authID Inc. Q2 FY2025 earnings call

• AuthID recorded its highest quarterly revenue of $1.4 million in Q2 2025. - Launched IDX platform in late July 2025, aiming to eliminate identity fraud in supply chain workforce. - Went live in production with a U.K.-based Fortune Global 500 customer using PrivacyKey. - Partnered with NEC, a major global biometric hardware provider, and added a former NEC executive to the board. - Signed an agreement with Prove, a large identity fraud platform, with revenue impact expected from Q3 2025. - Upgraded PrivacyKey with one-to-many search capability for faster and more accurate results. - RPO of $13.8 million is expected to be recognized over the life of contracts typically with a 3-year term.

Total revenue for Q2 2025 was $1.4 million, the highest in authID's history. Remaining performance obligation (RPO) as of June 30, 2025, was $13.8 million. Adjusted EBITDA loss was $3.4 million for Q2. Annual recurring revenue (ARR) was $5.8 million. Booked annual recurring revenue (BAR) in Q2 2025 was $2.2 million, up from prior periods.

• Goal to deliver $18 million in BAR for 2025 and remain on track to meet this. - Expect to recognize the full $13.8 million RPO over the life of contracts. - Anticipate revenue growth as existing signed contracts go live and ramp.

Q: About deferred revenue of $1.2 million in the quarter, where it came from and if it's recurring.

A: Deferred revenue came from invoices from customer contracts not yet recognized as revenue, and it is recurring as it comes from contract-driven, recurring nature invoices.

Q: About the Prove deal, when to anticipate starting to collect revenue.

A: The Prove partnership has two parts: one simple to implement with quick revenue realization, and a more strategic part being developed, with a joint customer expected to go live shortly.

Q: About the Indian contract, status of revenue collection.

A: Started recognizing revenue as they went live with the customer, and expect to recognize the full $3.3 million commitment in the first contract year.

Q: About the NEC deal, booking estimate, revenue details.

A: Details not yet fleshed out as the product is new, but ambitious goals exist and will share when available.

Q: About bookings and $18 million target.

A: Still comfortable with the $18 million bookings target.

Q: About R&D work after Prove and NEC deals.

A: Work is done to win deals but there's still more to do as they learn from larger enterprise opportunities.

Q: About pilots, scope, and scaling.

A: Shift to performance-based production level pilots to speed up time to revenue, with pilots allowing quicker transition to production.

Q: About communication and press releases.

A: AuthID is working on a better process to schedule dedicated time with investors and improve press release communications to provide more helpful insights while adhering to customer privacy.