Q4 2021 Intellicheck Inc Earnings Call
Good day, ladies and gentlemen.
And welcome to the Intel check fourth quarter and full year 2021 earnings conference call. All lines have been placed on a listen only mode and the floor will be open for your questions and comments following management's prepared remarks at this time. It is my pleasure to turn the floor over to your host Mr. Gar Jackson, Sir the floor is yours.
Okay.
Thank you operator, good afternoon, and thank you for joining us today for the Intel check fourth quarter and full year 2021 earnings call before we get started I will take a few minutes to read the forward looking statement certain statements. In this conference call constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 as amended when Houston.
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 expectations 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 March nine 2022 management will use the financial term.
<unk> EBITDA in today's call. Please refer to the company's press release issued this afternoon for further definition reconciliation and contacts whether using this term.
Well begin todays call with Brian Lewis Intel checks, Chief Executive Officer, and then Bill White <unk>, Chief Financial Officer, who will discuss our Q4 and full year 2021 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 turn the call over to Brian .
Thank you Barry have you signed the press release Q4, SaaS revenue was $3.715 million or 23% over the same period in 2020 with the gross profit as a percentage of revenues at 92% SaaS revenue for 2021 was $12 million $970000 up.
30% over 2020.
The year over year percentage change was significant but there's always a lot more.
So what do we need to do to continue to accelerate our growth.
What we've learned over the past few years is that because we have the most accurate validation technology solution, we have pricing power when it comes to both the initial contracts and renewals that said we are very much aware that it is imperative that we continue to grow our substitute client base. We believe that we are well positioned to achieve this goal.
I'll start with recapping the transformational changes we made in 2021 that we believe will serve us well going forward.
This was the build out of a proper marketing department. This team has done a number of things to rate both of which had been cello check and generate inbound leads during the year. This team updated our branding rebuilt the website to truly optimize are being picked up in searches.
Marketing collateral for the sales team and most importantly created targeted online marketing campaigns to not create an inbound lead at least have our name known to make it a warm not a cold call.
The marketing campaign, so certainly paid off.
Higher to the launch of these campaigns in April we basically have zero leads coming in.
The inbound leads had been steadily growing with now over 100, a month coming in and increasing while most of these had been for age restricted products. We've had been across all sectors banking age restricted automotive online notaries delivery companies you name it.
The smaller age restricted deals close quickly, while the financial services and banking prospects take longer.
Inbound age restricted leads closed in 2021 had a total HCV of $230000 with minimal cost of opposition.
Solid growth in our political considering what we get approximately $1 million in the age restricted revenues in 2021.
The most important thing about all these leads as they show that the market for identity verification is enormous across multiple and varied sectors.
Other things to note about many of these regions, but there are some companies using the OCR firms. Some consider our competitors. The companies are unsatisfied with OCR accuracy I've heard of us and want to give us a shop.
Knowing that we have such a large addressable market and the resources to increase head count and sales force in 2020 . One we expanded the sales force and we've seen the positive effects in two ways.
First is that smaller deals are not falling through the crops that are closing quickly.
While each of these deals alone aren't game changing for the company. They are quick and easy to close and a T V will add up over time.
So I think the number of deals progressing through the pipeline of mid to large size prospects is continuing to increase.
However, like I've always said it isn't about the pipeline, but our ability to close new deals in the pipeline.
And let me be candid I'm not happy with how some of the sales force has been performing and we are in the process of making the necessary changes.
We're going to continue to grow the sales force as we find the right candidates as I have said on multiple calls hiring salespeople is always difficult because there are always very good at selling themselves, but not sometimes not so good at selling your product. So some of the hires that are no longer with us I've instructed Bruce to focus on hiring season sales.
Executives with identity experience with them in two more senior salespeople with industry experience started earlier in March.
Also directed Bruce to Institute, a series of changes to upgrade our sales training program.
Another significant stock we took in 2021 was changing our billing to focus primarily on prepaid buckets of transactions that expire after 12 months or a monthly minimum with overages billed in arrears prior.
