Q3 2021 Mitek Systems Inc Earnings Call
Yeah.
Yes.
Hum.
Hum.
Hum.
Uh huh.
[music].
Good day and welcome to the Mitek systems third quarter fiscal 2021 financial results Conference call. Today's conference is being recorded at this time I would like to turn the conference.
The talk Curly and pay our group. Please go ahead Sir.
Thank you operator, good afternoon, and welcome to Mitek third quarter of fiscal 2021 earnings Conference call with me on today's call are of Max Cornacchia, Mitek, CEO and Frank Corral Mitek CFO before I turn the call over to Maxim.
And Frank I'd like to cover a few quick items. This afternoon Mitek issued a press release announcing its third quarter fiscal 2021 financial results that release is available on the company's website at Mitek systems Dot Com. This call is being broadcast live over the Internet for all interested parties and the webcast will be archived on the Investor relations.
Over to page of the company's website.
I want to remind everyone that on today's call management will discuss certain factors that are likely to influence of the business going forward any factors discussed today that are not historical facts, particularly comments regarding our long term prospects and market opportunities should be considered forward looking statements.
These forward looking statements may include comments about the company's plans and expectations of future performance forward looking statements are subject to the number of risks and uncertainties, which could cause actual results to differ materially. We encourage all of our listeners to review of our SEC filings, including our most recent 10-K and 10-Q for a complete.
<unk> description of these risks our statements on this call are made as of today July 29th on 'twenty, 1 and the company undertakes no obligation to revise or update publicly any of the forward looking statements contained herein, whether as a result of new information future events changes and expectations or otherwise. Additionally.
Additionally throughout.
Throughout this call, we'll be discussing certain non-GAAP financial measures today's earnings release and the related current report on form 8-K describe the differences between our non-GAAP and GAAP reporting and present the reconciliation between the 2 for the periods reported and the release with debt.
That said on the call over to Mitek CEO of Max.
Thanks, Todd and good afternoon, everyone and thank you for joining us today.
We have a lot to cover and I'd like to focus my comments on 4 key areas first our all time record revenue and strong financial results second the key investments we made during the quarter in people and technology third providing more insight into the breath of our growing.
<unk> product landscape, which is fourth resulted in a doubling of our total addressable market.
Before I begin I want to take a moment to acknowledge mitek nation. It has been over 16 months. Since we all started working remotely and I continue to be inspired by the commitment and resilience from the global Mitek teams. This.
This quarter, we embraced virtual first as our workplace culture, providing our global teams with more individual flexibility and alternatives.
Note work options remote work is now our primary experience for all of our employees globally and the offices provide the hub for collaboration and teamwork, we have reopened our north American offices.
<unk> and San Diego, and New York City, and the teams are taking advantage of the opportunity to meet in person.
And we look forward to reopening all of our offices in Europe as country specific conditions allow in the meantime, thank you to all Mitek team your response and dedication to making our customers successful is invigorating.
And because of your dedication we had another outstanding quarter, reflecting our laser focus on providing exceptional customer value to the world's leading banks fintech and marketplaces.
Jumping into our financial results for the quarter, our transactional identity verification revenue continued its strong performance growing 33%.
Year over year, highlighting our leadership and this market and our deposits business grew 23% year over year as consumer adoption of mobile deposit continues to increase.
All of this resulted in record revenue of $31.8 million up 25% year over year.
And also we delivered.
<unk> non-GAAP net income of $10.6 million or 23 per diluted share up 56% year over year and cash flow from operations of $9 million.
In addition to our record revenue and strong financial results, we successfully added key people and technology to mitek during the quarter.
And we announced the appointment of Susan repo to our board of directors and Frank <unk> to our leadership team as Chief Financial Officer Susan.
Susan is currently the Chief financial Officer at ICI of Technology company, enabling access to real real time imagery from space for federal and commercial industries.
She joined.
