Matt Glover Good afternoon. And welcome to Aware's Fourth Quarter and Full Year 2024 Conference Call. Joining us today are the company's CEO and President, Ajay Amlani; and CFO, David Traverse. [Operator Instructions] Before we begin today's call, I'd like to remind everyone that the presentation today contains forward-looking statements that are based on the current expectations of Aware's management and involve inherent risks and uncertainties that could cause actual results to differ materially from thos ...

Revenue Performance - Total revenue for the full year 2024 decreased by 5% to $17.4 million from $18.2 million in 2023[5] - Recurring revenue for the full year 2024 increased by 9% to $12.0 million compared to $11.0 million in 2023[5] - Fourth quarter 2024 revenue increased by 10% year-over-year to $4.8 million compared to $4.4 million in Q4 2023[5] - Total recurring revenue for Q4 2024 was $3,296 thousand, down 10.3% from $3,675 thousand in Q4 2023[31] - Total revenue for Q4 2024 increased to $4,797 thousand, compared to $4,374 thousand in Q4 2023, representing an increase of 9.6%[31] - Total revenue for the twelve months ended December 31, 2024 was $17,389 thousand, a decrease of 4.7% from $18,244 thousand in 2023[31] Profitability and Loss - Net loss for the full year 2024 improved by 39% to $4.4 million from $7.3 million in 2023[5] - Fourth quarter 2024 net loss decreased by 72% year-over-year to $1.2 million compared to $4.2 million in Q4 2023[5] - The net loss for Q4 2024 was $(1,192) thousand, an improvement from $(4,238) thousand in Q4 2023[29] - Adjusted EBITDA loss for the full year 2024 improved by 15% to $3.9 million compared to $4.6 million in 2023[5] - Adjusted EBITDA for Q4 2024 was $(829) thousand, an improvement from $(1,218) thousand in Q4 2023[29] - Adjusted EBITDA loss for the fourth quarter 2024 improved by 32% to $0.8 million compared to $1.2 million in Q4 2023[10] Cash and Securities - Cash and cash equivalents and marketable securities totaled $27.8 million at the end of 2024, down from $30.9 million at the end of 2023[13] Share Repurchase - The company repurchased 137,051 shares at a cost of $0.2 million during the year[5] Strategic Focus - Aware is focusing on strengthening key partnerships and accelerating technology advancements to capitalize on the expanding market opportunity in biometric security[7] Stock-Based Compensation - Stock-based compensation for the twelve months ended December 31, 2024 was $1,132 thousand, down 25.7% from $1,525 thousand in 2023[29] Future Expectations - The company expects to continue incurring expenses similar to those reflected in the adjusted EBITDA calculations[27]

Appointed Ajay Amlani as the new Chief Executive Officer. BURLINGTON, Mass., March 05, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a global biometric platform company that uses data science and machine learning to tackle everyday business and identity challenges through biometrics, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024. Full Year 2024 Financial Overview Total revenue decreased 5% to $17.4 million from $18.2 million in 2023.Recurring revenue ...

BURLINGTON, Mass., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ:AWRE), a global biometric platform company that uses data science, machine learning, and artificial intelligence to tackle everyday business and identity challenges through biometrics, will hold a webcast on Wednesday, March 5, 2025, at 5:00 p.m. Eastern time to discuss its financial results for the fourth quarter and year ended December 31, 2024. Financial results will be issued in a press release prior to the call. Aware management w ...

Ajay Amlani Aware CEO, Ajay Amlani BURLINGTON, Mass., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a leading global authentication company, today announces Ajay Amlani as its new Chief Executive Officer, following an extensive international search process. Amlani replaces Robert Eckel, who retired from Aware in late 2024. Amlani brings nearly two decades of experience at the intersection of government, private sector innovation, and cutting-edge identity technology to drive Aware’s grow ...

David Traverse named interim CEO and PresidentBURLINGTON, Mass., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a leading global biometric authentication company, today announced that its Board of Directors has appointed Aware Chief Financial Officer (CFO) David Traverse as Interim Chief Executive Officer (CEO), effective January 1, 2025. This appointment follows the effectiveness of Bob Eckel’s previously announced resignation as Aware’s CEO on December 31, 2024, a position he held since Sep ...

For Immediate ReleasesChicago, IL – November 25, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including GE Aerospace (GE) , Fomento Economico Mexicano (FMX) , Waste Management, Inc. (WM) and Aware, Inc. (AWRE) .Here are highlights from Monday’s Analyst Blog:Top Research Reports for GE Aerospace, Fomento Eco ...

3 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to _________ Commission file number 000-21129 AWARE, INC. (Exact Name of Registrant as Specified in Its Charter) | --- | --- | --- | |------------------- ...

Aware, Inc. (AWRE) reported a third quarter of 2024 loss per share of 6 cents against the year-ago period’s earnings of 5 cents.AWRE’s Revenues in DetailAware registered revenues of $3.8 million in the third quarter, down 39.7% year over year.Lower revenues from software licenses dampened the top line.Recurring revenues for the third quarter of 2024 totaled $2.8 million, up 29.2% year over year.Shares of this company declined nearly 19.3% in today’s pre-market trading.Find the latest EPS estimates and surpr ...

