Earnings call transcript Q3 2022

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

Operator

Good day, and thank you for standing by. Welcome to the Q3 Fiscal Year 2022 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Grace DeFries.

begin. may You

Grace DeFries

our Good are operator. President With on Graham me CTO; Thank Thimot, afternoon, our call Arad, and CFO; Tom Pham, our Counsel. CEO; today’s Annie you, our everyone. General Tripp and Smith,

today’s By our release third access announcing results. press now, XXXX have you should to quarter

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

with not GAAP adjusted titled certain information. information press Quantitative reconciliations our VAR conference of our may non-GAAP financial of in be financial explanations calculated the non-GAAP GAAP call, in directly today’s information information and as This non-GAAP appear EBITDA comparable this differently ARR accordance Throughout most well as release calculated to presenting KPIs. is and similarly be from we information. companies will other

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

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

the note those the that please our webcast, end. For slides on we will on advance

registered telephone. Q&A our the Relations To Q&A presentation. be website. of Investor a must participate on the following have session the will number on section is our We you Telephone listed in

our to like Thimot. introduce now I’d Tom CEO,

Tom Thimot

Grace. you, Thank

world. including Intuit, breach longer a multifactor legacy create MFA at we read data no about Slide and American passwords X. large Nearly Legacy authentication day, Yes, to it. Turning Airlines. yesterday, Cisco, organizations, every cut a just Twilio, safe digital significant and doesn’t

and thing They common. legacy particular, exploited attacks engineering that one use human them technology. of all social in have behavior, vulnerable All in MFA

exploit with password was data identity finding and the Chief hackers root study. supplement management as data clunky of breach of push MFA the security X,XXX or XX% elements. and apps element the access Information XXXX, the architects phishable In as Technology ways onetime human identified Officers, human quickly are to the breaches report, passwords As cause investigation new Verizon

XX found midst So a and aided credentials science fundamental years passwords, push cryptographic in or those we are replace to after with of device. of in of the a keys a with FIDO FIDOX the token evolution authentication, a pass to renewed insecure

CAGR next market research and at years, passwordless XX authentication a than today. XXXX XX% for to XX from almost XX grow is According of billion markets, approximately over to the more by the projected to billion

American global worldwide is the authentication to for market. at market, XX% expected passwordless the least dominate of accounting currently North

authentication. are In shift dominating passwordless we addition, with the research showing are to healthcare feel that right that the segments. market targeting confident and new banking data We

to including Turning alone to methods an with you usability know identity complex and something often replacing challenges, you security authentication Slide passwordless creates back and is authentication. X. QX technology that it insecure But something deploying enhancements. improvement. limited recovery With fall account have, portability passkeys

strong trust had, once gained Device devices. For authentication to instance, was user’s hackers enrolled device identity appears zero something control with authentication House they both also it and now a mandate up new specifies redirected the The includes that that device, Cisco authentication. step the and breach, the hackers users. White of not that

made passwordless a evolution, passkeys of authID we the us tremendous Verified create a In ramping shortcomings mid and differentiate These innovate of year to allow our decision upgrade strategic solutions. our significantly for to and anticipation opportunity platform.

Alliance. platform the receive certification FIDO and developed by our quickly teams engineering and product stellar Our of

user authorize the authentication problem is Human unique launched HFA their cloud breaches, passwordless is XX% binds with is believe face. the the If solution. then identity something of the the human we behind the HFA pioneering a the or Factor we has ideal element with Authentication is strong human human X.X to something in October, device. biometrics which element unphishable In Verified which solution. and is solving cloud fortifies user with HFA, for biometric the

