Aware, Inc. (AWRE) reported a third quarter of 2024 loss per share of 6 cents against the year-ago period’s earnings of 5 cents.AWRE’s Revenues in DetailAware registered revenues of $3.8 million in the third quarter, down 39.7% year over year.Lower revenues from software licenses dampened the top line.Recurring revenues for the third quarter of 2024 totaled $2.8 million, up 29.2% year over year.Shares of this company declined nearly 19.3% in today’s pre-market trading.Find the latest EPS estimates and surpr ...

Financial Data and Key Metrics - Total revenue for Q3 2024 was $3.8 million, down from $6.4 million in Q3 2023, primarily due to lower software license revenue, including a $2.9 million one-time license sale in the prior year [21] - Recurring revenue grew 29% year-over-year to $2.8 million, up from $2.2 million in Q3 2023, driven by the company's focus on building predictable long-term revenue streams [22] - Operating expenses decreased 6% to $5.3 million in Q3 2024, reflecting cost management efforts [23] - GAAP net loss for Q3 2024 was $1.2 million, compared to a net income of $1.1 million in Q3 2023, which included an $800,000 one-time gain [23][24] - Adjusted EBITDA loss for Q3 2024 was $1.1 million, compared to a gain of $400,000 in Q3 2023, largely due to lower revenue [25] - For the first 9 months of 2024, total revenue was $12.6 million, down from $13.9 million in the same period last year, with recurring revenue growing 19% to $8.7 million, making up 69% of total revenue [26] - Operating expenses for the first 9 months of 2024 decreased 7% to $16.7 million, with an operating loss of $4.1 million, consistent with the prior year [27] - Adjusted EBITDA loss for the first 9 months of 2024 was $3 million, an improvement from a loss of $3.3 million in the prior year, driven by lower operating expenses [28] - Cash, cash equivalents, and marketable securities totaled $27.4 million as of September 30, 2024, compared to $30.9 million at the end of 2023 [29] Business Line Performance - The company secured a $1 million booking with the European government in October 2024, driven by enhancements to the BioSP platform, including offline biometric enrollment capabilities [10][43] - The ABIS portfolio expanded with 2 new term contracts in Q3 and an additional account in Q4, bringing the total to 5 accounts, expected to generate steady revenue over the next 5 years [11] - Access control solutions, including AwareID, saw significant traction in Brazil and adoption in the Middle East and Latin America, particularly in digital test-taking environments [12] - The SaaS model gained momentum with the launch of AwareID as a no-code plug-in on the WordPress marketplace, targeting industries like online gaming, retail, and e-commerce [14][15] - The company enhanced its partner program, introducing new initiatives focused on collaborative business planning and incentivization, and hosted a Partnership Summit in the Middle East [17][18] Market Performance - The European government deal is expected to contribute to Q4 results and future recurring revenue, with potential for additional use cases in border and immigration management [43][44] - The AwareID plug-in on WordPress is expected to accelerate customer acquisition in high-risk industries like online gaming and e-commerce, leveraging WordPress's 40% market share of the web [45][46] Strategic Direction and Industry Competition - The company is focused on transitioning to a recurring revenue model, with recurring revenue growing at a 20% rate since 2020 [8] - Key strategic initiatives include driving vertical-specific product-market fit, expanding the global partner ecosystem, and improving revenue predictability through SaaS models [34] - The company aims to achieve double-digit recurring revenue growth and sustainable positive cash flow, leveraging its scalable infrastructure and product offerings [35] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about Q4 performance, with a robust pipeline and confidence in capturing opportunities, despite some delays in contract closures [19][47] - The company is well-positioned for sustained growth, with a focus on enhancing product offerings and deepening partnerships based on customer feedback [20] - The CEO succession plan is in place, with a transition period extending through December 31, 2024, and an executive strategic adviser appointed to refine market position and growth strategy [36][40][49] Other Important Information - The company expects to recognize approximately $900,000 in one-time expenses in Q4 related to the CEO search and transition [50] - The CEO highlighted the company's transformation from a project-based model to a recurring revenue model, achieving 20% ARR growth and 15% top-line growth from 2020 to 2023 [37][38] Q&A Session Summary Question: What is the anticipated run rate revenue by year-end? - The company is on track for double-digit revenue growth in 2024, with 7 new contracts and expanding partnerships expected to strengthen the recurring revenue base in 2025 [42] Question: Can you provide details on the $1 million European government booking? - The deal was secured due to enhancements to the BioSP platform, including offline biometric enrollment, and is expected to contribute to Q4 results and future recurring revenue [43][44] Question: What is the impact of the AwareID plug-in on WordPress? - The plug-in is expected to drive customer acquisition in sectors like online gaming and e-commerce, with early adoption already underway [45][46] Question: What is the confidence level in closing delayed deals? - Management is confident that delayed deals will close in Q4 or early 2025, with delays due to expanded project scope rather than lost opportunities [47][48] Question: What will be the focus areas for the executive strategic adviser? - The adviser will focus on enhancing market position, refining the product roadmap, and providing strategic guidance for growth and competitiveness [49] Question: What is the plan if a new CEO is not appointed by year-end? - The Board is focused on finding the right candidate, with the strategic adviser ensuring a smooth transition, and $900,000 in one-time expenses expected in Q4 [50]

