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]
AWRE Stock Gains Post Q4 Earnings Uptick, Recurring Revenues Decline