Latest news with #AUID
Globe and Mail
21 hours ago
- Business
- Globe and Mail
authID Revenue Jumps 367% in Q2
Key Points Record quarterly revenue grew approximately 415.3% year over year in Q2 2025, reaching $1.4 million for the quarter on significant customer momentum. Operating expenses increased approximately 63.9% year over year and a net loss of $4.4 million. Annual recurring revenue metrics and pipeline advanced. These 10 stocks could mint the next wave of millionaires › authID (NASDAQ:AUID), the identity technology firm specializing in privacy-focused biometric authentication, reported its second quarter 2025 results on Aug. 14, 2025. The most significant news in the release was a sharp jump in GAAP revenue to $1.4 million, reflecting substantial customer and booking momentum, even as Operating expenses and net losses continued to climb. There were no analyst estimates with which to compare results. Management highlighted record growth across several metrics, but persistent losses and new credit provisions underlined continued financial challenges. authID's business model and strategic focus authID provides identity authentication solutions, including its biometric platform called PrivacyKey. The platform transforms biometric data -- like facial images -- into cryptographic keys, which allows for quick and highly secure identity verification. Crucially, no actual biometric data is stored, aiding regulatory compliance and privacy. The company's business targets regulated sectors and high-risk transactions that require a high level of authentication assurance. Recent company focus areas include driving technological innovation, broadening its partnership network, and expanding recurring revenue. Key success factors are product leadership, strategic alliances, and effectiveness in converting pilots or trials into long-term contracts. Quarterly review: Revenue growth, metrics, and execution The period saw authID post record GAAP revenue, marking a notable year-over-year increase in GAAP revenue. AuthID also secured a live production trial with a Fortune Global 500 company in the UK, an agreement anticipated to transition into a full contract if successful. The company's annual recurring revenue (ARR, non-GAAP) reached $5.8 million, up from $1.1 million of ARR (non-GAAP) as of Q2 2024 and $1.2 million of ARR (non-GAAP) as of Q1 2025. Gross booked annual recurring revenue (bARR, non-GAAP) jumped to $2.2 million from $0.63 million in Q2 2024. Net bARR (non-GAAP), which subtracts the value from contracts delayed or lost, grew to $1.9 million. The company's remaining performance obligation (RPO), which shows the contracted but not yet recognized revenue, was $13.8 million.—more than triple the figure from Q2 2024. On the technology side, authID launched IDX, a new biometric authentication product developed in partnership with NEC, a provider of biometric hardware. Management claims this product enables ultra-fast and accurate authentication for regulated industries, while maintaining customer privacy. The period also featured enhancements to the PrivacyKey product, now capable of one-to-many search -- meaning it can identify a person out of a large group quickly -- without the need to store any biometric data. Strategic partnerships played a role in the quarter's results. Alongside NEC, management highlighted a new agreement with Prove, which operates a large-scale identity fraud platform. These partnerships are intended to enable faster market entry and broaden the user base, particularly by embedding authID's solutions into third-party ecosystems. In addition, the company expanded its board with new members and advisors, aiming to support ongoing growth and value creation for stakeholders. Operating expenses increased approximately 63.9% year-over-year, totaling $5.9 million, primarily reflecting investments in hiring, sales, and research and development. The company cited a $0.8 million provision for estimated credit losses, which reflects new assessments around credit risk for certain customer contracts. These expense increases, along with persistent net losses, highlight the pressure of scaling operations ahead of realized revenue. Notably, net loss (GAAP) widened to $4.4 million, compared to $3.3 million for Q2 2024. Net cash flows from operations (GAAP) showed an outflow of $8.4 million for the first half of 2025, with $8.3 million in cash on hand at the end of the quarter. Share count increased, reaching 13.2 million on a diluted basis versus 9.5 million a year ago. There were also challenges during the period. AuthID had to book new credit loss provisions, signaling some delays or potential issues with collecting revenue on certain customer contracts. Some signed deals faced slowdowns moving from contract to full go-live, impacting recognized bARR (non-GAAP) and creating challenges on the path toward more predictable recurring revenue. Throughout the quarter, the company continued to emphasize its privacy-by-design approach. Compliance with privacy and biometric regulations is a key selling point, especially for large enterprises and public sector clients. There were no new regulatory hurdles cited for the period, but the continued assertion that the platform stores no biometric data is a core strategic differentiator. Looking ahead: Outlook and potential risks Management did not provide specific forward-looking financial guidance for revenue, margin, or profit for upcoming quarters or the full year. In public commentary earlier in the year, management referenced a bookings target of $18 million in gross bARR (a non-GAAP measure) for fiscal 2025. With half-year bARR (non-GAAP) totaling $2.2 million for the first six months of 2025, achieving this full-year goal would require a significant acceleration in booking large contracts and ramping deployments in the next two quarters. For investors and stakeholders, areas to observe in coming quarters include the pace of contract conversions, expense management, success of partnership-driven sales, and resolution of credit risk exposures. Given the persistent high operating costs and net losses, the company's ability to demonstrate path to sustained profitability and positive cash flow remains a critical watchpoint. AUID does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. 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Yahoo
14-05-2025
- Business
- Yahoo
AuthID Inc (AUID) Q1 2025 Earnings Call Highlights: Revenue Growth Amid Rising Expenses and ...
