Earnings call transcript Q2 2023

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Operator

Good afternoon, welcome to the Intellicheck Q2 2023 Earnings Call. [Operator Instructions]

It is now my pleasure to introduce your host, Gar Jackson, Investor Relations. Thank you. Please go ahead, sir.

Gar Jackson

operator. you, Thank thank Intellicheck and joining today us Good quarter you XXXX the second earnings for afternoon for call.

the call and statements Before words company made Litigation believe, to we read this the meaning Certain events. future to XXXX the Act management expectations call, as Private amended. currently a take expressions to similar forward-looking statements assumptions relate Securities as Private management, anticipate, Reform the works well conference meaning expect, as XXXX. current in These Litigation of get and started, conference the When statements statements by will, I available forward-looking beliefs Securities used they of such of will the within this constitute as information are about within and Act management's forward-looking encourage identify of based Reform the minute company's as statement. in forward-looking on

projection forecast, and to with or expressly As to resulting events or inherently obligation and changes disclaims obligation as in alter susceptible and any uncertainty changes statements, information, to new or company no from whether forward-looking circumstances otherwise. subsequent update any the undertakes its they such are

of adjusted the and the term reconciliation afternoon use under of the made on the further company's and this today's information forward-looking is will to issued and Commission. Statements of EBITDA company's today's for Securities Exchange statements Additional factors filings today, release for Safe call. context call term. August Harbor the concerning as statement listed XXXX. in XX, refer use headings press financial in contained Please to risk Management time time from with the are this definition,

Officer, today's Intellicheck's Ishmael, will Officer; begin results. who with then Financial discuss Officer Operating Chief will Jeff Executive and QX the financial Lewis, Chief call XXXX We Intellicheck's Chief and Bryan

from take remarks, prepared their will institutional we and our questions analysts Following investors.

to Bryan. now I will over the X hour turn limited call to Today's and be will call

Bryan Lewis

Gar you, XXXX and Earnings Call. Thank the to QX welcome, everyone,

doing about [indiscernible] awareness brief and Intellicheck, results, like speak we're story. I'd to to raise some are the things who a our renew I highlights of we give Before our overview of some of to

us continue Intellicheck an as you familiar because has and are of identity with exceedingly ourselves of and are those exceptional market an growing our penetration our but in we taken place you refining extremely are could expand newcomers we company to for distinguish and fast. validation to technology focused an at continue verticals. are key evolving, we industry call to leader on use who level update, as be solutions on we its accurate this our and Many every

teller believe their excellence and customers' that identities. banks led at growing by United credit some to States centers, workstations, stores the validate online and the and this call has for in their Canada of card reputation largest in use issuers to our I their

the distinguishing ease And ID, every with validate factors. use while DMV currently to the XX,XXX our retail Against that and and in can America to fact over are keep Intellicheck state-level I agencies use to confident grow. that IDs. only of directly choose pilots are approximately and the continues people and equally demonstrated feel validate enforcement to in in lender X,XXX an that is connect accuracy branches, law enforcement We counting bank that law accuracy speed speed, not superior Intellicheck. adoption XX locations North are mind key they and the

retailers, for more law bars, to stop just banks restaurants, than there, validation we're Not ID also and enforcement. much

are scans it screen one on products, The validated of is prompts example, of prove phone. and our the our cannabis cannabis mobile is our customer machine their code system. a you vending To to vending For verticals That clients. ID buy age. with machine QR is the real

they facial for And geo-located to at a the prove show recognition has sophisticated. person you're that machine, that the standing been you to holding. that [indiscernible] of In are owner ID the are pretty

are process them feel clients making almost more we and like onboard the our a criminal allowing We because faster virtually fraud. without clients speed to a we used simplify and eliminate as byproduct, them by

us, we're know making you and transaction, age-restricted people bet And are willing given although of or I opening online services or the credit was buying the been banking number or there a may a know purchase. story existing of run doing to on know but account, call of the have very that didn't through many in-bank a our to a who card, majority an well I'm whether locations retailer this our validation car making it change in,

integral an our you. the customers increasingly their and business, to by Trusted protect of part are We process. reputation

So XX and last with to for has by I'll month later. start mind, will every increase continues now all in our of that the some financial XX-month months. trailing highlights on revenue SaaS this detail further to the Jeff that saying

