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Financial Performance - Q3 FY25 - Total revenue reached $46 million, a 2% increase compared to Q3 FY24[31] - Identity revenue grew significantly by 24% to $20 million[31] - Deposits revenue experienced a decrease of 10%, totaling $26 million[31] - SaaS revenue showed strong growth, increasing by 23% to $19 million[31] - Adjusted EBITDA increased by 8% to $13 million, with an adjusted EBITDA margin of 28.4%, a 160 bps increase[31] - Free Cash Flow surged by 69% to $21 million[31] Key Metrics - LTM SaaS Revenue increased by 21% year-over-year, reaching $74 million, representing 41% of total LTM revenue, up 470 bps[33] - LTM Adjusted EBITDA increased significantly by 53% to $57 million[33] - LTM Free Cash Flow showed substantial growth, increasing by 345% to $56 million[33] - Free Cash Flow Conversion reached 99%, a significant increase of 6490 bps[33] Financial Outlook for FY25 - The company projects total revenue between $174 million and $177 million for FY25[56] - The company anticipates an adjusted EBITDA margin between 28% and 29% for FY25[60]

Core Insights - Trust Stamp has partnered with Neural Payments to enhance security in person-to-person (P2P) payments, addressing the rising concern of fraud in the banking sector [1][3] - The global P2P payment market is projected to grow from USD 3.63 trillion in 2025 to USD 16.21 trillion by 2034, with a compound annual growth rate (CAGR) of 18.10% [2] Company Overview - Trust Stamp is a global provider of AI-powered identity services, focusing on reducing fraud and enhancing data privacy across various sectors, including banking and finance [5][6] - Neural Payments offers real-time P2P payment solutions and advanced fraud prevention, serving nearly 80 financial institutions [3] Partnership Details - The integration of Trust Stamp's low-code Orchestration Platform with Neural Payments aims to streamline identity verification processes, utilizing selfie-based reauthentication for payments [1][3] - The partnership is designed to provide financial institutions with tools to mitigate fraud and improve customer experience, aligning with community bank priorities [4] Industry Context - The rise of popular P2P apps has led to increased fraud attempts, with 8% of banking customers reporting being victims of P2P scams in the past year [1][2] - The collaboration between Trust Stamp and Neural Payments is seen as a proactive approach to address the pressing challenges of fraud in the financial sector [4]

Group 1 - Apple reported that its App Store prevented over $2 billion in fraudulent transactions in the last year, contributing to a total of more than $9 billion blocked over the past five years [1] - The company highlighted the evolving tactics of fraudsters and emphasized the need for constant vigilance to maintain a secure marketplace [1][2] - Apple terminated over 146,000 developer accounts and rejected 139,000 developer enrollments due to fraud concerns, preventing fraudulent apps from entering the App Store [2] Group 2 - The App Review program removed more than 37,000 apps for fraudulent activity in 2024 and eliminated over 143 million fraudulent ratings and reviews last year [3] - Additionally, Apple kept nearly 9,500 deceptive apps from appearing in search results, benefiting legitimate developers by leveling the playing field [3][4] - The trend of consumers shifting from plastic cards to virtual cards is noted, with 42% of U.S. consumers using virtual cards in the last six months and 65% likely to use them within the next year [5][6]

