AUID - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. And welcome to authID.

Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. reminder, is a recorded. As Instructions] this being conference [Operator your pleasure de Communications It my introduce and host, Relations. Marketing, is now President, to Grace Vice Fries, Investor Senior you. Thank Mr. begin. you Kris, may

Grace de Fries

on release Good you access everyone. Tripp operator. XXXX should our CTO; Graham have CFO; and announcing to quarter Pham, President Tom results. Counsel. Arad, you, Thank our Smith, With me General our Thimot, today's second afternoon, CEO; our and press Annie today's call By now,

be this, received website we not two. Quantitative have from release non-GAAP the can in Relations financial our the information you If information conference similarly - will titled slide today's of on companies reconciliations found most the calculated financial certain release. differently EBITDA non-GAAP is now information. at in directly and not calculated Investor information information. call, be presenting Throughout other appear this on press non-GAAP under This www.authid.ai be we accordance our adjusted section. with GAAP to comparable may GAAP Throughout are

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

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

slides for note the manually. you the that advance on we please have presentation For those up the to webcast, set

that double cues of right-hand Tom side Annie the on the the You provide slides can over the by do and appear advancing will tapping and slides. slide. the for this arrows hovering

our telephone. CEO, participate on following to To We the now must you registered I'd session our Tom presentation. in Thimot the be Q&A a like Q&A will have introduce

Tom Thimot

validation slide on to the high we've for about today's advancements. three everyone, achieved earned the call. Welcome, of start Grace. I'd technology to you, platform standards points and our Thank and like we've talk multiple

During upgraded confidentiality, the our Building standard, security security meet security we XXXXX can of has customers met security major two our biometric encompass successfully the to security. SOC meeting their platform previous in demonstrate means they for to that programs. the integrity to that Standards availability. This count achievements management information ISO second quarter, and that asset on aspects protect industry we authentication of rigorous key the on standards stations management our authID completed that certifications X

score We or for measure and the also a the that detecting in X Standard harmful platform's attacks. achieved perfect success under capability ISO presentation Pad liveliness detection verified and X attack Levels

certifications apply remind presentation quickly for a of best our give By opportunity May, in you compliance have an all the Banking to to Futures for confirm from know-how, vendor that Hamilton stop prevented These of cyber decision-makers performance. fighting protects this the independent methodology we These lead we confidence we to to defending compliance in continuing and reach demonstrates fraud during for receive and spoof important multifactor - that and to creates the that risk, have assessments us Verified biometrics. Verified recognized unchallengeable This Let attacks than fraudsters patents a successfully attempting and tests quality a technology. this to trail forge me XXX level our audit more test, to in Award parties. are protection. fraud highest key perfect issued for We also were we Bank use independent of security concern These along with earn issued patent these organizations because patented choose help protects methodology, Reserve against patent FinTech authID IT us attacks. and - is that departments control their they a need have trusted our to to with the authentication And they pleased high management be innovative were and evolving partner the standards. customer, promote critical industry. to

ahead, enhance capabilities platform the Looking of authentication changing to our to biometric we meet will continue industry's needs. the

Our and and management technology, help Verified's will validated by traction for identity as gain these capabilities. security independent us assessments authentication recognition best-in-class

Ted and we Stern, on newest of the XX. a I investor, would significant passed take away company to moment like team our members, about a remembered fondly July send he who business critical changes. we of Ted well XXXX, and a insights our Before from talk sincere family. humor, great was through to a Ted to the Director to company sadly helped as as remember sense series for his be of Stern condolences navigate the XXXX will and

team. our to Turning

and to and former complex During the has and Trelin, dollars the experience in finance. Applied company honored pleased teams which and technology I'm in also and has to dealt a reporting, practices quarter, management go-to-market you'll invaluable XX Micro extensively the announce call is us best Jared Her helping business organization in we as Platform Sonic worker unit. Circuits supported on addition call, growth. our has now implemented CFO, Annie Cyber platform finance with our integral Stellar Avago, brings top-performing sales Board. sales Ericom and go-to-market experience our for at craft joined She Joe has the years scaled Cybersecurity business Previously, Sales. Annie Zero strategy shortly. this have Protectwise and with Jared access he background approach now were We're a Jared to Wall, e Hufferd, been transactions. that from billions Chief team Sales VP June well Jared leader SaaS verified cybersecurity also major a development. Annie for in for new of force VP as at GM and was expertise our I'm model hear that executive brings and brings our SEC strategy with is our Clear in in recently, revenue her Joe with join the to experience deep product introduce to industry for pleased as of great happy cybersecurity Broadcom. Annie new includes players. to authID. Most VP have today's and of public on ZTEdge was our and Officer us, Pham, of Trust Verizon. stellar business