Prior to this all building wasn't interviews with minimum monthly commitment that did not come close to representing the total transaction volume.
Both of the new models are financial incentives for our client not to underestimate the number of transactions.
The larger the bucket or guarantee the better the price.
Two notable examples of those are financial services company number for you in August .
But what they thought it would be a year's worth of transactions.
First we estimate that they have 90 days left in that bucket. So basically what they estimated would be a year's worth of scans lasted about nine months.
Second was the reseller that sells in the Omnichannel multi biometric platform to banks marketplaces, and health care systems. They pre purchase of 125000 transactions with the expectation that it would last for a year after going live in January they were already halfway through that bucket.
<unk> been able to continue to raise prices both at renewal and as we add new clients as we targeted the age restricted space harder than we did before we also took a hard look at the pricing first transaction.
Typically this was sold by a app on a smartphone or tablet with pricing per device. When we looked at the price per transaction, we determined it was far too low.
All new age focus clients do either the transaction bucket.
The monthly minimum.
The results of our efforts is that the transactional price for age folks its clients signed in 'twenty 'twenty. One are on average six times higher than in previous years.
We've also modified our sales approach and a focus to space by creating a dedicated team.
This group has been passed with renewing all existing clients at the higher rates.
As I said age restricted SaaS revenue accounted for approximately 1 million about 2021 total SaaS revenue I believe.
We believe we will see a continued increase in traction through both new customers and price increases going forward.
To further aid the efforts in the sales restricted market. We spent significant time in 2021 on education efforts with legislators many states.
We believe these meetings are extremely important because most state officials do not know how easy it is to get a fake I D.
When I speak with the state Attorney General or a legislature member and show them a mistake from their state scan it with one of the readily available scanning programs, who spend money P. O S systems are handheld and not take passes they suddenly realize why visual inspection and simply scanning do not work so.
So you know our technology solution that work shows them the need for validate them and then they recognize that the laws have not kept up with the technology.
We've also been meeting with credible organizations that are active on national and multi state level on key issues surrounding underage access to age restricted products.
I'm pleased to tell you that we have now formalized a partnership with responsibility for this organization plays a leading role in the fight to eliminate under age drinking. It is active in all 50 states as well as at the national and local level.
The organization is supported by a 11 of America's Distillers, who have expressed a commitment to responsible drinking.
Got to announce additional partnerships, resulting from these endeavors.
Thankfully more and more companies are looking to do the right thing, but there are still many major corporations out there that put profits ahead of actually doing the right now.
Actually the fear of the $60 million plus lawsuits for wrongful death move them to do the right thing and if not we believe that the legislative changes should mandate it.
So returning to rate increases it is important to note that these rate increases on renewals continued to be robust with many of them starting in Q2 of this year.
For example, during Q4, we renewed our department store its own client with just over 1100 locations with a 33% increase effective in Q2 2022.
That same period, we renewed the 1000 location off price Department store chain, where we parse not authenticate per application.
The new deal.
Year, one is at the same price and now includes the known receipt return use case, which should substantially increase transaction volumes.
Due to the price increases to 87% and in year, three an increase of 33%.
Another growth area in both 2021 2021 has been digital adoption.
This has increased dramatically in the data bears this out from the initial beta clients in early 2019, the number of clients using us exclusively for the digital channel or for both physical and digital has grown 550% with more than 50 digital clients across multiple market verticals.
<unk> online banking credit card issuers background checks delivery service and automotive dealers.
And as a testament to our digital capabilities in Q4, we signed a California based online back. This was notable as it was a direct steel from an OCR competitive development has began and we anticipate Houston implementation.
The initial use case will be for account opening.
Another exciting development in late Q4 is that we began a security audit necessary to start a pilot with another top five that does.
As I've said many times these can often take six months or more to complete before the information security teams allow our computers to forgot.
I'm not worried about passing the audit as all of our banking clients put us through once every year.
The initial use case for this play is retail banking, but their teams are already discussing additional physical and digital use cases with us.
