Sonim reports first quarter 2019 financial results
Sonim Technologies, Inc. (Nasdaq: SONM) reported financial results for the first quarter ended March 31, 2019. Net revenues in Q1 2019 increased 46% to $26.5 million from $18.2 million in Q1 2018 and gross profit increased 78% to $9.4 million from $5.3 million in Q1 2018. The gross profit margin increased 650 basis points to 35.4% from 28.9% in Q1 2018. Fro the second quarter 2019 financial outlook the company expects net revenues to increase between 34% and 38% from $31.5 million in Q2 2018.
"With the rollout of our XP8 smartphone and XP5s feature phone in 2018, we generated considerable sales momentum, which has continued into the beginning of this year and translated into the solid financial performance we saw in Q1," said Bob Plaschke, CEO of Sonim Technologies. "More specifically, the first quarter was highlighted by a 46% year-over-year increase in net revenues, driven by increased mobile phone sales volumes to major wireless carriers as well as initial sell-through of the XP3 on the Sprint network in particular. Because of this greater scale and the inherent operational leverage in our business, we drove an even greater percentage increase in gross profit. As we continue to grow, we're focusing on every aspect of our organizational structure that will set us up for long-term success. We've added three new directors to our board, each with decades of experience in telecommunications and public safety. These individuals have a deep understanding of our business and possess skills and broader industry knowledge to further position Sonim as a major player with a lasting impact."