Our momentum $X.X SaaS with revenue the from and XXXX. margin quarter. to XX% in of to improved million of $X.X we continued QX up Gross XX.X% EBITDA were in QX for XXXX million positive

us to All in invest positions to the growth of business. continue of this the

through sales scan renewed for transactions. Looking million at X.X for some services Financial the company note allocations of number ran another quarter. their updates X, and

will X call the branches, banks to bank locations X,XXX with digital in and and that centers Turning their Intellicheck use pilots use regional the X,XXX of cases.

update. an Here's

for much later endorsement in their is demonstrates their to discussions finish software to in location expanding news intends the out openings are we month live on in use scanners their on that they more location [indiscernible] the go other in remaining planning already good and to of account X,XXX The exciting bank is products. partners update in of X/X case and call is bank expanded live our The The X,XXX roll about QX. which online with digital when their branches. next center high-risk contact

saw of with the and platform launch his working being the they their is Intellicheck manufacturer in I their done quarter, that not partner who with because manufacturers a success Last materials a and is to had and into launch auto be decided spoke the big channel early That training The or pilot locations. had September. about trainers. incorporated now has developed they to bag, adequately trained X,XXX plan

You the had Restaurant success now which about program. pilot program may seen of the release owners and have the become of permanent South a we've Bar the city with press Charleston, Carolina has

tell During staff the X,XXX can the security pilot, safe IPs. I and we that owners invalid bar or detected system. love And you

did in My CEO out and and she And turned he check is had at ID asked CEO by they said, and using he my dad venue. it her the were [indiscernible] venue. Intellicheck. She her password and the it hired daughter company the the call was He of security me what the Intellicheck. he about gave the stop him. I man had the have live couldn't Charleston his said, and to card

college looking program in other rowdy or districts. replicate to are with We this entertainment now towns places

Last the quarter, diversification base. I spoke about client of our

in So thought a company, Internet [indiscernible], title credit onboarded company, an safety We security to Canada's machine a types small June child provide the bars bank, union sold event a X that more dealers. color for of listed premium and more companies two an companies, restaurants. event marketplace vending online onboarded of and additional We will this online in XX and auto we regard. some I progressive in clients I help quarter growth. further illustrate the

multi-market lot challenge are with the see be to befitting to I company revenue $X,XXX our recognition the do market especially the is of What in there $XX,XXX clients. enjoy to business been, we the continue with a brand vertical pedigree still of our annual had but has not success,

engaged we've to these are reramp an to satisfied we growing messaging. and in know, a challenge. We so brought on have of efforts still further efforts develop agency address this you As with number aren't board where our standing

of process, there's part As clients sectors. been new across this all

be our what We asked do fraud told XX% to agency. one willing do basically of in say that the banks of our to he to does they He of of they us love Intellicheck largest the XXX%. about because so while competitors only would speak head many would can we

trying help and makes improve endorsement to the further message it technology based value offers that for client on our We of of could business that an great and a is our be stop When stature said solutions, awareness us will an support to industry grow and we speaks anything such our this do fraud. volumes.

We ready because markets the help will launch so done be expect next and We are year. know to is in Intellicheck in believe that work accuracy QX be this and stakes branding high. to early important where we leads awareness about drive raising interest

As our evolution part well. as some personnel changes we refinement, and made of

more internal each has to role his SaaS to and have like areas Jeff in We CFO in operational allows very to initiatives his role. addition fully are Officer and systems a Operating and Jeff the this In operational promoted assuming to all strong other. growth look me spend focused, important marketing Jeff background on our will with integrated position, branding. time sales, new ensure properly Chief

I'll with detail and systems to really his programs is this addition, needed partner given In the speak which accelerated him with their in out growth, shortly. tasked Cylance more let building channel he support about experience and that

for Robins, brought on we also Engineering, of board have in new him two We VP brought Jonathan a reasons.

reduce our is Azure. and stack costs in upgrade overall on believe reduce to First our this IT which dependence will will our technology products We Microsoft XXXX.

database or the Each data worked we've would with their clients experience. analytics for is we therefore, power nothing they the AI that Cubs predict the is and them and track even role, draft success The and it about develop In other use them Chicago players, speaking should recent because own his community young important help trade and all. to in data with data more models see the but That build of reason players of future most who our a for. he data, to been setting. his

and Our data in cooling used to bring enthusiastic to machine clients be very and using modeling. learning AI are about then insights the

expanding on our stop to and such our that process along provide point Some of developed to list to Intellicheck. now more being new is into perfectly look that our data products developments validation. enthusiastic am very the out significant about said help I the would more exciting therefore, fraud data make with Jonathan on the happening more effort building clients forward our the even in could ID value We messaging to at [indiscernible]. happen. deliver generate and here about as that sharing efforts tap

With that, it I'll over to turn Jeff.

