Q2 2024 Aware Inc Earnings Call

August 8, 2024

In the second quarter we generated 36% and 31% year over year increases in total revenue and recurring revenue respectively. Driven both by new customer acquisitions and expanded relationships with existing clients across both our key markets and core product lines. Craig will go into more depth on these key contract wins in a few moments. We also maintain our cost optimization in the quarter, which is reflected in 7% decrease in operating expenses compared to the prior year period. In the first half of 2024 our focus on operational efficiency and sustainable growth yielded remarkable results. We achieved a robust 17% year over year increase in our top line.

Unknown Executive: and year-over-year increases in total revenue and recurring revenue, respectively. Driven both by new customer acquisitions and expanded relationships with existing clients across both our key markets and core product lines.

Unknown Executive: Over Year Increases in Total Revenue and Recurring Revenue, respectively, driven both by new customer acquisitions and expanded relationships with existing clients across both our key markets and core product lines. Craig will go into more depth on these key contract wins in a few moments.

Unknown Executive: and year-over-year increases in total revenue and recurring revenue respectively. Driven both by new customer acquisitions and expanded relationships with existing clients across both our key markets and core product lines.

Unknown Executive: Craig will go into more depth on these key contract wins in a few moments. We also maintain our cost optimization in the quarter, which is reflected in a 7% decrease in operating expenses compared to the prior year period. In the first half of 2024, our focus on operational efficiency and sustainable growth yielded remarkable results. We achieved a robust 17% year-over-year increase in our top line, coupled with a substantial 51% improvement in our bottom line. Additionally, our recurring revenue grew by 14% compared to the same period last year.

Unknown Executive: We also maintained our cost optimization in the quarter, which is reflected in a 7% decrease in operating expenses compared to the prior year period. In the first half of 2024, our focus on operational efficiency and sustainable growth yielded remarkable results. We achieved a robust 17% year-over-year increase in our top line, coupled with a substantial 51% improvement in our bottom line. Additionally, our recurring revenue grew by 14% compared to the same period last year.

Unknown Executive: In the first half of 2024, our focus on operational efficiency and sustainable growth yielded remarkable results. We achieved a robust 17% year-over-year increase in our top line coupled with a substantial 51% improvement in our bottom line. Additionally, our recurring revenue grew by 14% compared to the same period last year. These achievements underscore our continued progress in expanding and securing our recurring revenue customer base, enhancing our product portfolio, and implementing effective operational efficiency initiatives, demonstrating our commitment to long-term value creation and positions us for continued success in the market.

Speaker Change: coupled with a substantial 51% improvement in our bottom line. Additionally, our recurring revenue grew by 14% compared to the same period last year. These achievements underscore our continued progress in expanding and securing our recurring revenue customer base, enhancing our product portfolio, and implementing effective operational efficiency initiatives, demonstrating our commitment to long-term value creation and positions us for continued success in the market. We're thrilled with our appointment of Heidi Hunter as our new Chief Product Officer. With over a decade of experience in the identity space, product strategy, development, and fraud prevention, Heidi brings a wealth of experience to Aware.

Unknown Executive: These achievements underscore our continued progress in expanding and securing our recurring revenue customer base, enhancing our product portfolio, and implementing effective operational efficiency initiatives, demonstrating our commitment to long-term value creation and positioning us for continued success in the market. We're thrilled with our appointment of Heidi Hunter as our new Chief Product Officer. With over a decade of experience in the identity space, product strategy, development, and fraud prevention, Heidi brings a wealth of experience to AWARE.

Unknown Executive: We're thrilled with our appointment of Heidi Hunter as our new Chief Product Officer. With over a decade of experience in the identity space, product strategy, development, and fraud prevention, Heidi brings a wealth of experience to Aware. Heidi will bring her impressive track record in achieving product market fit and driving adoption to lead the enhancement of our product offerings and spearhead our expansion in a commercial sector.

Unknown Executive: We're thrilled with our appointment of Heidi Hunter as our new chief product officer. With over a decade of experience in the identity space, product strategy, development and fraud prevention, Heidi brings a wealth of experience to aware. Heidi will bring her impressive track record in achieving product market fit and driving adoption to lead the enhancement of our product offerings and spearhead our expansion in a commercial sector.

Unknown Executive: Heidi will bring her impressive track record of achieving product market fit and driving adoption to lead the enhancement of our product offerings and spearhead our expansion in the commercial sector. While Heidi will shortly share more about her background and initial plans for AWARE, I wanted to take this moment to introduce her and express our enthusiasm for the valuable perspective and leadership she brings to our team. Her appointment represents a significant step forward in our mission to deliver cutting-edge solutions and drive sustainable growth. I'll now turn the call over to David, who will discuss our financial results for the second quarter of the first half of the year. It's over to you, David.

David: Heidi will bring her impressive track record in achieving product market fit and driving adoption to lead the enhancement of our product offerings and spearhead our expansion in the commercial sector. While Heidi will shortly share more about her background and initial plans for Aware, I wanted to take this moment to introduce her and express our enthusiasm for the valuable perspective and leadership she brings our team. Her appointment represents a significant step forward in our mission to deliver cutting edge solutions and drive sustainable growth. I'll now turn the call over to David who will discuss our financial results for the second quarter in the first half of the year. Over to you, David.

Unknown Executive: While Heidi will shortly share more about her background and initial plans for Aware, I wanted to take this moment to introduce her and express our enthusiasm for the valuable perspective and leadership she brings our team. Her appointment represents a significant step forward in our mission to deliver cutting-edge solutions and drive sustainable growth.

Unknown Executive: While Heidi will shortly share more about her background and initial plans for aware, I wanted to take this moment to introduce her and express our enthusiasm for the valuable perspective and leadership she brings our team. Her appointment represents a significant step forward in our mission to deliver cutting-edge solutions and drive sustainable growth.

Bob: I'll now turn the call over to David, who will discuss our financial results for the second quarter in the first half of the year. Over to you, David.

David Traverse: Thank you, Bob.

David Traverse: Thank you, Bob. Good afternoon, everyone.

Bob: I'll now turn the call over to David who will discuss our financial results for the second quarter in the first half of the year. Over to you, David. Thank you, Bob.

David Traverse: Good afternoon, everyone. Turning to our financial results for the second quarter ended June 30th, 2024. Total revenue was $4.3 million, marking a 36% increase from $3.2 million in the same quarter of last year. This growth was driven by two key factors. Recurring revenue increased by $6,000, underscoring our success in building a stable, predictable income stream, and license sales that contributed an additional half a million dollars. This was primarily due to an expansion deal with the existing European customer. This demonstrates our ability to grow within our current client base and highlights our expanding international presence. These results reflect our dual strategy of nurturing long-term client relationships, also capitalizing on opportunities for larger, recurring opportunities, or one-time sales.

David Traverse: Turning to our financial results for the second quarter ended June 30th, 2024, total revenue was $4.3 million, marking a 36% increase from $3.2 million in the same quarter of last year. This growth was driven by two key factors. Recurring revenue increased by $600,000, underscoring our success in building a stable, predictable income stream, and licensed sales that contributed an additional half a million dollars. This was primarily due to an expansion deal with an existing European customer.

David: Thank you, Bob. Good afternoon, everyone. Turning to our financial results for the second quarter ended June 30, 2024.

David: Total revenue is 4.3 million, marking a 36% increase from 3.2 million in the same quarter of last year. This growth was driven by two key factors.

David: Recurring revenue increased by 600,000 underscoring our success in building a stable predictable income stream and license sales that contributed an additional half a million dollars.

David: This was primarily due to expansion deal with the existing European customer. This demonstrates our ability to grow with our current client base and highlights our expanding international prisons.

David Traverse: This demonstrates our ability to grow with our current client base and highlights our expanding international presence. These results reflect our dual strategy of nurturing long-term client relationships while also capitalizing on opportunities for larger recurring opportunities or one-time sales. Year-over-year growth validates our business model and position as well as, Now, moving down the income statement, operating expenses were $5.7 million. A half a million, or 7%, year-over-year decrease compared to 6.1 million in Q2 of last year.

David Traverse: This demonstrates our ability to grow within our current client base and highlights our expanding international presence. These results reflect our dual strategy of nurturing long-term client relationships, also capitalizing on opportunities for larger, recurring opportunities, or one-time sales. The substantial year-over-year growth validates our business model and position as well, for continuous expansion in both recurring and license-based revenue streams. Now, moving down to the income statement, operating expenses were $5.7 million, a half a million, or 7% year-over-year decrease compared to $6.1 million Chair.

David: These results reflect our dual strategy of nurturing long-term client relationships, also capitalizing on opportunities for larger recurring opportunities or one-time sales.

David Traverse: The substantial year-over-year growth validates our business model and position as well, for continuous expansion in both recurring and license-based revenue streams. Now, moving down to the income statement, operating expenses were $5.7 million, a half a million, or 7% year-over-year decrease compared to $6.1 million, Chair. Operating loss improved 54% year-of-year to 1.3 million, compared to a loss of 2.9 million in the same year-ago period. Gapnet loss totaled 1.1 million, or 5 cents per diluted share. A 59% improvement compared to a loss of 2.7 million, or 13 cents per diluted share, in Q2 of 2023. All right, just at EBITDA loss, which we reconciled to GAAP net income in our earnings release, so 1 million in improvement compared to a loss of 2.4 million in the same year-ago period.

David: The substantial year-over-year growth validates our business model and position as well for continued expansion in both recurring and license-based revenue streams.

Speaker Change: Now, moving down the income statement, operating expenses were $5.7 million, a half a million or 7% year-over-year decrease compared to $6.1 million in Q2 of last year.

David Traverse: Operating loss improved 54% year over year to 1.3 million compared to a loss of 2.9 million in the same year-ago period; gap net loss totaled 1.1 million or five cents per diluted share. A 59% improvement compared to a loss of 2.7 million or 13 cents per diluted share in Q2 of 2023; adjusted EBITDA loss, which we reconciled to gap net income in our earnings release. So 1 million is an improvement compared to a loss of 2.4 million in the same year ago period.

David: Operating loss improved 54% year-over-year to 1.3 million compared to a loss of 2.9 million in the same year-ago period.