And the board of Directors and June her experience and finance and operational leadership roles with Maria DB, Tesla Juniper networks, and agile and technologies will be very valuable as we accelerate growth Frank who is with US today on the call will joined Mitek as Chief Financial Officer, and senior Vice.
This president on July 16th Frank succeeds, Jeff Davidson, who announced his retirement at the end of last year.
The prior to Mitek, Frank was previously the Chief operating officer of of Dara of predictive Intelligence Company. Frank is a well recognized thought leader and digital identity and fraud management, having led threat metrics as its general.
Manager and Chief Financial Officer, I am thrilled to welcome both Susan and Frank to the Mitek team.
During the quarter. We also added key technology and talent with the acquisition of <unk> R&D and award winning provider of AI based voice and face biometrics and liveliness detection.
And our pioneering technologies.
And the combination and combination with Mitek solutions provide increased protection against today's most sophisticated fraud threats, such as deep fakes and synthetic voice augmentation and together, we deliver on the promise of password list access and imperceptible continuous authentication throughout the customer lifecycle.
<unk> and R&D is multimodal approach to identity authentication directly addresses these threats by combining passive facial likeness and voice anti spoofing technologies accurately identifying and preventing advanced AI based deceptions to ensure each transaction is completed by a real person.
Over the next 12 months.
We expect to invest further and strategic acquisitions to accelerate our vision and product roadmap, we will invest and acquisitions to add logically adjacent capabilities and areas, where we see a relevant market opportunity. These acquisitions will fast track our innovation in the fight against fraud or investments demonstrate continued.
Commitment to the identity category and our determination to provide trust and convenience in this connected world.
And the entity verification has never been more relevant to quote on dress sales Cesar from Forrester the necessities of the pandemic have forced customers into a rapid digital revolution that requires digital identity.
Months, we in order to compete.
Rapid advances in artificial intelligence are enabling novel forms of fraud and increased scale and frequency of data breaches all of which is adding heightened pressure on organizations to predict protect their customers' data and access.
Organizations no longer have the luxury to simply verify access.
The entity at a point of on boarding instead, they need to continuously authenticate and know exactly who their customers are across channels and throughout the entire customer lifecycle.
And while identity verification is rapidly becoming an integral element of most organizations technology stack. We believe the next decade of fraud prevention.
<unk> will be defined by and organizations approach to the for the lifecycle of continuous identity and access management capabilities.
With our acquisition of <unk> R&D Mitek steps out of head to lead this fight using advanced linked and layered identity signals from initial on boarding with documents devices and biometrics.
And to authentication re verification and continuous identity fraud detection Mitek is the only enterprise class provider with this breadth of offering and it's.
Identity, and the identity category and our standards of service remain unchallenged.
As a result, we continue to see customers choose mitek during.
<unk> for we gained further traction and both direct and indirect sales, bringing on more banking wealth management insurance Fintech crypto currency and decentralized patient care organizations in Europe, our credibility with the world's leading banks was once again confirmed with yet another pan European Bank fully integrating mobile verify identity.
And the courses to fight fraud, our customers globally represent hundreds of the world's best known brands and banks and our proven track record of success continues to grow as we expand our reach into this fast growing market.
Mitek <unk> goal is to be and indispensable partner and fighting identity fraud, and the momentum we are experiencing is.
As evidence of this.
Pipeline of potential new customers is strong our existing customers are expanding our channel partnerships are gaining traction and as the industry leading solution for identity verification, we are committed to maintaining product superiority and expanding our reach into this large and growing market.
We're committed to innovation.
The serve levering products that are simple and intuitive to use while protecting organizations from the growing threat of fraud.
Which ties right back to our introduction of check for our defender during the quarter check for our defender is and AI powered cloud hosted consortium for financial institutions counterattack check fraud check fraud is on the.
The rise and financial institutions see their existing fraud detection processes generate mountains of false positives. This causes them to hire more and more people to sift through false positives and search of fraud costing significant time and money check fraud defender helps protect against the growing sophistication of the check fraud attacks, which are estimated.