Exhibit 99.1 Investor Contact Matt Glover Gateway Group, Inc. 949-574-3860 AWRE@gateway-grp.com Aware Reports Third Quarter and Nine Month 2024 Financial Results Company Reaf irms Expectations for Double-Digit Annual Recurring Revenue (ARR) and Recurring Revenue Growth in 2024 Ongoing Cost Optimization Initiatives Reduced Operating Expenses by $1.3 million in the First Nine Months of 2024 Compared to Same Period Last Year BURLINGTON, MASS. – October 30, 2024 – Aware, Inc. (NASDAQ: AWRE), a global biometric ...

BURLINGTON, Mass., Oct. 22, 2024 (GLOBE NEWSWIRE) -- In an effort to make biometric authentication more readily accessible to businesses, Aware, Inc. (NASDAQ: AWRE) has launched AwareID, its cloud-based authentication platform, to the WordPress Marketplace. Aware's differentiated approach delivers secure biometric-based KYC and authentication for business owners, website owners, and website developers who wish to reduce fraud, protect revenue, and meet compliance regulations effortlessly using biometrics. W ...

BURLINGTON, MASS., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a global biometric platform company that uses data science, machine learning, and artificial intelligence to tackle everyday business and identity challenges through biometrics, will hold a webcast on Wednesday, October 30, 2024, at 5:00 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2024. Financial results will be issued in a press release prior to the call. Aware management will h ...

BURLINGTON, Mass., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Consumers are increasingly adopting biometrics as this technology becomes more integrated into everyday devices like smartphones and laptops. More than 50 percent of all users now authenticate with biometrics daily, signaling a clear path toward mass adoption. However, consumers have a keen awareness of the sensitivity of their biometric data and are looking to use biometrics with providers who have clear policies around data management. These trends are ...

Zacks Investment Research has recently initiated coverage of Aware, Inc. (AWRE) , assigning an "Outperform" recommendation to the company's shares. This bullish stance reflects the company's strong revenue growth, strategic shift toward a subscription-based model and its increasing global footprint as key drivers of future performance.Aware, headquartered in Burlington, MA, is a biometric identity platform company specializing in validating and securing identities via adaptive biometrics. Its software solut ...

Aware, Inc. (AWRE Quick Quote ) reported a loss per share of 5 cents in the second quarter of 2024, narrower than the year-ago period’s loss of 13 cents per share.Revenues in DetailAware registered revenues of $4.3 million in the second quarter, up 35.7% year over year.Solid revenues from the majority of the segments drove the topline.Segment DetailsAware derives revenues from three segments — Software licenses, Software maintenance and Services and other.For the quarter under review, Software licenses reve ...

Aware, Inc. (NASDAQ:AWRE) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET Company Participants Matt Glover – Gateway Investor Relations Robert Eckel – President and Chief Executive Officer David Traverse – Chief Financial Officer Craig Herman – Chief Revenue Officer Heidi Hunter – Chief Product Officer Conference Call Participants Matt Glover Good afternoon, and welcome to Aware’s Second Quarter 2024 Conference Call. Joining us today are the company’s Chief Executive Officer and President, Robert ...

