Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $3.6 million, down from $4.4 million in Q1 2024, primarily due to lower software license sales [13] - Recurring revenue decreased to $2.7 million from $3.1 million year-over-year, attributed to the timing of subscription term license renewals [14] - Operating expenses were reduced to $5.5 million, down 5% from $5.7 million in the prior year [14] - GAAP net loss was $1.6 million or $0.08 per diluted share, compared to a net loss of $1.0 million or $0.05 per diluted share in Q1 2024 [14] - Adjusted EBITDA loss for the quarter was $1.5 million, compared to a loss of $1.0 million in the prior year [15] - Cash, cash equivalents, and marketable securities totaled $24.8 million as of March 31, 2025, down from $27.8 million at the end of 2024 [16] Business Line Data and Key Metrics Changes - The company is focusing on high-impact customers and sectors where biometric authentication is critical, leading to active conversations with several Fortune 500 companies [7][8] - The leadership team has been strengthened with the appointment of a new Chief Revenue Officer and a chairman with extensive experience in cybersecurity [9] Market Data and Key Metrics Changes - There is strong interest in biometric solutions across various sectors, including financial services, healthcare, and e-commerce, as enterprises recognize the inadequacy of traditional authentication methods [30] - The U.S. Federal government's commitment to biometric modernization remains strong, providing a significant market opportunity [20][37] Company Strategy and Development Direction - The company is undergoing a strategic transformation with a focus on durable, scalable growth and a streamlined go-to-market strategy [5][6] - Key strategic priorities include deepening partnerships, advancing core technology, and scaling the business sustainably [6][10] - The Awareness platform is being developed as an open, flexible architecture that allows customers to integrate best-in-class algorithms, differentiating the company from competitors [22][34] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a foundational year for the company, with expectations of building momentum heading into the second half of the year [12][25] - There is confidence in the strategic groundwork laid, which positions the company for leadership in the biometrics industry [25][39] Other Important Information - The company has revitalized its brand presence and increased visibility at key industry events [11][24] - A culture of transparency and accountability has been instilled within the organization to support the transformation [11] Q&A Session Summary Question: Will Aware continue to pursue growth in annual recurring revenues via sales of the Aware ID product? - The focus is on solving large-scale identity challenges for enterprises and government agencies rather than driving growth through a single product [28] Question: Has Aware made progress in adding customers or growing sales on the AWS Marketplace or any of the other partner programs? - The top priority is direct engagement with customers, and partnerships will be selective, focusing on those that add strategic value [29] Question: Could you provide more color on the types of industries or use cases these companies are exploring with Aware's biometric solutions? - Strong engagement is seen across industries such as financial services, healthcare, and e-commerce, where secure identity verification is critical [30] Question: How should we think about the timing and potential revenue contribution from some of the new strategic opportunities? - 2025 is viewed as a foundational year, with expectations for early wins later in the year and contributions building over time [32][33] Question: How does the open architecture approach differentiate Aware from competitors? - The Awareness platform offers an open modular architecture, allowing customers to choose algorithms and ensuring scalability and future-proofing [34] Question: Are there specific programs or initiatives where you feel particularly well positioned today? - The company is well positioned across the U.S. Government portfolio, focusing on secure digital identity and modernization initiatives [36][37] Question: What early indicators are you seeing that give you confidence Aware is on the right trajectory for scalable, sustainable growth? - Tangible progress is noted in pipeline expansion, leadership installation, and growing customer interest in Aware's technology [38]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $3.6 million, down from $4.4 million in Q1 2024, primarily due to lower software license sales [14] - Recurring revenue decreased to $2.7 million from $3.1 million in the prior year, attributed to the timing of subscription term license renewals [15] - Operating expenses were reduced to $5.5 million, down 5% from $5.7 million in Q1 2024 [15] - GAAP net loss was $1.6 million or $0.08 per diluted share, compared to a net loss of $1 million or $0.05 per diluted share in Q1 2024 [15] - Adjusted EBITDA loss for the quarter was $1.5 million, compared to a loss of $1 million in the prior year [16] Business Line Data and Key Metrics Changes - The company is focusing on deepening strategic partnerships and has realigned its go-to-market model to prioritize high-impact customers and sectors [8] - Active conversations are ongoing with several Fortune 500 companies, indicating a shift in engagement and potential revenue opportunities [8][30] Market Data and Key Metrics Changes - There is strong interest in biometric solutions across various sectors, including financial services, healthcare, and e-commerce, as enterprises recognize the need for secure identity verification [30] - The U.S. Federal government's commitment to biometric modernization remains strong, providing a significant market opportunity [21][38] Company Strategy and Development Direction - The company is undergoing a strategic transformation with a focus on durable, scalable growth and a streamlined go-to-market strategy [6] - Key strategic priorities include deepening partnerships, advancing core technology, and scaling the business sustainably [7] - The Awareness platform is being developed to offer an open, flexible architecture that differentiates the company from competitors [35][36] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a foundational year for the company, with expectations of building momentum heading into the second half of the year [13][40] - The leadership team is confident in the strategic groundwork laid, which positions the company for leadership in the biometrics industry [26] Other Important Information - The company has strengthened its leadership team, appointing a new Chief Revenue Officer and a chairman with extensive experience in cybersecurity [9][10] - The brand has been revitalized, focusing on modernizing its presence and increasing visibility in key markets [12][25] Q&A Session Summary Question: Will Aware continue to pursue growth in annual recurring revenues via sales of the Aware ID product? - The focus is on solving large-scale identity challenges for enterprises and government agencies rather than driving growth through a single product [28] Question: Has Aware made progress in adding customers or growing sales on the AWS Marketplace? - The priority is direct engagement with customers, and partnerships will only be pursued if they add strategic value [29] Question: Can you provide more color on the types of industries or use cases these companies are exploring with Aware's biometric solutions? - Engagement is strong across industries like financial services, healthcare, and e-commerce, where secure identity verification is critical [30] Question: What is the timing and potential revenue contribution from new strategic opportunities in the second half of 2025? - 2025 is viewed as a foundational year, with expectations for early wins later in the year and contributions building over time [32][34] Question: How does the Awareness platform differentiate Aware from competitors? - The platform offers an open modular architecture, allowing customers to orchestrate best-in-class algorithms, providing flexibility and scalability [35][36] Question: Are there specific programs or initiatives where Aware feels particularly well positioned? - Aware is well positioned across the U.S. Government portfolio, focusing on secure digital identity and modernization initiatives [38] Question: What early indicators show Aware is on the right trajectory for growth? - The pipeline has expanded significantly, and there is growing interest from customers recognizing Aware's technology leadership [39]