And the account for 60% of all fraud attempts.
Against deposit accounts and <unk>.
<unk> by the American Bankers Association shared in January of 2020 reveals total attempted check fraud increased to $15.1 billion the.
The powerful new signal provided by check for our defender will enable banks to.
The reduced fraud losses, lower false positives and reduce operational costs.
20% of the top 25 banks have already licensed check for our defender technology and are experiencing up to 90% savings and manual review time. Following its initial deployment, we're excited to see banks on boarding to our consortium.
And trusting mitek with this very sensitive competitive data.
Although check volumes continued to decline check fraud continues to be a major challenge for financial institutions, and the U S and by automating more check fraud detection and lowering false positives that require manual review mitek and decrease bank's operational costs as well as fraud losses.
Losses were.
We are very excited about this new deposits product offering that joined our already highly profitable mobile check deposits business, which continued to grow during the quarter with its revenues, increasing 23% year over year.
We look forward to continued adoption of our mobile check deposit product as more and more consumers discover it.
Inconvenience and are very excited about the coming adoption of our new check for our defender offering.
In closing the acceleration and demand for both of our identity and deposit solutions.
Jos the central role that our products are playing in this digital economy, and our record revenue demonstrates our strengthened market position and 2021.
And he's on while even more importantly, doubling our total addressable market through our new product offerings now I will turn the call over to Frank to discuss the financial results in more detail. Following <unk> remarks, we will open the call for questions. Frank. Please go ahead, thanks, Max and thanks, everybody for joining US this afternoon before I go through the numbers.
For the quarter I want to thank Max and the Mitek family for welcoming me and with open arms. Although I've just started the company and I feel as I had been of Mitek nation member for some time as Max mentioned and prior to joining Mitek I was chief operating officer of the Dara and before that general manager and CFO of threat metrics I've worked and the digital identity and fraud management space for many years and I am.
I'm very excited to be part of the mitek team, especially as we expand our role to facilitate inclusion while fighting fraud and this digital world Mitek and recent acquisition of idea of R&D and its launch of check fraud defender are 2 great. Examples of mitek commitment to leading this charge and the fact that major financial institutions today placed their trust and Mitek.
With this very important insensitive imperative speaks very loudly to me. So thank you Max and thank you team and so with that let's dive into the Q3 numbers for the first for the third quarter of fiscal 2021, Mitek generated all time record revenue of $31.8 million of 25% increase year over year software and hardware revenue was $17 million an.
The tech of 28% year over year service and other revenue, which includes transactional SaaS revenue maintenance and consulting services was $14.8 million for the quarter and an increase of 21% over Q3 last year. This increase is due to growing transactional SaaS revenue, which increased 33% year over year to $10.1 million.
As was mentioned on last quarters conference call. This is the first comparable year over year quarter. Since Covid began and we're very happy with the significant growth year over year for Q3, 2021 deposits revenue increased 23% year over year to $20.8 million of Danny and verification revenue increased 30% year over year to $11 million we delivered.
Strong software and hardware gross margins of 98% for the quarter gross margins on services and other revenue was 79% for the quarter and total gross margin for the quarter was 89% compared to 86% and Q3 of last year.
GAAP operating expenses, including cost of revenue of $26.3 million compared to $24.24 million and Q3 of last.
This increase is primarily due to the investment to grow on identity business and.
And the additional costs associated with the acquisition of <unk> R&D sales and marketing expenses for the quarter were $8.1 million compared to 7 million and a year ago R&D expenses were $6.9 million compared to $5.9 million last year and our G&A expenses were 5.
And 5.6 million compared to $5.9 million a year ago GAAP net income for the quarter was 3 million of <unk> <unk> per diluted share diluted share.
Share count was $45.2 million shares compared to 42.4 million shares a year ago now as a reminder, our earnings release includes a reconciliation between GAAP and non-GAAP current non.