David Traverse: Operating loss improved 54% year-of-year to 1.3 million compared to a loss of 2.9 million in the same year ago period. Gapnet loss totaled 1.1 million or 5 cents per diluted share. A 59% improvement compared to a loss of 2.7 million or 13 cents per diluted share in Q2 of 2023. All right, just at EBITDA loss, which we reconciled to Gapnet income in our earnings release, so 1 million in improvement compared to a loss of 2.4 million in the same year ago period. The year-of-year improvement in net loss and adjusted EBITDA was primarily due to increased revenue and continued reductions in operating expenses.

David: Gap net loss totaled $1.1 million, or $0.05 per diluted share. A 59% improvement compared to a loss of $2.7 million, or $0.13 per diluted share in Q2 of 2023.

Speaker Change: All right, just to leave it a loss, which we've reconciled to Gatman and income in our earnings release, so 1 million in a proven compared to a loss of 2.4 million in the same year ago period.

David Traverse: The year-of-year improvement in net loss and adjusted EBITDA was primarily due to increased revenue and continued reductions in operating expenses.

Speaker Change: The year-over-year improvement in that loss and just to EBITDA was primarily due to increased revenue and continued reductions in operating expenses.

David Traverse: The year over year improvement in net loss and adjusted EBITDA was primarily due to increased revenue and continued reductions in operating expenses. Turning to our financial results for the six months ended June 30th, 2024. Total revenue was $8.7 million, up 17% from $7.5 million in the first half of last year. This was driven by a $700,000 increase in recurring revenue and a $500,000 increase in license sales from existing customer expansions. Recurring revenue grew 14% year-over-year to $5.9 million, or 67% of total revenue, underscoring our continued shift towards a more predictable revenue model.

David Traverse: Turning to our financial results for the six months ended June 30th, 2024, total revenue was 8.7 million, up 17% from 7.5 million in the first half of last year. This was driven by a $700,000 increase in incurring revenue and a half million dollar increase in license sales from existing customer expansions. Recurring revenue grew 14% year-over-year to 5.9 million, or 67% of total revenue, underscoring our continued shift towards a more predictable revenue model. The growth in both total and recurring revenue reflects the strength of our business model in the increased value our solutions provide to customers.

Speaker Change: Turning to our financial results for the six months ended June 30th, 2024, total revenue was $8.7 million, up 17% from $7.5 million in the first half of last year.

David Traverse: Turning to our financial results for the six months of end of June 30th, 2024, total revenue was 8.7 million, up 17% from 7.5 million in the first half of last year. This was driven by a $700,000 increase in incurring revenue and a half million dollar increase in license sales from existing customer expansions. Recurring revenue grew 14% year-over-year to 5.9 million or 67% of total revenue, underscoring our continued shift towards a more predictable revenue model.

David: This is driven by a $700,000 increase in current revenue and a $1.00 increase in licensed sales from existing customer expansions.

Speaker Change: Recurring revenue grew 14% year-over-year to $5.9 million, or 67% of total revenue, underscoring our continued shift towards a more predictable revenue model.

David Traverse: The growth in both total and recurring revenue reflects the strength of our business model and the increased value our solutions provide to customers. Our focus on nurturing long-term client relationships is paying off. Positioning as well for sustainable growth in the future. Operating expenses decreased $1 million or 8% year over year to $11.3 million, compared to 12.3 million in the prior year. Operating loss improved 46% year over year to 2.6 million compared to an operating loss of 4.8 million in the same year ago period.

Speaker Change: The growth in both total and recurring revenue reflects the strength of our business model in the increased value our solutions provide to customers. Our focus on nurturing long-term client relationships is paying off, positioning us well for sustainable growth in the future.

David Traverse: Our focus on nurturing long-term client-related shifts is paying off, positioning us well for sustainable growth in the future. Our operating expenses decreased $1 million or 8% year-over-year to 11.3 million compared to 12.3 million in the prior year. Our operating loss improves 46% year-over-year to 2.6 million, compared to an operating loss of 4.8 million in the same year-ago period. Net loss to a 2.1 million or 10 cents per diluted share, a 51% improvement in between net loss of 4.2 million or 20 cents per diluted share in the first half of 2023. Adjust the EBITDA loss improved to 1.9 million, which compares to the loss of 3.8 million in the same year-ago period.

David Traverse: The growth in both total and recurring revenue reflects the strength of our business model in the increased value our solutions provide to customers. Our focus on nurturing long-term client-related shifts is paying off, positioning us well for sustainable growth in the future. Our operating expenses decreased $1 million or 8% year-over-year to 11.3 million compared to 12.3 million in the prior year. Our operating loss improves 46% year-over-year to 2.6 million compared to an operating loss of 4.8 million in the same year ago period.

Speaker Change: Our operating expenses decreased $1 million, or 8% year-over-year, to $11.3 million.

Speaker Change: compared to 12.3 million in the prior year. Our brain loss improves 46% year over year, and 2.6 million compared to an offering loss of 4.8 million in the same year of low period.

David Traverse: Net loss totaled $2.1 million or $0.10 per diluted share, a 51% improvement compared to a net loss of $4.2 million or $0.20 per diluted share in the first half of 2023. Adjusted EBITDA loss improved to $1.9 million, which compares to a loss of $3.8 million in the same year-ago period.

Speaker Change: Net lost all 2.1 million or 10 cents per due due to cheer. A 51% improvement can between net loss of 4.2 million or 20 cents per due due to cheer in the first half of 2023.

David Traverse: Net loss to a 2.1 million or 10 cents per deluded share, a 51% improvement in between net loss of 4.2 million or 20 cents per deluded share in the first half of 2023. Adjust the EBITDA loss improved to 1.9 million, which compares to the loss of 3.8 million in the same year ago period.

Speaker Change: I'd just leave it a loss improved to 1.9 million, which compares to a loss of 3.8 million in the same year of growth period.

David Traverse: Turning to our balance sheet, cash, cash equivalent to marketable securities totaled 27.4 million as of June 30, 2024. This compares to 30.9 million as of December 31, 2023. Our robust financial foundation empowers us to strategically pursue growth opportunities and make targeted investments. We are actively exploring initiatives to enhance our technology edge, seeking avenues to expand our market presence, and carefully evaluating opportunities that align with our long-term vision. This approach allows us to remain agile and dynamic market, capitalized on emerging trends and technologies, and ensure sustainable growth and value creation. As we've talked about, we maintain a disciplined approach to capital allocation, balancing prudent investments with maintaining our financial strengths.

David Traverse: Turning to our balance sheet, cash, cash equivalents, and marketable securities totaled $27.4 million as of June 30, 2024. This compares to $30.9 million as of December 31, 2023. Our robust financial foundation empowers us to strategically pursue growth opportunities and make targeted investments. We are actively exploring initiatives to enhance our technology, seeking avenues to expand our market presence, and carefully evaluating opportunities that align with our long-term vision. This approach allows us to remain agile in a dynamic market.

Speaker Change: Turning to our balance sheet, cash, cash equivalents, and marketable securities totaled $27.4 million as of June 30th, 2024. This compares to $30.9 million as of December 31st, 2023.

Speaker Change: Our robust financial foundation empowers us to strategically pursue growth opportunities and make targeted investments.

Speaker Change: We are actively exploring initiatives to enhance our technology edge, seeking avenues to expand our market presence, and carefully evaluating opportunities that align with our long-term vision. This approach allows us to remain agile in a dynamic market.

David Traverse: Capitalize on emerging trends and technologies and ensure sustainable growth and value creation. As we've talked about, we maintain a disciplined approach to capital allocation. Balancing prudent investments with maintaining our financial strength, this strategy positions us to seize opportunities that will drive innovation, expand our reach, and ultimately deliver increased value to our shareholders. Our focus remains on opportunities that not only complement our existing portfolio but also have the potential to significantly accelerate our growth trajectory and strengthen our competitive position in the market. This completes my financial summary. I'd now like to turn the call over to Heidi and let her introduce herself. Heidi?

Speaker Change: Capitalize on emerging trends and technologies and ensure sustainable growth and value creation.

Speaker Change: As we've talked about, we maintain a disciplined approach to capital allocation, balancing prudent investments with maintaining our financial strength.

David Traverse: This strategy positions us to seize opportunities that will drive innovation, expand our reach, and ultimately deliver increased value to our shareholders. Our focus remains on opportunities that not only complement our existing portfolio, but also have potential to significantly accelerate our growth.

David Traverse: As we've talked about, we maintain a disciplined approach to capital allocation, balancing prudent investments with maintaining our financial strengths. This strategy positions us to seize opportunities that will drive innovation, expand our reach, and ultimately deliver increased value to our shareholders. Our focus remains on opportunities that no only complement our existing portfolio, but also have potential to significantly accelerate our growth.

Speaker Change: This strategy positions us to seize opportunities that will drive innovation, expand our reach, and ultimately deliver increased value to our shareholders.

Speaker Change: Our focus remains on opportunities that no only compliment our existing portfolio, but also have the potential to significantly accelerate our growth trajectory and strengthen our competitive position in the market.

Unknown Executive: Directorate and strength in our competitive position in the market.

David Traverse: This completes my financial summary.

Heidi Hunter: I now like to turn the call over to Heidi and let her introduce herself. Heidi?

Speaker Change: This completes my financial summary, and now I can turn on the call over to Heidi as I hear introduce herself. Heidi?

Unknown Executive: Directorate and Strength in our Competitive Position in the Market.

Heidi Hunter: Thank you, David.

Heidi Hunter: Thank you, David. I'm very happy to have the opportunity today to speak to the investor community about why I joined the Aware leadership team and to share my excitement and perspective on the incredible transformative path Aware is on. I have spent the lion's share of my career working in the identity industry. Before joining Aware, I worked in various roles in product strategy and customer success for a global identity provider. I'm sure you can imagine that over that time, I have truly observed the ever-evolving transformation of how organizations must identify and authenticate the identities they want to do business with. I love working with engineers to build advanced products that delight customers and help them evolve their business through software.

David Traverse: This completes my financial summary.

Heidi Hunter: I'm very happy to have the opportunity today to speak to the investor community about why I joined the Aware Leadership Team and to share my excitement and perspective on the incredible transformative path Aware is on. I have spent the lion's share of my career working in the identity industry. Before joining Aware, I worked in various roles in product strategy and customer success for a global identity provider. I'm sure you can imagine over that time I truly observe the ever evolving transformation of how organizations must identify and authenticate the identities they want to do business with.

Heidi: Thank you, David. I'm very happy to have the opportunity today to speak to the investor community about why I joined the Aware leadership team and to share my excitement and perspective on the incredible transformative path Aware is on.

Heidi: I now like to turn the call over to Heidi and let her introduce herself. Heidi? Thank you, David.