Financial Data and Key Metrics - Total revenue for Q3 2024 was $3.8 million, down from $6.4 million in Q3 2023, primarily due to lower software license revenue, including a $2.9 million one-time license sale in the prior year [21] - Recurring revenue grew 29% year-over-year to $2.8 million, up from $2.2 million in Q3 2023, driven by the company's focus on building predictable long-term revenue streams [22] - Operating expenses decreased 6% to $5.3 million in Q3 2024, reflecting cost management efforts [23] - GAAP net loss for Q3 2024 was $1.2 million, compared to a net income of $1.1 million in Q3 2023, which included an $800,000 one-time gain [23][24] - Adjusted EBITDA loss for Q3 2024 was $1.1 million, compared to a gain of $400,000 in Q3 2023, largely due to lower revenue [25] - For the first 9 months of 2024, total revenue was $12.6 million, down from $13.9 million in the same period last year, with recurring revenue growing 19% to $8.7 million, making up 69% of total revenue [26] - Operating expenses for the first 9 months of 2024 decreased 7% to $16.7 million, with an operating loss of $4.1 million, consistent with the prior year [27] - Adjusted EBITDA loss for the first 9 months of 2024 was $3 million, an improvement from a loss of $3.3 million in the prior year, driven by lower operating expenses [28] - Cash, cash equivalents, and marketable securities totaled $27.4 million as of September 30, 2024, compared to $30.9 million at the end of 2023 [29] Business Line Performance - The company secured a $1 million booking with the European government in October 2024, driven by enhancements to the BioSP platform, including offline biometric enrollment capabilities [10][43] - The ABIS portfolio expanded with 2 new term contracts in Q3 and an additional account in Q4, bringing the total to 5 accounts, expected to generate steady revenue over the next 5 years [11] - Access control solutions, including AwareID, saw significant traction in Brazil and adoption in the Middle East and Latin America, particularly in digital test-taking environments [12] - The SaaS model gained momentum with the launch of AwareID as a no-code plug-in on the WordPress marketplace, targeting industries like online gaming, retail, and e-commerce [14][15] - The company enhanced its partner program, introducing new initiatives focused on collaborative business planning and incentivization, and hosted a Partnership Summit in the Middle East [17][18] Market Performance - The European government deal is expected to contribute to Q4 results and future recurring revenue, with potential for additional use cases in border and immigration management [43][44] - The AwareID plug-in on WordPress is expected to accelerate customer acquisition in high-risk industries like online gaming and e-commerce, leveraging WordPress's 40% market share of the web [45][46] Strategic Direction and Industry Competition - The company is focused on transitioning to a recurring revenue model, with recurring revenue growing at a 20% rate since 2020 [8] - Key strategic initiatives include driving vertical-specific product-market fit, expanding the global partner ecosystem, and improving revenue predictability through SaaS models [34] - The company aims to achieve double-digit recurring revenue growth and sustainable positive cash flow, leveraging its scalable infrastructure and product offerings [35] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about Q4 performance, with a robust pipeline and confidence in capturing opportunities, despite some delays in contract closures [19][47] - The company is well-positioned for sustained growth, with a focus on enhancing product offerings and deepening partnerships based on customer feedback [20] - The CEO succession plan is in place, with a transition period extending through December 31, 2024, and an executive strategic adviser appointed to refine market position and growth strategy [36][40][49] Other Important Information - The company expects to recognize approximately $900,000 in one-time expenses in Q4 related to the CEO search and transition [50] - The CEO highlighted the company's transformation from a project-based model to a recurring revenue model, achieving 20% ARR growth and 15% top-line growth from 2020 to 2023 [37][38] Q&A Session Summary Question: What is the anticipated run rate revenue by year-end? - The company is on track for double-digit revenue growth in 2024, with 7 new contracts and expanding partnerships expected to strengthen the recurring revenue base in 2025 [42] Question: Can you provide details on the $1 million European government booking? - The deal was secured due to enhancements to the BioSP platform, including offline biometric enrollment, and is expected to contribute to Q4 results and future recurring revenue [43][44] Question: What is the impact of the AwareID plug-in on WordPress? - The plug-in is expected to drive customer acquisition in sectors like online gaming and e-commerce, with early adoption already underway [45][46] Question: What is the confidence level in closing delayed deals? - Management is confident that delayed deals will close in Q4 or early 2025, with delays due to expanded project scope rather than lost opportunities [47][48] Question: What will be the focus areas for the executive strategic adviser? - The adviser will focus on enhancing market position, refining the product roadmap, and providing strategic guidance for growth and competitiveness [49] Question: What is the plan if a new CEO is not appointed by year-end? - The Board is focused on finding the right candidate, with the strategic adviser ensuring a smooth transition, and $900,000 in one-time expenses expected in Q4 [50]