authID Inc. Q4 FY2024 earnings call

Key Points

• authID is a biometric authentication company addressing AI-driven deepfake challenges.
• 2024 achievements: Booked ARR achieved 3x growth, RPO increased 3.5x from $4 million to over $14 million.
• Q4 2024 highlights: Secured a $10 million three-year contract, expanded with Einstein, added new customers/partners (TurboCheck, Imperial Technologies, etc.), partnered with Zendesk and ADIA, demonstrated US-Japan identity exchange using ADIA standard, and released Privacy Key for advanced biometric authentication.
• Technology focus: Speed (700ms for new identities, 25ms for selfie), accuracy (1 in a billion false match rate), and privacy/compliance with Privacy Key and ADIA standard.

Total revenue for the fourth quarter of 2024 was approximately $0.2 million, compared to $0.07 million in the prior year. For the full year 2024, total revenue was $0.89 million, up from $0.19 million in the prior year and within the expected range of $800,000 to $900,000. Operating expenses in Q4 2024 were $4.9 million vs. $3.3 million prior year, and full year operating expenses were $15.6 million vs. $10.9 million in 2023. Remaining performance obligation (RPO) as of December 31, 2024, was $14.26 million, a $10.43 million increase from the prior quarter. Adjusted EBITDA loss for Q4 2024 was $4.1 million vs. $2.7 million prior year, and full year adjusted EBITDA loss was $11.9 million vs. $8.7 million prior year. Booked annual recurring revenue (BAR) for Q4 2024 was $7.13 million, with full year 2024 gross BAR at $9.01 million.

Forward-Looking

• Aim for 5-year T2D3 growth to reach $100 million in ARR.
• Expect to close multiple Fortune 500 and multinational customers in 2025.
• Pipeline generation activity with over 3x $18 million bookings target, adding ~$20 million bookings pipeline per quarter.
• Plan to convert bookings to revenue by bringing new customers live on the platform.

Risks

• Forward-looking statements subject to risks and uncertainties where actual results may differ.
• AI-driven fraud evolving, though authID is addressing it.
• Dependence on successful execution of go-to-market plans and closing large enterprise deals.

Q: What are customers looking at when choosing authID over other options?

A: Customers focus on speed (authID processes in 700ms vs. 7-10s for others), accuracy (1 in a billion false match rate vs. industry standard 1 in 100k), and privacy/compliance. They need to hit all three pillars: speed, accuracy, and ensuring no liability from biometric deployment.

Q: How are customers looking at ADIA and Privacy Key?

A: ADIA provides a standard for reusable identities, allowing institutions to trust identities across different organizations. Privacy Key addresses compliance and privacy concerns by enabling biometric authentication without storing biometrics.

Q: Confidence in closing large enterprise deals?

A: In late stages of sales cycles with major enterprises, privacy and compliance are key hurdles overcome. Contracts typically 2-3 years, with flexibility for upselling/cross-selling.

Q: Progress with channel partners?

A: Two types of partners: OEMs integrating authID into their platforms and resellers referring clients. Both are working well, with OEMs like India partnership and resellers referring clients to authID.