Intellicheck Announces Record Fourth Quarter and Full-Year 2024 Financial Results
Fourth Quarter SaaS Revenues Grew 17% Year Over Year
MELVILLE, N.Y.--(BUSINESS WIRE)--March 20, 2025--
Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity company delivering on-demand digital and physical identity validation solutions, today announced its financial results for the fourth quarter and full-year ended December 31, 2024. Total revenue for the fourth quarter ended December 31, 2024 grew 15% to a record $5,936,000 compared to $5,176,000 in the same period of 2023. Fourth quarter SaaS revenue grew 17% and totaled $5,913,000 compared to $5,069,000 in the same period of 2023. Total revenue for the full year ended December 31, 2024 grew 6% to $19,997,000 compared to $18,906,000 in the same period of 2023. Full year SaaS revenue grew 7% and totaled $19,810,000 compared to $18,595,000 in the same period of 2023.
"Our strategic decision to move into new market verticals has been key in allowing us to offset the headwinds we continue to see given the ongoing and growing issues of retail contraction, consumer economic concerns, reduced spending, and market turmoil. We believe we will show progress in 2025 as we remain focused on expanding our customer base, growing our presence in new market verticals and building on our partnerships with existing customers," said Intellicheck CEO Bryan Lewis.
Gross profit as a percentage of revenues was 91.1% for the three months ended December 31, 2024 compared to 94.9% in the same period in 2023.
Operating expenses for the three months ended December 31, 2024, which consist of selling, general and administrative expenses and research and development expenses were $4,928,000 for the fourth quarter of 2024 compared to $4,064,000 for the same period of 2023. Included within operating expenses for the fourth quarters of 2024 and 2023 were $233,000 and $249,000, respectively, of non-cash equity compensation expense.
Net income for the three months ended December 31, 2024 was $488,000 or $0.03 per diluted share compared to Net income of $984,000 or $0.05 per diluted share for the same period in 2023.
Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales tax accrual, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) was $860,000 for the fourth quarter of 2024 as compared to $1,170,000 for the same period of 2023. A reconciliation of adjusted EBITDA to net loss is provided in this release.
Full Year 2024 Results
Total revenue for the full year ended December 31, 2024 increased 6% to $19,997,000 compared to $18,906,000 in the same period of 2023. Year-over-year SaaS revenue grew 6% and totaled $19,810,000 compared to $18,595,000 in the same period of 2023.
Gross profit as a percentage of revenue was 90.8% for the year ended December 31, 2024 compared to 92.7% in the same period of 2023.
Operating expenses for the year ended December 31, 2024 were $19,334,000 compared to $19,807,000 for the same period of 2023. Included within operating expenses for the full years of 2024 and 2023 were $876,000 and $1,596,000, respectively, of non-cash equity compensation expense.
Net loss for the year ended December 31, 2024 improved to ($918,000) or ($0.05) per diluted share compared to a net loss of ($1,980,000) or ($0.10) per diluted share in the same period of 2023. Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales tax accrual, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) improved to $520,000 for the year ended December 31, 2024 compared to $377,000 for the same period of 2023. A reconciliation of adjusted EBITDA to net loss is provided in this release.
As of December 31, 2024, the Company had cash that totaled $4.7 million, and stockholders' equity totaled $17.7 million.
The financial results reported today do not consider any adjustments that may be required in connection with the completion of the Company's financial statement audit process and should be considered preliminary until Intellicheck files its Form 10-K for the fiscal year ended December 31, 2024.
Conference Call Information
The Company will hold an earnings conference call on March 20, 2025 at 4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037.
A replay of the conference call will be available shortly after completion of the live event. To listen to the replay, please dial 877-660-6853 and use conference identification number 13751782. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13751782. The replay will be available beginning approximately two hours after the completion of the live event and will remain available until March 27, 2025.
INTELLICHECK, INC.