Heidi: I'm very happy to have the opportunity today to speak to the investor community about why I joined the Aware Leadership Team and to share my excitement and perspective on the incredible transformative path aware is on. I have spent the lion's share of my career working in the identity industry. Before joining aware I worked in various roles in product strategy and customer success for a global identity provider. I'm sure you can imagine over that time I truly observe the ever evolving transformation of how organizations must identify and authenticate the identities they want to do business with.

Heidi: I've spent the lion share of my career working in the identity industry.

Speaker Change: Before joining AWARE, I worked in various roles in product strategy and customer success for a global identity provider. I'm sure you can imagine over that time I truly observed the ever-evolving transformation of how organizations must identify and authenticate the identities they want to do business with.

Heidi Hunter: I love working with engineers to build advanced products that delight customers and help them evolve their business through software. I wanted to continue advancing my career and contributions in the identity space with an organization that built biometric solutions and focused on transformative AI-driven technologies. After discussing Aware's vision and strategy with Bob and understanding Aware's tenure, legacy, and breadth of solutions, I felt it was a great opportunity and fit. I'm very excited to be part of the company's transformation.

Speaker Change: I love working with engineers to build advanced products that the light customers and help them evolve their business through software.

Heidi Hunter: I wanted to continue advancing my career and contributions in the identity space with an organization that built biometric solutions and focused on transformative AI-driven technology. After discussing AWARE's vision and strategy with Bob and understanding AWARE's tenure, legacy, and breadth of solutions, I felt it was a great opportunity and fit. I'm very excited to be part of the company's transformation.

Heidi: I love working with engineers to build advanced products that delight customers and help them evolve their business through software. I wanted to continue advancing my career and contributions in the identity space with an organization that built biometric solutions and focused on transformative AI-driven technologies. After discussing Aware's vision and strategy with Bob and understanding Aware's tenure, legacy and breadth of solutions, I felt it was a great opportunity and fit. I'm very excited to be part of the company's transformation.

Heidi: I wanted to continue advancing my career and contributions in the identity space with an organization that built biometric solutions and focused on transformative AI-driven technologies.

Heidi: After discussing aware's vision and strategy with Bob and understanding aware's tenure, legacy, and breadth of solutions, I felt it was a great opportunity in fit. I'm very excited to be part of the company's transformation.

Heidi Hunter: Now that you have a little background on me, I'd like to discuss who Aware is and the company's innovation and transformational journey over the last few years and more depth for those new or relatively new to the story. Over the past four years, Aware has strategically shifted towards a recurring revenue model, capitalizing on its established biometric technology and expertise. This transformation is driven by our robust technological foundation and forward-looking business practices, merging our legacy of innovation with market-driven evolution. Formally focused on supplying multimodal biometric components to government IT integrators, Aware has restructured and integrated these elements into a comprehensive biometric identity platform.

Heidi Hunter: Now that you have a little background on me, I'd like to discuss who Aware is and the company's innovation and transformational journey over the last few years in more depth for those new or relatively new to the story. Over the past four years, Aware has strategically shifted towards a recurring revenue model, capitalizing on its established biometric technology and expertise. This transformation is driven by our robust technological foundation and forward-looking business practices, merging our legacy of innovation with market-driven evolution.

Speaker Change: Now that you have a little background on me, I'd like to discuss who aware is and the company's innovation and transformational journey over the last few years and more depth for those new or relatively new to the story.

Heidi: Now that you have a little background on me I'd like to discuss who Aware is and the company's innovation and transformational journey over the last few years and more depth for those new or relatively new to the story. Over the past four years Aware has strategically shifted towards a recurring revenue model, capitalizing on its established biometric technology and expertise. This transformation is driven by our robust technological foundation and forward-looking business practices, merging our legacy of innovation with market-driven evolution.

Speaker Change: Over the past four years, Aware has strategically shifted towards a recurring revenue model, capitalizing on its established biometric technology and expertise.

Speaker Change: This transformation is driven by our robust technological foundation and forward-looking business practices, merging our legacy of innovation with market-driven evolution.

Heidi Hunter: Formerly focused on supplying multimodal biometric components to government IT integrators, Aware has restructured and integrated these elements into a comprehensive biometric identity platform. Today, this platform allows customers to tailor solutions to their specific needs, whether deployed on premises or through software as a service. By expanding our partner network to include value-added resellers, OEMs, and a wider range of IT integrators, we've extended our market presence beyond government sectors to encompass diverse commercial applications.

Heidi: Formerly focused on supplying multi-modal biometric components to government IT integrators, aware has restructured and integrated these elements into a comprehensive biometric identity platform.

Heidi: Formally focused on supplying multimodal biometric components to government IT integrators, Aware has restructured and integrated these elements into a comprehensive biometric identity platform. Today this platform allows customers to tailor solutions to their specific needs, whether deployed on premises or through software as a service. By expanding our partner network to include value added resellers, OEMs and a wider range of IT integrators, we've extended our market presence beyond government sectors to encompass diverse commercial applications, democratizing access to biometric technology across all organizational sizes.

Heidi Hunter: Today, this platform allows customers to tailor solutions to their specific needs, whether deployed on premises or through Software as a Service. By expanding our partner network to include value added resellers, OEMs and a wider range of IT integrators, we've extended our market presence beyond government sectors to encompass diverse commercial applications, democratizing access to biometric technology across all organizational sizes. Aligned with Acuity Market Intelligence, Digital Identity Prism Framework, Aware began with core biometric technology and has evolved into a leading biometric identity platform provider. Augmented by authentication and identity verification features alongside our biometric orchestration product, our modular scalable approach supports organizations across industries and varied use cases.

Heidi: Today, this platform allows customers to tailor solutions to their specific needs, whether deployed on-premises or through software as-a-service.

Heidi: By expanding our partner network to include value-added resellers, OEMs, and a wider range of IT integrators, we've extended our market presence beyond government sectors to encompass diverse commercial applications.

Heidi Hunter: Democratizing access to biometric technology across all organizational sizes, Aware began with core biometric technology and has evolved into a leading biometric identity platform provider. Augmented by authentication and identity verification features alongside our biometric orchestration product, our modular, scalable approach supports organizations across industries and varied use cases. Looking ahead, Aware aims to further industry transformation by developing sector-specific, pre-configured biometric solutions for vertical markets, fostering innovation within our partner ecosystem.

Heidi: democratizing access to biometric technology across all organizational sizes.

Heidi: aligned with the Q&A market intelligence, digital identity prism framework, aware began with core biometric technology and has evolved into a leading biometric identity platform provider.

Heidi: Aligned with acuity market intelligence, digital identity prism framework, Aware began with core biometric technology and has evolved into a leading biometric identity platform provider. Augmented by authentication and identity verification features alongside our biometric orchestration product, our modular scalable approach supports organizations across industries and varied use cases. Looking ahead, Aware aims to further industry transformation by developing sector-specific pre-configured biometric solutions for vertical markets, fostering innovation within our partner ecosystem. System. Our dedication persists in advancing technology and facilitating digital identity solutions for both commercial and government clients, ensuring our offerings cater comprehensively to identification, verification, and authentication needs.

Heidi: Augmented by Authentication and Identity Verification Features, alongside our biometric orchestration product, our modular, scalable approach supports organizations across industries and very these cases.

Heidi Hunter: Looking ahead, Aware aims to further industry transformation by developing sector-specific pre-configured biometric solutions for vertical markets, fostering innovation within our partner ecosystem.

Heidi: Looking ahead, aware aims to further industry transformation by developing sector-specific, pre-configured biometric solutions for vertical markets, fostering innovation within our partner ecosystem.

Heidi Hunter: System. Our dedication persists in advancing technology and facilitating digital identity solutions for both commercial and government clients, ensuring our offerings cater comprehensively to identification, verification, and authentication needs.

Heidi Hunter: Our dedication to advancing technology and facilitating digital identity solutions for both commercial and government clients is ensuring our offerings cater comprehensively to identification, verification, and authentication needs. I'm thrilled to join the AWARE team. And with that, I will hand it over to Craig to give an update on the advancements and progress we've made in the company's go-to-market strategy.

Heidi: Our dedication persists in advancing technology and facilitating digital identity solutions for both commercial and government clients, ensuring our offerings cater comprehensively to identification, verification, and authentication needs.

Heidi Hunter: I'm thrilled to join the Aware team.

Craig Herman: And with that, I will hand it over to Craig to give an update on the advancements and progress we've made in the company's go-to-market strategy. Thanks, Heidi. In Q2 2024, we secured several significant deals across both our core products and geographies, underscoring the growing demand of our advanced biometric solutions in both government and commercial sectors. This quarter, we secured six key contracts in our ABIS, Nomi, Aware ID, and BioSP product categories. Of these deals, several were contracts with the U.S. Federal government. These deals were a mix of commercial, law enforcement, and U.S. Government agencies. Aware is trusted not only by all three branches of the U.S.

Heidi: I'm thrilled to join the Aware team and with that I will hand it over to Craig to give an update on the advancements and progress we've made in the company's go-to-market strategy.

Heidi: I'm thrilled to join the Aware team.

Craig Herman: In Q2 2024, we secured several significant deals across both our core products and geographies, underscoring the growing demand for our advanced biometric solutions in both government and commercial sectors. This quarter, we secured six key contracts in our ABIS, NOMI, AWARE-ID, and BioSP product categories. Of these deals, several were with the US federal government.

Craig: Thanks Heidi.

Craig: In Q2, 2021, we secured several significant deals across both our core products and geographies.

Craig: Underscoring the growing demand of our advanced biometric solutions in both government and commercial sectors.

Craig: This quarter, we secured six key contracts in our ABIS, NOMI, AWARE-ID, and BioSP product categories.

Craig Herman: These deals were a mix of commercial, law enforcement, and US government agencies. Aware is trusted not only by all three branches of the U.S. government but also by more than 20 countries, over 60 partners, over 20 financial institutions, and 150 law enforcement agencies. Our biometric solutions are used by numerous countries, agencies, and large commercial organizations that you are all familiar with. Our multi-modal platform also continues to gain traction. We achieved wins with our fingerprint, iris, and facial recognition technologies, all of which are experiencing growing demand within the market.

Speaker Change: Of these deals, several were contracts with the U.S. federal government. These deals were a mix of commercial, law enforcement, and U.S. government agencies.