Verified for by the designed allowing customers our workforce in productivity, solutions X.X that with high authentication of friction human protocol, passwordless and customers. Include authentication to customer address are improve exploit assurance, boundless behavior human use. and our and differentiated authentication, with these our to that cyber OpenID XX factor features ease balances demand, authentication, adaptive identity Driven strong integrate security risks reduce for offer Connect speed under minutes. support

zero Further, access move identity, privileged AuthX, providers. management response Verified to offers of and ecosystems the detection and identity streamlined are Okta, the include few BeyondTrust, access customers Senhasegura the our A X.X of we now it management, providers endpoint access to makes VMWare. working trust because easier, with ecosystem and

the coming weeks. As these more provide we launch will complete the in services, of information we

quick FIDOX-certified mobile access device sensitive user desktop applications. I X. seamlessly to for talk authentication to share seamlessly how Verified authentication Verified Once an HFA, on corporate logs CloudConnect authorize HFA our Turning Watch action. the Okta, elevates either. Verified network, simply of Access the want or user than Identity with device. in is video inside to enrolled any Management passwordless Rather about with in recent Slide selfie with Using the to a a our integration user

in HFA Let’s see action.

left you hand of the On play screen, your the side can video? operator

Presentation] [Video

company’s of in searching Turning no Touch Verified their log biometrics one than in the the phishable beauty the into password, looking passkey interface in use case device same and enter to network. ID time simply Slide one There this no users with fumbling secondary less a for or to recalling The X. a and username application, their minute or for HFA passcode. that’s authentication a

the accepted a user’s user seamlessly Verified and activity user access To The authentication in elevated quick authorize request the gated then intranet to their browser. asset, the company’s captured selfie.

to UX selfie a a Authentication. instantaneous it. resulting our Human with change X level have secured That’s that no that we on with something missed, longer selfie That’s during key you in was that made X.X Factor are image liveliness Verified Now PAD that detection. smile need captures IBeta might users

Human Factor Authentication FIDOX the consumers Human offers assets behind use a Delivering also ease all demanding. human of use seamlessly enterprise and and gates access Factor with device. Authentication the of both secures both security, of and the by passkey verifying enhanced are enterprise us log-in workforce portability and

certainty efforts Slide to and security by for offerings, lateral continue X.X on sales gaps Turning consumer. and marketing X. combining enterprise a privileges for workforce and biometric campaigns shut applications down access authentication passwordless Verified focus product movement HFA our now workforce two both Verified compelling users. market consumer is and to and to unauthorized closes with

officers stolen hackers Chief information these MFA need We corporate security into macroeconomic systems outweigh legacy current with solutions solutions will needs uncertain and the logging that the with environment. believe production credentials. hesitancy buying that in stop replace decisions from

approach healthcare we targeted identified taken significant trust. and segments market and targeted account can the and and valued we for from attacks segments and the thoughtful have assets best as social a damage cyber Verified Factor also security where frequently have very can by are passwordless These cause by highly industry We Authentication. researchers With Human that compromise most engineering been are data, reputation, financial these sales. benefit to believe ready positioning to can impact markets markets, services, three and

journey. to with we Turning In early to where are prospects early started product adoption. our XXXX, on Slide we working foster X

Use platform Our Biometrics not most experts. banking, successful security efforts are payments. for industry comply October, digital and XXXXX Payments. PAD impactful In recognize has Future and transformation awarded note, specifications authID, Research Juniper positioning. to Best our strengthened FIDOX awards with IBeta in products services gold that and retail, gone the competitive harden Juniper’s our financial innovation of our across the Standards, ISO fintech have platform winner further protocol by unnoticed driving Of the

the behavior cyber significantly security also should of products increased have Verified like advance human be attacks adopted. understanding why The helped exploiting to

are We see. would healthcare, all quickly to and journey customer wins not services as as admittedly our like within along we implementations and moving financial with

announced U.S. based September several onboarding driven and services scoring including During in the signed U.S. regional compliant quarter, we and various unions AI financial as new credit company. we customers risk business

closing activities. We opportunities continue generated work by on developing and to our marketing

a team passwordless diligently authentication working our new upsell with customers. existing is plan. to customer our implementation services They’re actively to supporting also Our new clients success streamlined