Financial Data and Key Metrics Changes - Total revenue reached a record $51.9 million, up 11% year over year in Q2 [27] - Non-GAAP gross profit for the quarter was $45.6 million, representing an 88% non-GAAP gross margin [28] - Adjusted EBITDA came in at $20.2 million, representing a 39% margin, reflecting a 52% increase year over year [35] Business Line Data and Key Metrics Changes - Deposit products revenue increased by 14% year over year to $33.7 million, driven by strong mobile deposit renewal activity [28][29] - Identity products revenue grew by 4% year over year to $18.2 million, highlighted by a 9% increase in Identity SaaS revenue [30] - Check Fraud Defender's SaaS revenue rose 64% year over year, indicating growing traction [30] Market Data and Key Metrics Changes - The company now has data sets covering approximately 23% of U.S. checking accounts, up from 18% [18] - SaaS revenue grew 15% year over year and now accounts for 40% of total last twelve months revenue, up from 39% [21][32] Company Strategy and Development Direction - The company aims to drive organic growth, increase the percentage of SaaS revenue, expand margins, and improve free cash flow conversion [9] - The focus is on enhancing automation, product development, and data analytics to support durable profitable growth [13] - The strategy includes a shift towards a layered signal-rich approach for identity verification, combining biometrics and behavioral data [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in the business despite macroeconomic uncertainties, with no cancellations observed [37] - The full-year revenue guidance remains at $170 million to $180 million, with an expectation for Q3 revenue to modestly exceed Q4 [38] - Adjusted EBITDA margin guidance has been raised to 26% to 29%, reflecting strong first-half performance [38] Other Important Information - The company generated $47 million in free cash flow over the last twelve months, with an 86% conversion rate [22] - A $100 million senior credit facility was closed to support capital allocation strategies [36] Q&A Session Summary Question: What has gone well and what has been difficult for the company? - Management highlighted strong execution and traction in the past quarter, with positive feedback from customers regarding the focus on fraud and identity [42][46] Question: Can you discuss the guidance and any pull-forwards that helped drive the strength in the quarter? - A large mobile deposit customer order came in earlier than expected, contributing to the overachievement in Q2 [47][48] Question: How is the company progressing towards its target of reaching $20 million ACV? - The company is seeing substantial ramp-up in volumes and partnerships, indicating positive leading indicators for future growth [49][51] Question: Can you quantify the improvements from the modernized document onboarding system? - While specific data was not provided, management indicated meaningful acceleration in cycle times and improved customer experience [56][58] Question: What is the expected trend for SaaS revenue mix in the coming years? - The goal is for SaaS revenue to represent more than half of total revenue by 2026, driven by growth in fraud and identity verification products [60][62] Question: How does the company plan to achieve organic growth? - The focus is on adding new customers while expanding existing relationships through new products and solutions [71]

Financial Data and Key Metrics Changes - Total revenue reached a record $51.9 million, up 11% year over year in Q2 2025 [25] - Non-GAAP gross profit for the quarter was $45.6 million, representing an 88% non-GAAP gross margin [26] - Adjusted EBITDA came in at $20.2 million, reflecting a 39% margin, which slightly exceeded expectations [26][34] Business Line Data and Key Metrics Changes - Deposit products revenue increased by 14% year over year to $33.7 million, driven by strong mobile deposit renewal activity [26][28] - Identity products revenue grew by 4% year over year to $18.2 million, highlighted by a 9% increase in Identity SaaS revenue [29] - Check Fraud Defender's SaaS revenue rose 64% year over year, indicating growing traction [28] Market Data and Key Metrics Changes - The company now has data set coverage on approximately 23% of all U.S. checking accounts, up from 18% [16] - SaaS revenue grew 15% year over year and now accounts for 40% of total last twelve months revenue, up from 39% [19][31] Company Strategy and Development Direction - The company aims to drive organic growth, increase the percentage of SaaS revenue, expand margins, and improve free cash flow conversion [8] - Mitek is focusing on a layered signal-rich approach to identity verification, combining biometrics and behavioral data to enhance security [21][22] - The leadership team has been strengthened with the appointment of a new COO to focus on scaling automation and product development [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains uncertain, but the business has shown resilience and has not seen cancellations related to macroeconomic factors [36] - The company is maintaining its full-year revenue guidance range of $170 million to $180 million, reflecting a cautious approach to the current environment [37] - Adjusted EBITDA margin guidance has been raised to 26% to 29%, up from the previous range of 25% to 28% [37] Other Important Information - The company generated $47 million in free cash flow over the last twelve months, with an 86% conversion rate [20] - A $100 million senior credit facility was closed to support capital allocation strategies [35] Q&A Session Summary Question: What has gone well and what has been difficult for the company? - Management highlighted strong execution and traction in the past quarter, with no cancellations observed from the macro environment [44][45] Question: Can you discuss the guidance and any pull-forwards that helped drive the strength in the quarter? - A large mobile deposit customer order was received earlier than expected, contributing to the overachievement in Q2 [46] Question: How is the company progressing towards its target of reaching $20 million ACV? - The company is seeing substantial ramp-up in volumes and partnerships, indicating positive leading indicators for future growth [48][49] Question: Can you quantify the improvements from the modernized document onboarding system? - While specific data was not provided, management indicated that the automation significantly accelerates cycle times and improves customer experience [54][56] Question: What is the expected trend for SaaS revenue in the coming years? - The company aims for SaaS revenue to represent more than half of total revenue by 2026, driven by growth in fraud and identity verification products [58][59] Question: How does the company plan to balance new business growth with expansion in existing clients? - The focus is on both acquiring new clients and expanding relationships with existing ones through new product offerings [67][69]

