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authID (AUID) - 2025 Q1 - Earnings Call Transcript
AUIDauthID (AUID)2025-05-13 22:00

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately 300,000,comparedto300,000, compared to 160,000 in the same period last year, representing an increase of 87.5% [16] - Operating expenses for Q1 were 4,700,000,upfrom4,700,000, up from 3,300,000 a year ago and down from 4,900,000inthepreviousquarter[16]−Netlossforthequarterwas4,900,000 in the previous quarter [16] - Net loss for the quarter was 4,300,000, compared to a net loss of 3,100,000forthesameperiodlastyear[16]−AdjustedEBITDAlosswas3,100,000 for the same period last year [16] - Adjusted EBITDA loss was 3,900,000 for Q1, compared to a loss of 2,400,000forthesameperiodlastyear[18]−Remainingperformanceobligation(RPO)was2,400,000 for the same period last year [18] - Remaining performance obligation (RPO) was 13,850,000, a decrease of 410,000fromthepriorquarterbutanincreasefrom410,000 from the prior quarter but an increase from 4,030,000 a year ago [17] Business Line Data and Key Metrics Changes - The company is focusing on large enterprise deals and partnerships, with significant progress reported in contract negotiations with Fortune 500 companies [8][10] - A paid live production trial agreement was signed with a global Fortune 100 retailer, indicating a move towards long-term contracts [10] - The company is also in the final stages of contract negotiations with a major identity fraud platform [10] Market Data and Key Metrics Changes - The company reported generating 13,000,000innewpipelineinQ1,withexpectationstobuildonthisinQ2[46]−Thedemandforbiometricsolutionsisincreasing,particularlyduetorisingconcernsovercyberattacksandfraud[6][7]CompanyStrategyandDevelopmentDirection−Thecompanyaimstobecomealeaderinthebiometricauthenticationmarket,focusingonspeed,accuracy,privacy,andinteroperability[12][13]−Strategicinvestmentshavebeenmadeinprivacykeytechnology,allowingbiometricauthenticationwithoutstoringbiometricdata[12]−ThecompanyisexpandingintopublicsectoropportunitiesandsmartcityprojectsinSouthAmericaandIndia[11]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinachievingthe13,000,000 in new pipeline in Q1, with expectations to build on this in Q2 [46] - The demand for biometric solutions is increasing, particularly due to rising concerns over cyber attacks and fraud [6][7] Company Strategy and Development Direction - The company aims to become a leader in the biometric authentication market, focusing on speed, accuracy, privacy, and interoperability [12][13] - Strategic investments have been made in privacy key technology, allowing biometric authentication without storing biometric data [12] - The company is expanding into public sector opportunities and smart city projects in South America and India [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 18,000,000 bookings target for 2025, despite delays in the sales process [19][16] - The macroeconomic environment is seen as dynamic, with potential for increased demand for biometric solutions due to rising fraud [6][7] Other Important Information - The company completed two capital raises in April and May, securing nearly 9,000,000 to improve its balance sheet and broaden its investor base [15] - The company received recognition as the best ID management platform in 2025 by FinTech Breakthrough Awards [14] Q&A Session Summary Question: When will the company start seeing leverage from partnerships? - Management indicated that they are already benefiting from partnerships and expect bookings to follow as they invest in channel partners [25][26] Question: Why are expenses high compared to revenue? - Management explained that current expenses are driven by investments in headcount for sales and R&D, which are necessary for future growth [29][30] Question: How many Fortune 500 clients are needed to meet the 18,000,000 goal? - Management stated that signing four to five large deals could potentially meet the target, with some deals large enough to cover the entire amount [36][37][40]