Craig Herman: Of these deals, several were contracts with the U.S, federal government. These deals were a mix of commercial, law enforcement and U.S, government agencies. Aware is trusted not only by all three branches of the U.S, government, but also by more than 20 countries, over 60 partners, over 20 financial institutions, and 150 law and enforcement agencies. Our biometric solutions are used by numerous countries, agencies, and large commercial organizations that you are all familiar with.

Craig Herman: government, but also by more than 20 countries, over 60 partners, over 20 financial institutions, and 150 law enforcement agencies. Our biometric solutions are used by numerous countries, agencies, and large commercial organizations that you are all familiar with. Our multi-modal platform also continues to gain traction. We achieved wins with our fingerprint, iris, and facial recognition technologies, all of which are experiencing growing demand within the market. We expect this momentum to continue, and we are seeing increasing opportunities for our differentiated and innovative platform across both the government and commercial sectors. With our breadth of use cases and our hardened legacy solutions, we are poised to capitalize on this increasing demand.

Craig: Awareness trusted not only by all three branches of the U.S. government, but also by more than 20 countries, over 60 partners, over 25-inch institutions, and 150 law enforcement agencies.

Craig: Our biometric solutions are used by numerous countries, agencies, and large commercial organizations that you are all familiar with.

Craig: Our multimodal platform also continues to gain traction. We achieved wins with our fingerprint, iris, and facial recognition technologies, all of which are experiencing growing demand within the market.

Craig Herman: Our multi-modal platform also continues to gain traction. We achieved wins with our fingerprint, iris, and facial recognition technologies, all of which are experiencing growing demand within the market. We expect this momentum to continue, and we are seeing increasing opportunities for our differentiated and innovative platform across both the government and commercial sectors. With our breadth of use cases and our hardened legacy solutions, we are poised to capitalize on this increasing demand. We also further enhanced our partnership ecosystem in Q2.

Craig Herman: We expect this momentum to continue, and we are seeing increasing opportunities for our differentiated and innovative platform across both the government and commercial sectors. With our breadth of use cases and our hardened legacy solutions, we are poised to capitalize on this increasing demand. We also further enhanced our partnership ecosystem in Q2. This quarter, we emphasized optimizing our partner network to enhance onboarding enablement.

Craig: We expect this momentum to continue, and we are seeing increasing opportunities for our differentiated and innovative platform across both the government and commercial sectors.

Craig: With our breadth of use cases, and our hardened legacy solutions, we are poised to capitalize on this increasing demand. We also further enhanced our partnership ecosystem in Q2.

Craig Herman: We also further enhanced our partnership ecosystem in Q2. This quarter, we emphasized optimizing our partner network to enhance onboarding enablement. Not only did we add new partners to our network, but we also removed non-performing partners, which will help us move forward. We believe we have the right partners in place with the right resources and healthy visibility into future partnerships that will enable us to convert our robust pipeline.

Craig: This quarter, we emphasized optimizing our partner network to enhance onboarding enablement. Not only did we add new partners to our network, but we also removed non-performing partners, which will help us moving forward.

Craig Herman: Not only did we add new partners to our network, but we also removed non-performing partners, which will help us move forward. We believe we have the right partners in place with the right resources and healthy visibility into future partnerships that will enable us to convert our robust pipeline. We also launched and secured some key partnerships for AWARE-ID that we expect to drive significant growth. As a proof point of this success, as Bob mentioned, we made significant strides in expanding our global footprint through renewed and expanded contracts across key regions, including the United Kingdom, Brazil, and EMEA.

Craig Herman: This quarter, we emphasized optimizing our partner network to enhance onboarding enablement. Not only did we add new partners to our network, but we also removed non-performing partners, which will help us move forward. We believe we have the right partners in place with the right resources and healthy visibility into future partnerships that will enable us to convert our robust pipeline. We also launched and secured some key partnerships for a wear ID that we expect to drive significant growth.

Craig: We believe we have the right partners in place, with the right resources and healthy visibility into future partnerships that will enable us to convert our robust pipeline.

Craig Herman: We also launched and secured some key partnerships for a wear ID that we expect to drive significant growth. As a proof point of this success, as Bob mentioned, we made significant strides in expanding our global footprint through renewed and expanded contracts across key regions, including the United Kingdom, Brazil, and America. This included securing a $400,000 license expansion in Europe, underscoring our ability to foster strong client relationships and capture additional market share.

Craig: We also launched and secured some key partnerships for Aware ID that we expect to drive significant growth.

Craig: As a proof point of this success, as Bob mentioned, we make significant strides in expanding our global footprint through renewed and expanded contracts across key regions, including the United Kingdom Resil Animea.

Craig Herman: As a proof point of this success, as Bob mentioned, we made significant strides in expanding our global footprint through renewed and expanded contracts across key regions, including the United Kingdom, Brazil, and America. This included securing a $400,000 license expansion in Europe, underscoring our ability to foster strong client relationships and capture additional market share. Another notable win I'd like to call out in Q2 is securing our largest ABIS contract today, a $1.2 million five-year agreement.

Craig Herman: This included securing a $400,000 license expansion in Europe, underscoring our ability to foster strong client relationships and capture additional market share. Another notable win I'd like to call out in Q2 was securing our largest ABIS contract to date, a $1.2 million five-year agreement. Once this contract has gone live, we anticipate it will significantly bolster our recurring revenue stream and increase operating expense leverage going forward. Another key aspect of this contract is that it reflects our increased focus on being more diligent and deliberate about the opportunities we pursue.

Speaker Change: This included securing a $400,000 license expansion in Europe , underscoring our ability to foster strong client relationships, and capture additional market share.

Craig Herman: Another notable win I'd like to call out in Q2 is securing our largest ABIS contract today, a $1.2 million five-year agreement. Once this contract has gone live, we anticipate it will significantly bolster our recurring revenue stream and increase operating expense leverage going forward. Another key aspect of this contract is that it reflects our increased focus on being more diligent and deliberate about the opportunities we pursue. By that, I mean, we are prioritizing strategic opportunities that are well-suited for a wear current technology portfolio, which is expansive in terms of use cases without compromising security or customer experiences, while also enabling us to increase cost optimization recurring revenue.

Speaker Change: Another notable win I'd like to call out in Q2 is securing our largest aim is contract today, a $1.2 million five-year agreement.

Speaker Change: Once this contract has gone live, we anticipate it will significantly bolster our recurring revenue stream and increase operating expense leverage going forward. Another key aspect of this contract is that it reflects our increased focus on being more diligent and deliberate about the opportunities we pursue.

Craig Herman: Once this contract has gone live, we anticipate it will significantly bolster our recurring revenue stream and increase operating expense leverage going forward. Another key aspect of this contract is that it reflects our increased focus on being more diligent and deliberate about the opportunities we pursue. By that, I mean, we are prioritizing strategic opportunities that are well-suited for a wear current technology portfolio, which is expansive in terms of use cases without compromising security or customer experiences, while also enabling us to increase cost optimization Recurring Revenue.

Craig Herman: By that I mean, we are prioritizing strategic opportunities that are well suited for Aware's current technology portfolio, which is expansive in terms of use cases without compromising security or customer experiences, while also enabling us to increase cost optimization and recurring revenue. Regarding our breadth of use cases, I'd like to highlight a few where our technology has had a significant impact. For example, we partnered with a leading police department to solve over 45 cold cases, substantially improving their closed case rate.

Speaker Change: it

Speaker Change: By that I mean we are prioritizing strategic opportunities that are well suited for Aware's current technology portfolio, which is expansive in terms of use cases without compromising security or customer experiences, while also enabling us to increase cost optimization and recurring revenue.

Craig Herman: Regarding our breadth of use cases, I'd like to highlight a few where our technology has had significant impacts. In law enforcement, we partnered with a leading police department in solving over 45 cold cases with advanced biometric systems and analysis tools, substantially improving their closed case rate. In financial services, a large bank in South America leveraged AWARE's AI-enabled, live-in detection algorithms integrated into their workflow to reduce their fraud rate by 87 percent and save millions of dollars in the first year. As we move forward, our team remains steadfast in converting a robust and growing pipeline by driving subscription-based revenue through enhancing AWARE ID's product market fit and leveraging our partner network.

Speaker Change: We're learning our breadth of use cases. I'd like to highlight a few where our technology has had significant impacts.

Speaker Change: In law enforcement, we partnered with a leading police department in solving over 45 cold cases with advanced biometric systems and analysis tools. Substantially improving their closed case rape.

Craig Herman: In financial services, a large bank in South America leveraged Aware's AI-enabled liveness detection algorithms integrated into their workflow to reduce their fraud rate by 87% and save millions of dollars in the first year. As we move forward, our team remains steadfast in converting our robust and growing pipeline by driving subscription-based revenue through enhancing Aware ID's product market fit and leveraging our partner network. Now I'll turn the call back to Bob for further details on our strategic growth initiatives and 2024 outlook. Bob. Thanks, Craig.

Speaker Change: In financial services, a large bank in South America leveraged Aware's AI-enabled liveness detection algorithms integrated into their workflow to reduce their fraud rate by 87% and save millions of dollars in the first year.

Speaker Change: As we move forward, our team remains steadfast in converting our robust and growing pipeline by driving subscription-based revenue through enhancing AWARE-ID's product market fit and leveraging our partner network.

Bob: Now I'll turn the call back to Bob for further details on our strategic growth initiatives in 2024 outlook. Bob? Thanks, Craig. Looking ahead to the second half of the year, where you remain confident in our expectations to deliver a double-digit revenue and annual recurring revenue growth in 2024. With the top and bottom line year-over-year improvements we generate in the first half of the year, as well as increased visibility and consistency in our robust pipeline. Craig discussed, we believe we are on track to achieve our 2024 expectations.

Speaker Change: Now I'll turn the call back to Bob for further details on our Strategic Growth Initiatives and 2024 Outlook. Bob?

Robert Eckel: Thanks, Craig. Looking ahead to the second half of the year, we remain confident in our expectations to deliver double-digit revenue and annual recurring revenue growth in 2024. With the top and bottom line year-over-year improvements we generated in the first half of the year, as well as increased visibility and consistency in our robust pipeline, Craig discussed, we believe we are on track to achieve our 2024 expectations. Strategically, we remain focused on executing our multifaceted growth plan, which revolves around several key initiatives.

