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01/11 03:13
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call shows a mixed picture with some positives like increased revenue and partnerships, but significant negatives such as increased operating expenses, net loss, and reduced revenue guidance. The Q&A reveals uncertainties in contract timelines and adoption rates, along with management's unclear responses. Despite growth in BARR, the financial health and lack of shareholder return plan suggest a negative sentiment. The reduced guidance and widening losses outweigh the positive developments, leading to a likely negative stock price movement.
Total Revenue Q4 2024 $0.2 million, up from $0.07 million a year ago.
Total Revenue Full Year 2024 $0.89 million, compared to $0.19 million a year ago.
Operating Expenses Q4 2024 $4.9 million, compared to $3.3 million last year.
Operating Expenses Full Year 2024 $15.6 million, compared to $10.9 million in 2023.
Net Loss Q4 2024 $4.6 million, compared to a net loss of $3.2 million a year ago.
Net Loss Full Year 2024 $14.3 million, compared to a net loss of $19.6 million for the same period last year.
Net Loss per Share Q4 2024 $0.49, compared with $0.41 a year ago.
Net Loss per Share Full Year 2024 $1.40, compared with $3.19 last year.
Remaining Performance Obligation (RPO) Q4 2024 $14.26 million, up from approximately $4 million a year ago.
Adjusted EBITDA Loss Q4 2024 $4.1 million, compared with a $2.7 million loss for the same period last year.
Adjusted EBITDA Loss Full Year 2024 $11.9 million, compared with an $8.7 million loss for the same period last year.
Booked Annual Recurring Revenue (BARR) Q4 2024 $7.13 million, up from $1.67 million a year ago.
Gross BARR Full Year 2024 $9.01 million, up from $2.94 million in 2023.
Net BARR Q4 2024 $6.86 million, compared with $1.67 million of net BARR signed in the fourth quarter of 2023.
Net BARR Full Year 2024 $7.38 million, compared with $2.94 million in 2023.
PrivacyKey: In our 4.0 release, we offer PrivacyKey which represents a quantum leap forward in biometric authentication providing frictionless security while maintaining the highest standards of data privacy and protection.
Reusable Identity Solution: authID is working with a major biometric hardware provider to showcase our reusable identity solution by deploying the first identity exchange between the United States and Japan.
Partnership with Zendesk: In Q4, we announced a partnership with Zendesk to enable their customers to seamlessly access authID through their customer support software.
Expansion of Customer Base: We added several new customers and partners in Q4 including TurboCheck, Imperial Technologies, Berify, and Salus.
Booked ARR: For 2024, we achieved a booked ARR of $9 million, representing a 3x growth from the previous year.
Remaining Performance Obligation (RPO): As of December 31, 2024, our total RPO was $14.26 million, an increase of $10.43 million over the prior quarter.
Go-to-Market Strategy: We built a proven go-to-market plan centered around 300 core accounts divided into three categories: fast high growth companies, large enterprise companies, and channel partners.
Focus on Large Customers: We expect to close multiple Fortune 500 and multinational customers in 2025.
Competitive Pressures: The rise of artificial intelligence has led to sophisticated fraud attacks, including deepfakes, which challenge identity verification solutions.
Regulatory Issues: Stringent legislation such as CCPA, BIPA, CUBI, and GDPR creates potential liability for compliance failures around biometric data, causing hesitation in adoption.
Supply Chain Challenges: The company faces challenges in managing multiple identities for global employee and contractor workforces, which complicates onboarding processes.
Economic Factors: The overall economic environment and potential downturns could impact customer spending and investment in biometric solutions.
Growth Strategy: authID aims for a five-year T2D3 growth target to reach $100 million in ARR, achieving $9 million in booked ARR for 2024.
Partnerships: authID is building a partner ecosystem, including a significant partnership with Zendesk to enhance customer support.
Technology Development: The introduction of PrivacyKey represents a significant advancement in biometric authentication, ensuring data privacy and compliance.
Market Positioning: authID is focused on positioning itself as a leader in biometric authentication, targeting large enterprise customers and Fortune 500 companies.
Revenue Expectations: For 2025, authID expects to close multiple Fortune 500 and multinational customers, with a pipeline generation activity targeting $18 million in bookings.
Remaining Performance Obligation (RPO): As of December 31, 2024, total RPO was $14.26 million, expected to be recognized over the life of contracts.
Annual Recurring Revenue (ARR): The ARR as of Q4 is $0.8 million, with a focus on customer retention and expansion in 2025.
Booked Annual Recurring Revenue (BARR): For 2024, gross BARR was $9.01 million, a 3x increase from 2023.
Shareholder Return Plan: None
The earnings call summary reveals several concerns: a significant reduction in revenue targets, underperforming customer engagements, increased operating expenses, and a negative net revenue. Despite a few positive aspects like gross revenue growth and strategic partnerships, the negative financial metrics and challenges overshadow them. The Q&A session did not provide additional insights to alter this view. Overall, the negative sentiment stems from financial underperformance and reduced guidance, suggesting a likely negative stock price movement.
The earnings call shows strong growth in ARR and BAR, a significant partnership with Prove, and a positive outlook on achieving booking targets. Despite increased losses, the optimistic guidance and strategic initiatives, including entering new markets and enhancing product offerings, suggest a positive sentiment. The Q&A section supports this view, with management expressing confidence in revenue growth from new contracts and partnerships. The lack of clear guidance on some deals is a concern, but overall, the sentiment is positive, likely leading to a 2% to 8% stock price increase.
The earnings call reveals several concerns: increased operating expenses and net losses, delayed sales cycles, and a vague timeline for partnership benefits. Despite some positive aspects like increased RPO and ARR, the significant decline in bARR and economic uncertainties overshadow them. The Q&A section highlights management's unclear responses, adding to uncertainties. These factors, combined with market risks and weak financial guidance, suggest a negative stock price movement in the short term.
The earnings call shows a mixed picture with some positives like increased revenue and partnerships, but significant negatives such as increased operating expenses, net loss, and reduced revenue guidance. The Q&A reveals uncertainties in contract timelines and adoption rates, along with management's unclear responses. Despite growth in BARR, the financial health and lack of shareholder return plan suggest a negative sentiment. The reduced guidance and widening losses outweigh the positive developments, leading to a likely negative stock price movement.
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