authID Inc. Q3 FY2025 earnings call

Top-Line Performance

• Gross revenue for Q3 was $600,000 vs $200,000 last year; net revenue was negative $100,000 vs positive $200,000 last year due to concessions from two contracts.

Customer and Partner Updates

• Booked two large enterprise customers and two smaller ones in Q3, totaling $200,000 in BAR for 2025. Notable customers include a UK retailer, NESIC (subsidiary of NEC), Pipeline Group, and an international bank.
• Partnerships with NESIC, Prove, and MajorKey were highlighted, with joint offerings and embedded technology.

Product and Technology Updates

• Introduced PrivacyKey (biometric authentication without storing biometrics) and IDX (enterprise scalability and identity assurance). IDX addresses AI agents with accountability features for AgenTek AI-driven enterprises.

For the third quarter, gross revenue was $600,000 compared to $200,000 last year. Net revenue, which reflected Q3 concessions totaling $700,000, was a negative $100,000 compared to a positive $200,000 last year. Remaining performance obligation (RPO) as of September 30, 2025, was $3.6 million, a decrease from the prior quarter. Annual recurring revenue (ARR) as of Q3 was $1.7 million, up from $1 million in Q3 2024. Booked annual recurring revenue (BAR) signed in 2025 was $200,000, down from $1.15 million the previous year. Q3 committed annual recurring revenue (CAR) was $110,000, and estimated usage above commitment (UAC) was $80,000.

Forward-Looking Statements

• Revised 2025 BAR target reduced to $6 million from $18 million due to longer sales cycles of enterprise deals.
• Expect RPO to resume upward trend as deals in the pipeline are closed.
• Anticipate revenue growth in Q4 as core customers go live and ramp.

Risks

• Contractual challenges with two customers, including delays in payment and usage ramping, leading to revenue recognition adjustments.
• International market challenges affecting one customer's go-to-market strategy and payment delays.
• Longer sales cycles for enterprise deals causing temporary decline in RPO.

Q: (Queued question, no detailed answer provided) A: (No detailed answer given as call concluded with closing remarks)