authID Inc. Q3 FY2024 earnings call

• Welcomed Erick Soto as Chief Product Officer with over 15 years in identity verification and financial services.
• Signed a $10 million agreement with a next-generation AI company in India for biometric authentication over 3 years.
• Secured new customers and OEM contracts, including a global retail tech org and a broadband provider.
• Had four customers go live in Q3, matching current time estimates for Go-Live.
• Hired Donna Shawhan as VP of Partnerships and Erick Akre as VP of Sales for financial services expertise.
• Made strides in technology, eliminating privacy and compliance concerns for biometrics, achieving 1 in 1 billion false match rate, and improving processing speed and liveness detection.

For the third quarter of 2024, total revenue was $249,000 compared to $43,000 in the same period of 2023. Operating expenses in Q3 were $3.8 million, flat year-over-year. Net loss from continuing operations for the quarter was $3.4 million. Total RPO as of September 30 was $3.8 million, a decrease of $0.4 million from the prior quarter. Adjusted EBITDA loss for Q3 was $2.9 million. ARR increased to $1 million from $0.2 million in Q3 2023. Gross bARR signed in Q3 2024 was $1.15 million, up from $1.02 million in Q3 2023. cARR for Q3 2024 was $0.61 million, and UAC was $0.54 million.

• Reduced full-year revenue guidance to $800,000 to $900,000, still 4x growth over 2023.
• Expect RPO to grow to $13 million to $14 million by year-end, up from prior target of $12 million to $13 million.
• Remain committed to $9 million in bARR for 2024, representing 3x year-over-year bookings growth.

• Delayed customer Go-Lives and volume adjustments pushing revenue from 2024 to 2025.
• Risks associated with forward-looking statements, including uncertainties that could cause actual results to differ from expectations.

Q: Could you expand upon the $10 million order from India?

A: It's a partnership with an India-based AI company where authID will be the default OEM security provider for biometrics in their applications across India.

Q: Why was revenue guidance reduced?

A: Due to delayed customer Go-Lives and volume adjustments, shifting revenue from 2024 to 2025.

Q: About the bARR, why was there a de-booking?

A: Delayed Go-Lives and expected usage ramp mean revenue ramp will happen after 18 months from contract signing, affecting net bARR.

Q: Color on the financial capacity of the Indian firm under the $10M contract?

A: AuthID believes the firm is capable as it's a multimillion dollar organization.

Q: What will Donna and Erick bring to the organization?

A: Donna focuses on partnerships to drive growth beyond minimum commitments, and Erick brings financial services expertise to close big deals and drive Proof of Concepts in financial services.