Company Overview - Aware, Inc. is a leading global authentication company specializing in biometric technology, utilizing data science and machine learning to address identity challenges for businesses and government entities [7] - The company has been a trusted name in the biometric field for over 30 years, focusing on ethical and responsible biometric technology [7] Leadership Change - Gary Evee has been appointed as the new Chairman of the Board of Directors, succeeding Brent P. Johnstone, who will remain on the board [1][2] - Evee has over 25 years of experience in technology, cybersecurity, and digital transformation, previously serving as Chief of Staff for IBM Security, where he contributed to the division's growth to nearly $2 billion in annual revenue [3][5] Strategic Vision - Evee expressed excitement about leading Aware during a pivotal time, emphasizing the importance of innovation and impact for the company's growth [6] - The company aims to leverage Evee's extensive background in cybersecurity to enhance its strategic direction and operational effectiveness [6] Industry Context - The demand for biometric authentication is increasing, driven by the need for enhanced security measures in both government and commercial sectors [2] - Aware's offerings are designed to provide frictionless and highly secure user experiences, addressing the growing challenges in identity verification and security [7]

Revenue Performance - Total revenue for 2024 was $17.4 million, a decrease from $18.2 million in 2023, resulting in a year-over-year decline of approximately 4.4%[105] - Software license revenue decreased by 18% from $9.5 million in 2023 to $7.8 million in 2024, representing 45% of total revenue compared to 52% in the previous year[109] - Software maintenance revenue increased by 12% from $7.7 million in 2023 to $8.6 million in 2024, rising to 49% of total revenue from 42%[111] Operating Performance - Operating loss improved to $5.5 million in 2024 from $8.5 million in 2023, a reduction of approximately 35.3%[105] - Research and development expenses decreased by 15% from $9.1 million in 2023 to $7.8 million in 2024, accounting for 51% of total revenue[119] - Selling and marketing expenses decreased by 3% from $8.0 million in 2023 to $7.7 million in 2024, maintaining 44% of total revenue[123] - General and administrative expenses decreased by 3% from $6.5 million in 2023 to $6.4 million in 2024, increasing as a percentage of total revenue from 36% to 37%[125] Cash Flow and Financial Position - Cash used in operating activities was $3.2 million in 2024, primarily due to a $4.4 million net loss[133] - Cash provided by investing activities was $6.3 million in 2024, primarily from net sales of marketable securities[135] - As of December 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $27.8 million, expected to fund operations for at least the next twelve months[138] - The company estimates material cash requirements from known contractual obligations will be approximately $0.7 million annually from 2025 to 2027, increasing to $2.7 million thereafter[139] Assets and Liabilities - As of December 31, 2024, the company reported $3.1 million in goodwill and $2.0 million in intangible assets, with no impairments recorded to date[156] - The company had total deferred tax assets of $13.7 million and deferred tax liabilities of $0.5 million as of December 31, 2024, with a valuation allowance of $13.2 million[162] Risk and Accounting Policies - The company has not experienced material impacts from inflation on financial results to date, but future effects remain uncertain[142] - The company does not have any off-balance sheet arrangements with unconsolidated entities, mitigating exposure to financing and credit risks[143] - Revenue recognition follows ASC 606, with revenue recognized when control of goods and services is obtained by the customer[145] - The company utilizes a five-step model for revenue recognition, including identifying contracts and performance obligations[149] - Stock-based compensation is measured at grant date fair value and recognized over the vesting period[157] - Recent accounting updates include ASU No. 2023-07 and ASU No. 2023-09, which will impact segment reporting and income tax disclosures, respectively[165][166] Future Outlook - The company plans to introduce new products to enhance biometrics solutions and expects research and development expenses to decrease in the next year before increasing in subsequent years[121]

