VRME - Earnings call transcript Q4 2024

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Operator

Good morning, everyone, and welcome to the VerifyMe Fourth Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Nancy Meyers, CFO. Ma'am, please go ahead.

Nancy Meyers

Good morning, everyone, and thank you for joining us today for our earnings call presentation.

I will by strategic give today, and Stedham, update. call who President, an the am Adam joined CEO On operations and

Following a we presentation, session. our will management Q&A have

the to would results materially the Slide I could Today's the statements. Statements differ include and Risk factors, from to presentation of bring of those understood projected caption It those under to report and the your should a X. note forward-looking on be and statements on annual like due company's on including Forward-Looking XX-K on quarterly Factors described the questions number forward-looking answers Form attention that Form to actual on reports XX-Q.

now turn call will Adam the remarks. Stedham to I opening over for some

Adam Stedham

Nancy. you, Thank

year for significant a VerifyMe. was XXXX So

energy invested resources of time, the portion code we Authentication the During our year, into segment. and significant

company we investments on dragged and investment these in As time we did not overall last call, resources desired our the returns the growth. discussed and earnings yield on

So our XXXX. was the annual below XXXX revenue for revenue in X%

However, improvements EBITDA. in adjusted gross and margin year-over-year did experience gross profit, we

grew the of In debt company addition, cash total in our XXXX. net

providing investments the areas during to value. shareholder last steps that that we're reduce working returns, desired So we're investments our are taking shared company to deliver and call, earnings not diligently the strategic in on

company's completing During January the of $X.X debt. million a in by inducement XXXX, our warrant raise area expanded we retiring bank further this capital and capabilities

our addition, In debt $X.X $XXX,XXX. reduced convertible to from million

are the of Board convertible of of notes Directors. holders all affiliates remaining members and The

discretion. at-the-market used also options liquidity, sales filed million to $XX.X So generate after our additional we've VerifyMe's be adding offering at to and further a to capital

to is aimed of the company pursue rewarding shareholders. of these result the all sufficiently a as strategies So at steps, capitalized

defining We continue bankers options with work advisers plans. and and to multiple our evaluating actively

So our shift operations. let conversation the existing me to

strategy. provides our PeriShip is a business proactive positive cash-generating segment. to in Precision that first, the to It's continuing business a over increased the number and to XXXX, to X% So Logistics marketplace, important segment our we this like of XXXX. we're discuss In sales valuable by I'd service note the customers optimize

However, the the service X% proactive customers year. versus previous in down by shipments 'XX the line existing in were

sales to additional various our marketing we're and approach hired and also we've piloting in marketing resources 'XX, optimize So sales. strategies to

we'll we believe So will optimum strategy -- business. we for the that this sales define

So mention our at Authentication The like this XXXX. December Global Codes on point, to the divested company business segment. I'd Trust X,

had this million, of an During impairments. loss XXXX, $X.X excluding operating business

important strategy business. overall We're of the Our Authentication ink for our less represents our business, portion revenues. company review continuing the but that includes segment this X% ink to than also of it's to company consider

to overall, forward. steps feel that the shareholders company So we've I position for value going the create to taken

the Meyers, to point, I'd So over CFO, specific she'll review the to our turn like Nancy at this and back call QX financials.

Nancy Meyers

premium The $X.X to was with segment revenue The Adam. year already our versus quarter services, decrease in Logistics $X.X million you, a fourth Thank primarily million. $X as one customer million, disclosed. prior a decrease Precision has been relates contract of discontinued in our the of

we XXXX. later in the this The X, divested business In there shortest XXXX. from Global did Code's year, in XXXX. peak on December since than addition, Trust as with arriving Black And XX, Authentication Adam Friday Thanksgiving December of fewer usual growth to making were materialize not segment season days this the mentioned,

in to $X.X QX Gross $X.X XXXX. $X.X versus profit QX decreased XXXX million in million million

XX% XXXX revenue, margin of gross QX versus XX% was percentage As in XXXX. a of in QX

the services of customer improvements loss mitigated While in made. gross the quarter in decrease premium one did the process by a year-over-year in partially percentage, was result other the profit

year full though our full proactive year call, margin with to our earnings we our associated QX we percentage seasonality to revenue. that expected stated below due During to we the be exceed gross QX even anticipated XXXX, last margin gross XXXX

compared Our full-year XX% gross was in to margin XX% XXXX.

of management Segment the $X.X technology for decreased Operating expenses million and and in $X.X of were million quarter. 'XX expenses in XXXX. QX QX

offset spend. increase an in However, this sales by was marketing and

Our for the a customer XXXX. quarter diluted in to million premium in driver the of services. per one the than loss main income share of net $X.XX loss $X.X the compared quarter fourth was net million less of loss is of or our $X.X Again,

XXXX XXXX was year for for sixth of year QX EBITDA it of million million adjusted in the for to Although quarter XXXX. $X XXXX, the was our and versus a improved versus $X.X positive lower in the QX row

is On XX, sheet of the balance our as XXXX. December slide last

$X.X cash $X.X December of million was on from million, XX XX, Our as $X.X million of XXXX. decrease a December

our the of of million $X.X During year, and included use in cash interest. repayment debt