Total Revenue: $0.3 million for Q1 2025, up from $0.16 million a year ago. Operating Expenses: $4.7 million for Q1 2025, compared to $3.3 million a year ago and $4.9 million last quarter. Net Loss: $4.3 million for Q1 2025, compared to $3.1 million a year ago and $4.6 million last quarter. Net Loss Per Share: $0.40 for Q1 2025, compared to $0.32 a year ago and $0.49 last quarter. Remaining Performance Obligation (RPO): $13.85 million as of March 31, 2025, compared to $4.03 million a year ago. Adjusted EBITDA Loss: $3.9 million for Q1 2025, compared to $2.4 million a year ago and $4.1 million last quarter. Annual Recurring Revenue (ARR): $1.2 million as of Q1 2025, compared to $0.6 million a year ago and $0.8 million last quarter. Booked Annual Recurring Revenue (bARR): $0.01 million for Q1 2025, down from $0.10 million a year ago. Warning! GuruFocus has detected 4 Warning Signs with AUID. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AuthID Inc (NASDAQ:AUID) is in contract negotiations with a large global Fortune 500 prospect for its identity verification and biometric solution. The company signed a paid live production trial agreement with a global Fortune 100 retailer, aiming for a long-term contract by year-end. AuthID Inc (NASDAQ:AUID) has been confirmed as the selected vendor by one of the largest identity fraud platforms and is in final contract negotiations. The company completed two capital raises, securing nearly $9 million, which improved its balance sheet and broadened its investor base. AuthID Inc (NASDAQ:AUID) earned the Best ID Management Platform award in the 2025 FinTech Breakthrough Awards, highlighting its innovative solutions. AuthID Inc (NASDAQ:AUID) reported a net loss of $4.3 million for Q1 2025, an increase from the $3.1 million loss in the same period last year. Operating expenses increased to $4.7 million in Q1 2025 from $3.3 million a year ago, primarily due to increased headcount investments. The company's Booked Annual Recurring Revenue (bARR) for Q1 2025 was only $0.01 million, down from $0.10 million a year ago. AuthID Inc (NASDAQ:AUID) experienced delays in the sales process for certain deals, impacting its Q1 bookings. The company's revenue of $0.3 million for Q1 2025, while an increase from the previous year, remains modest compared to its expenses. Q: Can you talk about when you're going to start seeing leverage from the partnerships you highlighted? A: Rhoniel Daguro, CEO: We're already benefiting from those partnerships. The bookings will come as we invest in the channel and enable partners to bring authID to their customers. Our existing partnerships have brought us into sectors like Indian banking and large employment agencies, and we have upcoming partnerships with major fraud platforms and biometric hardware providers. Q: Why are expenses so high compared to revenue? A: Edward Sellitto, CFO: Our current expense rate is driven by investments in headcount for sales and R&D to support growth and onboarding of large clients. We expect revenue growth to start outpacing expense growth as we onboard new customers and execute our strategy. Q: How many Fortune 500 clients do you need to sign to meet the $18 million bookings target? A: Rhoniel Daguro, CEO: We probably need four or five large deals, as these deals are typically $1 million and above. We have opportunities that could potentially cover the entire target, thanks to our partnerships. Q: Is there a demand pull for biometrics in the market? A: Rhoniel Daguro, CEO: Yes, there's a rising demand for biometrics, evidenced by our growing pipeline. Our technology, which uses public and private key pairs for biometrics without storing them, has gained significant attention and is easy for companies to adopt. Q: Do you have a potential deal big enough to cover the entire $18 million target? A: Rhoniel Daguro, CEO: Yes, we have one potential deal that could cover the entire target, thanks to our partnerships with established platforms that have a large customer base. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
