Intellicheck(US:IDN)2019-11-11 03:17Financial Data and Key Metrics Changes - Total revenue increased by 86% year-over-year to $1.93 million compared to $1.04 million in Q3 2018 [36] - SaaS revenue reached approximately $1.564 million, a 140% increase from $651,000 in Q3 2018 and a 40% sequential increase from $1.121 million in Q2 2019 [36] - EBITDA loss decreased by 57% year-over-year to a negative $457,000 compared to a negative $1.048 million in Q3 2018 [38] Business Line Data and Key Metrics Changes - SaaS revenue growth was driven by a focus on financial services, particularly banks and credit card issuers [9] - Bank 2 experienced a 75% sequential revenue growth over Q2 2019, attributed to a new pay-per-scan pricing model [22] - Bank 4 saw a 136% increase in revenue over Q2 2019, driven by the deployment of authentication services in their call centers and retail locations [23] Market Data and Key Metrics Changes - In the first half of 2019, there were 3,800 data breaches exposing 4.1 billion records, indicating a growing demand for identity verification services [10] - The estimated losses from new account openings using stolen information reached $3.6 billion in 2018 [14] - Non-receipted returns cost retailers approximately $9.7 billion annually, with each incident averaging $1,700 in losses [18] Company Strategy and Development Direction - The company is focusing on expanding its services in the financial sector, particularly in combating identity theft [12] - Plans to enhance the implementation of authentication services across various banking and retail sectors are underway [30] - The company aims to penetrate a large market for identity verification, with a potential annual SaaS revenue of $180 million to $250 million from existing clients [51] Management's Comments on Operating Environment and Future Outlook - Management believes that the market for identity verification is expanding due to increasing data breaches and identity theft incidents [32] - The company is optimistic about its growth prospects, citing a robust pipeline of implementations for 2020 [32] - Management emphasized the importance of adapting to the evolving landscape of identity verification, including potential integration of facial recognition technology [95] Other Important Information - The company reported a net loss of $568,000 for Q3 2019, an improvement from a net loss of $1.131 million in Q3 2018 [37] - Cash reserves as of September 30, 2019, were $2.8 million, with total assets of $13.4 million [39] Q&A Session Summary Question: Which bank had the 136% revenue increase? - Management confirmed that Bank 4 is technically savvy and actively seeks to implement authentication solutions across various areas [44] Question: Are there other banks in the pipeline? - Management indicated that discussions are ongoing with multiple banks, and there is a strong interest in implementing authentication solutions [45][46] Question: Is there seasonality affecting implementations in Q4? - Management noted that retailers typically avoid changes to their point-of-sale systems post-October, but implementations in bank branches will continue [50] Question: What is the potential revenue from the current banks? - Management estimated the market for private label credit cards could yield between $180 million and $250 million in annual SaaS revenue [51] Question: How many retailers are in the pipeline? - Management reported about 20 to 21 retailers in various stages of implementation, with expectations for continued growth [89]