In This Article:
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AuthID Inc (NASDAQ:AUID) achieved a 3X growth in booked Annual Recurring Revenue (ARR) within six months, surpassing their initial 12-month target.
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The company closed the largest deal in its history, a $10 million contract over three years with a next-generation AI partner in India.
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AuthID Inc (NASDAQ:AUID) expanded its partner ecosystem, including a partnership with Zendesk, enhancing its market reach and customer base.
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The company introduced Privacy Key, a significant advancement in biometric authentication, offering frictionless security while maintaining high data privacy standards.
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AuthID Inc (NASDAQ:AUID) is positioned to close multiple Fortune 500 and multinational customer deals in 2025, indicating strong future growth potential.
Negative Points
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Operating expenses increased significantly to $15.6 million in 2024 from $10.9 million in 2023, impacting profitability.
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The company reported a net loss from continuing operations of $14.3 million for the full year, despite improvements in revenue.
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AuthID Inc (NASDAQ:AUID) experienced a temporary decrease in ARR from $1.0 million in Q3 to $0.8 million in Q4 due to contract modifications.
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The increase in EBITDA loss to $11.9 million in 2024 from $8.7 million in 2023 was primarily due to reinvestment in employees and contractors.
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Some customer contracts experienced delays in go-live timelines, affecting the immediate recognition of revenue.
Q & A Highlights
Q: In your sales conversations, what are customers looking for, and why are they choosing AuthID over other options? A: Customers are primarily focused on three pillars: speed, accuracy, and privacy. AuthID offers biometric processing speeds significantly faster than competitors, with a false match rate of 1 in a billion, compared to the industry standard of 1 in 100,000. Additionally, compliance with privacy laws is a major concern, and AuthID's solutions address these issues effectively, making it a preferred choice for customers. (Respondent: CEO Ron Deguro)
Q: How do customers perceive the integration of Privacy Key and ADIA, and could this lead to consumer-facing solutions? A: The ADIA standard allows for trust between institutions, enabling organizations like banks to leverage identity history from other institutions. This reusability is highly requested, and the ADIA standard, founded by a key figure from the Fido Alliance, is gaining adoption. This could lead to consumer-facing solutions where businesses trust a single identification source across multiple platforms. (Respondent: CEO Ron Deguro)