Non-GAAP net income we believe non-GAAP net income provides a useful measure of the company's operating results by excluding acquisition related costs and expenses stock comp expense litigation expensive executive transition costs amortization of debt discount and issuance costs and the related tax impact of these items non-GAAP net income for Q3 increase of 10.
$10.6 million or <unk> 23 per diluted share compared to $6.8 million of <unk> 16 per diluted share a year ago. Our non-GAAP adjustments include $2.9 million stock comp expense $2.2 million net of acquisition related cost and expenses $1.9 million of amortization of debt discounts and issuance costs $1.8 million and cash.
Tax differences $400000 of executive transition costs and $120000 of the litigation expenses for the quarter. This was all offset by income tax effects of pretax adjustments of $1.7 million.
Now turning to our balance sheet, we generated $9 million and cash flow from operations during the quarter and finished the quarter of 250.
Cash and <unk> 5 million and total cash and investments our accounts receivable balance of $18.6 million represents a DSO of 47 days.
During the third quarter of the board of directors authorized the share repurchase program for up to $15 million of Mitek outstanding common stock further, reflecting our confidence of the mitek business and successful execution of our multi.
<unk> growth strategy by using our very strong balance sheet to reduce the number of outstanding common shares we can increase shareholder value on maintaining significant cash resources to fund our operations and strategic plans. The stock repurchase program also allows us to offset the dilutive impact of the idea.
The R&D acquisition during the third quarter, we did not buyback any <unk>.
The year speaking of <unk> R&D since we completed that acquisition on June 1 of 2021 and its impact on our operating results for the third quarter was de Minimis.
In closing we are very pleased with our results which include all time record revenue as well as strong non-GAAP net income and cash flow from operations and we look forward to reporting our continued progress in the coming quarters.
Shares between and help our customers and partners accelerate their digital transformation, while at the same time fighting fraud.
Thank you.
Operator that concludes our prepared remarks. Please open the line for questions at this time and we will open the floor for questions and if you would like to ask a question. Please signal by pressing star.
1 on your telephone keypad now and for using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment and again Thats star 1 to ask a question.
Our first question comes from Bob and sorry.
With William Blair.
Hey, Jensen can you hear me okay.
As we can share Ken.
Great Great and congratulations.
A great quarter and it was it was good to see sort of.
All of the cylinders firing there.
And welcome Frank I don't wanted to touch really quickly sort of on the check fraud products.
It was great to see sort of the banks adopt it.
I guess I'd love to understand sort of.
On the pricing model and sort of as you think about penetration and it makes sense of every bank banquet habits. So maybe talk a little the pricing and then the competitive environment out there that would mean that maybe you don't get 100% penetration of came toward you've done with check deposit.
And sure thing so first of on <unk>.
Good to hear from you and let's.
Let's just start kind of lay the foundation for check for of defenders. So this is technology that we have had and.
And we talked about some of the adoption from some of the bigger top 25 banks.
That has been for some on Prem use where they're trying to do check fraud prevention and detection.
On kind of with the with the Czech flow.
<unk> that they're seeing and and it's a little spotty, we've got a banker to that of adopted very big time over the course of the last 12 months and then we've got some folks that are just starting.
And that's what gave us confidence to re factor of the product basically push it up and for cloud and open this up to a consortium so that.
Thanks can basically see cross tenant.
Be able to see across a network of banks, where there might be some from some check fraud and so you think about it as a signal right for each individual check we're able to send the signal back to the banks and very rapid time.
Whether that check is potentially of fraudulent cheques so enough on the how the.
On the competitive question is a good 1 there are a number of tools that are out there that help banks by looking at data on a check and being able to determine if it's potentially of fraud and that data is information about accounts and balances and how long the accounts and open.
And the way that that works today typically takes 24 to.
The 48 hours for those services to help bank determined whether whether that check is.
And potential fraud of fate.
What we're talking about is something that's going to work in.
Much much shorter timeframes of matter of hours and being able to use the optics basically the visual inspection of the.
