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].

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 ...