Now for what I consider the most transformational step forward as we enter 2022.
You may have seen the press release last week about platform Tee that up this new platform allows our clients to do more than just authenticate a person.
We now have the tools in place to take it to the next level.
Cannot only be sure that the person who is who they say they are but also determined it would be authenticate a person.
They want to do business with us.
As I said this transforms us from a company doing strictly because it really John Doe to because it really John Doe and I know that he is somebody I want to do business with multiple validation signals and I know internationally as well as domestically.
Currently have two clients live on the platform and serving new and existing clients Onboarding and additional clients are now planning on migrating to the platform.
Keep in mind that platform to that old now incorporates multiple facial biometrics vendors allows for OCR validation of international documents and in the next few weeks, we will be releasing sanctions look ups.
I guess look ups, social security look ups with more signals to come.
All of these our up sell opportunities.
Why is this new platform important identity, especially in the digital world is about more than 90.
All of our clients perform additional diligence before doing business with the person whether it's opening a bank account, providing a loan or credit card or opening an investment account.
We also know that our clients were forced to choose another way of I D validation for international documents.
And telecheck was one very accurate and important step in that process again, just one stop for one region in the World. We believe the platform to Dato allows intelligence to move from its simply a north American I'd validation company to a global identity company, which is crucial as the world evolves and becomes more.
Digital we built platform to dato in collaboration with our clients and put some prospects.
By providing a multiple global steps and the identity process through one connection.
Reduce their cost and friction something every company is looking for.
We believe the number of clients migrating to this platform proves this point.
I was speaking with or rather smart person. The other day he said to me.
Hostelworld out there and he was right.
Hostile actors continue to increase the amount of identity theft unrealized drinking they bring in candidates use continue to be a problem. We believe that we are uniquely positioned to address all of these problems.
Now it was about pressing the right levers to drive continued and increasing growth and we believe the changes we put in place in 2021 are the right levers brand awareness has improved even quick revenue and the age restricted space along with a growing pipeline of financial services companies. We believe our lobbying efforts to update I E valve.
Dacian lies in the age restricted space will bear fruit over time.
We believe that our ongoing refinement of our sales team will allow us to capitalize on both existing markets as well as new verticals, where we are just beginning to penetrate.
The build out a platform to dot O featuring additional multinational I D. In K Y E capabilities. We believe provides significant growth opportunities ahead, both with new and existing clients.
With all these exciting developments tempering. This is financial services company number two which recently began a project that will enable them to extend credit to tens of thousands of additional merchants.
This required financial services company number two to put a code freeze on all other development, which meant multiple retailers that had been expected to go live in the first half of the year, we will not.
The above described projects should be interim delay to our short term growth they expect to resume integrations in the September timeframe.
Believe it's short term pain now represents a likely long term gain as these new additional applications will need validation.
This is very likely going to impact our Q1 results and although we still have a few weeks remaining in the quarter. We currently anticipate our first quarter of SaaS revenues will be in the range of 3.2 to 3.35 million.
Moving forward I'm happy to say as part of a general business review, we analyzed churn rate since its 2018. The company has not lost a single major client anything other than bankruptcy and all the financial services clients had grown their use cases I believe the reason for basically euro churn because they serve.
T. We provide and I always think it's best when your clients stay it for you.
So as we tend to Joe Jewel of the new head of Hanover County, North Carolina Sheriff's Office told a port City Daily News about our technology solutions. He said it worked flawlessly.
He went on to say the Sheriff's office, plus the 12 companies that claim to be able to start fake Ids and Intel a check was the only one that work accurately.
They've never heard anyone say that about the competition.
Now I'll turn the call over to Bill who will go over our Q4 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 fourth quarter and full year ending December 31st 2021.
I'll begin with our fourth quarter results.
Revenue for the fourth quarter of 2021 grew 824000 or 27% to 3.902 million compared to $3 78000 in the same period of 2020, our SaaS revenue for the fourth quarter 2021 grew 703000 or 23% to $3 715.
