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AI

authID Inc. (AUID)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue was $0.20M, up 172% year over year but down 20% sequentially; loss per share was $0.49, worse than $0.41 in Q4 2023 and $0.31 in Q3 2024 .
  • Remaining Performance Obligation surged to $14.26M (vs. $3.83M in Q3 and $4.03M in Q4 2023) on the back of a $10M, multi‑year India contract; Adjusted EBITDA loss widened to $4.1M in Q4 .
  • Management highlighted PrivacyKey’s privacy-preserving biometrics and ADIA standards momentum; ARR ended Q4 at $0.80M, down from Q3’s $1.0M due to a contract modification delaying go‑live .
  • No S&P Global consensus estimates were available for EPS or revenue in Q4; FY’24 revenue finished at the top of the revised $0.8–$0.9M range, potentially resetting expectations for 2025 execution focus .

What Went Well and What Went Wrong

  • What Went Well

    • Signed the largest deal in company history: $10M commitment over three years with a next‑gen AI partner in India; RPO jumped to $14.26M versus $4.03M a year ago .
    • Product leadership and privacy: launched PrivacyKey to authenticate without storing biometrics; company classified as a “Luminary” in The Prism Project .
    • CEO tone on pipeline and bookings: “adding over $20 million in bookings pipeline per quarter” and expecting to close multiple Fortune 500/multinational customers in 2025 .

  • What Went Wrong

    • Sequential revenue decline in Q4 ($0.20M vs. $0.25M in Q3); net loss per share worsened to $0.49, and Adjusted EBITDA loss increased to $4.1M .
    • ARR fell to $0.80M in Q4 (from $1.0M in Q3) driven by the accounting impact of a customer contract modification and delayed go‑live timelines .
    • Operating expenses rose to $4.9M in Q4 (vs. $3.8M in Q3 and $3.3M in Q4 2023) reflecting reinvestment post‑restructuring; losses widened year over year in the quarter .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$0.07 $0.28 $0.25 $0.20
Operating Expenses ($USD Millions)$3.35 $3.61 $3.76 $4.89
Net Income - (IS) ($USD Millions)$(3.22) $(3.26) $(3.36) $(4.59)
Diluted EPS - Continuing Operations ($USD)$(0.41) $(0.34) $(0.31) $(0.49)
Adjusted EBITDA ($USD Millions, non‑GAAP)$(2.74) $(2.55) $(2.87) $(4.08)

Segment breakdown: Not applicable; the company does not report segments .

KPIQ2 2024Q3 2024Q4 2024
RPO ($USD Millions)$4.24 $3.83 $14.26
Gross bARR ($USD Millions)$0.60 $1.15 $7.13
ARR ($USD Millions)$1.12 $1.00 $0.80
Deferred Revenue ($USD Millions)$0.24 $0.33 $0.22

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (GAAP)FY 2024$1.4–$1.6M (Q2 guide) Revised to $0.8–$0.9M (Q3) ; Actual $0.89M (Q4) Lowered in Q3; finished at top of revised range
RPO TargetFY 2024$12–$13M (Q2 target) $13–$14M (Q3 target) ; Actual $14.26M (Q4) Raised target; achieved high end
bARR TargetFY 2024$9.0M (Q2 target) Achieved $9.01M (FY) Achieved

No explicit FY 2025 quantitative guidance was provided; management emphasized late‑stage enterprise deals and pipeline growth .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
AI/deepfake threat & tech responsePartnerships and OEM integrations (DataVisor, Syntrove, KaiaSoft); speed/accuracy/privacy positions; 700ms processing PrivacyKey launched to avoid storing biometrics; 1:1B false match rate; revocability aligned with enterprise policies Strengthening differentiation
Large enterprise pipeline & bookingsQ2: bARR momentum, pipeline $25M; Q3: $10M contract signed, faster go‑lives RPO to $14.26M; $10M India deal; “late stages” with Fortune 500/multinationals; +$20M bookings pipeline per quarter Accelerating
Standards & reusable identity (ADIA)Noted platform integrations; industry positioning Joined ADIA; plan to demonstrate cross‑border identity exchange; ADIA founded by FIDO’s founder Strategic alignment
ARR and revenue rampQ2/Q3 revenue growth; ARR up to $1.12M (Q2) and $1.0M (Q3) ARR $0.8M; accounting modification/delayed go‑live impacted ARR; revenue $0.20M Near‑term softness; structural improvement expected
Channel partners & OEMQ2: multiple OEM/partners; Q3: OEM in APAC, telecom go‑live Channel momentum; OEM model highlighted; resellers referring clients Building leverage

Management Commentary

  • CEO: “We are poised for a breakout year in 2025… adding over $20 million in bookings pipeline per quarter… late stages of our sales cycle with potential customers” .
  • CEO on differentiation: “The only way to ensure authenticity is to trust the physical presence of an individual human being… This is what authID delivers” .
  • CFO: “As of December 31, 2024, our total RPO was $14.26 million… above our expectation of $13 million to $14 million” .
  • CEO on PrivacyKey and compliance: first to offer biometric authentication without storing biometrics; revocability supports password rotation policies .
  • CEO on ADIA: standard enables reusable identity across institutions and entities; demonstration planned across U.S.–Japan .

Q&A Highlights

  • Reusable identity and ADIA: Management detailed cross‑institution trust and intra‑enterprise identity reuse; ADIA standard backed by FIDO community, with PrivacyKey enabling compliance without storing biometrics .
  • Fortune 500 closings: Confidence rooted in speed, accuracy, privacy advances; deals in late stages; typical contracts 2–3 years with staged POCs and upsell potential .
  • Channel strategy: OEM partners embed authID to reach many customers; reseller referrals accelerating warm introductions and pipeline .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable; no Target Price or Recommendation data returned. Values retrieved from S&P Global.*
  • Comparison vs estimates is therefore not applicable; company finished FY revenue at the top of the revised $0.8–$0.9M guidance range, which likely anchored investor expectations for 2024 .

Key Takeaways for Investors

  • Bookings and visibility improved materially: RPO rose to $14.26M and FY bARR reached $9.01M, supported by the $10M India contract; this underpins multi‑year revenue potential despite near‑term revenue volatility .
  • Execution focus: ARR softness and sequential revenue decline reflect implementation delays; watch production go‑live cadence and usage ramp to convert RPO/bARR into GAAP revenue in 2025 .
  • Strategic differentiation: PrivacyKey’s non‑storage biometrics, 1:1B false match rate, and ADIA standardization support enterprise adoption and regulatory compliance—a key barrier removal for Fortune 500 deployments .
  • Cost trajectory: OpEx increased to $4.9M; Adjusted EBITDA loss widened; monitor reinvestment ROI and operating leverage as contracts go live .
  • Pipeline catalysts: Management indicated late‑stage enterprise deals and >$20M quarterly pipeline additions; contract wins and go‑live milestones are likely stock catalysts .
  • Guidance track record: FY’24 revenue met the top of revised guidance; future guidance credibility will hinge on turning bookings into recognized revenue and ARR growth .
  • Partner leverage: OEM and reseller channels should expand reach with lower sales intensity, accelerating adoption across new verticals and geographies .

*Values retrieved from S&P Global.