Financial Performance - Total revenue for Q1 2025 was $3.6 million, a decrease of 18.2% from $4.4 million in Q1 2024[6] - Recurring revenue was $2.7 million, down 14.6% from $3.1 million in Q1 2024[6] - Net loss for Q1 2025 was $1.6 million, compared to a net loss of $1.0 million in Q1 2024[8] - Adjusted EBITDA loss for Q1 2025 was $1.5 million, compared to an adjusted EBITDA loss of $1.0 million in Q1 2024[9] - Cash, cash equivalents, and marketable securities totaled $24.8 million as of March 31, 2025, down from $27.8 million as of December 31, 2024[10] - Software licenses revenue was $1.3 million, a decline of 38.7% from $2.1 million in Q1 2024[18] - Total operating expenses were $5.5 million, slightly reduced from $5.7 million in Q1 2024[6] Strategic Initiatives - Aware appointed Brian Krause as Chief Revenue Officer to enhance commercial execution and go-to-market strategies[4] - The company aims to expand its presence in the U.S. commercial market and government sector while enhancing its biometric technology platform[3] - Aware is engaged in discussions with Fortune 500 companies to explore strategic growth opportunities[3]

Core Viewpoint - Aware, Inc. is navigating a transitional phase while focusing on long-term growth strategies, including strengthening leadership and enhancing its market approach [2][4]. Financial Results - Revenue for Q1 2025 was $3.6 million, down from $4.8 million in Q4 2024 and $4.4 million in Q1 2024, primarily due to lower software licenses revenue [6][10]. - The net loss for Q1 2025 was $1.6 million, or $(0.08) per diluted share, compared to a net loss of $1.2 million, or $(0.06) per diluted share in Q4 2024 and a net loss of $1.0 million, or $(0.05) per diluted share in Q1 2024 [7][10]. - Adjusted EBITDA loss for Q1 2025 was $1.5 million, compared to a loss of $0.8 million in Q4 2024 and a loss of $1.0 million in Q1 2024, attributed to lower total revenue [8][10]. Operational Highlights - The company is focusing on scaling its presence in the U.S. commercial market and expanding in the U.S. government sector [3]. - Aware is enhancing its biometric technology platform and integrating complementary solutions, with ongoing discussions with Fortune 500 companies [3][4]. - The leadership team has been strengthened with the appointment of Brian Krause as Chief Revenue Officer to accelerate commercial execution [10]. Balance Sheet - As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $24.8 million, down from $27.8 million as of December 31, 2024 [9][10]. - Total assets were $39.9 million as of March 31, 2025, compared to $42.6 million as of December 31, 2024 [18][19]. Revenue Breakdown - Recurring revenue for Q1 2025 was $2.7 million, down from $3.1 million in Q1 2024 [10][24]. - Non-recurring revenue was $924,000 in Q1 2025, compared to $1.3 million in Q1 2024 [10][24].

Core Viewpoint - Aware, Inc. will hold a webcast on April 30, 2025, to discuss its financial results for Q1 2025, with results to be released prior to the call [1][2]. Group 1: Company Overview - Aware, Inc. is a global biometric platform company that utilizes data science and machine learning to address business and identity challenges through biometrics [3]. - The company has over 30 years of experience and is recognized for its ethical and responsible approach to biometric technology [3]. - Aware's solutions are designed to help government and commercial enterprises authenticate and secure individuals while providing a seamless user experience [3]. Group 2: Webcast Details - The webcast is scheduled for April 30, 2025, at 5:00 p.m. Eastern time, with a question-and-answer session following the presentation [2]. - Interested parties can submit questions in advance via email, and the presentation will be available for replay on the company's investor relations website for approximately 90 days [2].

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 ...