Core Viewpoint - Aware, Inc. reported mixed financial results for the fourth quarter and full year of 2024, with a notable increase in total revenues driven by one-time software license sales, while recurring revenues faced a decline. Financial Performance - Total revenues for Q4 2024 reached $4.8 million, a 9.7% increase from $4.4 million in Q4 2023, primarily due to higher software license sales, including a one-time $1 million deal with a European government [2] - Recurring revenues decreased by 10.3% year-over-year to $3.3 million from $3.7 million in the prior-year period [2] - For the full year, total revenues declined by 4.7% to $17.4 million from $18.2 million in 2023, despite an 8.9% increase in recurring revenues, which reached $11.9 million from $10.9 million [4] Net Loss and Adjusted EBITDA - The net loss for Q4 2024 narrowed to $1.2 million, or $0.06 per diluted share, compared to a net loss of $4.2 million, or $0.20 per diluted share, in Q4 2023 [3] - Adjusted EBITDA loss improved to $0.8 million from $1.2 million in Q4 2023 [3] - For the full year, net loss decreased to $4.4 million from $7.3 million in 2023, while adjusted EBITDA loss narrowed to $3.9 million from $4.6 million [4] Operating Expenses - Operating expenses in Q4 2024 were reduced by 29.2% to $6.3 million from $8.9 million in Q4 2023 [5] - Full-year operating expenses also dropped by 14.4% to $22.9 million from $26.8 million in 2023 [5] Management Commentary - Newly appointed CEO Ajay Amlani highlighted 2025 as a turning point for Aware, focusing on execution, go-to-market strategy, and partnerships, while acknowledging macroeconomic challenges [6] - CFO David Traverse emphasized the importance of recurring revenue as a stable foundation for future growth, anticipating near-term revenue fluctuations during the transition to a more efficient sales strategy [7] Factors Influencing Performance - The revenue increase in Q4 2024 was mainly due to higher software license sales, including the one-time deal, while the decline in full-year revenue was attributed to lower non-recurring software license sales [8] - The 8.9% growth in recurring revenues for 2024 indicates progress in stabilizing Aware's revenue model, despite a temporary decline in Q4 due to contract timing effects [9] Guidance and Outlook - Aware did not provide explicit revenue or earnings guidance but indicated that 2025 will involve strategic adjustments to enhance sales performance and expand partnerships [11] Other Developments - In 2024, Aware repurchased 137,051 shares for approximately $0.2 million and appointed Ajay Amlani as CEO, marking a leadership shift to execute its refined strategy [12] - The company incurred $600,000 in severance and stock-based compensation expenses after terminating its previous CEO in December 2024 [12]

Company Overview - Aware, Inc. is a leading global authentication company specializing in biometric technology and digital identity solutions, with over 30 years of experience in the field [5]. - The company is publicly traded on NASDAQ under the ticker AWRE and is based in Burlington, Massachusetts [5]. Leadership Announcement - Brian Krause has been appointed as the new Chief Revenue Officer of Aware, bringing over 10 years of experience in the biometric and digital identity technology industries [1][2]. - Prior to joining Aware, Krause served as Managing Director for North America at Incode, where he successfully more than doubled the region's annual recurring revenue (ARR) [2]. Industry Insights - The pandemic has accelerated the adoption of biometric technology, as consumers have increasingly turned to remote services and have become accustomed to the convenience and security offered by biometrics [4]. - Ajay Amlani, CEO of Aware, emphasized that traditional identity verification methods have been compromised, making biometrics the only viable option for secure identity verification [4]. Strategic Focus - Aware aims to leverage data science and machine learning to address identity challenges faced by government and commercial enterprises, focusing on frictionless and secure user experiences [5]. - The company is committed to ethical and responsible biometric technology development, utilizing diverse operational data sets from around the world [5].

Aware (AWRE) Q4 2024 Earnings Call March 05, 2025 11:37 PM ET Company Participants Matt Glover - Senior MDAjay K. Amlani - President & CEODavid Traverse - CFO Matt Glover Good afternoon, and welcome to Ware's Fourth Quarter and Full Year twenty twenty four Conference Call. Joining us today are the company's CEO and President, A. J. Emlani and CFO, David Schurz. Following the remarks, we'll open the call to questions. If you'd like to submit a question, you can do so at any time using the built in Ask a Ques ...

