Core Insights - FOREWARN services will be made available to approximately 10,000 members of the MIBOR REALTOR Association to enhance agent safety [1][3] - The service provides real-time information solutions, including identity verification and criminal history checks, accessible via a mobile app [2][5] - MIBOR members can access FOREWARN services at no additional cost, promoting proactive safety measures [2][3] Company Overview - FOREWARN, LLC is a leading provider of real-time information solutions for real estate agents, focusing on safety and risk mitigation [1][5] - MIBOR REALTOR Association represents central Indiana's REALTORS, serving around 10,000 professionals across 14 counties [7][8] - MIBOR aims to strengthen communities and promote professionalism through technology resources [8]

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]

Core Insights - The recruitment industry is facing challenges due to overwhelming candidate pipelines influenced by remote work, economic uncertainty, and AI-driven mass applications, leading to a rise in fraudulent applications [1] - Gartner predicts that by 2028, up to 25% of job applicants could be fraudulent, utilizing advanced AI tools to circumvent standard hiring controls [1] Company Overview - Greenhouse is a leading hiring platform aimed at improving hiring processes for companies, providing AI-powered software that supports every stage from sourcing to onboarding [6][7] - The company has assisted over 7,500 organizations across various industries in enhancing their hiring performance [9] Product Features - Greenhouse Real Talent integrates with CLEAR1 to enhance candidate verification, allowing recruiters to focus on genuine candidates [2][4] - The integration enables seamless identity verification by matching a candidate's selfie with their government-issued ID, ensuring authenticity [8] - Over 31 million existing CLEAR users can verify their identity instantly with a selfie, streamlining the hiring process [8] Benefits - For customers, the integration reduces recruiting costs and saves time by filtering verified candidates, allowing hiring efforts to concentrate on the right individuals [8] - For candidates, the process offers a fast and secure way to verify their identity, enhancing trust with recruiters [8] Future Plans - The Greenhouse Real Talent + CLEAR1 integration is set to launch for select customers in Q3 2025, with further details to be announced [5]

Core Insights - CLEAR has partnered with Greenhouse to enhance hiring processes through the integration of CLEAR1, an identity verification platform, aimed at improving trust and reducing manual screening in recruitment [1][4][8] Industry Context - The recruitment landscape is increasingly challenged by a surge in candidate applications driven by remote work and economic uncertainty, alongside a rise in fraudulent applications facilitated by AI technologies [2][3] - Gartner forecasts that by 2028, up to 25% of job applicants may be fraudulent, utilizing advanced AI tools to circumvent traditional hiring controls [2] Company Benefits - The integration of CLEAR1 into Greenhouse's Real Talent solution will allow for seamless verification of candidates, enhancing the efficiency of the hiring process [3][8] - Organizations using this integrated solution can expect to save time and reduce the risk of hiring fraudulent candidates, thereby improving the overall quality of hires [8][9] Candidate Experience - Candidates will benefit from a streamlined verification process, which involves simply taking a selfie to confirm their identity, making the application experience faster and more secure [3][8] - The integration will also allow candidates to verify their identity quickly if they are already CLEAR users, minimizing friction in the hiring process [8] Launch Timeline - The Greenhouse Real Talent and CLEAR1 integration is set to launch for select customers in Q3 2025, with further details to be announced [6]

Core Insights - T-Mobile has implemented CLEAR1, a biometric multi-factor authentication (MFA) solution, to enhance identity verification processes for its employees and team members [1][2][3] - The CLEAR1 platform allows for seamless identity verification through simple actions like taking a selfie, moving away from traditional methods such as passwords and one-time PINs [2][3] - The deployment of CLEAR1 is part of T-Mobile's strategy to strengthen cybersecurity by focusing on verifying the individual rather than just their credentials [4] Company and Industry Summary - CLEAR1 provides organizations with a robust identity verification solution that utilizes biometric data, documents, and device corroboration to enhance security while minimizing friction for users [5] - The increasing sophistication of cyber threats necessitates the adoption of identity-first strategies, as highlighted by the significant financial losses from scams involving impersonation of IT workers [4] - CLEAR's mission is to enhance security and create frictionless experiences, with over 31 million members and a growing network of partners, indicating a strong market presence [5]

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 - FOREWARN, LLC has partnered with NEXUS Association of REALTORS to provide its services to over 5,000 real estate professionals in New Jersey, focusing on enhancing agent safety [1][3] - The FOREWARN service offers real-time data analysis, allowing agents to verify identities, check criminal histories, and validate client information using just a phone number [2][5] - NEXUS members will have access to FOREWARN services at no additional cost, promoting proactive safety measures for real estate agents [2][3] Company Overview - FOREWARN is a leading provider of real-time information solutions for real estate agents, leveraging extensive data analytics to enhance safety and decision-making [1][5] - The company aims to ensure safer engagements and smarter interactions through innovative solutions that provide instant knowledge [5][6] - Red Violet, the parent company of FOREWARN, specializes in identity intelligence and risk mitigation technologies, serving various sectors including real estate [6]

Core Insights - FOREWARN, LLC, a subsidiary of red violet, announced a partnership with HiCentral MLS® to provide its services to over 6,000 real estate agents in Honolulu and Oahu, enhancing agent safety [1][3] - The FOREWARN service utilizes extensive data analysis to help agents verify identities, check criminal histories, and validate client information using just a phone number, thereby increasing safety during property showings [2][5] Company Overview - FOREWARN offers its services at no additional cost to HiCentral MLS® members, aligning with the organization's mission to equip agents with resources for safety and fraud mitigation [3] - The technology behind FOREWARN is designed to provide real-time knowledge and risk assessment, enabling safer engagements and smarter interactions for real estate professionals [5][6] Additional Information - Other real estate agencies and professionals can access more information about FOREWARN through its website [4] - Red violet focuses on delivering identity intelligence through proprietary technologies and analytical capabilities, supporting various applications including fraud detection and regulatory compliance [6]

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]