Financial Data and Key Metrics Changes - Q2 2024 revenue decreased by 1% to 4.716 million in Q2 2023 [31] - SaaS revenue for Q2 2024 decreased by 0.8% to 4.663 million in the same period last year, representing 99% of total revenue [31] - Net income improved by 127,000 for Q2 2024 compared to a net loss of 106,000, resulting in a loss of 36,000 for the same period in 2023 [34] Business Line Data and Key Metrics Changes - SaaS revenues were 36,000 year-over-year [8] - Operating expenses decreased by 4.443 million for Q2 2024 compared to $5.213 million for Q2 2023 [32] - The average price per scan increased by 11% sequentially from Q1 to Q2 2024, indicating a positive trend in pricing strategy [10][58] Market Data and Key Metrics Changes - Retail sector saw a 16% year-over-year decline in volumes, with significant impacts from bankruptcies and store closures [44] - New customer acquisition in non-retail sectors is showing positive growth, helping to offset declines in the retail sector [50][56] - The electronics vertical and new categories like auto and title insurance are performing better, partially offsetting declines in traditional retail categories [11] Company Strategy and Development Direction - The company is diversifying its market presence beyond traditional retail to include sectors like title insurance, automotive, and background checks [11][21] - A focus on enhancing customer experience and account management through new leadership roles is expected to drive growth [13][14] - Continued investment in technology and product enhancements is planned to address evolving fraud tactics and improve service delivery [24][25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant increase in identity theft and fraud, emphasizing the importance of their technology in combating these issues [5][6] - The economic environment is seen as a headwind, particularly affecting the retail sector, but diversification into other verticals is expected to provide growth opportunities [47][56] - Management remains optimistic about future growth, particularly if the economy improves, which could provide a tailwind for retail recovery [45][47] Other Important Information - The company completed a successful proof of concept with a large lease-to-own retail client and is expanding its services [17] - New technology initiatives, including a self-administration hub for clients, are set to launch in Q3 2024 [24] - The company is actively cultivating partnerships with hardware companies to enhance its service offerings [39] Q&A Session Summary Question: Retail customer usage and deployment - Management noted that retail customers are using solutions in fewer locations due to store closures and economic factors affecting consumer spending [42][43] Question: Year-over-year retail volume decline - Retail volumes are down approximately 16% year-over-year, with variations across different sectors [44] Question: Future SaaS revenue expectations - Management refrained from providing specific revenue guidance but indicated that other market verticals are accelerating, which may offset retail declines [55][56]
Intellicheck(IDN) - 2024 Q2 - Earnings Call Transcript