<unk> thousand from 3.012 million in the same period of 2020 and grew 14% sequentially over third quarter of 2021.
Gross profit as a percentage of revenue was 92% for their fourth quarter of 2021 compared to 92, 6% for the same period in 2020.
Operating expenses, which consist of selling general and administrative expenses and research and development expenses increased $2 million 598000, or 109% to $4 million.
987000 for the fourth quarter of 2021 compared to three 2.389 million for the same period in 2020.
Our company is always looking for synergistic opportunities uncluttered, including merger and acquisition opportunities, including within central selling general and administrative expenses are approximately 454000 of cost incurred related to this activity in.
In addition, the company incurred higher personnel share based compensation consulting and marketing expenses.
The company posted a net loss of 1.396 million for the fourth quarter 2021, compared to a net income of 1.260 million for the same period in 2020.
The net loss per diluted share for the fourth quarter of 2021 was seven cents compared to a net income per diluted share of seven for the same period in 2020.
Adjusted EBITDA for the fourth quarter of 2021 was negative 557000 compared to 635000 for the same period in 2020.
Now turning to our full year 2021 results.
Revenue for the full year ended December 31, 2021 increased $5 million 658000, or 53% to $16 million 393000.
Paired to $10 million 735000 for the same period in 2020, our SaaS revenue for the full year ended December 31, 'twenty 'twenty. One was 12.970 million an increase of $3 597000, or 38% compared to $9 373000 for the same period in 2020.
Gross profit as a percentage of revenue was 78, 6% for the year ended December 31, 2021 compared to 86, 7% for the same period in 2020. The decrease in gross profit percentage is primarily due to.
Two higher 2021 hardware sales, which contained lower margins, partially offset by the continued growth of our SaaS revenue.
Excluding hardware sales and related costs, our gross profit as a percentage of revenue was 93, 2% and 92, 1% for the years ended December 31, 2021, and 2020, respectively.
The increase in this percentage is primarily due to continued growth of our SaaS revenue.
Operating expenses for the full year increased by $7 million 475000, or 78% to $17 44000 for the year ended December 31, 2021 from $9 569000 for the same period in 2020.
Selling general and administrative expenses increased by $5 million 670000, or 96% to 11.564 million for the year ended December 31, 2021 from $5 million 894000 for the same period in 2020.
Research and development expenses increased 1.805 million or 49% to $5 million 480000 for the year ended December 32021.
From $3 million 675000 for the same period in 2020.
These increases are primarily due to higher share based compensation costs higher personnel costs and higher marketing expenses.
The company had a net loss of $4 million 146000 for the year ended December 31, 2021 as compared to a net income of 558000 for the same period in 2020.
The net loss per share for the year ended December 31, 2021 was 22 cents versus a net income per diluted share of <unk> in the prior year. The weighted average diluted common shares used in computing the per share amount was $18 7 million shares for the year ended December 31, 2021, compared to 18 million shares for the St.
<unk> 2020.
Adjusted EBITDA was a negative 925000 for the year ended December 31, 2021 compared to an adjusted EBITDA of a positive 329000 for the same period in 2020.
Now I'd like to focus on the Companys liquidity and capital resources.
As of December 31, 2021 the company had cash of $13 7 million working capital defined as current assets minus current liabilities of 12 million total assets of $25 7 million and stockholders' equity of $21 2 million.
During the year ended December 31, 2021, the company's cash balance increased by 530000 compared to a net increase in cash of $9 770000. During the same period in 2020.
Net cash provided by operating activities was 1.116 million for the year for the year ended December 31, 2021 compared to a net cash used in operating activities of 19000 for the same period in 2020.
Net cash used in investing activities was 662000 for 2021 compared to 416000 for 2020.
And net cash provided by financing activities was 76000 for the year ended December 31, 2021 compared to $10 205000 for the same period in 2020.
The company has a $2 million revolving credit facility with Citibank that are secured by collateral accounts. There are no amounts outstanding under this facility.
We currently anticipate that our 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, 2021 the company had net operating loss carryforwards of approximately $18 7 million.