Core Insights - LexisNexis Risk Solutions has appointed Glenn Prager as Executive Director of Government Risk Solutions to enhance program integrity and protect public funds [1][2] - Prager brings over two decades of experience in combating fraud, waste, and abuse, focusing on ensuring that benefits reach those in need [1][2] - The company aims to modernize fraud prevention efforts using advanced technology and innovative strategies under Prager's leadership [3] Company Overview - LexisNexis Risk Solutions utilizes data and advanced analytics to help businesses and government entities reduce risk and improve decision-making [4] - The company provides solutions across various industries, including insurance, financial services, healthcare, and government [4] - LexisNexis Risk Solutions is part of RELX, a global provider of information and analytics for professional and business customers [4]

Financial Data and Key Metrics Changes - Fourth quarter revenues increased by 15% year-over-year, reaching a record $5,936,000 compared to $5,176,000 in Q4 2023 [31][32] - SaaS revenues for Q4 grew 17% quarter-over-quarter, totaling $5,900,000, while full-year SaaS revenues increased by 7% to $19,800,000 [9][36] - Adjusted EBITDA for the full year improved to a positive $520,000 compared to $377,000 in 2023 [39][42] - Gross profit margin for Q4 was 91%, down from 95% in the same period of 2023, primarily due to increased R&D costs [34][37] Business Line Data and Key Metrics Changes - Significant growth was observed in new verticals, with automotive, title insurance, email, social media, and retail banking verticals growing by 13%, 2,500%, 54%, and 17% respectively [10] - The title insurance vertical is particularly strong, with direct title clients accounting for approximately 45% of the market [11] - The company faced headwinds from retail bankruptcies and customer churn, particularly in bars, restaurants, and hardware-focused manufacturers [12] Market Data and Key Metrics Changes - Retail still represents approximately 75% of the company's scan volume, but transaction volumes from major retailers were down about 45% from Q4 2023 [29][55] - The company is diversifying away from retail, which is crucial given the current economic climate affecting consumer spending [29][51] Company Strategy and Development Direction - The company is focused on vertical channel diversification and enhancing ID validation services [6][7] - Investments in IT initiatives and customer success leadership are aimed at improving customer experience and marketing capabilities [7][21] - The migration from Azure to AWS is expected to yield cost savings and improve implementation speed [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in the back half of 2025, driven by rollout schedules and proof of concepts [45][46] - Concerns about consumer confidence and macroeconomic factors are acknowledged, but the company remains focused on fraud prevention as a consistent need across industries [49][50] - The company anticipates a cautious outlook for Q1 2025, aligning with sell-side consensus estimates of $4,780,000 [28][39] Other Important Information - The company has a $2,000,000 revolving credit facility with Citibank, which was not utilized during 2024 [40] - The company expects to finish Q1 2025 with a cash balance of approximately $5,000,000, indicating strong cash generation capabilities [39] Q&A Session Summary Question: Visibility on stronger back half of the year - Management indicated that visibility is based on rollout schedules and proof of concepts, with delays potentially leading to easier implementations in the future [45][46] Question: Disruption in sales conversations due to macro conditions - No significant disruption was noted in sales conversations, as fraud remains a consistent issue across industries [49][50] Question: Potential operating expense savings from switching to AWS - Management expects significant savings from the AWS transition, with ongoing negotiations for better rates from cloud providers [52] Question: Clarification on Q4 revenue strength and Q1 expectations - The strength in Q4 was attributed to non-retail improvements, while Q1 is expected to see a drop due to worsening retail conditions [55][58] Question: Update on large social media customer - The company is finalizing procurement discussions and expects updates soon [60][61] Question: Expectations for EBITDA improvement in 2025 - Management anticipates continued improvement in EBITDA for 2025, with a focus on maintaining positive growth [62]