Bob: Thanks, Greg. Looking ahead to the second half of the year, we remain confident in our expectations to deliver double-digit revenue and annual recurring revenue growth in 2024. With the top and bottom line year-over-year improvements we generate in the first half of the year, as well as increased visibility and consistency in our robust pipeline Greg discussed, we believe we are on track to achieve our 2024 expectations. Strategically, we remain focused on executing our multifaceted growth plan, which revolves around several key initiatives. One, enhancing predictability through recurring revenue and SaaS models. Two, expanding our global partner ecosystem to maximize opportunities with technology integrators and OEM partners.

Bob: Strategically, remain focused on executing our multi-faceted growth plan, which revolves around several key initiatives. One, enhancing predictability through recurring revenue and SaaS models. Two, expanding our global partner ecosystem to maximize opportunities with technology integrators and OEM partners. Three, prioritizing growth by cross-selling and upselling to our established customer base, led by our dedicated customer success team. Four, entering new commercial markets with targeted use cases while empowering partners to diversify their revenue streams. Five, maintaining technological leadership through our R&D innovation team and operational data, AI, and machine learning capabilities to address emerging security challenges. And six, continually reviewing strategic collaborations and acquisitions to expand our capabilities and market reach.

Robert Eckel: One, enhancing predictability through recurring revenue and SaaS models. Two, expanding our global partner ecosystem to maximize opportunities with technology integrators and OEM partners. Three, prioritizing growth by cross-selling and up-selling to our established customer base, led by our dedicated customer success team. Four, entering new commercial markets with targeted use cases while empowering partners to diversify their revenue streams. Five, maintaining technological leadership through our R&D innovation team and operational data, AI, and machine learning capabilities to address emerging security challenges.

Speaker Change: Partners, three, prioritizing growth by cross-selling and upselling to our established customer base led by our dedicated customer success team. Four, entering new commercial markets with targeted use cases while empowering partners to diversify their revenue streams. Five, maintaining technological leadership through our R&D innovation team and operational data AI and machine learning capabilities to address emerging security challenges. In six, continually reviewing strategic collaborations and acquisitions to expand our capabilities in market reach. We continue to drive customer value with sector-specific pre-configure by metric solutions for common use cases balancing both security and company.

Bob: Five, maintaining technological leadership through our R&D innovation team and operational data AI and machine learning capabilities to address emerging security challenges. And six, continually reviewing strategic collaborations and acquisitions to expand our capabilities and market reach. We continue to drive customer value with sector-specific pre-configured biometric solutions for common use cases, balancing both security and customer experience. Given our strong financial foundation, we believe we are poised for top line and ARR growth and profitability as we further our innovation product market fit as we work closely with our clients in adapting to market changes.

Robert Eckel: And six, continually reviewing strategic collaborations and acquisitions to expand our capabilities and market reach. We continue to drive customer value with sector-specific pre-configured biometric solutions for common use cases, balancing both security and customer experience. Given our strong financial foundation, we believe we are poised for top-line and ARR growth and profitability as we further our innovation product market fit, as we work closely with our clients in adapting to market changes. We continue to enable and leverage our partners, as well as our direct relationships, providing our own pre-configured offerings, as well as platforms for partners to build their own solutions.

Bob: We continue to drive customer value with sector-specific pre-configured biometric solutions for common use cases, balancing both security and customer experience. Given our strong financial foundation, we believe we are poised for top line and ARR growth and profitability as we further our innovation product market fit as we work closely with our clients in adapting to market changes. We continue to enable and leverage our partners as well as our direct relationships, providing our own pre-configured offerings as well as platforms for partner to build their own solutions. Aware consistently strives to be recognized as a company associated with biometric simplify.

Robert Eckel: AWERA consistently strives to be recognized as a company associated with biometrics simplified. We are here and ready to improve our customers' business results through biometrics. Matt, please provide the appropriate instructions.

Bob: We continue to enable and leverage our partners as well as our direct relationships, providing our own pre-configured offerings as well as platforms for partner to build their own solutions. Aware consistently strives to be recognized as a company associated with biometric simplify.

Bob: We are here and ready to improve our customer's business results through biometrics.

Unknown Executive: We will now move to the Q&A portion of our call. Matt, please provide the appropriate instructions. Thank you, Bob.

Bob: We are here and ready to improve our customer's business results through biometrics.

Matt Glover: We will now move to the Q&A portion of our call. Matt, please provide the appropriate instructions. Thank you, Bob. As a reminder, you can submit a question using the built-in-ask-a-question feature in the webcast player. Please hold while we populate the question. Questions.

Matt Glover: Thank you, Bob. As a reminder, you can submit a question using the built-in ask a question feature in the webcast player. Please hold while we populate the question. Our first question, Craig, is about increased demand for biometric technologies, specifically iris fingerprint and facial recognition. Could you elaborate on the key factors driving this growth across these different modalities? Are there particular industries, applications, or market trends fueling this demand?

Unknown Executive: As a reminder, you can submit a question using the built-in ask-a-question feature in the webcast player. Please hold while we populate the question. Questions.

Speaker Change: Thank you, Bob. As a reminder, you can submit a question using the built-in Ask a Question feature in the webcast player. Please hold while we populate the questions.

Craig Herman: Our first question, Craig. You highlighted increased demand for a whereas biometric technologies, specifically iris, fingerprint and facial recognition. Could you elaborate on the key factors driving this growth across these different modalities? Are there particular industries, applications, or market trends fueling this demand? Great questions, Matt.

Speaker Change: Our first question, Craig, you highlighted increased demand for Aware's biometric technologies, specifically iris, fingerprint, and facial recognition. Could you elaborate on the key factors driving this growth across these different modalities? Are there particular industries, applications, or market trends fueling this demand?

Matt Glover: Our first question, Craig. You highlighted increased demand for a whereas biometric technologies, specifically Iris, fingerprint and facial recognition. Could you elaborate on the key factors driving this growth across these different modalities?

Craig Herman: Great questions, Matt. Yeah, so the biometric systems market is continuing to experience rapid expansion, with projections today indicating at least 14% growth over the next five years, reaching approximately $83 billion. This growth is particularly evident in the US federal government sector, where we've also seen increased adoption of iris recognition technology. I just spent some time at the U.S. Biometric Forum last month, and it's very clear that multimodal biometrics, including IRIS, as well as concerns about racial bias, were widely reviewed and discussed.

Craig Herman: Yes, so the biometric systems market, we always continue to experience rapid expansion, with projections today indicating at least 14% growth over the next five years, reaching approximately 83 billion. This growth is particularly evident in the US federal government sector, where we've also seen increased adoption of iris recognition technology. I just spent some time at the US Biometric Forum last month, and it is very clear that multimodal biometrics, including iris, as well as concerns about racial bias, were widely reviewed and discussed. These are a few of the markets driving and fueling this growth. We're seeing increasing demand for consumer convenience coupled with a growing need for business efficiencies.

Craig: Great questions, Matt. Yeah, so the biometric systems market, you know, is continuing to experience rapid expansion. With projection, this growth is particularly evident in the U.S. federal government sector.

Craig Herman: Are there particular industries, applications, or market trends fueling this demand? Great questions, Matt. Yes, so the biometric systems market, we always continue to experience rapid expansion with projections today indicating at least 14% growth over the next five years reaching approximately 83 billion. This growth is particularly evident in the US federal government sector, where we've also seen increased adoption of Iris recognition technology. I just spent some time at the US biometric forum last month and is very clear that multimodal biometrics, including Iris, as well as concerns about racial bias, were widely reviewed and discussed.

Speaker Change: where we've also seen increased adoption of iris and recognition technology.

Speaker Change: I just spent some time at the U.S. Biometric Forum last month and it is very clear that multimodal biometrics, including IRIS, as well as concerns about racial bias, were widely reviewed and discussed.

Speaker Change: These are a few of the markets driving and fueling this growth.

Heidi Hunter: These are just a few of the markets driving and fueling this growth. We're seeing increasing demand for consumer convenience, coupled with a growing need for business efficiency. There is also wider acceptance and adoption of biometrics by consumers. New government and commercial compliance requirements and regulations both domestically and internationally are further propelling this market. Additionally, rising occurrences of identity fraud and its increasing sophistication, i.e., deepfakes, along with the escalating frequency of internal and external data breaches are driving demand for robust biometric solutions. These drivers are consistent across all our target industry verticals and align closely with our go-to-market strategy. This is positioning us to capitalize on these market trends.

Speaker Change: We're seeing increasing demand for consumer convenience, coupled with a growing need for business efficiencies. There's also wider acceptance of adoption of biometric spike consumers.

Craig Herman: There's also wider acceptance and adoption of biometrics by consumers. New government and commercial compliance requirements and regulations both domestically and internationally are further propelling this market; additionally, rising occurrences of identity fraud and its increasing sophistication, i.e. deepfakes, along with the escalating frequency of internal and external data breaches, are driving demand for robust biometric solutions. These drivers are consistent across all our target industry verticals and align closely with our go-to-market strategy. This is positioning aware to capitalize on these market trends effectively.

Craig Herman: These are a few of the markets driving and fueling this growth. We're seeing increasing demand for consumer convenience coupled with a growing need for business efficiencies. There's also wider acceptance and adoption of biometrics by consumers. New government and commercial compliance requirements and regulations both domestically and internationally are further propelling this market, additionally rising occurrences of identity fraud and its increasing sophistication, i.e, deepfakes, along with the escalating frequency of internal and external data breaches are driving demand for robust biometric solutions. These drivers are consistent across all our target industry verticals and align closely with our go-to-market strategy. This is positioning aware to capitalize on these market trends effectively. Thanks, Craig.

Speaker Change: New Government and Commercial Compliance Requirements and Regulations, both domestically and internationally, are further propelling this market.

Speaker Change: Additionally, rising occurrences of identity fraud and its increasing sophistication i.e. deepfakes along with the escalating frequency of internal and external data breaches are driving demand for robust biometric solutions.

Speaker Change: These drivers are consistent across all our target industry verticals and align closely with our go-to-market strategy.

Speaker Change: This is positioning aware to capitalize on these markets trends effectively.

Craig: Thanks Craig.

Craig: Heidi, as the Chief Product Officer, can you talk through your initial initiatives to drive awareness and market penetration in the commercial space?

Heidi Hunter: Thanks, Craig. Heidi, as the Chief Property Officer, can you talk through the initial, your initial initiatives to drive a wears market penetration in the commercial space? Absolutely.

Heidi Hunter: Heidi, as the Chief Product Officer, can you talk through the initial your initial initiatives to drive awareness of market penetration in the commercial space? now?

Heidi: Ah, absolutely.

Heidi: I think most importantly, my first primary initiation.