I'll now 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, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would 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.
One moment, please while we poll for questions.
Our first question comes from the line of Mike Grondahl with Northland Securities. Please proceed with your question.
Yeah, Thanks, guys and good afternoon.
You know as you talk about a 2.0 platform.
What are maybe the three most important features that that offers or the couple of things that that client seem to appreciate the most about it.
I'd say, hey, Mike good talking to you I would say.
The ability to do international.
It is something that a lot of our clients have been asking us about.
And then kind of they all come together in a way I guess.
One bit would be the our ability to do more of the K Y C portion of what needs to be done I think that certainly also things out other markets for us like brokerage firms and other things that need to register people and then the.
Ability to tie into things.
Again, because it really me or.
My dad, a lot so social security databases.
So look up databases dress lookup databases to hide things altogether. So those seem to be the three things that people were asking about most and they're.
Then again the other thing I'd say, which is more of a choice factor is some people are particular about who they want to use for facial recognition, depending on how well they think that company handles.
Demographic bias in the results.
Got it and then.
What did you say about clients migrating I don't know if you set a number or just an interest level and then is there an average lift in price as a client migrates.
So there's initially no lift in price it says they get in get tested and then break it in the other services, which were a reseller.
So currently we have a brand new client who is live on the system just hasn't gone live with.
Their clients yet we've got an existing client who is live on the system.
We've got seven in various <unk> that are in.
Active development or are you a T.
And then we've got a bunch more who are now going through the specifications and planning on fruit when they rollover.
Part of the thing is it does make it easier for them.
Higher to this when we change things we brought out.
You know maybe it differently, we have switched facial recognition vendors it required programming on their side now we've made it much simpler for them because it's sort of a standardized interface to get any of the other products that we would need to be adding to it and potentially filing for that.
Got it thank you.
Yeah.
Our next question comes from Scott Buck with H C. Wainwright. Please proceed with your question.
Hi, good afternoon guys.
I'm curious, Brian do you know off the top of your head what same store volumes looked like during the fourth quarter versus a year ago trying to determine.
The 27% or so year over year growth, what is actually new business versus you.
You know, maybe a COVID-19 picked up from.
Late 2020.
The same store sales were just slightly below.
Yeah.
Where they were.
So it was there was there was a decent lift again getting back to normal last year I'd say that same store sales were very very close so the lift to cross them would have been in the same quarter over quarter and then the rest would have been new business.
Okay.
That's helpful. And then I was wondering if you could provide a little bit of additional color on this financial services client who's adding the tens of thousands of merchants.
How does one go about doing that.
How are they doing.
Yeah, I mean, I guess it seems like a.
A relatively big number to kind of find in the couch cushions.
That's a I mean I'm looking at what.
Hey, you know what they are saying in their public statements about what it will do.
But basically it's a play in the virtual credit card space and they're connecting to a system that is used by a lot of small merchants out there who sells maybe high value high dollar products, where people might want to be able to get an interesting credit cards, but nobody is going to.
Give them the.
The.
Our white label cards, they don't do enough of it I look at it.
Very much akin to what financial services company number one does with.
Their merchants are but they don't do any kind of clear that this system is basically the point of sale system that so many of these merchants use and theyre going to tie into it to offer credit to all of that through the use of.
Virtual credit cards. So it's.
<unk> risk for them to do this and they're looking at it as a.
Right way to expand their credit portfolio and we know for one thing that they really like what we do and being part of that process will be important.
Yeah, No I'd say, that's very helpful and then bill.
Bill on Opex.
You know there was a pretty big jump from 'twenty, one from 'twenty to 'twenty to 2021 how should we think about operating expense growth in 2022 and beyond I mean are there the pieces in place now or is there still a fair amount of investment remaining in order to support the top line growth.
Yeah, I know most of the pieces are in place I think I think you could expect you know in the in the $5 million a quarter range going forward.
For Opex.
Okay. That's perfect guys I appreciate the time thank you.
Hey, Kim.