four. slide Now turning to

quarter, This after extensive American selected biometric deploy to facial Radiology solution authID of its Board the authentication testing.

identity the medical integrity ABR a identity With exams. professional the a of to either through webcam Verified with mobile a authentication certification ease maintain remote strong selfie confirm device, to or provides of the

of snap verification instead candidates identity will using selfie exam perform the then time. Now simply an a exam at identity of confirm to and their disruptive process, verification ahead

Our proof-of-concept out and teams trial, colors. very with customers' success we development a passed flying with ABR to work closely which carry the

call Scott's use authID, CIO also to his I I ABR the As other partner. medical on going present is authID. the compliments authID and about certainly ease boards I in a of of am focus when said security great mention that to will

care how health digital value-add. and fraught win authID is that in the reported platform the been In has the where in to are cost past whole Verified contracts team has had and care FinTech target impressed the r sector great segment, that credentials is new amounting these million adding the market breaches Our care with $X And Health compromised quarter, been. both highest their fix. breaches a demonstration is patient to very use in integrate authID ABR several key helpful we knowledgeable average is of and on health The breaches. data and IBM a strong. providers. breach. for industry extremely ransomware FinTech seamless everything over care, for FinServ trigger both data as secure per attacks cases demand expensive the to with authentication sensitive health signed with Health customers care our into workforce for banking

infrastructure a a Our consumer and several is authID deployed cybersecurity, new and investments accelerating of sensitive to critical industries. weak response sales systems impersonating our to same providers, users' prevent with in solutions. for the customer protects that new protects programs enterprises where Yes, side, employees channel seeing or launched with well we targeted sales company increasing use Verified Verified workforce tools targeting and service and campaigns. strong It's quarter, new reset corporate teams marketing technology online that eliminates we was trying product web advertising the with created to list tack that data the set. In authentication cybersecurity in agile added outbound account media testament in verify credentials. with methods, ownership. to also content, have into Verified to We developed identity workforce sales This from prospect credentials, logging same trust and global stolen production accounts messaging systems. the our partners a bank trust authentication Verified corporate quickly along as platform bypassing passwords critical longer biometric swiftly password zero and Verified digital cycles lists new as financial expanded chain our delivers hackers

Black including building in Conference Identiverse also in Access cybersecurity Gartner the key week June, and are our August. presence RSA Hat We Identity at at and exhibiting conferences, market Management this

five. Turning to slide

Looking at picture. the big

have a last progress internal in our sales made our not we've deal good the While months, of goals. six met

in signs our positive with pleased very I'm pipeline. However,

opportunities and into is cybersecurity team sales Our on workforce book partnerships several converting working deals.

Let the a deals key me team is through. few highlight working

with and First assessment. risk customer opportunity onboarding U.S.-based providing is a business,

service they are secure onboarding financial enterprise identity customers. proposing integrate companies for and automated that their and their mitigate We fraud verified to

a major technology United into solution a The carriers look company States. in the of to embed second will one three that the with is offered opportunity workforce by wireless Verified

largest workforce and platform their services order customers. in of is our zero to trust as companies of deploy access States to with solutions their in our cybersecurity authentication one integrate opportunity portfolio to Verified the Another software the part United Verified of

deferred indicators last today, report quarterly on we annual key will we stated performance in call, of and recurring As our annual booked revenue recurring revenue, revenue. our

goals we assessed to existing targeting positive enter set guidance flow be, are the we XXXX. KPIs While pipeline of where support not by time wanted our these our them cash have and we have yet sales that

call let will turn the me over results and our Now financial Annie? KPIs. update on Annie, who us give to an

