Intellicheck(IDN) PYMNTS.com·2024-08-09 00:06Core Insights - The second quarter for Intellicheck showed pressure in retail verticals and customers, but diversification efforts are expected to yield long-term benefits [1] - Total revenues decreased by 0.9% to 4.6 million; net loss improved to 853,000 a year ago [1][2] Retail Segment Performance - Customers in the retail segment are reducing spending, particularly on cards, impacting transaction volumes and ID verification on a "per scan" basis [3] - Retail bankruptcies and store closures among clients led to a 16% volume decline in the quarter, worsening from a 10% decline in the first quarter [3] - There is a bifurcation within retail, with volume gains in sporting goods and electronics, while other categories are losing ground [3] Identity Fraud Concerns - Identity fraud remains a significant issue, with increasing breaches resulting in tens of billions of dollars in losses; the cost of stolen identity information is alarmingly low [4] - Knowledge-based security protocols are becoming less effective due to compromised challenge questions and answers [4] Diversification Efforts - The company is expanding into verticals beyond retail, including a partnership with Doma Title Insurance to combat seller impersonation amid rising real estate scams [5] - New business lines have seen an 11% average price increase per transaction compared to older retail lines, indicating successful diversification strategies [6] - Management emphasizes that diversification is a crucial strategy that is proving effective [6]