Jeffrey Ishmael

Bryan. of profitability. that the levels efforts investment our and into across thank that we've On been years spend and our redistribute of continue X to we will continuous progress areas all growth making you, fuel organizations, Hi, the

SaaS price continued we and per our accounts versus for continue to results second growth saw EBITDA higher year, quarter a towards prior scan progression revenue report the our neutral year. year prior the the Our across average top versus adjusted

SaaS the continued in see to SaaS achieved XX-month of has per metrics see while consecutively to the growth mentioned price to light transaction in been cast to our pleased we increase monthly sequential Bryan average trailing growth revenue, XX.X% a our prior encouraging the As month which of activity. our continue Continuing scan earlier, last we're in for a revenues each year, progression months. XX it's critical versus see

large as months per price encouraging development average it scan our by average that data of continue to X a value price is last also With XX are customers. customer predicated to flat versus the to our this speak point for XX% parsing at primarily consumer sequentially see on maintain I'm transaction, the will the to we for year on continues this up our metric. has activities per when is the This focus realized customer. testament grown of adjusted especially and stand last whose pleased of

entire renewal maintaining CPI including annualized customer on a rightsizing we are across customers that periods. landscape focus continue increases that are the entering legacy ensuring We renewals that and are

emphasis shared, in our drive ensure expenses specifically expense investments previously focus in marketing. We're and return to investment this our we achieve been greater have on a maintaining our sales area. focus shifting we've we that revenues, As our expected operating on to on SG&A to the

support as operating a smoother complete initiated well of success ensure the team, platforms on customer we existing better as a are period, experience as customers our for well to QX the as the onboarding overhaul new they customers. Within

QX and the the and signed during brand also strategy We full will QX initiative commenced periods. that be realized

efforts. of also digital strategy are of quality beginning the lead to the recalibration We generation our increase our advertising

of are of We initiating and of a industry channel the study now we're the end completed implementation to our the co-branded case program release be year. finalizing by the

develop channels a mentioned in excited team generation or Bryan group as an as regions a earlier, place existing increased efforts. respective As of providing sales development funds to collaborative well program more marketing formalized we're will to expanded their resellers, our that and putting approach support support with lead on

that noticeable bookings. drive impact have sales and of from We We support program and above XXXX XXXX. efforts team the bookings pipeline will growth the engagement, combination to in this discussed necessary revenues believe in on our provide customer expect a to increases the

to our XXXX compared million million of XXXX. quarter quarter same the second to period now for in Turning $X.XXX second results. increased Revenue of the to XX% $X.XXX

nominal to as the The revenues, SaaS concentration of improvements XXXX. driven our SaaS of increase XXXX revenue compared in period million from well of record continued in increased by $X.XXX grew quarter for profit of Our quarter the for to $X.XXX cost as first quarter a to same XX.X% million, XXXX same revenue XX.X% a on was the XXXX. of as structure. higher cloud a percentage revenues a during the second Gross XX% decrease hardware

first quarter of infrastructure XX% to XX% margin call, to impacting we during continue overlap, at cloud continue gross As cost a we as range some to experience improve model cost current performance. thus gross and earnings performance may discussed only our the not our we margin

continue impact. specific any cost to continue scrutinize we structure, While to assess we'll our

consist research which $X.XXX quarter and expenses for million for $XXX,XXX of or to X% XXXX. of expenses same and increased administrative, the development to $X.XXX marketing period second compared Operating million selling, the and XXXX of general

respectively, primarily XXXX equity $XXX,XXX approval costs, driven of operating Included severance-related quarters administrative was the expense. were increase and for higher expenses The to noncash expenses general specifically of expenses. $XXX,XXX, related XXXX by second compensation and within the and headcount-related of full