Annie Pham

on growth goals. it presents you industry and and exciting authID. I'm will customers shareholders. fast-growing adding Difficulty] Tom, earlier to kind a management, [Technical excited to capital value with business compelling to I authID grow came team. contribute very thank talented because forward financial you, to our have an which your in to and all of very opportunity and our a for joined look Thank Thanks our I continue introduction. for to

discontinued and Africa Now highlights exiting months for is quarter operations previous or the South operations the for we all will Accordingly, XXXX, and quarter reflect in compare and XXXX, continuing assets specified as Colombia. slide comprised XX, unless held June financial ended noncore now business six continuing turning statements to sale. from This are the results number ended six our and months my classified with that results The from following businesses company our June XX, operations otherwise. six. remarks of announcement in

the Verified three period, revenue both prior to license quarter for the Verified year year-over-year. month six increased and For $XX,XXX. the revenue software by over XXX% increased

the revenue by $X.X the compared XXXX, quarter Total for compared million year. prior increased million year For months XX,XXX. six to the in with XXX% Verified - was $XX revenue the million $X last for over

legacy expenses to $XX.X six expenses prior in noncash second million stock the compared compensation the For million for compared totaled The $X.X expenses mostly of the month month revenue of of noncash higher $X.X was million of totaled $X.X and Operating six month stock of mostly the the base noncash XXXX, due expenses for due prior million. million product. million compared principally total to compensation six with period the for our the XXXX year, the quarter for due expenses year, period three for $X $X.X $X.X with comprised principally million of $X.X Operating for to higher base $X.X period. $X.X million with discontinuation million. of months million

from quarter accelerated started and the for the compared rose $X.X loss And per $X.XX our expenses marketing, for Net $XX.X with totalled XXXX for the as loss $X.X investment was Net of share months, in quarter million which million last quarter $X.XX. year the was loss million compared $X sales net compared with SaaS of half technologies, we million. second Our XXXX. with second in six

totaled million. share the $X.XX. per loss net period quarter for month six the $X with For Adjusted loss compared compared was million with $X.XX EBITDA $X.X

with For XXXX, $X.X the adjusted loss million. six months EBITDA was million in compared $X.X

revenue approximately GAAP $XXX,XXX. Verified represented Difficulty] be and The XX. booked products, KPI, revenue. committed XX We're June to of metrics our as the only full will recurring minimum of Verified or annual cumulative recognized annual recurring recent both last of approximately accordance with recognized KPIs. deferred the XXXX, of or customers the under of revenue recurring today recurring the $XXX,XXX. as ARR payable BARR estimated quarter, or our ARR as are by revenue CML during or revenue our revenue present in of measures provide multiplied BARR Verified which and $XX,XXX. me as billing Booked amount annual products. let revenue in June you non-GAAP XXXX or our Difficulty] [Technical revenue which GAAP, XX, orders XX, revenue for annual amount from [Technical Annual is of The recurring Now is through for is following is BARR, of XXXX determined contracted month and the sales from ARR, by amount divide with June products

is indicated Tom pipeline, we in the sales our second half expect revenue subscription significantly Verified on in earlier, and our As deals team closing expand would XXXX. of our working

Now our balance to turning sheet.

borrowings had we are XXXX, $XX in There facility. new no revolving XX, credit million the approximately on June of As cash.

million by ahead, sales our to from achieve believe XXXX. that our cash enter financing we confidence reintegrate burn through sufficient gives per the operations XXXX having target time as previous can and anticipate us operations. of we revenue core positive our rate fund and estimate we strong To improving flow $X.X our then we pipeline our Looking cash approximately to we guidance, add month

the Now to let you. so Thank we operator me any question. Instructions] the call can over turn take [Operator

Graham Arad

Tom, Arad. Graham

ask a we're queue can While questions you waiting of the be I for question. to compiled,

bit to market? and a the compares clarify workforce services workforce in for marketplace other to that what targeting our now it that you the means product Ask we're more for the how products in

