Intellicheck CEO Sees Demand for Banking ID Verification as Fraudsters Grow Bolder

Core Viewpoint - Investors reacted negatively to Intellicheck's slight revenue miss, resulting in a 12% drop in shares, but management highlighted potential growth in identity verification services, particularly in real estate and banking sectors [1] Financial Performance - Third-quarter revenue was $4.7 million, approximately flat year-over-year and about 3% below consensus estimates [2] - Software-as-a-Service (SaaS) revenue increased by 1%, contributing significantly to the overall revenue [2] - Pricing power remained robust, with new business pricing per transaction rising by 25% year-on-year and 8% sequentially [2] Business Development - The appointment of Sandra Bower as vice president of customer success is expected to enhance revenue from existing customers through a deeper focus on the product pipeline [3] - A large regional bank has signed a multiyear agreement, fully implementing Intellicheck's services in 1,200 branches, with expectations of mid-6-figure annual revenue [5] - Another regional bank with over 2,700 branches is finalizing a multiyear deal for in-branch implementations, with potential for a seven-figure revenue increase by 2025 [6] Sector Growth - The real estate sector is experiencing solid growth, driven by the need for identity verification due to fraud schemes that have resulted in billions in losses [7] - Fraudsters often exploit stolen personal information in real estate transactions, highlighting the importance of Intellicheck's ID verification tools [8] - Westcor Land Title Insurance Company is utilizing Intellicheck's technology for advanced ID verification, contributing to growth in the automobile segment, which saw a 28% year-on-year increase [9] Market Challenges - The retail segment has faced pressures, including bankruptcies of three clients and reduced consumer spending, impacting overall revenue stability [10] - Management expressed hope that declining inflation could reverse current headwinds into tailwinds for the business [11] - The company is actively exploring other verticals for growth, indicating that many customers have not fully implemented their solutions yet [12]