By James Rogers
The company developed and launched a mobile app for Donald Trump’s 2020 re-election campaign
Mobile advertising software company Phunware Inc. – which gained a lot of attention during the presidential election as a so-called “Trump trade” thanks to its link to the president-elect – is now working on a recruitment technology that it says will give campaigns greater insight into voter sentiment.
Just like Trump Media & Technology Group Corp. (DJT), which operates Trump’s social media platform Truth Social, shares of Phunware (PHUN) rose during the former president’s election campaign. Phunware developed and launched a mobile app for Trump’s 2020 re-election campaign.
The company’s shares fell 0.7% on Thursday but have risen more than 32% over the past three months, outpacing the S&P 500 index’s SPX gain of 8.3% in that time.
Related: Phunware narrows quarterly loss due to revenue decline and stock prices continue to fall
In early November, Phunware announced a deal to acquire a controlling stake in MyCanvass, a technology company that provides voter and advocacy tools. MyCanvass is a subsidiary of Campaign Nucleus, a software-as-a-service platform founded by Brad Parscale, the digital director of Trump’s 2016 campaign and the manager of his 2020 campaign.
With its stake in MyCanvass, Phunware is working on a new acquisition technology that will debut next year. “We expect to do a final demo sometime in the first and second quarters,” Phunware interim CEO Stephen Chen told MarketWatch. “What you’ll find is that it will be an AI-driven acquisition tool – we’ll be able to personalize based on demographic information, behavioral information and location.”
According to Chen, the tool will use information from ‘ordinary citizens’, but also from campaign volunteers, campaign organizers and the candidates themselves. “For campaigns, you will be able to see actionable insights,” he added, noting that this will include voter sentiment and “outreach effectiveness.”
Related: Phunware shares rise after Donald Trump’s election victory
Chen told MarketWatch that the “AI-powered civic engagement” tool can be deployed by a broader cross-section of society, rather than just a political party. “It strengthens communities, it promotes trust and discourse, it encourages decision-making and it also promotes accountability from all parties,” he said.
The interim CEO said the technology aims to address shortcomings in existing polling data, where echo chambers can create the feeling of “a false equivalency where both sides appear to be equally strong,” he said. “We have improved data collection and analysis,” Chen added.
Outside the political realm, a number of companies have leveraged Phunware’s technology, including Live Nation Entertainment Inc. (LYV), Marriott International Inc. (MAR), Norfolk Southern Corp. (NSC) and the National Football League.
Related: Phunware shares plummet more than 35% after CEO retires
In addition to its work with MyCanvass, Phunware is also developing a new generative AI platform. “We are now conducting private beta testing,” Chen said. “We are on track to have a wider release in mid-2025. We will open ourselves to a wider audience halfway through the year.”
Phunware has undergone leadership changes in recent months. Last month, the company announced that Chief Financial Officer Troy Reisner would resign, shortly after announcing the retirement of Chief Executive Mike Snavely. Chen, the former chairman of Phunware’s board of directors, has assumed the role of interim CEO, as well as the duties of chief financial officer and chief accounting officer.
“The company is very well integrated,” Chen told MarketWatch. He said he could not comment on the search for the company’s CEO and CFO.
Related: Phunware shares fall after CFO resigns and polls put Harris ahead in Iowa
Shares of Phunware fell 0.7% on Thursday.
-James Rogers
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12-12-24 1439ET
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