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authID Inc. (AUID)·Q2 2025 Earnings Summary

Executive Summary

  • Record quarter: Revenue rose to $1.44M, the highest in company history, driven by multiple go‑lives from 2024 signings; net loss was $(4.38)M and adjusted EBITDA loss improved sequentially to $(3.36)M .
  • Strategic momentum: Launched Identity Exchange (IDX) with NEC to expand TAM into supply chain identity; signed partnership with Prove, with initial joint customer expected to contribute from Q3; integrated with Ping Identity’s DaVinci to ease enterprise adoption of biometrics .
  • KPIs inflecting: ARR reached $5.8M vs $1.2M in Q1 and $1.1M in Q2’24; RPO remained robust at $13.8M (~3‑year terms typical), supporting forward visibility despite a credit loss provision impacting Q2 opex .
  • 2025 bookings target reiterated: Management remains on track for $18M bARR in 2025; Q2 gross bARR was $2.2M (cARR $0.9M, UAC $1.3M), with acceleration expected as large enterprise/channel deals progress .
  • Near-term stock catalysts: Evidence of Prove revenue contribution in Q3, additional Fortune 500 expansions/go-lives, and early IDX pilots converting to bookings could reset expectations and estimate paths despite limited current sell-side coverage .

What Went Well and What Went Wrong

What Went Well

  • “Highest quarterly revenue in the history of our business,” supported by successful implementations and market expansion efforts (CEO) .
  • Major strategic launches/partnerships: IDX with NEC (global identity exchange), Prove agreement with first joint customer imminent, Ping DaVinci integration to accelerate enterprise adoption .
  • KPI traction: ARR climbed to $5.8M vs $1.2M in Q1; gross bARR of $2.2M in Q2 (cARR $0.9M; UAC $1.3M) and RPO of $13.8M (~3‑year contracts) provide revenue runway .

What Went Wrong

  • Operating expenses rose to $5.9M (vs $4.7M in Q1 and $3.6M in Q2’24), driven by headcount investments and an ~$0.8M provision for estimated credit losses; adjusted EBITDA loss widened YoY .
  • Net loss increased YoY to $(4.38)M (vs $(3.26)M in Q2’24) despite record revenue, reflecting higher opex and credit provisioning .
  • Limited sell-side coverage and absence of consensus estimates constrain external validation and may increase volatility around execution milestones [functions.GetEstimates].

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD)$280,438 $199,749 $296,256 $1,444,599
Operating Expenses ($USD)$3,605,267 $4,892,455 $4,674,555 $5,916,053
Net Loss ($USD)$(3,261,241) $(4,594,375) $(4,339,467) $(4,384,779)
Diluted EPS ($)$(0.34) $(0.49) $(0.40) $(0.33)
Adjusted EBITDA ($USD)$(2,546,483) $(4,076,888) $(3,893,768) $(3,363,004)

KPIs and Balance Sheet

  • ARR ($USD): Q2’24 $1.1M; Q1’25 $1.2M; Q2’25 $5.8M .
  • Gross bARR ($USD): Q4’24 $7.13M; Q1’25 $0.01M; Q2’25 $2.2M .
  • RPO ($USD): Dec 31, 2024 $14.26M; Mar 31, 2025 $13.85M; Jun 30, 2025 $13.8M .
  • Deferred Revenue ($USD): Jun 30, 2025 $1.154M .
  • Cash ($USD): Jun 30, 2025 $8.30M; shares outstanding ~13.44M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/CommentaryChange
Bookings (Gross bARR)FY 2025$18M target (prior calls) “Remain on track” to deliver $18M bARR in 2025 (CFO) Maintained
Prove partnership revenue timing2H 2025N/AFirst joint customer “in the coming weeks”; expected to see impact starting Q3’25 New detail
India multi‑year contract (revenue recognition)Year 1 of contractN/AExpect to recognize full first‑year commitment by end of contract year despite later go‑live (CFO clarification) Clarified
RPO recognitionMulti‑yearN/AExpect to recognize full $13.8M RPO over contract lives (~3 years) Clarified