The check so the signature and how the check is laid out the check stock itself, how things are printed the numbers the.
The car Lar comparison of the written out number versus the the numeric number characters on the check and so this is not an idea of this is not a concept. This is something thats already at minimum viable.
The product we've proven the market fit and we're seeing that adoption and now the idea of bringing it to the cloud and turning and it's something near real time to be able to provide that signal to the consortium, that's the real excitement and what we're expecting to see here.
<unk> really impact our business over the next 2 years from a pricing perspective.
And the consortium.
And fully flushed out, but the the things we have done on prem to get the MVP and the product market fit those had been subscriptions.
And so I think you'll see us continue to kind of expand the <unk>.
And the repertoire of business models over here and and turn that into something that could be quite significant for us a legitimate second act.
The model is and our deposits business.
Great and I look forward to seeing sort of how the layers onto the deposit business because obviously, you've got some of the puts which is sort of going away slowly slower than people anticipated, but obviously the growth and check fraud.
Growing dramatically so it'd be nice to see the play.
Product.
Let me, let me jump to IV verification a little bit.
And I'd love to understand a little about sort of how you have seen a return or have you seen the return of demand from some of the more impact of verticals as you did last quarter.
And then when I look at that sort of growth rate of 33% I guess of Lumpiness.
Where do you.
Play out vis vis the market is that.
It's a great growth rate and then once you lap of 33%, but but do you think that accelerates I think this is of 40% to 50% growth market and we've talked about the the return on some of those impact of the verticals and some of them.
And what that might play out without giving guidance I know youre not guiding to what the growth and that business.
This might be.
Yeah and.
Just as a reminder, and.
On our last earnings call, we gave some perspective compared to Q2 of this year because of some onetime events. It was going to be a tough comp last quarter. It was a 50% the fast transaction revenue grew 50% and compared to Q3 of last year at the beginning of Covid. We had a couple of a couple.
A couple of customers that just really.
Spiked and so on a year on year basis, a little bit of a tough comp I think the heart of your question No. We're seeing most of the customers get back into a normal flow.
And what we've seen the last couple of quarters with financial services and Fintech being very strong adopters of this technology, we continue to see that happen.
Those 1 time events that we saw.
And 3 of last year.
From a quarter when Covid started and.
The delivery service has went through the roof and unemployment checks.
Needed to be validated the identity for unemployment claims.
And that's kind of washed its way through the system. It's hard for me to tell you I mean at 33% I think we're probably on.
And <unk> and of where the overall market growth is for the segments that we're focused on.
But I think that over time, we can do better than that and again I don't want the guide, but that's certainly how we're pushing the teams here that's certainly what the customer demand and prospect demand is leading us to believe.
Gotcha Gotcha.
I wanted to delve into the little more and you touched a little bit in the prepared comments.
And you and I've talked a lot about synthetic fraud and sort of the acquisition you just made starts to address the ability.
The picture of my face on someone else I'd use the picture of a picture and so I can cheat the system, a little bit and for the acquisition sort of addresses that but our companies.
Understanding the value of that or is that still sort of evangelicals against sort of this hey, I want to see that it's actually a picture of someone live and.
Real and not just the picture on the picture to avoid the idea of synthetic fraud, and we talked a little bit of how that sales motion is going and how much of that is non telco today, especially for the new offerings vis vis sort of people totally get that and what's.
I will turn and we'll see that layer and very easily just kind of are the nuances and how the playing out.
Yes, so first for folks who maybe aren't as familiar as you are both on this idea of that of biometric is something that you are a DNA test the retina scan Fei.
Face voice fingerprint doing.
Going to be enterprise grade rate not some consumer great thing. So just on your on your iPhone.
That's first and line and I think that is generally accepted now in the market as being the kind of the standard of play the point that youre, bringing up which I think is more nuanced is okay, well, how do I ensure that thats actually a live person when I'm checking that biometric.
That it and.