Our next question comes from Jeff Van <unk> with Craig Hallum Capital Group. Please proceed with your question.
Excuse me Jeff Your line is now live.
I'm sorry about that guys are so yeah. A couple for me I think on foodservice number two can you put a little finer point in terms of the impact on Q1 of their freeze and certainly early but any swag that kind of Q4 potential upside from what they're doing just trying to put out a few bounce around.
What the impact of this this code freezes.
No I didn't say it because they've put this code redone.
Yeah I think it was November is when they really told us about it so a lot and it impacted two things it impacted our.
A number of retailers that we're gonna go lives one yeah.
Jewelry company owns a lot of different companies one got lives, but the rest didn't make their cut off so you know I would say that.
Was it all of it now is it the majority of it I would I would probably hazard the answer is yes.
Yeah, then it's going to be.
What can be done and you know how how fast can they get this product process done what they're looking to do on the back end and get back to working with all the other projects certainly they consider the priority to get us up and running and lives because it's money right to the bottom line.
It's just a matter of.
Do they start in August do they start in September they start in late September because it'll depend then.
When the retailers going to their point of sale code Kris.
The end of October or the beginning.
Usually the first or second week of November . So at this point in time I don't have enough color to say, what's going to happen on the backend of the year.
Yeah, but it wasn't.
Martin there wasn't a major but it wasn't a minor but it certainly yeah I think it was a portion of the mess that we that we see from where we thought we could do.
Yeah, just to be clear on Q1, it's not lost revenue. It's last not last forever you already have its lost revenue you were hoping to ramp.
It was EUR correct. It was you know.
Lots of growth if you will there.
I will say that our contacts over there. They are they are not happy but it's a project that has been in the works for a long time and been on hold and trying to get the Green light. So took all their resources.
They had quite the list of.
They're counting on or just talking to our account manager.
Had a certainly a nice ramp of clients that they can talk we're gonna be gone, but now they're not until later in the year.
Yeah Fair enough and then I'm also.
Also I am very excited about the opportunity I think it's painful now but.
We know the business that we see from <unk>.
What we can generate off of financial services company number one where they pay us directly for that service.
This is gonna be you know I'm, hoping one system integrated to all of these People's point of sale systems that will allow for a lot more credit apps coming through the system.
Yep Yep.
It's helpful to two two quick housekeepers in terms of implementations in the quarter. How many implementations and then can you give us an update on digital it sounds like you might I think you mentioned 50 customers give me a sense of what percent of revenues is now digital.
Sort of back of the envelope and this is and again I always point out. This is always low because one of our big client.
They've got one pipe to us that goes to all of their practices in place. So we don't know if it's the digital or Nokia as you know they are going to put a tag on it one day of course, so we know what is what so it excludes this client who is a very big client, but it's about 10% of the revenues right now.
And I should clarify 10% of the non.
Non age restricted rabbit is there's really there's very very little that's doing anything age restricted digitally.
At the moment other than some some start within delivery clients are beginning to grow.
<unk> implementations for the quarter.
Generally Q4 is a near zero implementation quarter anyway, or anything of size, because we're hitting that hum that that code freeze, where nobody's going to do anything we.
We did have the one of the multiple jewelry stores jewelry chains.
By that you know one holding company did go live and then.
Number of smaller things like some automotive dealers and other things like that but the one of size would be that one jeweler, which normally again in Q4, we don't really don't do major implementations.
Yeah Okay.
Maybe I'll just say as one other quick thing, though it is also I forgot about this in that quarter.
A financial services company and number four really did begin their rollout to their retail bank branches in earnest.
And they're rolling it out in waves every week and they expect that to be done sometime in may.
Okay. That's.
That's helpful. And then just one last for me you commented several times about sales and certainly we're hearing that across the board very very hard to find sales talent and but can you put a finer point on what just I think last quarter you had a rep count of 11, eight seniors three juniors and I know, you're adding reps and it sounds like.
He kind of did a stop and a reset just.
