Aware(AWRE) - 2023 Q4 - Annual Results

Revenue Growth - Total revenue for the full year 2023 increased 14% to $18.2 million, the highest level since 2016[3] - Annual Recurring Revenue (ARR) reached a record $12 million, up 23% from $9.7 million in 2022[3] - Recurring revenue grew to a record $11 million, representing over 200% growth since 2019[3] - Fourth quarter total revenue increased 8% year-over-year to $4.4 million, compared to $4.1 million in Q4 2022[5] - Fourth quarter recurring revenue surged 40% year-over-year to $3.7 million, up from $2.6 million in Q4 2022[10] - Total revenue for the twelve months ended December 31, 2023, was $18,244,000, compared to $16,008,000 in 2022, representing a growth of about 13.9%[28] Financial Performance - Net loss for the fourth quarter of 2023 was $4.2 million, or $(0.20) per diluted share, impacted by a $2.7 million write-off related to Omlis Limited[10] - Adjusted EBITDA for the three months ended December 31, 2023, was $(1,218,000), compared to $(1,497,000) for the same period in 2022, showing an improvement of approximately 18.7%[27] - The company reported a net loss of $(4,238,000) for the three months ended December 31, 2023, compared to a net loss of $(1,758,000) in the same period of 2022[27] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $30.9 million as of December 31, 2023, an increase of $1.9 million from $29 million in 2022[3] - Total assets decreased to $46,296,000 as of December 31, 2023, down from $51,192,000 in 2022, representing a decline of approximately 9.3%[22] - Total stockholders' equity fell to $34,298,000 in 2023, down from $40,209,000 in 2022, indicating a decrease of about 14.7%[22] Revenue Composition - Software subscriptions revenue rose to $1,492,000 in Q4 2023, compared to $782,000 in Q4 2022, reflecting an increase of approximately 90%[28] - Non-recurring revenue for the three months ended December 31, 2023, was $699,000, down from $1,437,000 in 2022, indicating a decline of approximately 51.4%[28] - The deferred revenue increased to $5,537,000 in 2023, up from $3,733,000 in 2022, which is an increase of approximately 48.3%[22] Strategic Initiatives - Aware launched new AwareID® functionality and a developer hub to enhance biometric technology adoption[7] - The company aims to expand its partnerships and customer relationships to enhance product-market fit in 2024[9] - The company expects to continue incurring expenses related to the adjustments made in arriving at adjusted EBITDA, indicating ongoing operational challenges[25]