Craig Herman: Absolutely. I think most importantly, my first primary initiation was executing, honestly, the thing I love most about my job, spending time with the products and the teams that are building, selling, and supporting them. So, since joining, I've spent time testing the solution and reviewing the capabilities and the work that the team has done historically, but specifically within the last year, year and a half. And this is important because it's the foundation for my effort.

Heidi: Heidi, as the Chief Property Officer, can you talk through the initial, your initial initiatives to drive a wears market penetration in the commercial space? Absolutely. I think most importantly, my first primary initiation was executing, honestly, the thing I love most about my job, spending time with the products and the teams that are building and selling and supporting them. Since joining, I've spent time testing the solution and reviewing the capabilities and the work that the team has done historically, but specifically within the last year, year and a half.

Heidi Hunter: I think, most importantly, my first primary initiation was executing, honestly, the thing I love most about my job: spending time with the products and the teams that are building, selling, and supporting them. Since joining, I've spent time testing the solution and reviewing the capabilities and the work that the team has done historically, but specifically within the last year, year and a half. This is important because the foundation for my effort. I really need to understand the breadth of what Aware has today, what we have, and think about how we apply and translate that into the spaces that we're focused on.

Heidi: was executing, honestly, the thing I love most about my job.

Heidi: Spending time with the products and the teams that are building and selling and supporting them. So since joining, I've spent time testing the solution and reviewing the capabilities and the work that the team has done historically, but specifically within the last year, year and a half.

Heidi: And this is important because it's the foundation for my effort. I really need to understand the breadth of what AWARE has today, what we have, and think about how we apply and translate that into

Craig Herman: I really need to understand the breadth of what Aware has today, what we have, and think about how we apply and translate that into the spaces that we're focused on. So, since joining, doing this has provided me with an opportunity to really conceptualize, strategize, and document the various ways our portfolio applies to the different market areas we want to penetrate in the commercial space. So, moving that forward now, together with the marketing and sales leadership folks, we're now incorporating all this detail into our presentation of ourselves to the commercial market and the execution of our sales strategy.

Heidi: The space is that we're focused on, so since joining, doing this has provided me with an opportunity to really conceptualize and strategize and document the various ways our portfolio applies to the different market areas we want to penetrate in the commercial space.

Heidi: This is important because the foundation for my effort. I really need to understand the breadth of what aware has today, what we have, and think about how we apply and translate that into the spaces that we're focused on. Since joining, doing this has provided me with an opportunity to really conceptualize and strategize and document the various ways our portfolio applies to the different market areas we want to penetrate in the commercial space.

Heidi Hunter: Since joining, doing this has provided me with an opportunity to really conceptualize and strategize and document the various ways our portfolio applies to the different market areas we want to penetrate in the commercial space. So moving that forward now together with the marketing and sales leadership folks, we're now incorporating all this detail into our presentation of ourselves to the commercial market and the execution of our sales strategy. My opinion, my insight is that Aware Solutions are really feature rich and there's a lot of opportunities to attract into light customers and our strategic focus areas. And we're also taking care of, through this approach, to really work through a framework of repeatability and adding leverage, and that affords us the ability to try, learn, and take that corrective action as we work together to drive our market penetration.

Heidi: So moving that forward now together with the marketing and sales leadership folks.

Heidi: We're now incorporating all this detail into our presentation of ourselves, to the commercial market, and the execution of our sales strategy. My opinion, my insights, is that Aware solutions are really feature-rich, and there's a lot of opportunities to attract and delight customers in our strategic focus areas.

Heidi: So moving that forward now together with the marketing and sales leadership folks, we're now incorporating all this detail into our presentation of ourselves to the commercial market and the execution of our sales strategy. My opinion, my insight is that aware solutions are really feature rich and there's a lot of opportunities to attract into light customers and our strategic focus areas. And we're also taking care of through this approach to really work through a framework of repeatability and adding leverage, and that affords us the ability to try learn and take that corrective action as we work together to drive our market penetration.

Craig Herman: My opinion, my insight is that Aware solutions are really feature-rich, and there are a lot of opportunities to attract and delight customers in our strategic focus areas. And we're also taking care through this approach to really work through a framework of repeatability and adding leverage, and that affords us the ability to try, learn, and take that corrective action as we work together to drive our market penetration. And I truly believe with my experience in the commercial identity market, I'm going to enable the team to execute at a faster rate while reducing the amount of time needed to bring new product enhancements to the market.

Heidi: and we're also taking care through this approach to really work through a framework of repeatability and adding leverage and that affords us the ability to try and learn and take that corrective action.

Heidi: As we work together to drive our market penetration, and I truly believe with my experience in the commercial identity market, I'm going to enable the team to execute it a faster rate while reducing the amount of time needed to bring new product enhancements to the market.

Heidi Hunter: And I truly believe, with my experience in the commercial identity market, I'm going to enable the team to execute it at a faster rate while reducing the amount of time needed to bring new product enhancements to the market.

Heidi: And I truly believe with my experience in the commercial identity market, I'm going to enable the team to execute it a faster rate while reducing the amount of time needed to bring new product enhancements to the market.

Craig Herman: Exciting

You mentioned removing non-performing partners from your partner program this quarter. Could you elaborate on this process? Additionally, what impact do you expect this partner program optimization to have on your business going forward?

Craig Herman: You mentioned removing non-performing partners from your partner program this quarter.

Craig Herman: You mentioned removing non-performing partners from your partner program this quarter. Could you elaborate on this process? Additionally, what impact do you expect this partner program optimization to have on your business going forward?

Craig Herman: Could you elaborate on this process? Additionally, what in fact do you expect this partner program optimization to have when your business going forward? Yeah, certainly. We don't find performing versus non-performing partners using multiple metrics. So key indicators of a successful partner: this could include resources assigned to the biometrics on the partner side, overall business focus, marketing resources, and you actually utilization of our resources for enablement and co-marketing. We also assess the partner's engagement in joint sales efforts, their consistency, and bringing new opportunities, as well as the revenue growth through the partnership. Expanding our recurring revenue and market share relies heavily on an active engage in enabled partner ecosystem.

Craig Herman: You mentioned removing non-performing partners from your partner program this quarter. Could you elaborate on this process? Additionally, what in fact do you expect this partner program optimization to have when your business going forward? Yeah, certainly. We don't find performing versus non-performing partners using multiple metrics. So key indicators of a successful partner, this could include resources assigned to the biometrics on the partner side, overall business focus, marketing resources, and you actually utilization of our resources for enablement and co-marketing.

Speaker Change: Certainly, we don't find performing versus non-performing partners using multiple metrics.

Craig Herman: Yeah, certainly, we don't find performing versus non-performing partners using multiple metrics. So key indicators of a successful partner could include resources assigned to the biometrics on the partner side, overall business focus, marketing resources, and usually the actual utilization of our resources for enablement and co-marketing. We also assess the partner's engagement in joint sales efforts, their consistency in bringing new opportunities, as well as the revenue growth through the partnership. Expanding our recurring revenue and market share relies heavily on an active, engaged, and enabled partner ecosystem.

Craig Herman: So key indicators of a successful partner, this could include resources assigned to the biometrics on the partner side, overall business focus, marketing resources, and usually the actual utilization of our resources for enablement and co-marketing.

Heidi: We also assess the partner's engagement in joint sales efforts, their consistency in bringing new opportunities, as well as the revenue growth through the partnership.

Craig Herman: I'm expanding our recurring revenue and market share of our lives heavily on an active engagement enabled partner ecosystem.

Craig Herman: We also assess the partner's engagement in joint sales efforts, their consistency and bringing new opportunities as well as the revenue growth through the partnership. Expanding our recurring revenue and market share relies heavily on an active engage in enabled partner ecosystem. We want partners to actively contribute to our mutual success, not just carry our name. We're a lean organization and we want to be effective, efficient, and focus our resources on partners that are also invested in driving the revenue needle.

Craig Herman: We want partners who actively contribute to our mutual success, not just carry our name.

Craig Herman: We want partners to actively contribute to our mutual success, not just carry our name. We're a lean organization, and we want to be effective, efficient, and focus our resources on partners that are also invested in driving the revenue needle. We regularly review these metrics to identify value adding partners; those consistently falling short may be considered non-performing. This ongoing evaluation helps us optimize our program, focus resources on relationships that drive results for both parties.

Craig Herman: We want partners to actively contribute to our mutual success, not just carry our name. We're a lean organization, and we want to be effective, efficient, and focus our resources on partners that are also invested in driving the revenue needle. We regularly review these metrics to identify value-adding partners. Those consistently falling short may be considered non-performing.

Craig Herman: We're a lean organization, and we want to be effective, efficient, and focus our resources on partners that are also invested in driving the revenue needle. We regularly review these metrics to identify value-adding partners. Those consistently falling short may be considered nonperforming.

Heidi: This ongoing evaluation helps us optimize our program.

Robert Eckel: This ongoing evaluation helps us optimize our program and focus resources on relationships that drive results for both parties. By maintaining high partnership standards, we're creating a more efficient ecosystem that will support our long-term growth objectives.

Heidi: Focus resources on relationships that drive results for both parties.

Craig Herman: We regularly review these metrics to identify value adding partners, those consistently falling short maybe considered non-performing. This ongoing evaluation helps us optimize our program, focus resources on relationships that drive results for both parties. By maintaining high partnership standards, we're creating a more efficient ecosystem that will support our long term growth objectives.

Heidi: by maintaining high partnership standards, we're creating a more efficient ecosystem that will support our long-term growth objectives.

Craig Herman: By maintaining high partnership standards, we're creating a more efficient ecosystem that will support our long-term growth objectives.

Craig Herman: Thanks, Craig. Bob, could you break down the key factors behind the 54% year-over-year reduction in Q2 operating loss? Which areas improved most, and was this driven more by revenue growth or expense management? Are these improvements sustainable, and how do they align with the overall financial strategy?

Bob: Bob, could you break down the key factors behind the 54% year-over-year reduction in Q2 operating loss? Which areas improved most, and was this driven more by revenue growth or expense management? Are these improvements sustainable, and how do they align with the overall financial strategy?

Robert Eckel: Thanks, Craig. Bob, could you break down the key factors behind the 54% year over year reduction in Q2 operating loss? Which areas improved most? And was this driven more by revenue growth or expense management? Are these improvements sustainable? And how do they align with the overall financial strategy?

