Aware(US:AWRE)2022-04-27 01:44Financial Data and Key Metrics Changes - The company's revenue for Q1 2022 was $4.7 million, representing a 17% increase sequentially and a 6% increase year-over-year, marking the highest quarterly revenue since 2018 [7][14] - Recurring revenue grew 30% year-over-year, driven by a 73% increase in subscription revenue compared to Q1 of the previous year [7][14] - The operating loss for Q1 2022 was $1.3 million, an improvement from an operating loss of $1.4 million in the same year-ago period [14] Business Line Data and Key Metrics Changes - The growth in subscription revenue reflects the expansion of existing partners and the addition of new partners globally [8] - The company announced two strategic partnerships in Q1 2022, with Anonybit and MIRACL, aimed at enhancing its biometric technology offerings [9][10] Market Data and Key Metrics Changes - The company is expanding its reach into new geographies and end markets through strategic partnerships, particularly in the Middle East, Asia, and South America [18] - The biometric market is expected to grow at a compound annual growth rate (CAGR) of 15%, and the company aims to exceed this growth rate [20] Company Strategy and Development Direction - The company is transitioning into a subscription-based SaaS platform, with a focus on launching the Aware ID SaaS platform in the second half of 2022 [17][21] - Partnerships with commercial resellers and integrated product resellers are prioritized to build operational leverage and expand revenue without increasing expenses [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects for 2022 and beyond, citing strong first-quarter results and operational progress [21] - The company anticipates crossing over to adjusted EBITDA profitability by the end of 2023, although the exact timing remains uncertain [20][55] Other Important Information - The company made a $2.5 million strategic investment in a convertible note issued by MIRACL to support its growth [12] - The company maintains a strong cash position of $25.1 million at the end of Q1 2022, down from $30 million at the end of the previous quarter [16] Q&A Session Summary Question: What does ramping mean with respect to integrated resellers? - Ramping refers to signing an initial partnership agreement with a minimum initial level, collaborating to integrate Aware technology, and anticipating a full product launch within 6 to 18 months [25] Question: Can you elaborate on the use of approximately $5 million in cash in Q1? - The company used approximately $2.5 million for operating purposes and made a $2.5 million strategic investment in MIRACL [28] Question: What is the impact of the adoption of Flutter? - Currently, there is no financial impact, but the company anticipates more sales based on the release of the Flutter version [47] Question: What was recurring revenue for the quarter? - Recurring revenue for Q1 was reported to be a bit over $2.9 million [52]