AUID - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q1 Fiscal Year 2022 Earnings Conference Call and Webcast.

As of this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]. to conference like speaker to now today. for will turn over the your I you may Fries, de Grace begin.

Grace de Fries

Smith, CTO, operator. first-quarter announcing me Graham should are Tripp have on you, Rod, XXXX today's President Thank Good By today's call results. Tom afternoon, our General access Timo, now, CFO, to Stoller, our our Stuart everyone. Counsel. With our and and you CEO release press

under website our this, the Relations release be at If www.authID. have our ai not received you Investor found section. can on

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statements, of them. not and to that from today you could Before are will what me that remind and on performance, put we everyone should to we numerous forward-looking subject results expect. forward-looking statements uncertainties formal cause let therefore, not begin differ undue our discussion remarks, actual of future such reliance part These materially statements our include risks, guarantees are

at of available our www.sec.gov. others mentioned Form Some these which in in made are release, are XX-K filings, discussed risks today's press are and subsequent

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Tom Thimot

that big Google, standards. specific federal the expanded $XX agencies operator zero X. made -attacks losing Okta, compromise we new why why? everyone Day, Lapsus$ reliance towards part are World all including to or Slide onetime three Whether the to gaming haunts estimates we'll call, let's and in create will house and phishing, just on global market of and to and and been up reach day $XX for the cost authentication it's cybercrime These announce, Thank first broad progress over our funds. last Xth, is support talk the they May, and credentials is password the giants, XXXX. breaches with Apple, common a cyber XXXX, fail Password to of, FIDO to legacy of about to Every you, hacking news. a The of an attributable solar turn with the off which teamed notifications. of discontinue cryptocurrency by to trust all grow Microsoft, legacy quarter billion ID, has authentication the weak week The that Grace, moving codes Microsoft, market in drivers by XXXX. Grace. push infrastructure for Even during the And Welcome million Recent a breach methods. on list tech market $XXX gaining is is trillion. indicate sign-in instructed Alliance, total the which or to directive projected expected to to have adopt cybercrime resist to and methods wins largely contractors as-a-service support deter methods biometrics white failure today's

does it and products, goal. see is is still second-party authentication Can know the have some the my authID. alcohol to part. phone tremendous vulnerable integral FIDO in that shortcomings. have my by members can does And certainty Yes, this device also ordered delivery who made dispute that device. authentication audit is with indisputable know of our that where provide FIDO open we Alliance, authentication identity for case I moving of biometric still to my does funds. goods, believe kids who for purchase FIDO, indicates of password-less company significantly purchase? which enhances not could a is authID enterprise same first towards as age does prospects short, transferred trail or Tito's? this purchase not we been a industry an the opportunity this really behind who the restricted to simply fraud In play of future a made with and As but announcement an an itself pin-code however, who working We and

by experience. X-X seamless secured why with why to and identity see sales defense solution assurance user we Android authID device high a assurance Eliminating because are, identity problem in companies FIDOX highest with iPhone these turning this a something laptop our your device, have, and strong momentum solves Together, your a typically passwords platform selfie. in an verified pipeline. the is are verified or couple cloud-based something factors you an Our deliver or you we

Turning to Slide four.

to build a team, backgrounds in a our diversity products to bias-free manner. a culture. products, delivering shape and and diversity and continue We is of identity which strategy, This solid critical help brings experience ethical AI

highlight we and few last hires in promotions months. Here, in several sales and technology made the

Directors, Stoller, shaping you only June. and help Pham and and of to of of Joe former of Chief NBC technology Clear retire, growth. We in processes our will executive joined Universal former dedication last wish the we support team, Amazon.com. will Stuart him want addition, critical entire experience behalf CFO succeed our management a In our to CFO our Trelin the Stuart industry long-time as our product Annie our month, I building and best. And announced and the thank bringing in and invaluable mission as as officer your platform Board company to On and for

SEC accounting to will has subscription a secondary advance Annie help growth. finance, Over and of Annie models software, SaaS company reporting, great experience in next active and with demonstrated broad in to addition the of public level course complex also us Annie business the all like across be of career, particularly her and offerings aspects ours. brings transaction.

sales in first sales every sleeker the a experience include of These Turning requirement to quarter and interface, enhanced that algorithms the we language the accuracy initiatives. intelligence frictionless releases our artificial the enhancements present conversation, Slide the both Since helping for are speed user incorporation and additional preferences, in five. technology is made of user experience. user improve the

the partner for CloudConnect our program the authentication low verified Microsoft integration. of Azure, of verified distribution to biometric Joining with XXX code deployment a Office broadens and provide

