Q1 2021 Intellicheck Inc Earnings Call
[music].
Greetings and welcome to intelligence first quarter fiscal year earnings Conference call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad as a reminder, this conference is being.
We recorded I would now like to turn the conference over to your host Gar Jackson. Thank you you may begin.
Thank you operator, good afternoon, and thank you for joining us today for the Intel check first quarter fiscal year 2021 earnings call before we get started I will take a few minutes to read the forward looking statement certain statements on this conference call constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 as amended when used in this conference.
Call words, such as will believe expect anticipate encourage and similar expressions as they relate to the company or its management as well as assumptions made by and information currently available to the company's management identify forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectation.
<unk> and beliefs about future events as with any projection or forecast they are inherently susceptible to uncertainty and changes in circumstances and the company undertakes no obligation to and expressly disclaims any obligation to update or alter its forward looking statements, whether resulting from such changes new information subsequent events or otherwise additional information.
Concerning forward looking statements is contained under the headings of Safe Harbor statement and risk factors listed from time to time in the company's filings with the Securities and Exchange Commission.
Statements made on today's call are as of today May four 2021 management will use the financial term adjusted EBITDA on today's call. Please refer to the company's press release issued this afternoon for further definition reconciliation and context for the use of this term.
We will begin today's call with Brian Lewis and Telecheck, Chief Executive Officer, then Bill White, Intel checks Chief Financial Officer, who will discuss Q1 fiscal year 2021 financial results. Following their prepared remarks, we will take questions from our analysts and institutional investors today's call will be limited to one hour and I will now I'll turn the call over to Brian.
Thank you Garth and thank you to everyone, who has joined US for our first quarter 2021 earnings call I'm excited by what was accomplished this quarter, but even more so by the greater signs of openings. We see the additional use cases, our existing clients have and are putting into place as well as the deals in play and the increasing pipeline that we believe is on the horizon.
When I factor in our three new sales hires I believe that we are setting ourselves up for very well for the coming year.
Before I get into all of that though I'm going to highlight some of our financials.
Q1, SaaS revenue grew 24% over Q1, 'twenty Tani with total revenue is down 8% due to fewer ancillary hardware sales versus the comparable prior year period, and Q1, 'twenty 'twenty, 197% of our revenue was SaaS revenue and as a result, our gross margin for the quarter was 92.
Percent.
SaaS revenues in Q1 versus Q4 was also up by 8%, but I would point out that in a normal world. We have consistently seen that there is an approximate 12% drop in transaction volume from Q4 to Q1, I think the smaller than expected debt points to some signs of reopening and higher store traffic, which we'll touch on.
On in a moment.
We had a net loss of just over $1 million in the first quarter that included $981000 of noncash stock based compensation expenses, primarily related to attracting and retaining talent.
Q1, 2020, EBITDA was a negative 52000 compared to a positive 144000 in Q1 of 2020 and just over 634000 in Q4 of 2020.
Now turning to signs of reopening and higher store traffic.
We compare transaction volumes in Q1 to the previous year to estimate the impact of COVID-19 similar to Q4, we continued to see in store transaction volumes down in the same 20% range.
Since Q2 of 2020 was almost a total lockdown to see how we're trending through April we compared same store volumes for clients fully implemented in Q2 2019.
The good news that we're seeing a steady return to normal transaction volumes with the numbers depending on the store generally down in the 10% to 15% range and improvement on the down 20%. We saw on Q1, we.
We believe this is in line with the widely reported trends in mall traffic declines.
<unk> would suggest that all of the retail on bank locations. We brought online during the pandemic would also be down in the same ranges.
As we look at recent developments with some of our current clients and some of the additional use cases they are putting in place. We believe that there is more good news ahead.
By way of background for those who are newer to the story when I joined Intel Jack just over three years ago I Force focused our efforts on in store validation of people.
This was an important initial step because it proved our value proposition demonstrating that our solutions provided the most certainty when you need to make sure the person on the other side of a transaction is who they say they are.
And as our clients tell us Intel it check delivers far more certainty than any of the competition relying on OCR.
Not only do that focus allow us to sign clients. We also signed major reference clients, giving us a lot of credibility in the marketplace.
At the same time, we knew that we had to do more than just I D validation, especially in the digital channels. It was clear that we needed to become a platform that provided more to our clients, which we have steadily been doing overtime.
Our first step was to add facial biometrics to the platform. So that if you are not standing in front of me not only can I be certain that the idea is real but also the legitimate owner is holding it.