And that liveliness test is very unique to what <unk> R&D is invented the very clever and innovations of the scientists and engineers.
Back to your point I wouldn't call it evangelical, but I, absolutely I sit and sales calls I sit and these meetings, mostly true zoom and you can watch the the the compliant.
Eric broad and product managers within these financial institutions have like Aha moments when it occurs to them that theyre being beat because somebody is doing and video replay or somebody the bad actor is basically taking a picture of the picture of somebody with the mask and when we when we show them with a single a single image of single frame.
And from across all the channels iOS Android web that I can detect whether that human is alive or not and do it with the payload that is a single frame.
You do see some heads explode.
So I don't know if I'd call it.
Spadework, our education, but it certainly it certainly differentiated.
Okay.
Great Great and I think that was helpful. I guess, the the quick fault that and so.
As of that layer.
I would love to get I know again.
And the guidance I'd love to get some color on how you think that impacts growth rate for the business on the idea of verification side.
Could it be and accelerate over time is and just make bundled in and be part of the feature functionality how should we think about.
Frames and the numbers. Thank you.
Yes, I think on the intermediate term, we absolutely believe that or we wouldn't have made the move on.
And again to your point I'm not going to provide guidance and we've got some integration to do I don't mean company integration I mean, taking additional.
Elements of their product the.
The voice liveliness, they've now got some things and their lab around document liveliness, which is very novel, we've got to get that fully integrated and mobile verify and that's probably going to take us a quarter or 2 and then we can be selling and the market before then but.
And somebody has to get implemented and so it's going to take a little bit of time, but we're very bullish about what it means to our business long term.
Awesome, Thanks for taking my questions guys.
And so all of the color I appreciate it.
Yeah.
Our next question comes from Mike Grondahl with Northland Securities.
Hey, guys congratulations on the quarter.
Did you disclose any revenue in the quarter.
Quarter from check fraud defender of the new product.
Yes. So we did not have if we did it was de Minimis and we literally have just kind of crack the cover on this thing and made the announcement was the last couple of for the last couple of days of June so more to come Mike and in Q4.
Okay and I was just.
Trying to get a sense for mobile deposit of that was clean earth and add a little bit of new revenue layered and.
And then it was clean.
Got it that's great kind of <unk>.
Staying and mobile deposit and.
Any update on pricing I know, you've been sort of as you've been renewing some customers getting a little lift can you kind of speak.
Peak to where you're at there.
Yes, just as a reminder, for anybody kind of new tuning in over the course of the last probably now 8 or 9 quarters.
We have been taking a strong stand with some of our customers some of our reseller partners around what I would consider.
And really negotiated arrangements historically between mitek and those entities and there is a tremendous amount of value that is delivered from.
And for mobile deposit and not only do customers love. It just because it's easy and it's magical but it's a huge savings to the banks themselves. It's fractions of the call.
Cost of having a check go through of Taylor at at a branch bank or even an ATM.
And so kind of back to your question, we've been and of course of the last 8 quarters.
Taking a strong stand with these customers and partners and renegotiating contracts and trying to get what we think is the reasonable and fair value.
For <unk> on a per.
Some basis.
For this product and so we continue to do that it's a slog its basically hand to hand combat and every 1 of these no customer wants of price increase no no partner wants.
Cost of in licensed technology to go up but we believe this is the right thing and its fair across the partner base.
For check on everybody is at the same place. So we've taken a principled approach to it and Mike.
Mike I don't think let's say we're halfway there. This is this is just something that we're going to have to continue to do and we'll probably be talking about it for the next day 8 or 9 quarters as well.
Good good.
In terms of mobile I'd.
Okay.
Because of the new use cases in the June quarter.
And just where you've seen of customer come to you with an idea and you are able to kind of execute for that customer something you may be hadn't seen before I kind of thought of.
Yes, I think.
1 of the things you saw on the prepared remarks and.