While expenses expect total our approximately noncash XX% to operating lower to comprising continue comprise XX% compensation quarter, this our will of XX% stock-based we of figure. expenses with that

personnel the to we areas reviews We channel to allocating that continue changes accrual million able with lay of we'll that the these With support our From partner operating QX team the annualized our in in expense foundation yield to which resulted the XXXX. $X.X to growth of initiative in sales enacted previously our along launch changes, marketing expense employment effectively proper to severance we initiatives, savings the perspective, to the an brand were incremental agreements aggressive will QX changes expenses, in ensure respect are implement accrued program and the and place. $XXX,XXX initiatives. specifically fully revenues additional approximately strategy will operating in reallocate to for towards the investment be that

a by The company XX.X compared to the of of for XX.X net for The for share per million weighted same were same of a of diluted of the loss XXXX to period first XXXX. period $XX,XXX the diluted XXXX. same loss $X.XX improved average for loss compared Net quarter $XXX,XXX million shares of common XXXX. for diluted to period compared XXXX. net the loss gain was XXXX reported EBITDA the for million in of quarter of for loss quarter the of second net of the the the of XXX%, for share quarter to a $XXX,XXX of $X.XXX resulting of Adjusted the $X.XX XXXX same XXXX second $XXX,XXX per compared period or second

result in year of as a to we we're to quarter. put the As realize compared the place, period in to when same our well last initiatives, continue adjusted the expense prior EBITDA as improvement results able

capital Turning to resources. liquidity company's and the

that this that the a subsequently utilized U.S. the revolving outstanding of these with equity July current company $X.X accounts. have and treasuries by in during amounts It's not million the short-term no is over December and had on assets in has new that million under and total The was that company current One. million, that XXXX, of investments we rolled million. XX, June currently Citibank $XX.X of average quarter. million X.X%. into form worth as the deposit tranche Working a matured is matures of Treasury $XX.X of in liabilities stockholders' credit noting the are with weighted -- collateral at and defined U.S. As assets Citibank Cap rate of capital, facility secured There $X cash facility $X.X minus facility Capital and totaled a

now Turning initiatives. internal our to

ensuring focus our quarter concentrate proper and the the improving business. while have continued operational we to maintain towards on forward EBITDA foundation revenue that to Our neutral second to and in continuing a on being place effectiveness path invest the in adjusted

We also targeting the The are industries and that continue reporting performance of key our the to customers the has continue proper to need. they and serving. our and support transactional customers sales across will focus build and revenue closely out and key team key revenue to productivity on our monitor ensuring driving we data that be health

in severance initiative launch towards ultimately quarter, this efforts, expense XXXX. will remarks, our mentioned accrual formal operating $X.X and approximately specifically of lay sales the and brand million to will within channel lead the the foundation incremental the in I the proper for of which partner recognize program while As marketing help we revenues strategy reallocation the our the

Employees versus are we our range we'll average full a revenue from also currently as continue seeing for $X latitude to that space in the the be opportunistic asset the employee were which this quartile and continue $XXX continue an caveat In in that in as to is and hires. services million XX% well our have we the watch sales with We believe to which this always count the rightsized technology team are regarding we XX head companies upper has selected perspective will companies the metric. year prior XXXX. public per reviewing period other in -- same revenue increase to internal largest at XX% up up pleased versus

adjusted expense in the continue as of EBITDA will towards consideration XXXX. neutral to ratio to our we operating our expenses of revenue improve In we our continue progression management, continued

towards we to by will our implement that seeing expect basis on a focus performance versus while points margin to continue disciplines expense improve approximately will XX% We gross maintain XXX XXXX, XX% ratio of results our our corporate and in November. we're committed to We to in sales 'XX continued improvement the QX sharing In forward look expenses shift funding our performance. closing, of fundamental marketing initiatives. our

now to your over I'll call take questions. operator turn the to the

Operator

[Operator Instructions] question is D.A. from Kessinger, Davidson. Rudy The first

Rudy Kessinger

called I'm nice that you buckets, of existing sequential to could coming quarter-over-quarter growth a more out expected. of that came just about stronger or couple volumes growth you very curious growth I detail quarter-over-quarter guess, scan the could Obviously, in see. the customers to you attribute that saw? maybe talk in kind customers, was few higher a online. you than Great. if But

Bryan Lewis

Jeff, do you numbers, for to Rudy? you want ran that take the

Jeffrey Ishmael

Yes, I can jump into that.