Matt Glover Good afternoon. And welcome to Aware's Fourth Quarter and Full Year 2024 Conference Call. Joining us today are the company's CEO and President, Ajay Amlani; and CFO, David Traverse. [Operator Instructions] Before we begin today's call, I'd like to remind everyone that the presentation today contains forward-looking statements that are based on the current expectations of Aware's management and involve inherent risks and uncertainties that could cause actual results to differ materially from thos ...

Revenue Performance - Total revenue for the full year 2024 decreased by 5% to $17.4 million from $18.2 million in 2023[5] - Recurring revenue for the full year 2024 increased by 9% to $12.0 million compared to $11.0 million in 2023[5] - Fourth quarter 2024 revenue increased by 10% year-over-year to $4.8 million compared to $4.4 million in Q4 2023[5] - Total recurring revenue for Q4 2024 was $3,296 thousand, down 10.3% from $3,675 thousand in Q4 2023[31] - Total revenue for Q4 2024 increased to $4,797 thousand, compared to $4,374 thousand in Q4 2023, representing an increase of 9.6%[31] - Total revenue for the twelve months ended December 31, 2024 was $17,389 thousand, a decrease of 4.7% from $18,244 thousand in 2023[31] Profitability and Loss - Net loss for the full year 2024 improved by 39% to $4.4 million from $7.3 million in 2023[5] - Fourth quarter 2024 net loss decreased by 72% year-over-year to $1.2 million compared to $4.2 million in Q4 2023[5] - The net loss for Q4 2024 was $(1,192) thousand, an improvement from $(4,238) thousand in Q4 2023[29] - Adjusted EBITDA loss for the full year 2024 improved by 15% to $3.9 million compared to $4.6 million in 2023[5] - Adjusted EBITDA for Q4 2024 was $(829) thousand, an improvement from $(1,218) thousand in Q4 2023[29] - Adjusted EBITDA loss for the fourth quarter 2024 improved by 32% to $0.8 million compared to $1.2 million in Q4 2023[10] Cash and Securities - Cash and cash equivalents and marketable securities totaled $27.8 million at the end of 2024, down from $30.9 million at the end of 2023[13] Share Repurchase - The company repurchased 137,051 shares at a cost of $0.2 million during the year[5] Strategic Focus - Aware is focusing on strengthening key partnerships and accelerating technology advancements to capitalize on the expanding market opportunity in biometric security[7] Stock-Based Compensation - Stock-based compensation for the twelve months ended December 31, 2024 was $1,132 thousand, down 25.7% from $1,525 thousand in 2023[29] Future Expectations - The company expects to continue incurring expenses similar to those reflected in the adjusted EBITDA calculations[27]

Appointed Ajay Amlani as the new Chief Executive Officer. BURLINGTON, Mass., March 05, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a global biometric platform company that uses data science and machine learning to tackle everyday business and identity challenges through biometrics, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024. Full Year 2024 Financial Overview Total revenue decreased 5% to $17.4 million from $18.2 million in 2023.Recurring revenue ...

Core Viewpoint - Aware, Inc. will hold a webcast on March 5, 2025, to discuss its financial results for Q4 and the full year ending December 31, 2024 [1][2]. Group 1: Webcast Details - The webcast will take place at 5:00 p.m. Eastern time and will include a presentation followed by a Q&A session [2]. - Interested parties can submit questions in advance via email [2]. - A replay of the presentation will be available in the investor relations section of the company's website for approximately 90 days after the live event [3]. Group 2: Company Overview - Aware, Inc. is a global biometric platform company that utilizes data science, machine learning, and artificial intelligence to address business and identity challenges through biometrics [4]. - The company has over 30 years of experience and focuses on providing secure and frictionless user experiences for government and commercial enterprises [4]. - Aware is publicly traded on NASDAQ under the ticker AWRE and is based in Burlington, Massachusetts [4].

Ajay Amlani Aware CEO, Ajay Amlani BURLINGTON, Mass., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a leading global authentication company, today announces Ajay Amlani as its new Chief Executive Officer, following an extensive international search process. Amlani replaces Robert Eckel, who retired from Aware in late 2024. Amlani brings nearly two decades of experience at the intersection of government, private sector innovation, and cutting-edge identity technology to drive Aware’s grow ...