We have subsequently added the ability to read the words on the front of the idea to make sure. They match what was encoded in the validated barcode we.
We have in production and we'll be releasing shortly even more key indicators to help detect fraud.
We will provide our clients with fraud scores based upon the V. P N. The mobile device phone number and address validation for any digital transaction to provide our clients even more certainty in any transaction.
I've said this before about certainty, but is worth repeating because this speaks directly to our value proposition our clients start with us because they understand that it doesn't matter what you do after the first step if your first step is only right two out of three times or certainty provides the greatest first.
And any transaction that is why our clients are expanding use cases for the Intel a check platform for both physical and digital transactions.
As we look at the updates on the expanded use cases of some of our existing clients. It really underscores my point about certainty and our value proposition.
For those who asked I will go back to discussing them by the numbers, we have previously used to reference them.
Financial services company and number two is in the process of rolling out two new retailers when as a footwear retailer with over 1000 locations. The other is a pet products and services retailer with 1500 locations.
Both retailers will be using us for new account opening and loyalty account look ups.
Financial services company number three has completed integration and has begun phase one rollout for the largest home improvement retailer in the United States.
This will be a phased rollout as a retailer has multiple point of sales systems self checkout assisted checkout customer service and commercial checkout.
Phase one is new account opening at self checkout.
<unk> two is for the Pos for the assisted checkout for new account openings.
At the same time the bank is also in discussion with the retail or two accounts and account look up to all phases day.
Days, one rollout is expected to be completed by the end of this quarter.
Financial services company and number three is also finally going to begin rollout to the bank branches.
While hardware is not our focus is as I said in the past we will purchase it for clients as an accommodation if it helps the client and we can mark the cost up number.
Number three place an order worth up to $2.7 million the scanners for their teller workstations in the branches.
We expect all scanners to be delivered by early Q3 and rollout to the branches to begin as soon as July.
Financial services company in company and number four is leaning heavily into the digital space.
They are in development now to add new use cases, including the digital channels for online credit applications for two existing clients. They are also on development to bring live for both in store and digital use cases, a midwest chain them home improvement stores with over 300 locations.
These use cases and new clients are expected to go live by the end of Q3.
And the progress doesn't stop there because we have another milestone achievement with this client Theyre in branch pilot to incorporate our platform into their mobile application there.
Floyd use for VIP or non teller transactions was a success and is being fully rolled out.
Financial services company number eight the Canadian provider of buy now pay later financing was acquired by a company that provides online mobile and branch based loans in financial services to Underbanked customers.
Given the success number eight has had stopping fraud with Intel it check the new owner is doing the integration work to pilot our platform for all of their online credit applications.
Financial services company number nine the mid West Bank has completed the work to integrate our platform into their mobile banking app.
The release date had been scheduled for this month, but its currently delayed as they are tweaking their user interface.
I believe that the moves by these financial institutions to expand on these success. They have had with Intel a check platform and the physical use cases and into the digital use cases makes an important statement. It proves that our platform works equally well in both environments.
I'm also pleased to share the good news about our robust pipeline.
Keep in mind that we don't consider accompany a prospect until they've entered into an NDA with them. So we can discuss confidential details.
So far this year, we've signed 25 M D as with prospects ranging from the top banks, we are targeting to potential resellers.
I think that this is a tremendous number given our limited sales force, which is why I said on the last call that we would be hiring.
And as you may have seen from the recent press releases, we have done just that.
Yeah.
We have added senior talent to the team with Garrett Gaskey, David Andrews and Bruce Ackerman.
It brings a wealth of product strategy knowledge and is already providing value to the team that I knew he would.
Davids marketing acumen has significantly increased lead generation.
And as a person with a strong track record in sales management I can candidly say I wish I had been half as good as Bruce.
I also said that we'd be hiring sales people and we've made good on that commitment we've hired three additional salespeople since the last call, bringing our total to nine.
I also wanted to address a question that has been raised several times I've been asked why we don't just hire 20 salespeople at a time again coming from sales management and Bruce agrees. If you bring on too many too fast you will fail.
The reality is productivity of the team will drop the new sales hires will not be successful because you cant devote the time to properly train them and in the end you'll lose many of them.
We plan on continuing to add to the sales team on we feel we have the bandwidth to effectively train them.
That way, we know we are properly investing in our talent to make sure we have a productive team.
Given what we have accomplished with the limited size of the team we've had I can't wait to see what we achieve with a larger team under Bruce his direction.
I strongly believe Intel a check as debt demonstrated its strength and resiliency underscoring what I shared with you earlier about our accomplishments.