And just talk more and more about is this identity lifecycle, where historically most of our customers have been using mobile verify to do and identity proofing step when you're opening and new account or when there is and Onboarding journey.
On to.
For new account opening and what we've seen and of course.
For the last 5 or 6 quarters as more and more customers interested in doing that and then <unk> that identity or doing some sort of account authentication.
After that after that account has been established and so a good example, there is you sign up for.
Our credit card with somebody.
And we helped the bank with the Onboarding journey, there now they want to do of re verification of that identity for some sort of.
High dollar amount wire transfer of some sort of high dollar amount transfer of money out of that accounts. So making this example up but now you want to do of $50000 of more.
Account transfer and it turns around and ask you to take a selfie and that way, we're making sure that it's actually you. We can compare that to some picture of Thats and registry someplace and we can do that live in this test that we were just talking about on.
That's a great example, and I think those kinds of use cases.
Identification re verification.
We're just seeing more and more of those and you'll see us come to market with products to specifically address that.
More out of the box.
Got it congratulations again, thank you.
Thanks, Mike.
No.
And Mr Rmi.
And your total audience, if he would like to ask a question. Please signal by pressing star 1 now.
Our next question comes from Mike Chapell with benchmark.
Hi, Thank you for taking my question nice job on the quarter and Max ex welcome welcome aboard or excuse me, Frank and welcome aboard.
And that's come on my question for you.
First question for you on a more.
The deposit and here, particularly strong this quarter.
I assume that a lot.
And of that had to do with maybe just the timing of trends the transaction blocks, but would you still consider mobile deposit to be a mid teens revenue growth say on a normalized basis.
And I think as we look forward.
We've talked about over 10%.
Obviously, we're well over 10% this quarter.
Maybe just first and the statement you made I think the.
The really nice performance and mobile deposit this quarter is a matter of just timing and where those where those gas tanks kind of hit he and needed to be.
I, having said that I think when we now add back where we think check for a defender as of second act product can help enhance our deposits business overall.
The 10% to 15% growth, yes, I think thats were.
Yes.
Okay, great. Thank you that's helpful. And then with respect to R&D I was wondering if you could just give us maybe of real World example of how their technology would work with your core idea of technology.
Yes.
Sure so kind of back to some of these examples of re verification. So.
And today.
Do you establish of identity by taking that picture of your driver's license for passport or identity card front and back and then you take the selfie.
At the same time, you could very passively be capturing of voice biometric right. So both of establishing liveliness, but also taking that voice sprint and that ends up and our registry at a bank.
And.
And of marketplace, like <unk>, like an uber or lyft or and Airbnb and here's a great example, with Uber.
The drivers of Hoover.
How do you know that the driver is actually the the person behind the wheel that day right you read.
Adjusted to drive for Ruger, but then.
And had a tough.
And Dave the next day Youre going to let your brother in law drive your car and use your phone and.
That's a big risk for Uber and it's not just the risk around the liability of some sort of accident, but the the passengers themselves and so periodically pinging of texture and E mail to that phone, saying.
Speak fees.
Words into the into the Uber App and being able to establish not only yes was Frank who signed up to drive and Frank's the guy there and it's the Franks alive its not.
It's not a recording of Frank's voice. He says the 3 words his favorite football team or basketball fever, or whatever it happens to be.
That's a that's an easy example.
The same store I just use the example, with.
And with Mike Grondahl of of about the idea of a step up for money transfer and existing accounts.
And now.
You won't take a picture of you take a picture of you want to do voice you do the voice.
It just so passive liveliness and being able to do this and.
On a less friction for way, where it's just kind of of natural interaction youre going to see us continue to pursue that with other modalities with other potential signals.
Okay. Thank you.
You've got and Mark.
And at this time.
Currently showing no further questions.
Okay. Thank you operator, and thank you everyone for joining us today for that.
Sure.
Paul has concluded have a loan.
Yes.
Ladies and gentlemen, this concludes today's call. Thank you for your participation and you may now disconnect.
From the mines.