Note: No explicit revenue/EPS/margin guidance provided for Q3/Q4’25 in filings or call .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24 and Q1’25)Current Period (Q2’25)Trend
AI/Tech initiatives (PrivacyKey, ADIA/IDX)PrivacyKey launched; ADIA membership; enterprise‑ready software; plan to demonstrate identity exchange US‑Japan IDX launched with NEC; PrivacyKey “one‑to‑many” search; 22ms auth, 1‑in‑1B false match, no biometric storage Accelerating productization/adoption
Partnerships/ChannelsZendesk integration; pipeline of OEM/channel partners Prove agreement signed; first joint customer imminent; Ping DaVinci integration live Expanding and monetizing
Go‑lives and pilotsLate‑stage enterprise cycles; shift to enterprise‑ready Shift from POC to paid production pilots; UK Fortune Global 500 deployment live; faster time‑to‑revenue Faster conversion to revenue
Bookings momentumQ4’24 gross bARR $7.13M; FY’24 $9.01M Q2’25 gross bARR $2.2M; on track for $18M FY’25 bARR Re‑accelerating in 2H on partner/enterprise ramps
Supply chain identityConcept via ADIA standardization IDX targets supply chain/vendor identity accountability across orgs/countries New vector for TAM expansion
Compliance/PrivacyPrivacyKey eliminates biometric storage; revocability; regulatory comfort Reinforced via Ping integration and IDX messaging Continued emphasis

Management Commentary

  • CEO: “We delivered our highest quarterly revenue in the history of our business… launched IDX… a major step forward… [and] believe we are positioned for continued momentum.”
  • CFO: Sequential opex increase was “primarily driven by a $800,000 impact related to provision for estimated credit loss expense,” while revenue growth reflected several contracts going live; ARR reached $5.8M .
  • On Prove timing: “We’re about to take one of our joint customers live… we should see [revenue] in this quarter [Q3] if transactions are being called” .
  • On India contract year‑1 commitment: “We would recognize all of it in the first contract year… in the period between when they start to go live and when the contract year ends” .

Q&A Highlights

  • Revenue quality and deferred revenue: ~$1.2M of deferred revenue in Q2 came from contract‑driven invoices ahead of revenue recognition; CFO affirmed recurring nature and ARR methodology .
  • Prove partnership: Two‑part relationship—near‑term “out‑of‑the‑box” onboarding/authentication and longer‑term OEM‑like embed; first joint customer expected to contribute starting Q3 .
  • India multi‑year deal: Go‑live underway and revenue recognition aligned to contractual commitments; CFO expects full first‑year commitment recognized by contract year‑end .
  • Sales motion shift: Emphasis on paid, production‑level pilots shortens time‑to‑revenue vs traditional POCs, though requires earlier resource deployment .
  • Communications cadence: Management acknowledged prior investor communications concerns and plans more structured outreach around blackout periods .

Estimates Context

  • S&P Global consensus estimates for EPS and revenue were not available for Q2’25; the data service returned actuals only and no consensus values, indicating limited coverage for AUID [functions.GetEstimates].
  • Implication: Post‑print estimate revisions are unlikely near term; investor focus should center on bookings (bARR), ARR growth, RPO conversion, and partner monetization milestones .

Key Takeaways for Investors

  • Execution inflection: Record revenue and ARR step‑up to $5.8M demonstrate conversion of 2024 signings; watch Q3 for Prove contribution and additional go‑lives to sustain trajectory .
  • Strategic catalysts: IDX with NEC opens supply chain identity TAM; Ping integration lowers friction for enterprise deployment; these can accelerate bookings into 2H’25 .
  • Visibility: RPO at $13.8M with ~3‑year terms supports multi‑quarter revenue conversion; cash of $8.3M at Q2‑end provides runway post April/May raises .
  • 2025 bookings bar: Management reiterated the $18M bARR target; Q2 bARR at $2.2M plus enterprise/channel pipeline underpin potential 2H acceleration .
  • Risk watch: Elevated opex and credit loss provisioning weighed on profitability; execution on collections, go‑live ramps, and partner monetization are critical to narrowing losses .
  • Trading setup: With scant sell‑side coverage, stock likely reacts to discrete proofs of revenue from Prove/NEC retail wins, ARR/bARR updates, and Q3 net revenue progression .

Appendices

Other Relevant Press Releases in/around Q2’25

  • Ping Identity integration (DaVinci) to speed passwordless biometrics adoption (June 5, 2025) .
  • Q2’25 earnings date announcement and IDX launch (July 31, 2025) .

Cross-References to Prior Quarters (for trend analysis)

  • Q1’25: Revenue $0.30M; opex $4.7M; adj. EBITDA $(3.9)M; RPO $13.85M; fundraising ~$9M; paid live production trial with a Global F500; advanced to final stages with major biometric hardware provider; “selected vendor” by large identity fraud platform .
  • Q4’24: Revenue $0.20M; adj. EBITDA $(4.08)M; RPO $14.26M; gross bARR $7.13M (largest deal signed—$10M over 3 years with India partner); PrivacyKey launch; ADIA membership; Zendesk integration .