CONDENSED BALANCE SHEETS
DECEMBER 31, 2024 and 2023 (unaudited)
2024 2023
------------- ------------
(in thousands, except share and
per share amounts)
ASSETS
---------------------------------
CURRENT ASSETS:
Cash and cash equivalents $ 4,666 $ 3,980
Short-term investments -- 5,000
Accounts receivable, net of
allowance for credit losses
of $100 and $69 as of
December 31, 2024 and 2023,
respectively 4,675 4,703
Other current assets 571 692
------------- ------------
Total current assets 9,912 14,375
PROPERTY AND EQUIPMENT, NET 536 666
GOODWILL 8,102 8,102
INTANGIBLE ASSETS, NET 2,374 575
OTHER ASSETS 9 90
------------- ------------
Total assets $ 20,933 $ 23,808
============= ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
---------------------------------
CURRENT LIABILITIES:
Accounts payable $ 443 $ 884
Accrued expenses 1,742 3,245
Equity awards liability -- 4
Liability for shares withheld -- 190
Deferred revenue, current
portion 1,001 2,209
------------- ------------
Total current liabilities 3,186 6,532
Total liabilities 3,186 6,532
COMMITMENTS AND CONTINGENCIES
(Note 10)
STOCKHOLDERS' EQUITY:
Preferred stock -- $0.01 par
value; 30,000 shares
authorized; Series A
convertible preferred stock,
zero shares issued and
outstanding as of December 31,
2024 and 2023, respectively -- --
Common stock -- $0.001 par
value; 40,000,000 shares
authorized; 19,782,311 and
19,354,335 shares issued and
outstanding as of December
31, 2024 and 2023,
respectively 19 19
Additional paid-in capital 152,211 150,822
Accumulated deficit (134,483) (133,565)
------------- ------------
Total stockholders' equity 17,747 17,276
------------- ------------
Total liabilities and
stockholders' equity $ 20,933 $ 23,808
============= ============
INTELLICHECK, INC.
CONDENSED STATEMENTS OF
OPERATIONS
FOR THE YEARS ENDED DECEMBER 31,
2024 AND 2023
(unaudited)
2024 2023
(in thousands, except share and
per share amounts)
REVENUES $ 19,997 $ 18,906
COST OF REVENUES (1,831) (1,375)
------------- ------------
Gross profit 18,166 17,531
OPERATING EXPENSES
Selling, general and
administrative 15,477 15,127
Research and development 3,857 4,680
------------- ------------
Total operating expenses 19,334 19,807
------------- ------------
Loss from operations (1,168) (2,276)
------------- ------------
OTHER INCOME
Interest and other income 283 234
------------- ------------
Total other income 283 234
------------- ------------
Net loss before provision for
(benefit from) income taxes (885) (2,042)
------------- ------------
Provision for (benefit from)
income taxes 33 (62)
------------- ------------
Net loss $ (918) $ (1,980)
============= ============
PER SHARE INFORMATION:
Loss per common share -
Basic/Diluted $ (0.05) $ (0.10)
============= ============
Weighted average common shares
used in computing per share
amounts -
Basic/Diluted 19,327,132 19,243,179
============= ============
INTELLICHECK, INC.
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (Unaudited)
(in thousands, except number of shares)
Common Stock
---------------------
Additional Total
Paid-in Accumulated Stockholders'
Shares Amount Capital Deficit Equity
----------- -------- ------------ ------------- -----------------
BALANCE,
December 31,
2022 18,957,366 $ 19 $ 149,233 $ (131,585) $ 17,667
Stock-based
compensation -- -- 1,646 -- 1,646
Issuance of
common stock
for vested
restricted
stock grants
and earned
performance
stock grants 421,689 -- -- -- --
Shares
forfeited in
exchange for
withholding
taxes (24,720) -- (57) -- (57)
Net loss -- -- -- (1,980) (1,980)
---------- ---- ------- -------- ------- ---
BALANCE,
December 31,
2023 19,354,335 $ 19 $ 150,822 $ (133,565) $ 17,276
========== ==== ======= ======== ======= ====
Stock-based
compensation -- -- 1,082 -- 1,082
Stock option
exercises,
net of
cashless
exercises 179,875 -- 307 -- 307
Issuance of
shares for
vested
restricted
stock grants 248,101 -- -- -- --
Net loss -- -- -- (918) (918)
---------- ---- ------- -------- ------- ---
BALANCE,
December 31,
2024 19,782,311 $ 19 $ 152,211 $ (134,483) $ 17,747
========== ==== ======= ======== ======= ====
INTELLICHECK, INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
(unaudited)
2024 2023
------ ------
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (918) $(1,980)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 436 282
Stock-based compensation 876 1,596
Allowance for credit losses 248 49
Change in accrued interest and accretion
of discount on short-term investments -- (206)
Changes in assets and liabilities:
(Increase) in accounts receivable (219) (2,115)
Decrease (increase) in other current
assets 121 (84)
Decrease (increase) in other assets 82 (82)
(Decrease) increase in accounts payable
and accrued expenses (1,946) 616
(Decrease) increase in deferred revenue (1,209) 1,302
(Decrease) in liability for shares
surrendered (190) --
Increase (decrease) in other current
liabilities 25 (25)
------ ------
Net cash used in operating
activities (2,694) (647)
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (57) (93)
Proceeds from maturity of short-term
investments 5,000 5,000
Purchases of short-term investments -- (4,914)
Software development costs (2,048) (407)
------ ------
Net cash provided by (used in)
investing activities 2,895 (414)
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of stock options 307 --
Proceeds from insurance financing arrangement 320 49
Withholding taxes paid on RSU vesting -- (57)
Repayment of insurance financing arrangement (142) (147)
------ ------
Net cash provided by (used in)
provided by financing activities 485 (155)
------ ------
Net increase (decrease) in cash 686 (1,216)
CASH, beginning of year 3,980 5,196
------ ------
CASH, end of year $ 4,666 $ 3,980
====== ======
Supplemental disclosures of cash flow
information:
======== ==========
Cash paid for interest $ -- $ 2
====== ======
Cash paid for income taxes $ -- $ 80
====== ======
Adjusted EBITDA
We use Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adjusting net loss for certain reductions such as interest and other income and certain addbacks such as income taxes, sales tax accrual, depreciation, amortization, and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing our financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as sales tax accrual, amortization, depreciation, and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate our operations and can compare the results on a more consistent basis to the results of other companies. In addition, Adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results.