Tom Thimot

in interest where case. highlighted corporate marketing technology we saw more and where assets use passwordless have most in was economy, centered downturns password, the your step or sure towards our Clearly, make environment particular corporate way is a key And that token a on Graham. in think uniquely around interest that earlier, workforce business typical consumer, very a into of why the a for name longer going down, a companies a that we the behind to sales industry phone seen you phone made And biometric. the Thanks. in are our we was product. and but with up this we to with know as that will there It's are lot past Absolutely, log and have a significant your to of that authentication as we in you moving investment rather is who user in no our business positioned a the uses while because - side actually cybersecurity in cybersecurity uptick consumer is in have products saw authentication when increase authenticate a we user we protect our of our to that an

passwords, solve is the who pin code be that best So of product passwordless, world world is of the make this it device authentication authentication, we Verified, think a market and the have a to supposed what the in a texted primary people is to phone, we in to in offer like the to becomes biometric used we the in sure the device behind problem. where

Graham Arad

questions question chance investors Thank us to just company various you've review of can to is able ask people always us the management. are or at had published today, directly. open with on and materials contact The a the investors.authid.ai that to at investors, And you to we've a also a as you. who to speak from webcast reminder not a listening member

us If at further questions, time. please have you feel contact to free that

Another workforce question we're would to main the competitors in marketplace, say are comes look you that at? trying who

Tom Thimot

independently IT marketplace, as a solutions would a A solutions choose PIN code, traditional up Twilio number in through number competitive to solution. looking companies they at are SaaS authentication a departments been standard other the of to texting made a we've by and providers go that step where of of like that

exciting as opposed work log the is environment One is consumer of marketplace about the day. into your you that things to workforce to marketplace, tend the every

or log bank month. into You might your account a twice once

of implementation result, value a higher able that the on perspective, to typically much implement much the price you're away typically workforce will is that because As consumer. because by and sign When longer you concerned and takes constantly that consumer. we're you than in making we it a Also an create an from company, consent the not say to security consumer side obtain company. driving the is use in friction employee is the gaining it protocols required the sure that you documents the are with are

is by is not when given gained they accept with the an consent So employment something that company. is employee, it

existing So of it and the but employees we this significant this management in device. fact see and that to opportunity the just an is partner we companies can not employee the opportunity and secure IAM, is the marketplace augmenting behind more the actually identity with verify one the reasons device, are a access making that so that because they the

Operator

stand by question. for Please our you. Thank

question Renrel David from of the Partners. comes Lerner next line Our with

line Your is open.

David Lerner

Hey, Tom.

Tom Thimot

David. Hello,

David Lerner

A couple of questions.

of some cybersecurity and Do clearly one big mentioned so IAM company we still And won those you password. the that timing those. telecommunications, could plan maybe and also you opportunity, or away be elaborate that not same And deals one. see a in the number then new our on maybe in a of replacement gave couple is of seems the own employees to credentials. Twilio's You mentioned Twilio, it as onetime is to a their

Tom Thimot

Absolutely.

away face now your on commonly there and, from that, most token, moves it is you're identity make certain loss present phone you're area them - company either world that's their and to and pass inside basically your that much then and that piece identifies doing, on turn called the verify accessing challenged a And therefore, a maybe data has their risky is is and breached, foremost, more it's the a of to information when to if moves or it's that software then area phone a yes, in. something greater is or First put sure the the device passwords the biometric. when the logs the laptop you an user or phone to with key of to laptop ask is

was a different ecosystem. of world device is is there the be did, – a behind and device, So to to there. is need authID code. skate we to move much going. was that tested the not is secure password. world this more where use very remember authID puck when And to the was from where just And a going overused a get safer the you going when the know and to And We they where away saw than password that in to are metaphor that a that finally came you

And so a get many and word, texted you code.

need there that their where is clearly so health taking the tremendous pipeline exams, speaking information. to doctors again, This want companies in you of is of health do care significant because to once not patients and care market spoke And it's we to breached. privacy we whether the the and amount and sensitivity data see many that

the businesses tied that also biometric and best speaking that wireless person that we because is to to provided device positioned are that their telecommunications to to entire businesses supposed is we're that to, has that not is ability have that businesses sure to why offer using company by divest the serve and the small authentication. the behind the ourselves implementing telecommunications to at that are and that other talking and it our opportunity is secure homes make risk large company, opportunity that's look opportunities step solutions a of the answer looked focus. that to you we'll If employees telecommunications need where is It person do medium device, been they the have or they and cases future up a want that with of use we company to the our who from the and we see same in they authentication. be and are identity good value market either realize biometric management and sensitivity, sure but of the separate make add are great we finally, access have massive about little high I These see David, see and with companies, in your did very questions? to cybersecurity