Despite the many challenges that we've had from this once in 100 years National Health crisis, we have continued to implement our strategic plan and I am anticipating more positive developments in 2021.
We continue to expand within our existing client base, which demonstrates a certainty of our platform. While at the same time, we are signing new clients.
We are rapidly expanding into the digital world and offering our clients additional fraud indicators to add to the certainty of person not present transactions.
We rounded out the team to fill some of the gaps I saw on skill sets.
I know that you are as excited as I am since you are we can do with more talented salespeople out there spreading our message.
With that I will turn it over to bill to discuss the financials.
Thank you, Brian and good day to our shareholders guests and listeners.
I'd like to discuss some of the financial information that was contained in our press release for the first quarter March 31 2021.
I'll begin with our first quarter results.
Quarter over quarter, SaaS revenue grew 24% to $2 million 776000 versus 2.238 million in the prior year.
Total revenue for the first quarter ended March 31st 2021 decreased 8% to 2.863 million compared to $3 115000 in the prior year comparable period.
Gross profit as a percentage of revenue was 92, 3% for the quarter ended March 31, 2021 compared to 77, 8% for the quarter ended March 31, 2020 day.
The increase in gross margin was primarily due to sales mix from the prior period as we sold scanning equipment to a bank preparing to roll our software out to their bank branches, which are normally sold at lower margins.
Operating expenses consist of selling general and administrative and research and development expenses increased by 55% or 1.319 million to 3.717 million for the quarter ended March 31, 2021 versus 2.398 million for the same quarter.
In 2020.
The increase was primarily due to higher stock based compensation cost and increased headcount and expanded research and development efforts.
The company posted a net loss of $1 million and 60000 for the three months ended March 31, 2021 compared to a net income of 27000 for the quarter ended March 31 2020.
Net loss per diluted share with six cents.
Vs per diluted share versus zero in the prior period.
Adjusted EBITDA for the quarter ended March 31, 2021 was a negative 52000 compared to a positive EBITDA of 144000, and the March 31 2020 quarter.
Interest and other income were negligible for the quarters, ending March 31, 2021 and 2020.
Now I'd like to focus on the company's liquidity and capital resources.
As of March 31st 2021, the company had cash of $12 6 million working capital defined as current assets minus current liabilities of 13.4 million total assets of $24 2 million and stockholders' equity of $22 1 million during.
During the quarter ended March 31, 2021 the company used net cash of 510000 compared to a net cash use of 341000 during the three months ended 2020.
Net cash used in operating activities was 471000 for the three months period ended March 31, 2021 compared to 461000 for the same period from 2020 net.
Net cash used by investing activities was 48000 for the first three months of 2021 compared to net cash used of 115000 for the first three months ended March 31, 2020, and we generated $10000 from financing activities for the first three months ended March 31, 2021 compared to 235000.
For the same period in 2020.
The company has a $2 million revolving credit facility with Citi Bank debt is secured by collateral accounts.
There are no amounts outstanding under this facility.
We currently anticipate that are available cash as well as expected cash from operations will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months.
As of December 31, 2020, we had net operating loss carryforwards of approximately $17 million on.
Now I'll turn the call back over to the operator to take your questions operator.
Thank you at this time, we'll be conducting a question and answer session.
If you'd like to ask a question. Please press star one on your telephone keypad income.
Confirmation tone will indicate your line is in the question on Q you May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Our first question comes from Scott Buck with H C. Wainwright. Please proceed with your question.
Hi, good afternoon guys.
During the.
Very good I know you added some hedges during the quarter I'm curious, if theres anything else or any other kind of investment in the business do you feel like you need to make Brian a day.
I have the right infrastructure in place to maintain the current top line growth.
Yeah, we've put in some some marketing tools or not.
Say, they're overly expensive, but just wait for the marketing team to interact with our sales team run campaigns those types of things and as I've said, we will be spending some money on sort of proper targeted marketing.
Yeah, I don't want to do the blast everywhere to me it doesn't make any sense, we know who our target audiences are and being smart about it but you know what are the things that I really wanted to make sure that we do is increase the brand awareness of Intel a check right. We've got lots of good word of mouth from our clients talking to other clients.
But I want to make sure that debt our position is very very strong because I look at it is I'm going to go back to that word certainty, we do something nobody else can and we need to make sure people know that so I think there'll be a little bit more marketing spend.
Okay.
Alright, great that's helpful.
