Motricity released second-quarter financial results today, marking its first quarter as a publicly traded company.
A lot of time was spent on the call getting analysts up to speed on its business and what to watch for in the upcoming quarters, like understanding the difference between managed services and professional services revenues. In addition, the Bellevue, Wash.-based company announced new deals with existing customers Virgin Mobile UK and AT&T (NYSE: T), and discussed a new contract with XL Axiata in Indonesia, one of the largest and fastest growing carriers in Southeast Asia.
Motricity provides software and services to carriers that want to roll out data services to their subscribers, including storefronts, internet services and others. One of the company’s upcoming implementations is with AT&T to build out a new app-store-like solution called “Marketplace.” No details of that service were discussed, but it is expected to launch in the fourth quarter. Verizon Wireless is also using Motricity to enable mobile internet services on two of its newest smartphones, the HTC Incredible and the Droid X. Its new contract with Virgin Mobile (NYSE: VM) UK will provide a service that allows one-click access to social networks, like Facebook, MySpace (NSDQ: NWS) and Twitter, along with e-mail sites like Gmail, Yahoo (NSDQ: YHOO), MSN and AOL (NYSE: AOL) Mail.
CEO Ryan Wuerch said the company has an amazing opportunity available as consumers adopt data services. To leverage that trend, he outlined four major initiatives for the company: to improve their existing North American contracts; sign additional international deals; to continue to sell more of the company’s existing product lines to old and new customers; and continue innovating to strengthen their position in a rapidly changing industry.
Wuerch emphasized that the company’s professional services revenues are a leading indicator as to whether their overall revenues will rise. In other words, they both get paid to implement the service, and get a share of the revenues as the services are used (The flip side of this is that the services will have to be popular among subscribers in order for Motricity to get paid.). “We have a model whereby we get paid to deploy and as users grow,” he said.
The company’s net loss totaled $11.6 million on revenues of $30.4 million. Te net loss was impacted by a one-time charge of $17.5 million for stock-based compensation related to Motricity’s IPO. The company received $51.4 million in proceeds from its IPO.

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