Intellicheck(US:IDN)2020-03-12 01:10Financial Data and Key Metrics Changes - The company achieved positive adjusted EBITDA of over $216,000 in Q4 2019, marking the first EBITDA positive quarter since Q3 2014 [8][37] - Total revenue for Q4 2019 was $2.897 million, a 118% increase compared to $1.330 million in Q4 2018 [35] - SaaS revenue for Q4 2019 was approximately $2.557 million, representing a 209% increase from $826,000 in Q4 2018 [35] - The company reported a net income of $106,000 for Q4 2019, compared to a net loss of $664,000 in Q4 2018 [37] - Total revenue for the full year 2019 was $7.67 million, up 73% from $4.43 million in 2018 [38] Business Line Data and Key Metrics Changes - SaaS revenues grew 126% in 2019 compared to 2018, reaching $6.1 million [38] - Total scan volumes increased by 46% in 2019, with Q4 scan volumes up 98% compared to Q4 2018 [11][38] - The transition to a per-scan pricing model significantly contributed to revenue growth, particularly during the holiday season [10][12] Market Data and Key Metrics Changes - The company noted that Black Friday was the largest scan day of the year with over 620,000 scans, a 125% increase over 2018 [11] - The retail sector has shown strong demand for the company's services, particularly in age-restricted markets and law enforcement [27] Company Strategy and Development Direction - The company is focusing on expanding its client base among financial services companies, with five major credit card issuers now as clients [22] - The management emphasized the importance of pricing power as contracts come up for renewal, indicating a shift towards more favorable pricing models [23] - The company is actively working on a robust implementation pipeline with 33 projects in various stages [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the ongoing COVID-19 situation, stating that operations can continue remotely without disruption [30] - The CEO highlighted the increasing relevance of identity theft and fraud, suggesting a growing market for the company's services [28] - The management remains optimistic about 2020, despite not providing specific guidance due to the evolving situation [116] Other Important Information - The company ended Q4 2019 with $3.35 million in cash, an increase from $2.8 million in Q3 2019 [10] - The board announced the addition of two new members, enhancing the company's governance [31][32] Q&A Session Summary Question: Update on financial services company number five or six - Management indicated that number five is an online bank with limited scan volume expectations, while number six is rolling out to subprime loan locations [48] Question: When will new clients seven and eight begin to see scans? - Client number eight is in production, while client number seven's scan volume will depend on training their call center staff [50][51] Question: Any hesitation from customers regarding implementations due to COVID-19? - Management confirmed that implementations are not affected as they are conducted remotely [62] Question: What percentage of revenue is generated at checkout versus online? - The majority of revenue is currently generated in-store, with online services accounting for about 10% of revenue [64] Question: How quickly can online services be set up for existing clients? - The setup can be done quickly, often within weeks, depending on the retailer's prioritization [106] Question: Impact of COVID-19 on scanning activity? - No significant impact on scanning activity has been observed so far, with scans in line with seasonal expectations [112] Question: How many financial services institutions does the company aim to engage with in 2020? - The company is in discussions with multiple financial institutions, focusing on major credit card issuers [127]