Bob: Bob, could you break down the key factors behind the 54% year-over-year reduction in Q2 operating loss? Which areas improved most and was this driven more by revenue growth or expense management? Are these improvements sustainable and how do they align with the overall financial strategy? Yeah, Matt. The 54% year-over-year reduction in operating loss was a combination of revenue growth and cost optimization initiatives that we've implemented and executed over the past several quarters that started back in Q3 of 2023.

Bob: Yeah Matt, the 54% year-over-year reduction in operating loss was a combination of revenue growth and cost optimization initiatives that we've implemented and executed over the past several quarters that started back in Q3 of 2023.

Robert Eckel: Yeah, Matt. The 54% year over year reduction in operating loss was a combination of revenue growth and cost optimization initiatives that we've implemented and executed over the past several quarters that started back in Q3 of 2023. As we anticipated in our previous earnings calls, Q2 has indeed seen more substantial benefits from these efforts. So our approach has been twofold.

Bob: Yeah, Matt. The 54% year-over-year reduction in operating loss was a combination of revenue growth and cost optimization initiatives that we've implemented and executed over the past several quarters that started back in Q3 of 2023. As we anticipated in our previous earnings calls, Q2 has indeed seen more substantial benefits from these efforts. So our approach has been to fall, as I mentioned before, cost management. We've been diligent and deliberate with our spending, carefully evaluating each expense to ensure it aligns with our strategic objectives. This enables us to leverage our product offerings that are most in demand.

Robert Eckel: As we anticipated in our previous earnings calls, Q2 has indeed seen more substantial benefits from these efforts.

Robert Eckel: So, our approach has been too full, as I've mentioned before, cost management, we've been diligent and deliberate with our spending carefully evaluating each expense to ensure it aligns with our strategic objectives. This enables us to leverage our product offerings that are most in demand.

Robert Eckel: As I mentioned before, cost management, we've been diligent and deliberate with our spending, carefully evaluating each expense to ensure it aligns with our strategic objectives. This enables us, to leverage our product offerings that are most in demand. On the revenue growth side, simultaneously, we focused on driving increased top line and recurring revenue growth, and this is through term and subscription contracts, which has also positively impacted our bottom line. You know, so overall growth with profitability remains a top priority for us.

Bob: As we anticipated in our previous earnings calls, Q2 has indeed seen more substantial benefits from these efforts. So our approach has been to fall, as I mentioned before, cost management. We've been diligent and deliberate with our spending, carefully evaluating each expense to ensure it aligns with our strategic objectives. This enables us to leverage our product offerings that are most in demand. On a revenue growth side, simultaneously, we've focused on driving increased top-line and recurring revenue growth.

Robert Eckel: On a revenue growth site, some painfully we focus on driving increased top line and recurring revenue growth, and this is through term and subscription contracts, which is also possibly impacted our bottom line.

Bob: On a revenue growth side, simultaneously, we've focused on driving increased top-line and recurring revenue growth. And this is through term and subscription contracts, which has also positively impacted our bottom line. So overall, growth with profitability remains a top priority for us. We're committed to maintaining this balance between the prudent cost management and strategic investments for growth. So overall, this planned reduction in operating loss aligns with an overall strategy of achieving sustainable profitability while still investing in areas that drive long-term growth.

Robert Eckel: So overall, growth with profitability remains a top priority for us. We're committed to maintaining this balance between the prudent cost management and the strategic investments for growth.

Robert Eckel: We're committed to maintaining this balance between prudent cost management and strategic investments for growth. So overall, this plan reduction and operating loss align with the overall strategy of achieving sustainable profitability while still investing in areas that drive long-term growth.

Bob: And this is through term and subscription contracts, which has also positively impacted our bottom line. So overall, growth with profitability remains a top priority for us. We're committed to maintaining this balance between the prudent cost management and strategic investments for growth. So overall, this planned reduction in operating loss aligns with an overall strategy of achieving sustainable profitability while still investing in areas that drive long-term growth. Thanks, Bob.

Robert Eckel: So overall, this planned reduction in operating loss aligns with overall strategy of achieving sustainable profitability while still investing in areas that drive long-term growth.

Bob: Thanks, Bob.

Craig Herman: Craig, we've got a multi-part question here. Can you update us on our progress in the gaming sector, including the reception at the recent iGaming event, and any new partnerships?

Unknown Executive: Thanks, Bob.

Craig Herman: Craig, we've got a multi-part question here. Can you update us on our progress in the gaming sector, including the reception at the recent iGaming event and any new partnerships? What unique challenges or opportunities are you seeing for our biometric solutions in gaming? Also, are there other sectors showing increasing demand for your technologies? How are we positioning ourselves to capitalize on these opportunities?

Craig Herman: Craig, we've got a multi-part question here. Could you update us on our progress in the gaming sector, including the reception at the recent eye gaming event and any new partnerships? What unique challenges or opportunities are you seeing for our biometric solutions in gaming? Also, are there other sectors showing increasing demand for our technologies? How are we positioning ourselves to capitalize on these opportunities?

Craig Herman: What unique challenges or opportunities are you seeing for our biometric solutions in gaming? Also, are there other sectors showing increasing demand for our technologies? How are we positioning ourselves to capitalize on these opportunities?

Craig Herman: Page. Yeah, we're super excited about the gaming industry and what we've been able to do, quite honestly, in a short amount of time in this industry. We've secured some key partnerships that are really driving traction with new customers on this front. We're still learning the market a bit as well as the regulation nuances. There is a great need for a complete biometric-based KY solution. That is definite. It needs to be easily implemented and supported. So, we couple this with our recent productized integration with WooCommerce. This has given us some great momentum in the marketplace.

Craig Herman: Yeah, we're super excited about the gaming industry and what we've been able to do, quite honestly, in a short amount of time in this industry. We've secured some key partnerships that are really driving traction with new customers on this front. We're still learning the market a bit, as well as the regulation nuances.

Craig Herman: Page. Yeah, we're super excited about the gaming industry and what we've been able to do quite honestly in a short amount of time in this industry. We've secured some key partnerships that are really driving traction with new customers on this front. We're still learning the market a bit as well as the regulation nuances. There is a great need for a complete biometric-based KY solution. That is definite. It needs to be easily implemented and supported. So, we couple this with our recent productized integration with WooCommerce. This has given us some great momentum in the marketplace.

Craig Herman: There is a great need for a complete biometric-based KY solution. That is definite. It needs to be easily implemented and supported.

Craig Herman: It is, you know, it needs to be easily implemented and supported. So we couple this with our recent productized integration with WooCommerce. This has given us great momentum in the marketplace. Another one that we're really excited about and is starting to see some traction is the access control market. You know, this is a massive market that spans across both physical and online access control. And specifically, through our partner network, biometric solutions for access control issues are becoming more of a consistent request. We're especially seeing these use cases arise in the Middle East and our LATAM market.

Craig Herman: So we couple this with our recent productized integration with Wu Commerce, this has given us some great momentum in the marketplace.

Craig Herman: Another one that we're really excited about and starting to see some traction is the access control market. You know, this is a massive market that spans across both physical and online access control, and specifically through our partner network, biometric solutions for access control issues are becoming more of a consistent request.

Craig Herman: Another one that we're really excited about and starting to see some traction is the access control market. This is a massive market that spans across both physical and online access control and specifically throughout partner network. Biometric solutions for access control issues are becoming more of a consistent request. We're especially seeing these use cases arise in the Middle East and our Latin markets.

Craig Herman: We're especially seeing these use cases arise in the Middle East and our LATAM markets.

Craig Herman: Thanks Craig. Bob, do you have an updated target time frame for reaching a sustainable cash flow positive operation?

Bob: Thanks, Craig. Do you have an updated target timeframe for reaching a sustainable cash flow positive operation?

Robert Eckel: Thanks Craig. Bob, do you have an updated target timeframe for reaching a sustainable cash flow positive operation?

Robert Eckel: Yeah, I'll take that. As you know, we've made significant progress relative to leveraging our existing technology, which includes our software stack across multiple solutions in our product suite, and we're maximizing our investment. So this has allowed us, as I just said a moment ago, to reduce our operating expenses by 8% in the first half of 2024 compared to 2023, while also growing revenue 17% in the same period. So we feel that we're well positioned to continue to grow our top line revenue, and that should result in sustainable positive cash flow in the near future.

Bob: Yeah, I'll take that. As you know, we've made significant progress relative to leveraging our existing technology, which includes our software stack across multiple solutions in our product suite, and we're maximizing our investment. So, this has allowed us, as I just said a moment ago, to reduce our operating expenses by 8 percent in the first half of 2024 compared to 2023, while also growing the revenue 17 percent in the same period.

Craig Herman: Thanks, Craig.

Bob: Do you have an updated target timeframe for reaching a sustainable cash flow positive operation? Yeah, I'll take that. As you know, we've made significant progress relative to leveraging our existing technology, which includes our software stack across multiple solutions in our product suite, and we're maximizing our investment. So, this has allowed us, as I just said a moment ago, to reduce our operating expenses by 8 percent in the first half of 2024 compared to 2023, while also growing the revenue 17 percent in the same period.

Robert Eckel: So, this has allowed us, as I just said a moment ago, to reduce our operating expenses by 8% in the first half of 2024 compared to 2023, while also growing revenue 17% in the same period.

Robert Eckel: So we feel that we're well positioned to continue a grower top line revenue and that should result in sustainable positive cash flow in the near future.

Bob: So, we feel that we're well positioned to continue to grow our top line revenue, and that should result in sustainable positive cash flow in the near future.

Speaker Change: Thanks Bob, our next question, can you provide an update on the software one partnership? Traditionally, what differentiates aware on the AWS marketplace?

Bob: So, we feel that we're well positioned to continue to grow our top line revenue, and that should result in sustainable positive cash flow in the near future. Thanks, Bob.

Unknown Executive: Thanks, Bob.

Robert Eckel: Thanks, Bob. Our next question is, can you provide an update on the software one partnership? Additionally, what differentiates aware on the AWS marketplace?

Bob: Our next question. Can you provide an update on the Software One partnership? Additionally, what differentiates Aware on the AWS Marketplace?

Speaker Change: Sure, we continue to work with Software One and they've helped us considerably, especially in the Brazilian market.

Bob: Sure. We continue to work with Software One and they've helped us considerably, especially in the Brazilian market. There are fantastic technology partners to us, and continue to give us great guidance.

Craig Herman: Sure, we continue to work with Software One, and they've helped us considerably, especially in the Brazilian market. They're a fantastic technology partner to us and continue to give us great guidance.

