Smith Micro to launch SafePath 8 with advanced AI features

PITTSBURGH - Smith Micro Software, Inc. (NASDAQ: SMSI), currently trading at $1.04 per share, has announced the forthcoming release of SafePath® 8, its latest family safety platform iteration, expected to launch in 2025. According to InvestingPro analysis, the company appears undervalued despite facing recent challenges, with the stock down over 63% in the past year. The new version aims to provide families with AI-driven features to enhance their digital safety and management.

SafePath 8 is designed to deliver actionable insights to parents, helping them keep their families secure in the digital space. The platform will extend across the SafePath ecosystem, which includes rate plan solutions, OTT apps, and phones with SafePath OS designed for kids and seniors. This development comes as the company maintains a strong gross profit margin of 70.2%, though InvestingPro data shows the company is currently working through some operational challenges with negative EBITDA.

One of the key features of SafePath 8 is Social Media Intelligence, which will automatically alert parents to potential concerns in their children’s social media activities, such as cyberbullying and profanity. This function is intended to facilitate timely parental intervention and discussions regarding online behavior.

The platform also introduces a dynamic age-awareness feature that adjusts protection settings based on the child’s age, informed by expert recommendations. This allows for a tailored approach to digital safety, giving parents a starting point that can be customized within the application.

Furthermore, SafePath 8 plans to incorporate an AI Blocking Function, enabling parents to limit their children’s use of AI chatbots and tools, which studies suggest may impact critical thinking skills.

An upcoming AI Assistant feature for parents will use large language models to provide insights about family activities in both digital and physical realms.

Additionally, the platform will offer access to a Digital Wellness Resource Website directly from the SafePath application, providing a curated collection of online safety resources for families.

SafePath, a carrier-grade white-label solution, supports wireless service providers and cable operators in offering branded family safety services. These services include location tracking, parental controls, screen time management, and driver monitoring, aiming to enhance subscriber loyalty and generate new revenue streams for service providers.

The announcement by Smith Micro Software, Inc., which specializes in software that enriches mobile experiences, is based on a press release statement. The company cautions that certain statements regarding the anticipated release of SafePath 8 are forward-looking and subject to risks and uncertainties that could cause actual results to differ.

Investors and consumers are anticipating the release of SafePath 8, as it represents the company’s continued commitment to providing innovative solutions in the realm of family digital safety. With a market capitalization of $17.88 million and analyst price targets ranging from $4.00 to $5.50, the stock presents an interesting case for investors. For deeper insights into SMSI’s valuation and growth potential, including 12 additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, Smith Micro Software reported a significant decline in its financial performance for the fourth quarter of 2024, with revenue falling by 42% compared to the same period last year. The company’s full-year revenue for 2024 also saw a steep decline, dropping 50% from 2023. Smith Micro reported a net loss of $4.4 million for the quarter, equating to $0.25 per share. Despite these setbacks, the company is focusing on expanding its family safety solutions and anticipates growth in the latter half of 2025, targeting new product launches with carriers by summer 2025. CEO Bill Smith emphasized the potential of new carrier partnerships, noting that a win with their SafePath OS offerings could significantly impact the company’s trajectory. Smith Micro forecasts first-quarter 2025 revenue between $4.6 million and $5.0 million. The company remains optimistic about its strategic shift towards family safety solutions, which it believes aligns with growing market demands.

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