Financial Data and Key Metrics - Total revenue for Q3 2024 was 3.8million,downfrom6.4 million in Q3 2023, primarily due to lower software license revenue, including a 2.9millionone−timelicensesaleintheprioryear[21]−Recurringrevenuegrew292.8 million, up from 2.2millioninQ32023,drivenbythecompany′sfocusonbuildingpredictablelong−termrevenuestreams[22]−Operatingexpensesdecreased65.3 million in Q3 2024, reflecting cost management efforts [23] - GAAP net loss for Q3 2024 was 1.2million,comparedtoanetincomeof1.1 million in Q3 2023, which included an 800,000one−timegain[23][24]−AdjustedEBITDAlossforQ32024was1.1 million, compared to a gain of 400,000inQ32023,largelyduetolowerrevenue[25]−Forthefirst9monthsof2024,totalrevenuewas12.6 million, down from 13.9millioninthesameperiodlastyear,withrecurringrevenuegrowing198.7 million, making up 69% of total revenue [26] - Operating expenses for the first 9 months of 2024 decreased 7% to 16.7million,withanoperatinglossof4.1 million, consistent with the prior year [27] - Adjusted EBITDA loss for the first 9 months of 2024 was 3million,animprovementfromalossof3.3 million in the prior year, driven by lower operating expenses [28] - Cash, cash equivalents, and marketable securities totaled 27.4millionasofSeptember30,2024,comparedto30.9 million at the end of 2023 [29] Business Line Performance - The company secured a 1millionbookingwiththeEuropeangovernmentinOctober2024,drivenbyenhancementstotheBioSPplatform,includingofflinebiometricenrollmentcapabilities[10][43]−TheABISportfolioexpandedwith2newtermcontractsinQ3andanadditionalaccountinQ4,bringingthetotalto5accounts,expectedtogeneratesteadyrevenueoverthenext5years[11]−Accesscontrolsolutions,includingAwareID,sawsignificanttractioninBrazilandadoptionintheMiddleEastandLatinAmerica,particularlyindigitaltest−takingenvironments[12]−TheSaaSmodelgainedmomentumwiththelaunchofAwareIDasano−codeplug−inontheWordPressmarketplace,targetingindustrieslikeonlinegaming,retail,ande−commerce[14][15]−Thecompanyenhanceditspartnerprogram,introducingnewinitiativesfocusedoncollaborativebusinessplanningandincentivization,andhostedaPartnershipSummitintheMiddleEast[17][18]MarketPerformance−TheEuropeangovernmentdealisexpectedtocontributetoQ4resultsandfuturerecurringrevenue,withpotentialforadditionalusecasesinborderandimmigrationmanagement[43][44]−TheAwareIDplug−inonWordPressisexpectedtoacceleratecustomeracquisitioninhigh−riskindustrieslikeonlinegamingande−commerce,leveragingWordPress′s40900,000 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 1millionEuropeangovernmentbooking?−ThedealwassecuredduetoenhancementstotheBioSPplatform,includingofflinebiometricenrollment,andisexpectedtocontributetoQ4resultsandfuturerecurringrevenue[43][44]Question:WhatistheimpactoftheAwareIDplug−inonWordPress?−Theplug−inisexpectedtodrivecustomeracquisitioninsectorslikeonlinegamingande−commerce,withearlyadoptionalreadyunderway[45][46]Question:Whatistheconfidencelevelinclosingdelayeddeals?−ManagementisconfidentthatdelayeddealswillcloseinQ4orearly2025,withdelaysduetoexpandedprojectscoperatherthanlostopportunities[47][48]Question:Whatwillbethefocusareasfortheexecutivestrategicadviser?−Theadviserwillfocusonenhancingmarketposition,refiningtheproductroadmap,andprovidingstrategicguidanceforgrowthandcompetitiveness[49]Question:WhatistheplanifanewCEOisnotappointedbyyear−end?−TheBoardisfocusedonfindingtherightcandidate,withthestrategicadviserensuringasmoothtransition,and900,000 in one-time expenses expected in Q4 [50]