continue on We build patent portfolio. also to our

February, to our digital PTO industry. critical protects This XXth. addition from and our unique, our combines build confirmation a XXXX. enhancements Level detection security Critical an be In consent this for to identity tomorrow In Attack creates continuous tripled we U.S. attacks, Passive by engineering Notice other on week, transaction, to we methodology, May patent is strong in highest US to is of that multi-factor patent landscape. perfect and next-generation, authentication just issued known liveness platform awarded XXXXX-X explicit of for levels Allowance that may in so detection Detection, a penetration safer, digital of others Best-in-class standards X with or our verified This plagued conformance fraud, received an secures parties. audit Presentation December trail e Level patents X seven fighting which score. a iBeta accountholder's and patented announced we the identity attacks, it with verification, methodology and Last liveness for independent with ensuring social commitment signature. a achieved all that our one ISO aspect deliver spoofing, have it's protection to of PAD, as with of

attacks financial takeovers, strategic most and focuses account our vendors, Using financial consumer, lenders, robust well companies of that our To cyber of platform quarter with first Fin to we medical and and agreements are customers cybersecurity the currencies. early XX for both a a services leading board, building and auto that In who medical and successes. channel provider will rising achieve a verticals a services. XXXX, a than X. to professionals. leads, tax Slide those information FinTech we Also, pipeline medical provide to as Tech build on Fin threats through on crypto financial including playbook the certifying added partners, several these U.S. Turning we Tech by signed we impacted generate U.S of more as proven offer healthcare objectives,

is Our team to marketing prospects and our deals. team laser-focused them is qualified into and working on developing sales diligently in these campaigns into them verticals booked turn convert

to to Slide From executed adoption in that Turning marketing and X. and engaging integration. code viable product with MVP deliver October, minimum rapidly team enhancements or product sales low and our well campaigns extremely speed implementation launching has our

our believe the sales drive we advanced have noted, POB benefit our this and and progress from in signed adoption. we deals. with product booked As see will We early prospects pipeline to agreements

and Those identity As KPIs reporting expect revenue, identity that verified progress outstanding identity on we we're We focus products ARR, include quarterly call sales annual will that of early identity start measures give revenue. of our these our in the next deferred recurring our a August. good and identity KPIs results booked we non-GAAP that a indication will result, on believe in making.

to me an financial to quarter. overview the CFO, the let Stuart? Stuart our Stoller, of turn results our provide call for Now, over first

Stuart Stoller

Tom. you, Thank

eight. Slide to Turning

expanding million. months $X.X expenses for from my non-cash XX, the primarily quarter $X.X and in the the the XX, 'XX first due legacy with XXXX well XXXX with period of was ended Total anticipate second the million, quarter higher loss compared as million, higher year Net technology for to from XXXX, expenses compare quarter first derived March as expenses of ended March higher the at to specified costs. XXXX that of core remarks principally XX, our was for half and otherwise. $X.X the Following was Operating ended in marketing increase to of of XXXX $X.X approximately of March our XXXX. unchanged unless be in the same compared as three loss $X.X $X.X the last quarter programs quarter an net for million. compensation second million million, salary XXXX marketing technology revenue will of investment business began We

adjusted loss, is million before other depreciation, of which EBITDA $X.X are was non-recurring up earnings, and an from loss taxes, EBITDA items $X.X earnings dollars. or adjusted million and XXXX amortization, non-cash interest First-quarter dollars

to cash press our our businesses on them in going forward all plans initiating core authentication or in As focus release, and growing we announced identity exit verified to minimize maintain on our order revenue. to investment biometric legacy

the would Columbia, employees it's with we and where we respect will determine this continue We're to will service specific our able our through booked result, all recurring to respect we to that BAR possibly a Multi-pay revenue we in expect minimize identity not working from as will exits, our yet yet the KPIs, the revenue potential provide With we able look these to interim, cash subsidiary estimate not decision, With base costs. plans. estimates multi-pay are As customer contractual -- costs $XXX,XXX. not as will revenue Multi-pay cost to other like planned our exceed and information associated est stand. certain core specifically proceeds look currently it's sale We of to to the realize we assets. XXXX. current but costs deferred We our result expand in some are in be annual on to a are incur to obligations. incurred of

not have XXXX. three the the write-down months or in XX, recorded March costs ended We potential

planning African buyout of interest. plus business, we're to addition, In seek a and South will our cards the exit

at to sale successful the this the we have recorded these upon a discussions, non-cash not value had XX, overhead our $XXX,XXX cash do XXXX, any months on in to of amounts related we months contributed XX, business. net March loss no from have a interest, have These the corporate $X.X exit terms discussions, three We would of the assets net approximately have intangible expect decided been amounts exits. March selling approximately In point. we ended charge are planned ended the three Based result preliminary nor impairment plus these $XX,XXX. agreed preliminary cards write these down as inflow but of of in proposed businesses this of million and definitive had revenue, the allocation, businesses in any a the a include XXXX. and approximately a If

$XX.X our three to included respect and million sale facilities. million of million X.X $X.X X.XX% solid stock notes, convertible of $XX of with X. Slide it evolving credit to financing, million years Turning

of convertible with additional stock secured the to the the our annually ability We XX, cash middle also maturity Furthermore, of $X.X notes X.XX% on extend to pay the million XXXX. is December obligation interest note 'XX avoid $X.X -existing Interest by approximately the during we convertible flexibility were having to XXXX. from the pre to able million. outlay February