Due payable to accounts higher to and the Precision segment, AR, Logistics are seasonality the quarters. year-end of our revenue unbilled other X our at compared

our $X.X on us. million note. are remaining and loan borrowings our credit, had $X to have our million of of available and As million we no XX, on December convertible line under we There XXXX, $X.X

price entered inducement warrants $X for In $X.X X.X was for unregistered and for In new million. of an agreement, exercised into consideration approximately letter January, agreement, warrant the were we million issued. million at approximately a X.X a

debt we we the on convertible of in converted this the with down transaction, term have the addition, proceeds our X/X about loan. And mentioned, Adam remaining notes. As paid from

turn With call that, back Adam. I would like to the to

Adam Stedham

So Nancy. thank you,

call the for company. Before current like for really situation I'd the to the questions, review open we

So goods. our our cash for Logistics expansion the company segment. avenues identify of and to flow business that positive pursue and a shippers Precision increasing differentiated for a provides efforts temperature-sensitive service time- operates We're of

access shareholder cash additional and the strong a avenues have to Also, per balance for on share hand. We has company pursue $X.XX value of capital low-cost to sheet creation. meaningful

the pleased foundation the our and by forward So created we've move overall, reward shareholders. I'm to company

point, up questions this for at the So open answers. let's call and

Operator

Research. Barrington Michael [Operator from question today first Petusky Instructions] Our from comes

Michael Petusky

count of level you me sort in could for share of help just Nancy, se? your to expected terms QX,

Nancy Meyers

Yes.

XX.X will about it -- be million. we're So

Michael Petusky

Great. they're sort just of terms assuming Adam, back company you're in of in I terms macro in getting around from assume there? Any -- a terms I'm soft I logistics would of what probably in And would perspective, of specifics. and QX trends, then commentary assume

Adam Stedham

sure. Sure,

I is, previously to the QX. first of off, think factors the and that last there's of at loss it be QX customer on drag the a happened to a of announced in end couple continue QX one That year. event will comparatives

the will premium from So a perspective, be on that continue to drag. side, that

have one large growth some business, offset premium that We enough direct to our had customer. in large that's not but

not business, stable. market of very a business do proactive the The even stable down With a number total said, seem overall it's that the On is are relatively, be conditions down to -- bit. bit. shipments relatively little

we As we effectively a you. give try same-store number pointed our for sales out, to

So last prevalent. year, did to we be down see that That trend slightly. continues

more adding customers. are We

customers out hopefully, the existing number of and in customers. increase the so shipping that's of And balancing with reduction

Michael Petusky

on. appear give you comment in really have And me could you Okay. the any guys really then that around that to guidance what provided last It any help area Any on 'XX. that? want and doesn't expect just on to touch I you

Adam Stedham

No.

plan haven't given guidance. on giving and guidance, We don't we any

and business I at think the stable. overall, I it's assume look would relatively

align year. that that associated that, We with that stable the our top are with of loss On of one customer. last lost were significant changes made customer cost than the we year we efforts very other the to last

we've So with proactive look with which our at And to lead customers revenue, add this point, we're optimize now to sales, aligned base. to customer continuing customer. cost continue new that our to should and

a be little to now. going else, also we're same conditions subject said, unpredictable that bit market right everyone as With think to I are the which

our our effectively is timing like resources that of the hard to can diligently we the pocket; to difficult we combination very deploy money the that, a based external anything burning with we So that have the identify adamant working return our available with predict how to that not the about much provide will which market, meaningful minimal XXXX be upon inability risk. us, in are predict of is in shareholder to fact options hole

the predict to that's types of timing events. we're overall, And the for those -- that's it's so guidance of year. And why not giving hard why

Michael Petusky

I'll last loss I than then I The a guys in than had to just to that up came Can I here? softer and fourth FedEx be sort you you quarter B expected that doing. of part of had ask off get more able question ended mitigate to

Is assumed the at it through be sort reasonable that really to "Hey, rolled test that given model? the first loss"? on Does should of line the way it pass through decline to that, the last due that sort least double-digit comps low half, top of

Adam Stedham

factors. very think don't reasonable modeling assumption -- I I given a think all the that's

and happening a not move your in unpredictable somewhat But modeling yes, we that exciting As from and world then things things I very world. smart right we a exciting there's now there's that's think part. said, some perspective, are live the happening a on some in

Operator

[Operator And the and ladies questions. showing to to time, back gentlemen, at I'm turn no closing floor remarks. this like for additional management I'd any Instructions] over

Adam Stedham

you. Thank Perfect.

appreciate call. joining everybody So the I

forward the XXXX growth, said, we has the that foundation you And successfully we XXXX. to transition set As I for was strong throughout look quite company. to we've navigated for transition. and a year company with communicate continuing think The

thank So you.

Operator

today's And We with joining. and for conference concluding that, you be thank do call presentation. we'll

disconnect now lines. may You your

VerifyMe (VRME) 6 Mar 252024 Q4 Earnings call transcript