Second one I'm curious you know you've been at this for three years now and then given the amount of fixed cost that you guys have had are you starting to see any change in the way your competitors approach either your current customers or potential customers. I mean are you seeing changes in pricing or anything along those lines.
No not from our end you know if anything I'd say, where we're seeing the ability to increase our pricing.
And you know on I'll go back to sort of some of the competitive moat things that we have particularly when we're talking in the physical world.
The fact that we work with all the existing hardware. That's in place you know the only reason that we we ended up doing is hardware purchase for number three is they wanted us to also authenticate for them passports and that requires something different than a normal check capture machine that they have so that that was the reason for that particular.
Their purchase otherwise we work with everything nobody else doing OCR can do that so it is a significant outlay for anybody looking to do it across scale, where you know you need to put in a lot of equipment.
Great. That's helpful. I appreciate the year at a time.
Great havoc on Scott.
Okay.
Our next question comes from Mike Grondahl with Northland Securities. Please proceed with your question.
Hey, guys.
The first question I don't know if you commented this quarter, but the number of implementations in one queue.
And what does that backlog look like.
I don't know Bill if you.
On Sunday, if you want a quick look it up the backlog continues to expand is the way I'd look at it.
Bill and I were looking over the list the other day of what's in queue on what's going on and it's it is strong it is robust.
You know I I look at you know between what is new new coming in the door versus the existing.
Growth that our clients your growth at existing clients I should say.
One of the things that we're heavily focusing on is again with new hires and focus of the sales team is to make sure that we're grabbing new logos and at the same time, we've got people who are talented in the land and expand you know really good account management.
So everything that I've seen is showing that the pipeline.
Of implementations is only growing.
Got it and maybe what bills looking at debt for <unk>. The 25 M. B a signed in one queue.
Uh-huh R. I imagine those vary from small to large but can you comment on the mix at all like are you excited about some larger ones are.
How do you get I am I'm I'm I'm I'm exceptionally excited about the names.
You know that we have on that N D. A list because you know two things one you know I like the N D H, especially for the very large clients because it proves.
Real intent in my opinion, because they're not just gonna Willy Nilly sign them you know more.
Most of the larger organizations have little bit more checks and balances on just you know going out and doing an M. D. A.
The other thing I like about it is that frees us up to start talking about who are existing clients are which gives us massive instinct credibility Ah.
And you know usually the reason that we're going you know we're going into an NDA as we're beginning to talk about a you know a proof of concept you know some sort of trial in pricing. So it's it's you know to me, it's a significant step it and we know that both parties now have skin in the game.
And you're right to say it runs from sort of.
Some of the large guys you know those banks that we've been targeting you know the 10 that we've mentioned is the main providers of credit cards.
Down to some resellers, who could be you know I think really good for us from getting in different spaces. You know some of the you know the fintech companies out there doing a lot of the buy now pay later types of things. So it's a mix of large and medium and.
In both physical and digital use cases.
Got it.
And Bill could you help us SG&A.
R and D and the stock based comp had a pretty healthy step ups.
In one queue can you kind of help us think about the quarterly run rate for those three items the rest of the year.
Yeah, we.
Probably it on in this right in that $650000 range.
$650 to 700000, a quarter non cash expenses and that would be.
Non cash <unk>.
Equity grants and whatnot that are amortized over the year.
Got it what about SG&A and R&D, what what are those two categories look like.
Yeah, I would I would guide in the ER.
With the ramp up here in the 25% to 35% range.
Excluding the noncash.
Non cash expenses, so 25% to 30%, 35% and theyre not in the non cash expense opex.
That type of growth rate is that what you're describing.
No debt year over year look through about a 25% to 30% Opex increase.
Got it okay.
Great and did you ever find out anything on implementations and <unk>.
I'll have to I'll get back to you on that at all.
I was thinking it was another number but let me get back to you on that Mike sure No problem Bill Okay. Thanks, guys.
Our next question comes from Roger Liddell with clear Harbor asset management. Please proceed with your question.
Yeah.
And in general.
I'm interested in the.
2.7 million.
Million.
Sure.
Hardware sale.
Yes.
Just to see from the moment the accounts going forward will it be a deferred revenues items on amortized or paid to the rollout of software just walk us through anything that would help us on that.
Yeah, Brian do you want me to take them on yes. Please bill yes. Please you back on.
You're right Roger.
It'll be recognized when it is it's it's it's being shipped applebee's shipping point. So the title will transfer when it leaves the dock or the manufacturer.
So we'll be recognizing that.
Average ship.
Mhm.
Okay.
[laughter].