So Rudy, as on as We've and well count. transaction on every year. incremental to on for the happy seen grow the monthly -- call, basis that the we mentioned as see month a

for the were XX%. year variance up period, On prior we almost

saw that me, we -- with So renewals excess excess hold productivity in customers. but got on, XX%. of front figure I existing pricing in saw We just of in of too

the So all we're are right side revenue seeing metrics solid. now on

Rudy Kessinger

Okay. of about if talk mentioned And side, on the restructuring some mentioned severance Garrett you else that Particularly well? I the as kind sales talk side I there go? about and you Could -- anybody -- restructuring. was know then departed. on could you let you any

Bryan Lewis

hope we're sales ton we big out we in restructuring, swapped not them. quick. But people what on don't made make some We the that getting of would to of to out would to right We them, are time. the and of -- marketing a people. call did you I and going a say main of out along part marketing. a nothing major did swapped that we're going I severance we're round they're managers a I've pretty XX% the that We're the watch restructuring but side, of sure really If on some account that productive Garrett you hiring -- need department. we spend said we think going was that decisions that But the all

Rudy Kessinger

it. Got

versus then last of had the a years couple you're flat QX very strong still just been know QX you've versus then QX. now, not and effectively to QX And sequential Okay. I just has growth have into but this about today going point should this how directionally, at think QX, to you are we given SaaS visibility revenue guidance the online that projects giving come QX quarter?

Bryan Lewis

can some I banks definitely fast will I a to it of think going. But of quieter mentality. -- period. of how be deals very they the big a the of think a it's also get matter It a part of we of lot up -- joy is is is with turn generally but it going to banks working large wait and around be hurry sort it of kind

don't But sequential -- isn't we not while expect typically give see to we continued So blowout still growth. a it guidance, quarter. like it's

Operator

next Jeff Van The question Group. have Craig-Hallum Capital we comes from from Rhee

Jeff Van Rhee

guidance. mindset feels goes? sort like your that in sort mean mean, I printing to suggest Rudy's formal ballpark? see you that on quarter. question, you does she specifically SaaS those know here. in terms? the in Sort want you pipeline I relates the it I directionally, what's to extent at or to of you guess, point, steady of the don't but don't of in front as what take things do a -- is each know this and a sort of -- of XX% we're see But based give that you I standpoint quantify outlook maybe from deceleration-acceleration? Or 'XX of give I as

Bryan Lewis

the whim to large of much still you those for But internal how the they're And then controls. have out excited. me all deceleration. want see at growth developing was then matter bank team the stuff don't on coming the this a we sort -- the it said say year new. you has very with pipeline get got of That's again, doesn't kind expecting and for the that of people. bringing security go business always to of more great that I that's strong, is given with is in more a end sales and XXXX. sure. Thankfully, really I've through But a sales the people into there. potential of were We've that definitely that team certainly pipeline kind of lot that -- it,

goes So it sometimes you're in comes but steady she kind that whales, the as of later. whale I caveat with in think -- hunting comes the we're when quicker, sometimes

we could but normal when sooner. surprises like as whales lot these they quicker. see to, then So my get land you them a longer mind, take than in you surprised I forecast much

Jeff Van Rhee

Yes.

you pipeline, to to want at then, hear some I you and the your as know breadth to maybe ago. overall that love more, I ARR follow mean, in So -- look X I it, pipeline, do of months to the maybe XX-month comparison don't how the depth the pipe versus

has there Just the way is it's Big, within just can how is it And clarity -- it there Some you how twosies? more changed? it then is guide. small? that build the on also quantify any color is question, might biased? onesie, help composition, How

