By Connor Hart

Shares of Phunware gained after the company issued a letter to stockholders that outlined its intention to tap into the growing artificial-intelligence market and updated investors on its financial position.

The stock rose 19% to $6.40 in afternoon trading Wednesday. Shares, which have nearly doubled in the past month, are up 56% since the beginning of the year.

The Austin, Texas, enterprise-software company is developing a new generative AI-based platform that aims to simplify mobile app design and content creation, reducing the need for what the company called expensive and time-consuming design and development investments.

Chief Executive Mike Snavely said the new platform will make custom mobile app solutions more accessible to small- and medium-sized businesses. Phunware will also add new AI-related features and functionalities to its existing mobile app offerings, he added.

The new platform is expected to launch mid-2025, with additional updates and features being added throughout the year.

The company also said its financial position is strong, having reduced its cash burn and increased sales in the first half of the year. Phunware has no debt, is experiencing improvements in its year-to-date software and advertising business bookings, and will continue to invest in growing markets, it said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

October 16, 2024 15:58 ET (19:58 GMT)

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