authID Inc. Q2 FY2024 earnings call

• Technology advantages: Speed (less than 700 ms processing, competitors 5-10x slower), accuracy (world-leading 1 in a billion biometric matching), and privacy (biometric privacy option with no storage of biometric data).
• Channel ecosystem: Strong channel partners like FinClusive, Syntrove, etc., expanding sales reach through their robust customer portfolios.
• Revenue growth: Q2 2024 revenue grew 75% over Q1 2024, RPO stands at $4.24 million, and sales pipeline is over $25 million.

Total revenue for Q2 2024 was $0.28 million, compared to $0.04 million in Q2 2023. For the six months ended June 30, 2024, total revenue was $0.44 million versus $0.07 million in the same period of 2023. The Remaining Performance Obligation (RPO) as of June 30, 2024, was $4.24 million, an increase from $0.4 million in Q2 2023. Annual Recurring Revenue (ARR) increased to $1.12 million as of June 30, 2024, from $0.14 million in 2023. Booked Annual Recurring Revenue (BARR) in Q2 2024 was $0.6 million, approximately 3x the BARR of Q2 2023 ($0.2 million).

• Full year 2024 revenue guidance: $1.4 million to $1.6 million.
• Target of $9 million in BARR for 2024, with expectation that if BARR target is met, RPO could range from $12 million to $13 million.

Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from expectations, as mentioned in the press release and SEC filings.

Q: How does authID get from a $25 million pipeline to $9 million in BARR for 2024?

A: Rhon explained buckets including Fast 100 (closeable quickly), FAT 100 (large enterprise accounts with longer sales cycles), and channel partners, expecting FAT 100 signings in the second half of the year.

Q: What's the biggest challenge for authID?

A: Balancing development efforts to meet the capabilities requested by FAT 100 accounts while not overburdening the organization.

Q: Why are new channel partners exciting?

A: Rhon explained that partners are qualified with mutual business plans, commitment to generate revenue, and a different approach from past partnerships to ensure mutual success.