Financial Performance - Total revenue for the three months ended June 30, 2024, was $4,322,000, representing a 36% increase from $3,184,000 in the same period of 2023[16] - Net loss for the six months ended June 30, 2024, was $2,071,000, compared to a net loss of $4,220,000 for the same period in 2023, indicating a 51% improvement[16] - Operating loss for the three months ended June 30, 2024, was $(1,341,000), an improvement from $(2,936,000) in the same period of 2023[16] - The company reported a comprehensive loss of $(1,105,000) for the three months ended June 30, 2024, compared to $(2,780,000) for the same period in 2023[16] - The company reported a net loss of $1,568 million for the three months ended June 30, 2023, compared to a net loss of $2,652 million for the same period in 2022[24] Revenue Breakdown - Revenue for the three months ended June 30, 2024, was $4,322 million, an increase from $3,184 million in the same period of 2023[43] - Revenue from the United States for the three months ended June 30, 2024, was $1,735 million, down from $2,064 million in the same period of 2023[43] - Revenue from the United Kingdom increased to $1,307 million for the three months ended June 30, 2024, compared to $251 million in the same period of 2023[43] - Revenue from the Rest of the World was $1,280 million for the three months ended June 30, 2024, compared to $869 million in the same period of 2023[43] - The company recognized $1,369 million in revenue from goods or services transferred at a point in time for the three months ended June 30, 2024, compared to $733 million in the same period of 2023[44] - Revenue from goods or services transferred over time was $2,953 million for the three months ended June 30, 2024, up from $2,451 million in the same period of 2023[44] - Revenue from subscription-based contracts for the three months ended June 30, 2024, was $4.322 million, a 36% increase from $3.184 million in the same period of 2023[45] Expenses and Costs - Research and development expenses for the three months ended June 30, 2024, were $1,867,000, down 17.5% from $2,265,000 in the same period of 2023[16] - Stock-based compensation expense was $403 million for the three months ended June 30, 2023[24] - For the three months ended June 30, 2024, the company reported a stock-based compensation expense of $243 million, a decrease from $403 million in the same period of 2023, representing a 39.7% reduction[62] Assets and Liabilities - Cash and cash equivalents increased to $11,957,000 as of June 30, 2024, up from $10,002,000 at the beginning of the period[19] - Total current assets decreased to $33,131,000 as of June 30, 2024, from $35,824,000 as of December 31, 2023, reflecting a 7.5% decline[11] - Accounts receivable increased to $3,657,000 as of June 30, 2024, from $2,454,000 as of December 31, 2023, marking a 49% increase[11] - Total liabilities decreased to $10,623,000 as of June 30, 2024, from $11,998,000 as of December 31, 2023, indicating a 11.4% reduction[12] - The company’s stockholders' equity decreased to $32,602,000 as of June 30, 2024, down from $34,298,000 as of December 31, 2023[13] - As of June 30, 2023, total stockholders' equity was $36,442 million, down from $40,209 million at December 31, 2022, reflecting a net loss of $2,652 million for the quarter[24] Deferred Revenue and Receivables - Unbilled receivables decreased to $1.299 million as of June 30, 2024, down from $3.483 million in the same period of 2023, indicating a reduction of 63%[48] - Deferred revenue as of June 30, 2024, was $4.444 million, down from $5.433 million at the beginning of the period, reflecting a decrease of 18%[49] - The company expects to recognize approximately 96% of the remaining deferred revenue over the next 12 months, with $3.6 million allocated to contracts with a duration greater than one year[50] Stock and Equity - The company granted 84,000 restricted stock units during the three months ended June 30, 2024, compared to 0 in the same period of 2023[67] - The company granted 284,814 restricted stock units during the six months ended June 30, 2024, with specific vesting schedules for portions of these units[67] - The company did not grant any other stock options or have any stock options exercised during the three or six months ended June 30, 2024 or 2023[66] - The company’s 2023 Equity Incentive Plan was approved on January 17, 2024, replacing the previous 2001 Nonqualified Stock Plan[63] Tax and Valuation - The company recorded an income tax provision of $39 thousand for the three and six months ended June 30, 2024[71] - The company has a full valuation recorded against its net deferred tax assets as of June 30, 2024, indicating a likelihood of not realizing the benefits of these assets[71] Marketable Securities - Marketable securities decreased to $15.9 million as of June 30, 2024, down from $20.9 million as of December 31, 2023[52] - The total assets measured at fair value as of June 30, 2024, amounted to $26.293 million, with money market funds contributing $10.382 million and marketable securities $15.911 million[53]