that Phunware agreed to pay a total of $6 million—$4.5 million going to Uber—over claims of fraudulent advertising.{{Cite web |title=SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE |author=Superior Court of California County of San Francisco |work=Securities and Exchange Commission |date=2020-10-09 |access-date=2021-12-08 |url=https://www.sec.gov/Archives/edgar/data/1665300/000162828020016344/ex1012-settlementagreement.htm }}
References
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