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

Annie Pham

you, Tom. Thank

The Turning as is August on non-core businesses to announcement in from previously Slide business comprise financial results sold and are authID’s Cards in highlights assets we Colombia that company held Colombia. in X. non-core discontinued process. from The number for the reflect the XX, operations and was exit classified the These statements sale. XXXX, and South following business Plus and continuing Africa our exiting businesses in are operations,

nine-month all will XXXX unless results for quarter Accordingly, the ended otherwise of XX, XXXX, months remarks continuing XX, nine with quarter my and a from September specify. ended compare operations September and

the revenue both year increase and For $X.XX over software year for million the Verified year the license the Verified revenue month XXX% months increase three million. quarter nine XXXX. periods, over over by by year. to for revenue increased $X.X prior in nine Verified XXX% last to

with license Total $X.XX from quarter million licenses million which of of for revenue the Verified revenue of was $X.X software $X.X comprised year, Verified compared prior software. for the was million

a period Verified of revenue compared was to months from with revenue $X.X total licenses from discontinuation This in in XXXX, the was Verified due reduction million revenue the The $X.X was same was total of million which of XXXX software. in of million $X.X the nine $X.X for For of product. of which licenses software. million legacy total

$X.X million year. we investment for of expenses year, and $X.X starting prior million marketing, in expenses with nine-month totaled staff the the $XX.X quarter million compared third for the million for XXXX. with $XX.X prior totaled period quarter our Operating accelerated for in the as the sales compared technology, Operating

$X.X prior the the was with million million Net compared loss for for quarter $X.X period.

net nine-month non $X.X million of charges compared million, including cash the million prior year. loss non-cash of the $XX.X with include $X.X for $XX.X charges million which For totaled

compared the quarter share loss Net per was $X.XX. with $X.XX for

quarter nine-month share compared per million. with for compared total with $X.XX $X.XX. $X.X For X.X period, million loss the loss net EBITDA Adjusted the was

in nine million. with EBITDA XXXX, adjusted was compared the $X.X month $X loss For period million

our our revenue the minimum recurring let or as amounts by under for products. amount annual revenue orders contracted present me recurring KPIs. Now represented Booked of or the annual payable Verified estimated BARR,

XXXX revenue XX, over XX% with $X.X amount multiplied accordance is divided as of second or revenue the September quarter, by The from last amount through products of million, determined BARR of Verified recurring is the the about up quarter. GAAP the ARR month about and approximately XX. Annual in during sales cumulative recurring

in revenue quarter. collected cash products, or September the periods. ARR $X.X billings the XXXX as will about second customers be recognized million, which Deferred metric as our from revenue, XX, XX% is from GAAP future verified approximately is now of for a

XX, a Before revenue September XXX% million from Verified $X.X in subscription our the percent we our will second recognized as to up of deals approximately is XXXX continue revenue expand. expect pipeline, With approximately quarter.

At XX, available Turning totaled to XXXX, September our cash sheet. balance million. credit $XX.X and facilities

cash our cash Looking We sales. rate $X.X burn million per flow our Verified revenue as reduced then improve ahead, from to X.X month. to add will expect approximate we

of unchanged. financing Our having operations previous remain sufficient XXXX fund through guidance to

target late is by basis cash achieve revised to Our positive flow XXXX. current a on

Let me additional back now for call the to remarks. turn Tom

Tom Thimot

Thank you, Annie.

Certainly, we we Before that lowered. have goals the say a words. not timeline wanted on our our Q&A, been we been have achieved But sales into goals to are move not disappointed I anticipated. few

know extend the making sales seen we but have decision macroeconomic We and conditions opportunities remain. delay cycles,

on steps goals. to several We taken achieve have fronts our

Now a will compelling reduce and areas that costs. are competitive we several where invested there in platform, we’ve highly

product This and as Authentication, IBeta securing cyber hardening believe targets our as not performance, and and for of will and for standards the make financial with our is costly time of with capabilities, campaigns. ISO compliance launch these sales we Human healthcare that headway XXXX. Verified X.X We FIDOX its firmly number right will right well achieving areas A costly services, Factor across in the running start to be including right platform expanding year a that security. brand performed marketing markets the awareness security vertical we in as activities XXXXX, number

opportunities focused our made on expanded through converting through accessible generated and work more our CloudConnect remains ecosystem. Our pipeline

the of secured with Now market our total passwordless identity for we authentication X.X, are positioned addressable share Verified well to take with assurance. vast

to the and turn And to I Graham? it call will operator over the that Q&A. open with