David Lerner

XX Yes. with the revenue so at an we have from if you. She to think I the small things, may. X, in I Last you year. is nice mentioned think happened quarter, in what I'm looking - I and substantial XXX,XXX saw Where watch? expansion question, do got is I it Like hasn't more, XX X, half you substantial, this quarter heard the Annie you. ARR everything of do couple one X? to of to you in number bookings, meet a Thank can first I I what half. look maybe it a see this Obviously, - is mean, X magnitude for last X.X more. second

Tom Thimot

confident pipeline And we that $X.X have that in stated, by cash can we we the thing million have sales burn David, flow that remain clearly is that positive. today our that be one of roughly stated given XXXX we The we very start cash.

state obvious to cash cash So on an $XX.X to positive, burn flowing would in in order of To cash you million the in to that's receipts positive. $XX.X flow roughly have be have basis. annualized excess have million

in line start is now of that that's path and I away. that if So XXXX, end we we of middle goal see only XX XXXX think here reach a months to in sit the a the

revenue and to to would the $XXX,XXX to combination that need exceed ARR that XXX itself. to And Does not I of clarify ARR should by pick $XX.X get have ARR. of ARR to sense? deferred And that significantly make revenue so pre-payments has million deferred yes, we because of this and would up the obviously business

David Lerner

XXX%. No,

large customer next the million, look how is $XX particular are of there in workforce, one large XXX we if - So customer, should is we do this going customers, to kind be two meaning how think… it that number year, customer, one at $XX customers, million

Tom Thimot

a All early company a the are honored markets. maybe be typically above, I the is public but company, of journey. in companies stage here's very size on see us that have We in we along David. we're this know the more to investors we're that you mature bring mean, to - - in markets, venture we that consider used to much with

out next You learner been your typically and small great. makes to lot you've you sense of And ultimately, your start cellphone. we on prove doing got no everyone's know then get do solution make software expand you with company to is to new But start stations, you then and very know then because thing, naturally, I second, And in that for one's that inside there. not which customers. just David put of say, rid it's sure it's David, us device, passwords. I size gradually a behind wait the larger asset focused winning you solution when customers device our David's your the do of some with how have and customer, I thinking the the awards, agreements improve of this a

going technology at you product, everything we And our customers And score, I detected, help then that perfect which flow it because allows us failed, and that tax had could take presentation prove really really help have the you a mean to that our succeeded. is solution, try that to early happens get to there we the you we the money a small all company those large mature, good a to serves certifications. larger the that was all so defeat throw that XXX And and the we bet company and out deals - us And embed a these we'll of you that when cross their a be health or at wireless you're engine confident said in that risk to we of cybersecurity it to raised the are are what get start that whether opportunities care we're that able remain or software as XXXX. journey. on products, industry. telecommunications

David Lerner

Thank Tom. getting of work. That good a done. lot good was man, and you, you Keep been and up Thank that's enjoy nice very Stern your also congrats mention to the of night really you, Ted guys the wonderful stuff team. rest on

Tom Thimot

Thank Operator, we… David. you,

Tripp Smith

there's questions authid.ai, as So right questions, they say, your remains don't reiterate follow e-mail now, relations our contact seem that think, up either like like Investor at closing information, would to website page but uthid.ai. for I a the any on more Relations just I who by us or further contact through anyone can remarks. investor at Tom,

Tom Thimot

and our hackers our everyone want today. thank to I criminals. and like you protecting I'd their everyone. in their Well, from assets to securing and interest Take and workforce right. All your And In efforts on investment and really time for focus to the company sales corporate thank questions insight today. cyber care, for closing, continue we'll

Operator

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

all now disconnect. may You

authID (AUID) 14 Aug 222022 Q2 Earnings call transcript