authID (US:AUID)2025-08-14 22:00Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased significantly to $1,400,000 compared to $300,000 last year and $300,000 in Q1 2025, driven by the go-live of several contracts signed earlier in 2024 [21][22] - Operating expenses for Q2 were $5,900,000 compared to $3,600,000 a year ago and $4,700,000 last quarter, primarily due to increased headcount investment in sales and R&D [22] - Net loss for the quarter was $4,400,000, with net loss per share at $0.33 compared to $0.34 a year ago and $0.40 last quarter [23] - Adjusted EBITDA loss was $3,400,000 for Q2 compared with a $2,500,000 loss for the same period last year [25] - Annual recurring revenue (ARR) as of Q2 is $5,800,000 compared to $1,100,000 of ARR as of Q2 2024 [25] Business Line Data and Key Metrics Changes - The company launched the IDX platform in late July, aimed at eliminating identity fraud within the supply chain workforce [9] - A major Fortune Global 500 customer in the UK went live with the company's privacy key product after a successful pilot [10] - The partnership with Proof, a large identity fraud platform, is expected to start generating revenue in Q3 2025 [12][14] Market Data and Key Metrics Changes - The identity management market is estimated to reach $61 billion by 2032, with the company now able to participate in the entire market space due to the IDX platform [19] - Remaining Performance Obligation (RPO) as of June 30, 2025, was $13,800,000, a decrease of approximately $100,000 over the prior quarter [23] Company Strategy and Development Direction - The company emphasizes the integration of facial biometrics into identity management strategies to combat fraud [8] - The partnership with NEC aims to demonstrate interoperability of reusable identity across countries without changes to existing systems [11] - The company is focusing on performance-based production-level pilots to showcase capabilities to prospects, which shortens the time to revenue [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to collect on customer contracts despite a provision for estimated credit loss [22] - The company is optimistic about the growth trajectory and expects to meet its goal of $18 million in bookings for 2025 [30] - Management acknowledged the need for ongoing innovation and improvements to meet customer demands [72] Other Important Information - The company has added 2,200,000 shares from a recent fundraising, with a cash balance of $8,300,000 as of June 30, 2025 [24] - The IDX platform is built on a fast-adopted standard, enhancing the company's visibility and credibility in the market [17] Q&A Session Summary Question: Can you talk about the deferred revenue and its nature? - The deferred revenue of $1,200,000 came from invoices issued based on customer contracts that have not yet been recognized as revenue, and it is recurring in nature [32][34] Question: When will the company start collecting revenue from the Proof partnership? - The company is about to take a customer live shortly, which will allow for revenue recognition once transactions are billed [46][49] Question: What is the status of the Indian contract signed last November? - The company is still ramping up with the Indian contract but has started recognizing revenue as they went live with the customer [55][58] Question: Will the company still collect the $3,300,000 from the Indian contract this year? - The company expects to recognize the full $3,300,000 commitment by the end of the first contract year, despite delays in the go-live [60][64] Question: Can you provide details on the NEC deal and its revenue implications? - Currently, the company cannot disclose specific booking estimates or revenue terms for the NEC deal as they are still finalizing details [65] Question: Is the company comfortable with the $18 million bookings target for the year? - Management confirmed they are still on track to meet the $18 million bookings target for 2025 [67] Question: How is the company managing the transition from pilots to revenue? - The company has shifted to using production-level pilots, which allows for quicker transitions to revenue compared to traditional proof of concept methods [81][84]