Intellicheck, Inc. Q3 FY2024 earnings call

• Organizational Changes: Sandra Bauer joined as Vice President of Customer Success and Account Management, driving improvements in the customer success program and product pipeline to boost sales growth.
• Trade Shows: Participated in events like Identity Week, DDoS Insight, and Money 2020 to enhance brand awareness for Intellicheck's technology.
• Sales: Secured agreements with a Southeast retailer and a retail lease-to-own operator, with growth in banking, real estate, and other verticals; also noted progress in partnerships with large banks and title insurance companies.
• Product Development: Migrated clients to a new platform, continued enhancing ID verification technology, and invested in R&D and cloud migration from Azure to AWS.
• Marketing: Shifted focus to developing support materials for the sales force based on past learnings to drive more interest in Intellicheck's offerings.

Total revenues for the third quarter were $4.71 million. SaaS revenues amounted to $4.66 million, which constitutes 99% of the total revenue. The gross margin remained robust at 91%, in line with the previous year's results.

• Anticipate continued gross margins of approximately 90%-91% while improving architecture and data intelligence capabilities.
• Expect the winding down of R&D contractors spend in Q4, which may lead to higher noncash depreciation costs.
• Confident in not needing to raise cash to run the business, focusing on optimizing marketing ROI.

• Economic impacts affecting retail, including bankruptcies of some customers.
• Fraudsters evolving tactics, requiring continuous product enhancements to stay ahead of threats.
• Consumer pullback on spending and credit tightening impacting retail performance.

Q: Scott Buck inquired about retail comps and cash levels.

A: Bryan discussed retail headwinds and stated comfort with cash levels, emphasizing focus on marketing ROI.

Q: Logan Hennen asked about retail volumes and 4Q seasonality.

A: Bryan mentioned double-digit decline in retail transaction volume and hope for growth from new verticals.

Q: Rudy Kessinger asked about price per transaction and pipeline.

A: Bryan clarified price per transaction was for new business and noted a stronger pipeline with large client prospects