Graham Arad

explain how can if for raise wish. they Operator, just you questions people if can

Operator

Thank [Operator you. Instructions]

Graham Arad

competitors our Tom, out X.X, Obviously, rise, makes different this just Whilst few we’re take many advantages market? many, questions you. the really could to kinds Thank different? waiting in to explain a products. there What of for all there are what – what respect product it, gives perhaps of with to you their with makes competitive it benefits minutes Verified claiming

Tom Thimot

to is many providers an device. software different passwordless a that the itself identity your most bind as it is all for passkey that put specific Verified calls trade logs a X.X at key companies the the Basically on you of passwordless many, very it see phone standard What and FIDO to a when you in. token think or phone than makes you that today shows authentication is and present,

a You we don’t you is fact or need don’t ourselves authentication your That’s that authentication, bind you’re on access from cloud, the branded password sensitive second that particularly factor device, you. biometric area individual that it’s accessing as biometric, when anymore. you multifactor not because is device. to The Authentication have of except now for want in Human a great, or human, that gives stored a that layer device information have we a that different it’s now the you that Factor the multifactor also a second

And greatly your password that a unlike your allow other sure have really allows you And new you to stepped you very company’s transaction of – authentication passkey that sensitive this consumer. you passwordless identity a allow and to device, make a very buying differentiates as to us, to before it’s access on your a us. up recover provider you every sensitive intranet area make or

platform factor talked XXXX, a Money and how on Twilio the and together. we in launched people and In We we fundamental all to shifted the allows that to PIN steps list that passwords step time X.X a XXXX offer both Verified a originally you we codes their that we’d their the about that passwordless the one We’ve with X.X one also capability the password can to developed. we that But Thanks, is customers it. And we up. up. turnkey to the that factors Verified one were that view biometric up come difference is made password authID Graham. tied our replace replace add to replace and factor past going lot focused of phone were since with is step world, The your provider in to in the at now and and step.

Graham Arad

more question. Tom. I you, one Thank have

over our relationships and and those a developed the the mentioned expand new months. to expansion significance on some the going Can help sales? of ecosystem several last the You little more you of we’ve relationships they’re CloudConnect the us partner that future integrated to with of and how

Tom Thimot

Absolutely.

the is One of all their able to integrate and of ones partners. Okta key being seamlessly with

they – to trial IT recall out. you from in will integrate and typically awful done test is to it program the an and API your past code call, programmers go today no about before to REST it, code. to call Twilio it, integration, roll in could we and that a API would lot have staff used that What it have you You low going replace talked REST that means is low

anyone our step that works us. integrated. can solution with minutes, Now because a already And you this it’s integrate for in huge for is OIDC,

that One it of a we a and team ecosystem. Verified market did integrate to was this. was of an customers our they is minutes. simple Zoom We’ll very relationship the OIDC. and weeks. broad keys implement. a of at people and opens we CEOs And take product Gartner engineers Verified two and to booth really it in that’s That’s And developed conference, identity the said do with us. partner offering and That’s the expected in two X.X Senhasegura, power access get the let’s got management The going of we’ll to our the very, to next it up for of over us it over our seven engineers together few and power example

Operator

for questions I’m to over now call time. you. further turn no remarks. Thank back will this the showing Tom to at I like closing

Tom Thimot

And the for questions. time everyone’s I today. Thanks appreciate

on we’re some the this happen made for has have I of market. product that we that speak but this entire macroeconomics headwinds, the in need together team a passwordless a that think behalf a to believe spend great will move integrated biometric. and It those change will technology. partners. with company taking that of to with And is to management right time will it The the to up I offers the only today. us Thanks step platform we here, for

authID (AUID) 10 Nov 222022 Q3 Earnings call transcript