• Total Revenue (Q3 2024): $249,000, up from $43,000 in Q3 2023.
• Total Revenue (Nine Months 2024): $687,000, compared to $118,000 in the same period last year.
• Operating Expenses (Q3 2024): $3.8 million, flat compared to the prior year.
• Net Loss from Continuing Operations (Q3 2024): $3.4 million, compared to $3.7 million in Q3 2023.
• Net Loss Per Share (Q3 2024): $0.31, improved from $0.47 a year ago.
• Annual Recurring Revenue (ARR): $1 million as of Q3 2024, up from $0.2 million in Q3 2023.
• Booked Annual Recurring Revenue (bARR) (Q3 2024): $1.15 million, up from $1.02 million a year ago.
• Remaining Performance Obligations (RPO): $3.8 million as of September 30, 2024, compared to $1.9 million in the same period last year.
• Revenue Guidance for 2024: Revised to $800,000 to $900,000, representing 4X growth over last year.
• Sales Pipeline: Grew to over $33 million in Q3 2024.

• Warning! GuruFocus has detected 7 Warning Signs with AUID.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AuthID Inc (NASDAQ:AUID) signed a $10 million agreement with a next-generation AI company in India, marking a significant entry into the Indian market.
• The company welcomed Erick Soto as the new Chief Product Officer, bringing over 15 years of experience in identity verification and financial services.
• AuthID Inc (NASDAQ:AUID) achieved a 25-fold increase in the number of identities processed per quarter since June 2023, with a strong ramp in volume for Q3 2024.
• The company signed a multi-year agreement with a global retail technology organization, enhancing digital experiences for multinational retailers.
• AuthID Inc (NASDAQ:AUID) made key staff appointments to bolster sales initiatives, including Donna Shawhan as VP Channel Sales & Partnerships and Greg Manship as VP of Sales.

Negative Points

• AuthID Inc (NASDAQ:AUID) experienced delayed customer go-lives and adjustments to volume expectations, pushing anticipated revenue from 2024 to 2025.
• The company reduced its full-year revenue guidance to a range of $800,000 to $900,000, down from previous expectations.
• Operating expenses for the nine-month period increased to $10.7 million compared to $7.6 million last year.
• Net loss from continuing operations for the nine-month period was $9.7 million, compared to a net loss of $16.4 million for the same period last year.
• AuthID Inc (NASDAQ:AUID) had to make concessions to customers with delayed volume ramp, impacting revenue recognition and reducing RPO.

Q & A Highlights

Q: Can you expand on the $10 million agreement with the partner in India? A: The partnership involves a next-generation AI company in India that focuses on coding development. AuthID will be the default OEM security provider for applications developed by this partner, integrating biometric authentication as the default security protocol. This partnership allows AuthID to ship biometrics to a wide range of customers across India and the region. - Rhon Daguro, CEO & Director

Q: Why is the revenue guidance for Q4 flat despite new customers going live? A: Delays in customer go-lives have impacted revenue recognition. While we are seeing improvements in customer onboarding, these delays have pushed anticipated revenue from 2024 to 2025. We are working to align customer plans with our timelines to avoid future delays. - Rhon Daguro, CEO & Director

Q: Can you clarify the calculation of the $10 million contract's impact on bARR? A: The $10 million contract is spread over three years, equating to $3.3 million per year in committed annual recurring revenue (CAR). The usage above commitment (UAC) is expected to double that, totaling $6.6 million in bARR. This, combined with existing bARR, supports our target of $9 million for 2024. - Ed Sellitto, CFO

Q: What types of customers and use cases are you targeting in your pipeline? A: Our focus is primarily on financial services, including banks and large payment institutions. We are also targeting sectors like retail management, hotels, casinos, healthcare, and telecommunications. These verticals are expected to drive growth through 2025. - Rhon Daguro, CEO & Director

Q: Can you provide more details on the financial capacity of the Indian partner in the $10 million contract? A: While specific financial details cannot be disclosed, we believe the partner is financially capable of fulfilling the contract's obligations. It is a multi-million dollar organization. - Rhon Daguro, CEO & Director

For the complete transcript of the earnings call, please refer to the full earnings call transcript.