Bryan Lewis

Look here, -- of is I'm very happy doesn't One sure I real. couple pipeline ways Chris team's real, it is different -- his about makes Yes. his a answer I'll guess. is is what pipeline he

where realistic pipeline to was what's a pipeline compare realistic larger. the ago, say much the and it look at it's I on is year then if So I'd today, what now,

bar the And deals X the in of has good very turn going verticals other we've of can team very, they're of we in and sets days. comfortable we've have large divided different that dealing skill who in very -- that really mix or folks sort got a up some so -- around a an different a auto to dealership in then Chris got think, is, after good also format thing people I deals really since

the that of group -- very signed a like that in diversified quarter. we I way fact So the the just it's in clients very same

the so that not do here in. we're comes that to sort continue praying We whale sitting that of

lot really year And get that building. the right, force to want through are the a that the than one branding, reasons sure we marketing, again, make these that to is out to $XX,XXX doing more I which us that, them. a so got the guys We've to coming messaging there, brute having go $X,XXX pipeline they're that of to of

Jeff Van Rhee

just clarification. And Got Yes. Got it. one it. then

TTM price -- backing TTM difference call XX%. the anything volumes? the at the your in XX% scanned taking there out scan up that referenced you think complicates Is and a that is and your math the look that that I growth

Jeffrey Ishmael

Jeff. again, XX%. we're on is No. I XX% scan up volume mean so And customer that then up backing then seeing -- on price was up, basis. a It blinded per that primarily out scan effectively we -- par the that fully X and on were a

Operator

The next Grondahl we question Northland comes from Securities. Instructions] have Mike from [Operator

Unidentified Analyst

is like to Owen there's [ph] college stadiums It this growth alcohol Mike number if for out I you terms This you of recently momentum sales guys states vertical? a sounds you was Midwest rolling and in are growing a tonight. stadium. in had targeting on some wondering guys just and big signed of and call there how

Bryan Lewis

money it lose if and certainly towns both to look usually, it think got pull a I'd people and out Because say and it care off university they -- the money. them. of the the who license, wrong, that they make going stadiums the so are about are lot targeting because of we've I it's important get vendor the -- people these

right the thing. So they care about doing

the have an with each underneath business go making know it X it integrated, we given I main umbrella up concessions to are, we major So individual are that help one and should -- a are company. guess, The the relationship already we make kind have, definitely I who that have Each stadium we But of is process They on quicker. the a is sort that serve sold companies thing speed think of of good own concession universities. now it them. the of basically targeted basis. outreach now its it's all

have and knocking on going it a time. bars people I us. is out one target for and at So don't a restaurants

a of us help this target behind Charleston-like who out we're to sort who original things way that's we behind the in initiative was think are owner I initiative what bar make willing looking the time. can is work. to waste are this of any and do and to Councilman, But this

are think think And kind of customer. or some what is busted a enforcement else using, of place outreach. we soon a packaged doing are references Everything larger that they clients is deals where I I our sort like because So and best ask salespeople inbound. of have our you new as do law we

Operator

from The question from Wainwright. we H.C. Scott final Buck have comes

Scott Buck

me your something apologies charge into if me, carrot guys the remind some -- do away have people asked. to you can get Bryan, you is Can you kind of pilot Or give and that remind already of for these [ph]. you programs? been

Bryan Lewis

I'm of we put that. for be number but don't pilots." deal basis "I don't Generally, we're a "well, but going And know generally can once in. different for things it of sort says, huge pilots. like we're like, it pay to somebody or in, this transactions type I charge a not I we because pilot a mean, it we But of a be can lose case-by-case up way, you care" charge we're because to get

Scott Buck

Right. Right.

how helpful. are curious, opportunities you there potential that could customers? number That's partnership meaningful with door a do you And Okay. then in of get I'm explore the guys it? potential Or

Bryan Lewis

Yes, that's building exactly to infrastructure really for the the whole Jeff -- us do it. program is that

and have going to proper deal we're all that. registration So

and that validation discussions identity program. are products in lot to -- We currently of verticals. need have we folks absolutely have And a with we've people that there but need in solid different targeted reselling our been are formalize the

us in title We're insurance in to say, -- And to but we've that have space. are for that think people got embedded reselling We've provide got some that talking -- in so the products. folks scan age-restricted software, us folks automotive.

get we next lot growth definitely we is we're year. could where of a So that -- think

beginning go of inside, that be like happy of have said call, seen through I'm system. a -- I you the lot we've people our to at intel the

you a where can license, great that places. always example. me XX,XXX never can of that just provider I quick if and our to There's if automotive think was one integrate to for want most it. it's don't because a something And -- that out that's every know just get of model. win. I'm knew rooftops is is again, with happy it in But them. easy knock get them, on asked it your software there. the like us system, don't I You I doing And us in somebody