Hi.
And on.
Okay give me some sense of.
C.
On Mt.
This could be.
Oh just suggests too.
Right down $2 obviously.
You have had some contracts that are meaningfully off market now based on the value added by utilizing products and.
Is there a.
Cash.
A backlog.
Those old contracts or have some of those significantly mispriced once already rolled on.
Alright.
By extension.
How.
Do you see.
How do you describe the situation right now in terms of trying to get some more per scan to reflect the value added for the color.
So Roger we haven't had anything significant role or come up for renewal. However, this year. We do have two contracts that will be coming up for renewal that every day.
But I would consider significant.
And that that's a number three and four.
So and those will obviously be looking to.
Get more value out of it you know for the for the services that we're providing.
Yeah.
Okay.
C explosion.
Claude on.
On the occasionally we hear from you or just press.
About the figures.
I would have thought there would have been.
For translation.
For you.
Some of your competitors.
From that.
On welcome expand.
Sorry.
Isn't there.
Lagging effect here.
Lee.
Focused on to explain the disconnect between.
The explosion figures.
You have remedies for that I would've thought.
Pete.
Yeah, I think that there is a couple of things cause I. You know you look at the numbers and the increase every single year and the amount that's lost a fraud I mean, it goes up double digits every year right now I think.
Total fraud losses in the U S or thing are saying between price and scams like 50, some $56 billion.
Tremendous part of it is again getting out education that it can be done which is one of the reasons that I wanted to start spending some money on brand awareness and thought leadership.
Cause I think there's still a ton of people, who don't think that there's something that can be done without making it super super complicated.
You know you talked about and where do you look at all of our competitors on one of the things that really relying on is a much more complicated process with more friction that requires facial biometrics and sort of the reason they do that and so moving even written papers that if you use facial biometrics you fraud attempts to go down well.
What did your cost because you've got to pay for the biometrics.
Because they're saying it goes down because people don't want out of their face on camera.
So you're making a much more complicated process, whereas with US you know.
We can tell you that the license, they're using something that isn't real so do you really want to add a friction in for the boundary case, where somebody maybe stole relative license and is trying to do something so you know in my opinion and in our most of our clients opinions. The answer to that is no. So it's sort of a little bit of a nurse, yeah, a little bit of people.
Don't know that there's something out there.
It's a little bit you know technology. Some people their systems, you know theyre trying to get them up to speed to be able to handle and take in data like we can provide to them. So I think in a way you know a couple of years ago. After the experience.
I'm sorry, the equifax breach.
There was a big uproar about it and I think what we've seen happen in the past year is the criminals changed how they're going about doing it and you know perpetuating identity theft.
And really move to the digital channels. So that's why we're seeing a lot of our clients begin to throw in alright, how do we get you on our digital channels because the stores are closed, but the crooks, we're still looking to make a living they decided they were going to do it online.
And that's what really expanded and I think that will continue to see uptick in growth.
I think that some of you know the big players you know the big banks, we look to sign you know they move a little bit more slowly on almost everything.
And it's you know a big decision because once they go with something they don't want to have to rip it out right away. So I think the more we can get our presence known.
Our brand awareness raised it'll make it easier for us to get into more and more of these clients and again one of our big pushes us.
Get our clients together on our prospects on how our clients tell them why they should use us because you know it's always a heck of a lot better when your competitor says no go using Perl a check.
From one of my sales people doing it brings a lot more credibility.
Oh.
Okay final question.
Yeah.
In terms of recovery.
Can't really sort out.
The impact of this variance on that vary.
Barry on one state opening up on all the calls.
Down.
And then you've got the.
Contribution.
Revenues in.
In store.
First is the digital channels Alright mhm.
Or temporary.
10 years.
What's called a bit optimistic picture.
Lee.
Vaccine.
The real driver.
Barry will fade away.
The spirit, but.
Where do you see the recovery coming is it going to be in store.
Cannibalizing digital or you take it from there.
Yeah, I think that I don't see it really cannibalizing it.
You know I think people have been talking about the death of brick and mortar forever and it just doesn't seem to happen.
Dennis Studies show Millennials like go into stores retail mall traffic you know.
Had been down but as you know in around that 20% range of coins that Wall Street Journal article that came out but is already coming back up you know you've got New York, New Jersey and Connecticut.
Theyre going to lift.
Indoor restrictions I think on the 19th.
On the Governor of Pennsylvania, just came out and said there on the thing everything on the 31st and as soon as 70% of the population is vaccinated masked mandates go away. So.