Craig Herman: Our next question. Can you provide an update on the software one partnership? Additionally, what differentiates aware on the AWS marketplace?

Craig Herman: They're a fantastic technology partner to us and continue to give us great guidance.

Craig Herman: Sure. We continue to work with software one and they've helped us considerably, especially in the Brazilian market. There are fantastic technology partners to us, and continue to give us great guidance. On the AWS marketplace side, we needed to invest in additional development to really satisfy some of the specific requirements that have come up in the process. We made a decision as a business to focus these resources in areas that have a direct line to revenue while working through the specific requirements in parallel.

Craig Herman: On the AWS Marketplace, we needed to invest in additional development to really satisfy some of the specific requirements that have come up in the process.

Craig Herman: On the AWS Marketplace side, we needed to invest in additional development to really satisfy some of the specific requirements that came up in the process. We made a decision as a business to focus these resources on areas that have a direct line to revenue while working through the specific requirements in parallel. This, this, This building, as well as the additional momentum that we're gaining in some of the markets that are targeted by AWS, coupling these two really makes us feel really good about our differentiation when we do enter the marketplace.

Bob: On the AWS Marketplace side, we needed to invest in additional development to really satisfy some of the specific requirements that have come up in the process. We made a decision as a business to focus these resources in areas that have a direct line to revenue while working through the specific requirements in parallel. This building, as well as the additional momentum that we're gaining in some of the markets that are targeted by the AWS, coupling these two really makes us feel really good about our differentiation when we do enter into the marketplace. The AWS Marketplace is still a part of our strategy, but based on what we're seeing in the markets, current behind-behaviors and cycles, we are really taking advantage of other partner-driven opportunities in the short term.

Craig Herman: You know, we made a decision as a business to focus these resources in areas that have a direct line to revenue while working through the specific requirements and parallels.

Craig Herman: This, this, this.

Craig Herman: This building as well as the additional momentum that we're gaining in some of the markets that are targeted by the AWS. Coupling these two really makes us feel really good about our differentiation when we do enter into the marketplace.

Craig Herman: This building, as well as the additional momentum that we're gaining in some of the markets that are targeted by the AWS, coupling these two really makes us feel really good about our differentiation when we do enter into the marketplace. The AWS marketplace is still a part of our strategy, but based on what we're seeing in the markets, current behind-behaviors and cycles, we are really taking advantage of other partner-driven opportunities in the short term.

Craig Herman: You know, the AWS Marketplace is still a part of our strategy, but based on what we're seeing in the markets, current buying behaviors and cycles, we are really taking advantage of other partner-driven opportunities in the short term.

Craig Herman: Yeah, the AWS marketplace is still a part of our strategy. But based on what we're seeing in the markets, occurring behind buying behaviors and cycles, we are really taking advantage of other partner-driven opportunities in the short term.

Craig Herman: Thanks, Craig. Our next question, it's regarding your $0.4 million license expansion in Europe . What kind of user organization is that?

Unknown Executive: Thanks, Greg.

Craig Herman: Thanks, Craig. Next question. It's regarding your $0.4 million license expansion in Europe. What kind of user organization is that?

Craig Herman: Our next question. That's regarding your $0.4 million license expansion in Europe. What kind of user organization is that? Sure, I can't go into the specific one, but it is a government entity in Europe, one that we have been working with and also alongside a partner. So this touches both our government sector as well as our partnership ecosystem, and it's an expansion of additional licenses. So what we're seeing is more and more users leveraging our platform and our tools in Europe.

Speaker Change: Sure, I can't go into the specific one, but it is a...

Craig Herman: Sure, I can't go into the specific one, but it is a government entity in Europe, one that we have been working with, and also alongside a partner. So this touches both our government sector, as well as our partnership ecosystem, and it's an expansion of additional licenses. So, what we're seeing is more and more users leveraging our platform and our tools in Europe.

Craig Herman: Thanks, Greg.

Craig Herman: Our next question. That's regarding your $0.4 million license expansion in Europe. What kind of user organization is that?

Craig Herman: a government entity in Europe , one that we have been working with and also alongside a partner. So this touches both our government sector as well as our partnership ecosystem and it's an expansion of additional licenses. So what we're seeing is more and more users leveraging our platform and our tools in Europe .

Craig Herman: Sure, I can't go into the specific one, but it is a government entity in Europe, one that we have been working with and also alongside a partner. So this touches both our government sector as well as our partnership ecosystem and it's an expansion of additional licenses. So what we're seeing is more and more users leveraging our platform and our tools in Europe.

Heidi Hunter: Thanks, Craig. Our next question: when you say commercial identity, are you referencing KYC compliance and checkout identity products?

Heidi Hunter: Thanks Craig. Our next question, when you say commercial identity are you referencing KYC compliance and checkout identity products?

Unknown Executive: Next, Greg, our next question.

Heidi Hunter: When you say commercial identity, are you referencing KYC compliance and checkout identity products? I think that one's for me, Heidi. Yes, I am, and honestly, if you've been in the space as long as I was over 12 years, you know that I think a lot of identity began as KYC compliance, but as we have traversed into completely being digitified and everything is a digital experience, that when you talk about being an identity, it's really covering both. So I was there from that transition where we started, you know, doing KYC primarily for compliance in a digital environment to the state we're in now where anytime there's data collection or collection of biometrics, somebody's verifying something about you on your phone.

Heidi Hunter: I think that one's for me, Heidi. Yes, I am. And honestly, if you've been in the space as long as I was, over 12 years, you know that

Heidi Hunter: I think that one's for me, Heidi. Yes, I am. And honestly, if you've been in the space as long as I was over 12 years, you know, that I think a lot of identity began as KYC compliance. But as we have traversed into completely being digitized, and everything is a digital experience that when you talk about being an identity, it's really covering both. So, I was there from that transition where we started, you know, doing KYC primarily for compliance in a digital environment to the state we're in now where anytime there's data collection or collection of biometrics, somebody's verifying something about you on your phone. So, I've seen it all.

Heidi: Next, Greg, our next question. When you say commercial identity, are you referencing KYC compliance and checkout identity products? I think that one's for me, Heidi.

Heidi Hunter: I think a lot of identity began as KYC compliance, but as we have traversed into completely being digified and everything is a digital experience.

Heidi: Yes, I am and honestly, if you've been in the space as long as I was over 12 years, you know that I think a lot of identity began as KYC compliance, but as we have traversed into completely being digitified and everything is a digital experience that when you talk about being an identity, it's really covering both. So I was there from that transition where we started, you know, doing KYC primarily for compliance in a digital environment to the state we're in now where anytime there's data collection or collection of biometrics, somebody's verifying something about you on your phone. So I've seen it all.

Heidi Hunter: Um, that when you talk about being an identity, it's really covering both, so I was there from that transition where we started, you know, doing a KYC primarily for compliance and a digital environment to the state where now where any time there's data collection or collection of biometric somebody's verifying something about you on your phone. So I've seen it all.

Heidi Hunter: So I've seen it all.

Heidi Hunter: Thanks, Heidi. At this time, this concludes our question and answer session. If your question wasn't answered, please email AWARE's IR team at awre-gateway-grp.com. I'd now like to turn the call back over to Bob for closing remarks.

Unknown Executive: Hey, Heidi. At this time, this concludes our question and answer session. If your question wasn't answered, please email our IR team at AWRE at gateway-grp.com.

Robert Eckel: Thanks, Heidi. At this time, this concludes our question and answer session. If your question wasn't answered, please email AWARE's IR team at awre-gateway-grp.com. I'd now like to turn the call back over to Bob for closing remarks.

Matt Glover: Hey, Heidi, at this time, this concludes our question and answer session. If your question wasn't answered, please email our IR team at AWRE at gateway-grp.com.

Bob: I'd now like to turn the call back over to Bob for closing remarks. Yeah, I just want to thank all of you for joining us today. And as always, I'd like to express my sincere appreciation to our employees, partners, and shareholders for their unwavering commitment and support. For those seeking more information, I encourage you to review our investor presentation on our corporate website, and that provides additional details about our strategic initiatives.

Bob: Yeah, I just want to thank all of you for joining us today, and as always, I'd like to express my sincere appreciation to our employees, partners, shareholders, for their unwavering commitment and support.

Robert Eckel: Yeah, I just want to thank all of you for joining us today. And, as always, I'd like to express my sincere appreciation to our employees, partners, and shareholders for their unwavering commitment and support. And for those seeking more information, I encourage you to review our investor presentation on our corporate website, which provides additional details about our strategic initiatives. We look forward to updating you further on AWARE's progress during our next webcast. Matt, I'll turn it over to you.

Matt Glover: Thanks, Bob. I'd like to remind everyone that a recording of today's call will be available for replay via link in the investor section of the company's website. Thank you for joining us on Aware's second quarter 2024 conference call. You may now disconnect.

Bob: I'd now like to turn the call back over to Bob for closing remarks. Yeah, I just want to thank all of you for joining us today. And as always, I'd like to express my sincere appreciation to our employees, partners, shareholders for their unwavering commitment and support. For those seeking more information, I encourage you to review our investor presentation on our corporate website and that provides additional details about our strategic initiatives.

Matt Glover: For those seeking more information, I encourage you to review our investor presentation on our corporate website, and that provides additional details about our strategic initiatives. We look forward to updating you further on Aware's progress during our next webcast. Matt, back over to you.

Bob: We look forward to updating further on the worst progress during our next webcast.

Unknown Executive: Matt, back over to you. Thanks, Bob. I'd like to remind everyone that the recording of today's call will be available for replay via a link in the investor section of the company's website.

Matt Glover: Thanks, Bob. I'd like to remind everyone that a recording of today's call will be available for replay via link in the investor section of the company's website. Thank you for joining us for Aware's second quarter 2024 conference call. You may now disconnect.

Matt Glover: We look forward to updating further on the worst progress during our next webcast. Matt, back over to you. Thanks, Bob.

Unknown Executive: Thank you for joining us for a wait for a Whereas second quarter, 2024 conference call.

Matt Glover: I'd like to remind everyone that recording of today's call will be available for replay via link in the investor section of the company's website. Thank you for joining us for a wait for a whereas second quarter, 2024 conference call.

Matt Glover: [inaudible]

Unknown Executive: You may now disconnect.

Matt Glover: You may now disconnect.

Q2 2024 Aware Inc Earnings Call

Request a DemoDemo

AWRE

Aware

Earnings