Scott Buck

then managing guess meaningful kind suggest as see opportunities you'll And additional take as breakeven a for investment? this bit I last business the revenue of EBITDA sense. adjusted makes be me. little that just that long it one Yes, ton Is a that level, at fair of of to you

Bryan Lewis

invest. invest wild I we're we I'm the know there cash should what and to going -- a up pool. continue for we things. that suggest we're and fan spending prudently, it. we're that enough not going think look, of Yes, need cash where do on also to and to of margins makes to that that investment sense, amount we our it tons is to big dollar grow tons right? way If not the If be know it's We We chases are, going building money. and goose

where then So -- we EBITDA help until no be know we what point, after our matter neutral goal that do. certain we're EBITDA is positive at to can't and we but a be

Jeffrey Ishmael

hit are this that, adjusted It's was guys Yes, you one than of go are going let's be I ahead goals what And aspirational to and hitting rather EBITDA the so year. out just that biggest for highly we've we'll years which since neutral throw neutral? and adjusted aggressive EBITDA we there let's like questions tracking X ahead. got point at started

If you under $XXX,XXX. trailing look EBITDA our take adjusted we're a just XX-month negative at

and But bottom to see that to you find up, top that ROI at the in we're fall that line, we're to So that too. that QX going driver see return, if bridge expect to And the going can it's point, don't that Bryan's if tracking gap. then to continue expected straight we business line. meaningful but towards coming in the investing QX would

Scott Buck

That's marketing tail here. about you marketing? think you of do do squeeze efforts? revisit the And the you might on I'm often one end at helpful. kind try in How current to how guess your since I getting more ROI be I'll what

Bryan Lewis

help So us that. that's at. hired I reasons with things that that one we've we we're looking to to also changes the why an one that decided think some And of agency the of in make and

I said we're definitely spend, why it and get wanted going lot right that's what animal. suggesting in but got as a are to earlier our that whole to put done us, where out of while weren't, money to Jeff that's doing, a we pause put we us it And of get better. really that out company getting in we're we so we we're call who that on that marketing out what helping sure think digital are of the really these make it. they're we're reanalyzing folks how sales is And we and it figure sort people where again, at some to doing -- the measuring telling different good we're

one reasons all So so in on I'm and that's this he's -- analytical at looks the crazy we everything Jeff is of board, detail. that do, that

know messaging but the always at getting will be happy at it. you one our say, it. and messaging So you we -- head "you We to analyzing messaging." working we're fraud with to guys help prospect any of on we through. biggest of I'm it have to So talk our that Having we're the banks looking you got wasn't

Jeffrey Ishmael

a you back take step we what appropriately. that also coming going spend back, in look $X.X it's at quarters ramp reallocate Scott, of year million, to will coming to when Scott up have a step and you're and take at you you the spend -- the a lot when ability

the $X.X that Bryan expect strategy rightsized back marketing, first drive You least we in that we're more lot to again, sales and into a QX new of a at at of few the million, the as side. channel that driving for on top-line this quarters. just launch is pipeline within in mentioned, with this generation, company of into way, don't multi-quarter stage channel increases, brand partner program we're a the 'XX. formalized and that all the going But revised out rollout of G&A realizing as is rolling And

is are on doing product a the side. Jonathan there. We rightsizing tremendous job

So our marketing spend that sales can entirely almost into side. go and

Operator

gentlemen, remarks. ahead. back final today's I our for for conference. question will Lewis now to that was go Please and closing hand Bryan Ladies

Bryan Lewis

everybody, QX call. joining Thank earnings us Intellicheck today the for for you. Thanks,

this at reminder, we'll Thursday. presenting a be as Just coming the Sidoti -- Conference this Thursday

If the And you're that, a this we thank press I'll evening. a in release put and you participating, earlier with with details. interested say great have out week

Operator

gentlemen, and Ladies sir. that you for concludes conference. us. today's then Thank you, joining Thank

disconnect now lines. your may You

Intellicheck (IDN) 10 Aug 232023 Q2 Earnings call transcript