I think we're beginning to see it and those are the states that make the real impact right. Those are the you know the population heavy.
On our client heavy you know a lot of our retailers are in those states.
The more we began to see people get uncomfortable because they've got the vaccine or the comfortable because they don't want it and they're probably still going out anyway.
You know those are the things that give me signs of encouragement is these very large states now putting dates and targets on what it takes to fully open.
And I think once we get there then than we do see you know volumes returned to normal and you know.
These places are open it up to the middle of next month through the end of the next months.
I think that shows well for the rest of the year.
Thank you Brian.
Thank you.
Yeah.
Our next question comes from Omar and not a private investor. Please proceed with your question.
Hi, Thanks for taking the call.
I've noticed that a lot on your communication to shareholders you have really focused on banks and.
Security and anti fraud within banks I'm curious, how you think about the opportunity in e-commerce in crypto currency in cannabis sales and anything you can do with the sharing economy, where people have money online, whether it's inherent D&B accounts Uber account or a patriot on and they can get attacked by.
E T OS as well curious how you're thinking about that opportunity. How do you think about that sales motion et cetera.
Yep.
We were we're going after all of that we've already got a pretty good presence in cannabis.
And a lot of that comes from our law enforcement many of the states where they sell candidates.
State level, you know age enforcement bodies, you know like the Washington State and Washington State alcohol tobacco and cannabis there are clients. So then of course the people that.
Our selling it wanted to use the same product that they're gonna be measured by.
Sharing economy, all those types of things you know, we're targeting and it's one of the reasons that.
As I said I want to hire salespeople.
You know I look at my top sales guys and I'm like you work on yourselves to death, and you know thankfully they're highly motivated.
We went after what we did because volumes are so much higher in terms of validation on the transactions that need to take place.
Some of this retail stuff.
It was a really good spot for US now to say you know well if this huge bank Trust me you probably should too right. It provides a lot of credibility when we can talk about too.
Our clients are using us for identity validation. So started there as I said because it was a good first step obviously now I look at it I see tons of places where.
You're going to have to prove that you are who you say you are I want to make sure. We're staffed up to get to all of those because I do think that they'd be important revenue sources.
Thank you and slightly slight change in direction from channel checks with Julio and Mitek for some of their lower volume clients, they're getting as much and they're charging as much as a dollar a scan and for some of their bigger clients. They are charging 25 cents a scan. So do you see your pricing getting in line.
With with pricing, that's as high as Jimmy or Mitek, and how quickly do you think you can get there.
Ah well.
We haven't given out any of our pricing, but I also say that you know there are certain things that you would have when you're doing the channel check you should make sure that for I D validation only or is that also including facial recognition because again, they usually have to go hand in hand.
Because the you know from what our clients tell us.
60% to 65% accuracy range on checking on.
On proving that the license is real or not when you're using OCR. So I don't know if that's a fully baked in price, but certainly.
We've got clients, who are telling us the amounts of money that we're saving them or their reputation risks that we're providing them on two fronts one because.
Where we're making sure that you know somebody's I didn't you didn't get stolen and second because we're so accurate we're also not telling.
A good client that your license is that I mean, because it's you know that happens almost as much as they don't view the right license.
When you're judging a license you know we're in I D on its validity based on how it looks.
Law enforcement tells us they can't do it and they're trained so I don't know how somebody on a call center over.
Sure, it's going to be able to do that so you get a lot of false negatives. In addition to the false positives.
So.
You know our clients simple easy quick and we're certainly you know showing at every renewal that we have debt, we have pricing power and cash.
Can you now have in the past and will continue to do so significantly raise pricing.
Got it yeah, and just to clarify my comment about their pricing was just on the authentication of the I E not with the selfie match or the live video match.
Gotcha.
Yes, that's different than what I've heard but yeah, yeah. Okay. Thank you.
Yeah.
We've reached the end of the question and answer session. At this time I'd like to turn the call back over to Brian Lewis Intel a check CEO for closing comments.
Well, thank you everybody for joining the call.
I'm.
Seeing signs of recovery in the economy, and People's Health and all those things, which I think is going to bode well for us I'm very excited about the hiring that we're doing the caliber of the people that we brought in at every level of our messaging is is improving our lead generation is improving so I think we've got a lot of stuff in.
In the factory that you will that we are really optimizing which I believe is going to help us to continue to grow and hopefully continue to grow even faster rates. So thank you everyone and I look forward to speaking to you on next quarter.
This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.
Today's conference has ended please disconnect your lines at this time. Thank you.