Put a little finer point on what does the reset look like like how many heads do you. Let go how many you said you just have a couple of where do we stand and and then how long until those new reps really ramp to productivity.
We stand at 10 right now.
I think that the reps that we just started I think because of their experience and where they came from will probably be a.
Productive a lot sooner than rats, who didn't come from this industry.
So normally I would say that if you're not seeing productivity out of the wrapped within say six months that at least there they're getting meetings booking meetings and those types of things that other people can come has been there, they're probably not going to make it I would expect these guys are going to see something quicker than that.
Yeah, I'm already seeing they're getting meetings and.
And which is good and so either just the ability they know the industry and they're calling the right people are getting into new prospects.
Or are they know people, who maybe weren't so happy with the solutions that they sold in previous sit now they can sell them something that they know works a heck of a lot better so I think there'll be quicker.
So we're at 10 now so I think three ended up not working out, but that's sort of the nature of the beast anymore and hiring people as he said across the board issue every one of my friends, who was telling me they were having a hard time finding people that we're working hard at it.
Yeah, Yeah sounds good I appreciate the update thanks.
Thank you.
Our next question comes from Rudy passenger with D. A Davidson. Please proceed with your question.
Yes, thanks for taking my questions I guess I'll.
Maybe I'll ask it again in Q1 can you quantify a bit clearer how big of the impact from that country.
Our sensor to is are we talking 100000 200000 in Q1 and then just at this point do you have any visibility into the potential revenue size.
Of that project once they get it lives, there's tens of thousands of retailers.
Well, what I'd say is you know I couldn't tell you exactly what the impact is because it was it's going to be an assumption of what they told us and what we thought so.
I don't know all I can without saying, here's what our targets were for the quarter, which.
We really don't care.
You know it was.
Multiple retailers you know a decent size.
Yeah.
Got it and then I guess the second part of that question just on the project to get it into the Pos systems with tens of thousands of retailers I know, it's it's certainly a new project for them too but at this point do you have any idea of just the scope of or potential size of that project could be in terms of revenue.
Yeah, and I'm looking at this as probably it would be.
Definitely latter half of the year before any of that came in and depending on how fast they get this project on.
No.
If I look at how often are these smaller retailers that seem to be similar type as financial services companies number one you know they can do anywhere from five to.
50 applications a month, so any one of them is not that big but I'm looking at this as United just didn't get that across even half of that client base.
The numbers could add up.
And then you mentioned are in earlier you have a if you could just clarify you said I think it was a security audit pilot with another new.
And I think could you just clarify what exactly was and then if you look at that top five bank how does it compare in terms of the total scope of opportunity relative to the other top 10 banks that you already have signed tomorrow.
If I look at these guys. They are you know.
In the top percentage of banks in terms of accounts.
Credit cards, all those things. So there are major top five bank, so I'm pretty excited about it.
The thing is it just dealing with any bank no matter what.
What the size.
And it seems to get worse the bigger they are.
You've got to get through the security audits the.
The folks that we're dealing with on the business side are Super excited them. You know what are the people, whose now very heavily involved in the project was doing the same thing.
One of our other clients before moving to this bank. So the business people are very excited and it's just a matter of making sure that we have the information security people.
Comfortable and excited about US is we are about what we can do for them and that our security procedures since they've already passed so many other banks certainly it should meet theirs as well. It's just every single one of them asked the same question just a different way. So it's not like you can standardize here.
Here you go here's our report they all have their own little.
Idiosyncrasy.
Got it that's it for me that's taking my questions.
Kim.
Ladies and gentlemen, we have reached the end of the question and answer session.
I'd like to turn the call back to Mr. Brian Lewis for closing remarks.
So I just want to thank everybody for listening to the call.
Given the.
The opportunities that we have given you the neo bank that we sign the big very large bank that we're doing this security audit with plus but I see my team doing entirely I'm very excited about 2022, and I look forward to speaking to you all again in a couple of weeks about Q1.
You all and have a good night.
This concludes today's conference you may disconnect your lines at this time. Thank you all for your participation.
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