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].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 10% to $4.8 million compared to $4.4 million in Q4 2023, driven by higher software license revenue, including a $1 million one-time license sale to a European government [25] - Recurring revenue for Q4 was $3.3 million, down from $3.7 million in the prior year, primarily due to timing of revenue recognition [25] - For the full year, total revenue decreased to $17.4 million from $18.2 million, attributed to lower software license revenue [28] - Full year recurring revenue grew by 9% to $12 million, making up 69% of total revenue, indicating a focus on stable revenue streams [29] - Operating expenses decreased by 14% to $22.9 million for the full year, improving operational efficiency [29] Business Line Data and Key Metrics Changes - The increase in Q4 revenue was largely due to software license sales, while recurring revenue showed slight fluctuations due to contract timing [25][28] - The company experienced a decline in total revenue for the full year despite growth in recurring revenue, highlighting the variability in non-recurring revenue streams [28][57] Market Data and Key Metrics Changes - The biometrics industry is experiencing increased demand due to rising AI-driven fraud, making innovative biometric solutions critical [13] - The company aims to strengthen partnerships with government agencies and commercial enterprises to drive broader adoption of biometric technologies [19] Company Strategy and Development Direction - The company is focused on three key priorities: deepening strategic partnerships, advancing technological innovation, and scaling sustainably [18] - Aware is committed to refining its go-to-market strategy to improve efficiency and unlock new revenue opportunities, especially in light of anticipated revenue headwinds in 2025 [16][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds and government budget constraints but remains optimistic about the company's strategic initiatives and long-term growth potential [16][22] - The CEO emphasized the importance of enhancing sales efficiency and deepening customer relationships to position the company for sustainable growth [40] Other Important Information - The company has a strong balance sheet with cash and marketable securities totaling $27.8 million as of December 31, 2024 [32] - The CEO's personal investment in the company reflects confidence in its long-term potential and strategy [63] Q&A Session Summary Question: What changes are being implemented to improve sales efficiency? - The company is refining its go-to-market strategy by prioritizing high-value customers and optimizing its pricing model to enhance competitiveness [39][40] Question: Why is now a good time for Aware to initiate a more effective go-to-market strategy? - The current market conditions, including the prevalence of AI-driven fraud and consumer acceptance of biometrics, present a favorable environment for growth in the biometrics industry [47] Question: What drove the reduction in operating expenses for the year? - The reduction in operating expenses was due to a disciplined approach to cost optimization, including streamlining operations and reducing discretionary spending [50] Question: Do you expect the recent DOGE activity to impact the business? - The company is monitoring potential shifts in procurement patterns but believes its longstanding relationships and mission-critical solutions position it well to navigate changes [53][54] Question: Can you walk through the revenue changes for Q4 and the full year? - The increase in Q4 revenue was driven by a one-time license contract, while the full year decline was due to fluctuations in license sales based on government agency buying cycles [56][57] Question: How did the recurring revenue growth trend? - Annual recurring revenue increased by 9% year-over-year, although it fell short of the initial double-digit growth guidance [59] Question: Are you looking to implement M&A as a potential component of your growth strategy? - The primary focus remains on organic growth, but the company continues to evaluate strategic acquisition opportunities that could enhance its technology roadmap [61]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 10% to $4.8 million compared to $4.4 million in Q4 2023, driven by higher software license revenue, including a $1 million one-time license sale to a European government [25] - Recurring revenue for Q4 was $3.3 million, down from $3.7 million in the prior year, primarily due to timing of revenue recognition [25] - For the full year, total revenue decreased to $17.4 million from $18.2 million, attributed to lower software license revenue [28] - Full year recurring revenue grew by 9% to $12 million, making up 69% of total revenue [29] - Operating expenses decreased by 14% to $22.9 million for the full year, down from $26.8 million in the prior year [29] - GAAP net loss for Q4 was $1.2 million, or $0.06 per diluted share, compared to a loss of $4.2 million, or $0.20 per diluted share in Q4 2023 [26] Business Line Data and Key Metrics Changes - The increase in total revenue for Q4 was largely driven by higher software license revenue, while recurring revenue showed a slight decline [25] - The full year saw a decline in total revenue due to fluctuations in license sales, despite growth in recurring revenue [28][57] Market Data and Key Metrics Changes - The company noted that the biometrics industry is experiencing increased investment and demand, particularly in the context of rising AI-driven fraud [13][47] - Aware's technology is recognized as critical for national security, with a strong emphasis on partnerships with government agencies [14][52] Company Strategy and Development Direction - The company aims to deepen strategic partnerships, advance technological innovation, and scale sustainably to drive revenue growth [18][20][21] - Aware is focused on refining its go-to-market strategy to improve efficiency and unlock new revenue opportunities, particularly in the biometrics sector [16][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds and government budget constraints but emphasized a commitment to improving operational efficiency and positioning for sustainable growth starting in 2026 [16][22] - The CEO expressed confidence in the company's technology and strategic vision, indicating that the best days are ahead for Aware [23][34] Other Important Information - The company has a strong balance sheet with cash, cash equivalents, and marketable securities totaling $27.8 million as of December 31, 2024 [32] - The CEO highlighted the importance of biometric solutions in enhancing efficiency for government services, which positions Aware well amid evolving challenges [53] Q&A Session Summary Question: What changes are being implemented to improve sales efficiency? - The company is taking a more focused approach to sales, prioritizing high-value customers and optimizing pricing models to enhance competitiveness [39][40] Question: Why is now a good time for Aware to initiate a more effective go-to-market strategy? - The CEO noted that the current market conditions favor biometrics, with increasing consumer acceptance and investment in biometric solutions [47] Question: What drove the reduction in operating expenses for the year? - The reduction was due to a disciplined approach to cost optimization, including streamlining operations and reducing discretionary spending [50] Question: Do you expect recent DOGE activity to impact the business? - The company is monitoring potential shifts in procurement patterns but remains confident in its longstanding relationships with U.S. federal agencies [52][54] Question: Can you walk through the revenue changes for Q4 and the full year? - The increase in Q4 revenue was driven by a one-time license contract, while the full year decline was due to fluctuations in license sales [56][57] Question: How did the recurring revenue growth trend? - Annual recurring revenue increased by 9% year-over-year, although it fell short of the initial double-digit growth guidance [59] Question: Are you looking to implement M&A as a potential component of your growth strategy? - The company remains focused on organic growth but will evaluate strategic acquisition opportunities that could enhance its technology roadmap [61] Question: How many shares do you own? - The CEO purchased just under 1% of the company, reflecting confidence in Aware's long-term potential [63]

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 ...

David Traverse named interim CEO and PresidentBURLINGTON, Mass., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a leading global biometric authentication company, today announced that its Board of Directors has appointed Aware Chief Financial Officer (CFO) David Traverse as Interim Chief Executive Officer (CEO), effective January 1, 2025. This appointment follows the effectiveness of Bob Eckel’s previously announced resignation as Aware’s CEO on December 31, 2024, a position he held since Sep ...

For Immediate ReleasesChicago, IL – November 25, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including GE Aerospace (GE) , Fomento Economico Mexicano (FMX) , Waste Management, Inc. (WM) and Aware, Inc. (AWRE) .Here are highlights from Monday’s Analyst Blog:Top Research Reports for GE Aerospace, Fomento Eco ...

3 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to _________ Commission file number 000-21129 AWARE, INC. (Exact Name of Registrant as Specified in Its Charter) | --- | --- | --- | |------------------- ...