XX, payments XX, million. maturity $XX.X million credit XXXX, until the is $XX And with convertible a capital our revolving principal the as totaled cash-on-hand working notes March and of Lastly, borrowings then. XXXX approximately no new financing, the result facility. no as was March new There on X.X were of of date the million,

Looking core approximate as cash a ahead, previous we to estimate operations. rate a operations we our our anticipate million fund to our we guidance, then XXXX. having cash improving flow month, XXXX estimate and burn and from aired cash iterate sufficient revenue as We through positive enter being we dollars

Annie half to the will I will you be seamless in quarterly and current the conference continue she thank consulting current so and years. former prepares Pham the back any investors, future. ensure also the a over it for CFO like I I available as to turn best earnings a all now I to former basis a call to questions. my and Finally, can take to transition. my want five retire, last take I this role, of I operator members, we welcome the to as on the wish be colleagues board and and wonderful before would

Operator

you. Instructions] we stand while by compile roster. Q&A Please [Operator Thank the

Graham Arad

Graham operator. you, Thank with Council.

we're can question. I to the you question perhaps ask up, a While fill waiting for Tom, queue

they're by - a three, impact Google, announcement little working expand you believe mentioned the what these goal. companies, announcing on tech You more Apple, towards wondered and the the I could that and of major common you three a what is Microsoft, if you

Tom Thimot

Yeah, Graham, absolutely.

First number and early-stage there's highly offering disruptive a an to you've need. is the you something when got that foremost, things marketplace, company of

large a market; a very is First, you need opportunity. large question there's authentication no market that

patent and does highly when IP; Google, Gmail, differentiated defensible. product password, today, username authentication. defensible often for And built, I not That in, I agree highly longer. Office that but our differentiable hard gauge the in the we that you XXX, Microsoft password agreed And much, a I we Apple, use early need much and that one for companies log stage my both success market You my and and log very Apple for my see mean? timing. Microsoft for the and combination is identity market on portfolio success, think they with always means framework positioning But list, our the ID, not have are to in that that's highly it's or what a into of

easy phyto have make to to you making consumers, making to begs know case it's change? going answer. to It's login, on that is SMS face with an going to to that comfortable to if market their is you been a this why and is long, for Graham. time is going take Great, to so to person every that Because makes the device, now. market timing that list who news authID, is why the a is device domino is an obsolete, one is the Apple, same truly the to the to first it on other that's device to thing, the but in. way about know is major token turn just what of would password we is And when ask at selfie. a now. fall message phone the token log market my me device, device. You're would opportunity. when exciting have that the on the us talking a that person it? Because iPhone, this You very you your device is question for the behind always seamlessly behind and the iPhone? institution the idea a is Google, going it of to all send positioned truly takeoff have the Thanks is -token -- This I reasons Microsoft allow SMS Who deals People going getting you you the have authID really already do of and for is my uniquely ready the truly a is not have sending feel the that's which transaction, transaction. This this that that streamlining and to great of

Let's take the next question.

Operator

[Operator Thank you. Instructions]

Graham Arad

you we do just they for do getting need would their ask why queue waiting can't follow-up, big right why three they what do? they can't this you felt Why still into have is with, if Tom us? the of what that just have guys announcing a but mentioned these They me concern billions we some do? that let dollars, time investments for us, might now a space,

Tom Thimot

great the Apple, Google to fourth a horseman, add And question. let's and That's Microsoft, Amazon.

of be agree to a on it accept so thing. the to them For can the on that is one device identified how standard token

them log For another is I to to thing. agree their big cloud cloud-based think all Microsoft is can Amazon a players in by with AWS, part they're to them adding cooperate a going on what customers their gives stored, allowing the and platform. a to And where I device, great is Cloud cloud convenience iCloud, me that think of see live leap is Azure, infrastructure, while selfie there it think that those cloud a we on Google are the And amongst Apple all four distributed environment highly all same confidence to in. that's is

questions any across ourselves? address that we market enormous defensible market platforms. four with maybe or and product now. highly have that becomes the is built to ones is took goes a timing Microsoft, have the not meets Graham, confident all those the where very Apple, an them do a between opportunity, be Google, to to And thanks we that that company am going selfie cloud I So of that there single we And

Graham Arad

the may case. be think I that

Tom Thimot

are There in right. the of track, and Well every other world week's no right of biometric and further strong last insurance. that fraud, are validates we headline every authentication, and security password-less secure the is right attack, with story That's a to even on then support closing, fortified solution, authID phishing delivers questions. announcement, that identity

We forward Thank value are to guidance right call. earnings our our on pipeline, time. to and the our metrics look grow customers, our in right to sales the reporting place much. to next and very delivering continuing very you We at

Operator

your for concludes Thank Ladies this and today's gentlemen, you call. conference participation.

may disconnect. You now

authID (AUID) 10 May 222022 Q1 Earnings call transcript