Phunware, Inc. Common Stock Emerging Growth Conference 97

Good morning, Anna. Thank you for that intro. All right, let's jump in. Very briefly, let me tell you what I am presenting today. It is what we call Phunware 2.0. It is the reset of the business and the technology into what we believe will take us forward very well in the current market. These are the typical forward-looking statements. You guys probably know them better than I do. They are available on our site. This investor presentation is available on our investors site as well. Let me tell you a little bit about Phunware 2.0 and the transition that we are in the midst of right now. Historically, Phunware built mobile apps with certain features added on. It could be wayfinding, it could be content messaging, and that was the focus of the business.

What we have found is that there is a lot of interest in what we call Phunware 2.0, which is the beginning of a Guest Intelligence Platform. With this platform, all of these components are now modular. There is one platform subscription. AI is at the center of that. We have components that I will get into that allow us to interact with a guest, interact with a patient, speak to them about their needs, build an Itinerary Planner for them, make recommendations, anticipate their needs, and really use that to create a better experience overall and inform the data, the AI we have built at the center, and enable us to really improve both the experience for patients, for guests, for operators, and improve revenue all the way around.

The problem is something that many of you are probably familiar with if you have stayed at a property, if you have had to do a booking. Today, for example, when you book a hospitality experience, you are essentially playing your own travel agent. There is some data out there that says people look at 250 web pages or more to arrive at a trip. Then once you go, what happens? Sometimes the property does not know you. They do not always know your preferences. What do you do if you planned a sunny vacation day and it is raining? All of these things can disrupt that journey. What we are doing is we are connecting where somebody is at the moment, either through their location or through what we see live from the property data systems in terms of what they are doing.

We learn about their preferences, and we basically anticipate and fix the journey as it goes along in real time. Really what we are doing is there is this notion that started 10, 15 years ago that customer service is really reactive and customer success is proactive. What does proactive customer success mean? Well, in software, it means that the more a customer activates on your product, the better their experience, the stickier the product is, the better the opportunity is to upsell. What we are doing is we are bringing that to the guest experience. The more that a guest activates on property, goes to the pool, goes to the spa, uses the gym, plays golf, the more that a guest activates on that property, the greater the share of wallet that that property will retain.

The more the property will learn, and it becomes a feedback loop that continuously improves what we offer to guests, that continuously improves the share of wallet we receive, and continuously improves what that property knows about them. Not only is this about revenue generation, but again, Guest Intelligence Platform is at the heart of all of this. It is about also educating the operator on what makes this work. If you look at the wheel that we have, where we walk through guest intelligence, there is a component of this that you typically do not see, which is the discover section. What is key to our technology, what is key to our interactions, is actually discovering what the guest likes, what the guest needs, anticipating it, helping them discover it, engaging with them, all before we get to a transaction.

If you look at the competitive set, a lot of AI in hospitality is really candy wrapper for a transactional experience. We are really trying to get inside that guest's head to create that better experience, to take the pressure off of staff. Imagine if you are staying at a resort, it is a rainy day tomorrow, and 500 people are downstairs trying to figure out what they are doing. We clean all that up. We make that easy to respond to. We do that primarily in direct interaction with the guest. The guest gets a very real-time experience that helps them. The property has a much better time understanding that guest, anticipating their need, and filling it with minimal work on both parties' part. What does this actually look like when you are moving through the property with our technology is important to show.

We are taking in things like booking, Itinerary Planner, what we think of as the product catalog or the property catalog. Do they have golf? Do they have spa? How many pools? How many restaurants? What is it that makes the property unique? With a resort, it could be the wide variety of options. With an urban tower, it could be what makes that property unique, whether it is the history or it is some of the tours, or any of the other things that connect to that property. We are also taking in things like any preferences we already know about the guest, their loyalty program, et cetera. As they move through the property, we are looking at the POS data. What are they buying? What are they converting on? What is the campaign feedback?

If we push a recommendation that our intelligence engine has to make, for example, "Hey, we noticed that you don't have lunch booked today and the restaurant is filling up fast. May we make you a reservation?" We're looking at all of that, and we're calculating what does this guest need? How else are they interacting? We have an AI Concierge where a guest can say, "Hey, what's the best time to get a spot for golf?" Or, "I need a massage." All of that information we're taking in and we're learning from. We're also mapping it against how other guests interact with our system so that we're able to learn and continuously improve our models. Then any third-party booking data. I mentioned the example of rain. What happens if it rains tomorrow? How do we know that?

Well, we have third-party systems that we're listening to that are telling us there's going to be rain. There could be third-party data enrichment that the property has. There could be system integrators that are pulling in data. We get all of that. We compile that into an intelligent guest profile, and we use that intelligent guest profile to drive the guest experience. Now, we came out of mobile, and I had mentioned this at the intro. Part of that means that for many properties, we can interact either through our app, through their app, through their website, but we can provide notifications, we can do custom content, and of course, we have the recommendation engine. We're moving to integrate with things like digital signage. We can take the data that we are getting from that customer and enrich back into the reservation, into the CRM.

We can do notifications, not just to the guest, but to people operating, to staff on the property. We also plug into CRM and business intelligence systems. Again, if we can enrich that data back, we have data that can help a rebooking campaign happen much cleaner, much more personalized. We can help with some of the orchestration, and we have data feeds that we can push out. Whether that's to an internal stack or an external stack, we have the ability to begin to move all of that and move the needle for these properties. There's an agentic layer that's already proven. We deployed commercially, we were in beta before that, but we deployed AI Concierge to our largest property, almost 4,000 rooms. I believe 30 restaurants, 11 pools, a very large property. We saw incredible adoption there.

We saw 70% of guests using the app interacting with our AI Concierge. Those engagements were 40% above anything that we anticipated. These are helping to move the business forward as we roll out advancements. Our current retention rate for customers is running around 95%. So we hold onto our customers, we bring this added value to them, and we're continuing to do so. Of course, we have this long-term investment in wayfinding, which is what we're known for. The way to think about wayfinding is that it's essentially walking navigation, but it is not only outdoor and relying on GPS. We also have historically used Internet of Things, specifically beacons, to map and identify how somebody is moving through a physical space. That's a very differentiated data set. It's very real time. The interactions with it, such as how do I get somewhere?

I need a burger. Where is the closest restaurant? I am running late to the dolphin swim. How do I get there? All of these things are giving us information on that guest, not only about their interests, but where they physically are on property. Are they walking by the spa a lot? Are they at the pool a lot? We continue to build on this foundation. Even for guests and properties that don't have wayfinding or beacons, we can use other data points, such as did they key themselves into the room? Are they on the property Wi-Fi? In order to identify that they are on property and they are ripe for a recommendation, an anticipatory message, such as, like I mentioned, "Hey, you don't have lunch booked. You don't have dinner booked. Can we go ahead and make a reservation for you?" There is a property that we work with.

It is a very large, well-known property in Wailea. It has had 70% app adoption to help guests navigate a property.