We consider Adjusted EBITDA to be an important indicator of our operational strength and performance of our business and a useful measure of our historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest and other income, sales tax accrual, stock-based compensation expense, all of which impact our profitability, as well as depreciation and amortization related to the use of long-term assets which benefit multiple periods. We believe that these limitations are compensated by providing Adjusted EBITDA only with GAAP net loss and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net loss presented in accordance with GAAP. Adjusted EBITDA as defined by us may not be comparable with similarly named measures provided by other entities.
(Unaudited)
Three Months Ended
December 31, Years Ended December 31,
---------------------- ----------------------------
2024 2023 2024 2023
----- ----- ----- ------
Net income
(loss) $ 488 $ 984 $ (918) $ (1,980)
Reconciling
items:
(Benefit)
Provision for
income taxes 31 (81) 33 (62)
Restructuring
severance
expenses - - 376 548
Sales tax
accrual - - - 227
Interest and
other expense
(income) (53) (54) (283) (234)
Depreciation
and
amortization 161 72 436 282
Stock-based
compensation
expense
including
liability
classified
awards 233 249 876 1,596
----- ----- ----- ------
Adjusted
EBITDA $ 860 $1,170 $ 520 $ 377
===== ===== ===== ======
About Intellicheck
Intellicheck is the leader in fraud identity management, delivering on-demand digital and physical identity verification solutions for KYC, AML, fraud prevention, and age verification needs. Our solution enables you to bring revenue generating capabilities online faster, so you can achieve greater productivity gains and accelerate customer acquisition. With more than two decades of experience, our mission is to provide seamless, invisible customer experiences with 100% decisioning in under a second. Each year, we validate more than 100 million identities across North America. For more information on Intellicheck, visit us on the web and follow us on LinkedIn, X, Facebook, and YouTube.
Safe Harbor Statement
Statements in this news release about Intellicheck's future expectations, including: the advantages of our products, future demand for Intellicheck's existing and future products, whether revenue and other financial metrics will improve in future periods, whether Intellicheck will be able to execute its turn-around plan or whether successful execution of the plan will result in increased revenues, whether sales of our products will continue at historic levels or increase, whether brand value and market awareness will grow, whether the Company can leverage existing partnerships or enter into new ones, whether there will be any impact on sales and revenues due to an epidemic, pandemic or other public health issue and all other statements in this release, other than historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These statements, which express management's current views concerning future events, trends, contingencies or results, appear at various places in this release and use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "sense", "strategy, " "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would" are forward-looking statements within the meaning of the PSLRA. This statement is included for the express purpose of availing Intellicheck, Inc. of the protections of the safe harbor provisions of the PSLRA. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as: market acceptance of our products and the presently anticipated growth in the commercial adoption of our products and services; our ability to successfully transition pilot programs into formal commercial scale programs; continued adoption of our SaaS product offerings; changing levels of demand for our current and future products; our ability to reduce or maintain expenses while increasing sales; our ability to successfully expand the sales of our products and services into new areas including health care, auto dealerships and title insurance; customer results achieved using our products in both the short and long term; success of future research and development activities; the impact of inflation on our business and customer's businesses and any effect this has on economic activity with our customer's businesses; potential retail contraction, consumer economic concerns, reduced spending, and market turmoil and how such broad economic aspects effect our customer's businesses; our ability to successfully market and sell our products, any delays or difficulties in our supply chain coupled with the typically long sales and implementation cycle for our products; our ability to enforce our intellectual property rights; changes in laws and regulations applicable to the our products; our continued ability to access government-provided data; the risks inherent in doing business with the government including audits and contract cancellations; liability resulting from any security breaches or product failure, together with other risks detailed from time to time in our reports filed with the SEC. We do not assume any obligation to update the forward-looking information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250320929167/en/
CONTACT: Investor Relations: Gar Jackson (949) 873-2789 /
gjackson@intellicheck.com
Media and Public Relations: Sharon Schultz (302) 539-3747 / sschultz@intellicheck.com
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March 20, 2025 16:05 ET (20:05 GMT)
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