Q3 2024 authID Inc Earnings Call
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Bella: Thank you for standing by my name is Bella and I will be your conference operator today at.
Bella: At this time I would like to welcome everyone to the off <unk> third quarter 2024 earnings call.
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Bella: After the Speakers' remarks, there will be a question and answer session.
Bella: You would like to ask a question. During this time simply press the star followed by the number one on your telephone keypad.
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Speaker Change: Thank you.
Speaker Change: I would now like to turn the call over to Guam right. Please go ahead.
Speaker Change: Thank you operator.
Guam right: Great Thanks, and good afternoon.
Graham: This is Graham <unk> General counsel, both I'd say welcome to the <unk> third quarter 2020, followed result conference call.
Graham: As a reminder, this conference is being recorded.
Graham: With me on today's call.
Graham: Van <unk> and CFO Alisa.
Graham: By now you should have access to todays press release announcing our third quarter 2024 results.
Graham: If you have not received this release can be found on our website at www Dot AI.
Graham: Under the Investor Relations section.
Graham: Throughout this conference call, we will be presenting certain non-GAAP financial information.
Graham: This information is not calculated in accordance with GAAP and may be calculated differently from other companies similarly, titled non-GAAP information.
Graham: Quantitative reconciliations of our non-GAAP adjusted EBITDA information to the most directly comparable GAAP financial information.
Graham: In today's press release.
Graham: Before we begin our formal remarks.
Graham: Let me remind everyone that part of our discussion today will include forward looking statements.
Graham: Such forward looking statements are not guarantees of future performance and therefore, you should not place undue reliance upon them.
Graham: These statements are subject to numerous risks certainties that could cause actual results to differ materially from what we expect.
Graham: Some of these risks are mentioned in today's press release.
Graham: As discussed in asphalt 10-K, and other filings, which are made available at www SEC Gov.
Graham: I'd now like to introduce Dr. CEO runs in Europe.
Dr. CEO: Thank you Graham and thank you all for joining us today.
Dr. CEO: I am very excited to cover our third quarter results and provide an update across all of our initiatives.
Dr. CEO: <unk> had a highly productive quarter and I'm pleased with our progress and our overall path of growth.
Dr. CEO: Turning to slide four.
Dr. CEO: We are focused on accelerating and diversifying revenue growth to do that you must continue to improve our technology widened the gap from our competitors and assure our customers that we are offering the best technology superior security and customer delight.
Dr. CEO: It is very important for all three of these product needed to have the depth and experience to help us reach a $100 million.
Dr. CEO: And beyond and so we are excited to welcome Eric So as our new Chief product Officer.
Dr. CEO: Eric brings over 15 years of experience and identity verification and financial services and has a proven track record in driving product innovation.
Dr. CEO: Combined with our disclosed collaboration and building a uniform company Eric positions us to further strengthen our platform and deliver exceptional value to our customers.
Dr. CEO: I also want to cover the news we issued earlier this week announcing that <unk> has signed a $10 million agreement with a next generation AI company to enable biometric authentication for a wide range of industries in India.
Dr. CEO: The agreement represents a $10 million commitment over a three year period with a minimum commitment of $3 3 million each year for licensing.
Dr. CEO: Identity platform services.
Dr. CEO: We are incredibly excited to enter the India market, where over the next 10 years, the biometric authentication industry could see exponential growth in transaction volume as the demand of biometric identification continues to rise.
Dr. CEO: We look forward to closely working with our new partner to deliver a biometric authentication accuracy and a frictionless user experience to a wide variety of customers across banking and financial services emergency services and transportation industries in India and beyond.
Dr. CEO: We also made good progress in securing new customers and OEM contracts in Q3, we signed a multiyear agreement with a global retail technology organization, which will leverage our biometric identity solution to enhance digital experiences for multinational retailers.
Dr. CEO: And serve as an OEM reseller in the Asia Pacific market.
Dr. CEO: This customer deals over $1 million in contract bookings, adding another booking over $1 million coming out of our fab 100 target list.
Dr. CEO: Further we ended the telecommunications sector by signing an agreement with a broadband provider operating in all 50 states, enabling them to streamline and secure onboarding through our biometric identity and document verification solutions.
Dr. CEO: Next I want to highlight some recent customer go lives and successful adoption of our solution.
Dr. CEO: Last quarter I was excited that we took for customers into production Golar.
Dr. CEO: And I'm, even more excited to do with back to back for the second consecutive quarter, we have taken for customers to production go live.
Dr. CEO: And the best part is that.
Dr. CEO: Two deals signed in Q3 when production go live from the same quarter.
Dr. CEO: Matching our current time estimates for go lives, which can take three to six months, depending on the size of the company.
Dr. CEO: We recently made key staff appointments to bolster our sales initiatives.
Dr. CEO: We're excited to add to our team Dana Cheyenne as VP of partnerships and Eric <unk> as VP of sales both of them specializing in financial services the.
Dr. CEO: The additions of Donna adhere further emphasize our commitment to expanding our go to market reach.
We hired these identity domain experts because of their fantastic track record and I am confident they will bring tremendous value to our clients.
Dr. CEO: Continuing to slide five.
Dr. CEO: We are seeing growth in the usage of our proven verify products.
Dr. CEO: At the graph on the left let's start with our approved product <unk>.
Dr. CEO: The average number of proofs processed per quarter before I joined was approximately 20000.
Dr. CEO: From the time, we realize the company in June 2003 to June 2020 for a number of identities process per quarter has gone up approximately 25 times.
Dr. CEO: To an average of 440 <unk>.
Dr. CEO: We are also seeing a strong ramp in volume for the third quarter of 2024, both almost 800 troops being completed.
Dr. CEO: At nearly double the average volumes, we processed during the earlier quarters.
Dr. CEO: And finally over the last 12 months up to the beginning of October 2024 off ideas process more than $2 million crews.
Dr. CEO: Which is more than 50 kinds of transaction volume compared to the years before I started.
Dr. CEO: Looking at the graph on the right are verified product is also seeing great ramp since I took over <unk>.
Dr. CEO: Historically archives registered approximately 600 user identities per quarter.
Dr. CEO: A replay of the company in June 2020, the beginning of October 2024, we have registered an average of 21000 user identities per quarter, which is 42 ex growth.
Dr. CEO: Even better the third quarter has shown strong growth of more than 94000 registered identity.
Dr. CEO: Greater than four X increase from previous quarters during this period.
Dr. CEO: We are really pleased to see our usage ramp finally, showing up in Q3. However at the same time, we have experienced delayed customer go lives and adjustments to their volume expectations that are pushed out anticipated revenue from 2024 to 2025.
Dr. CEO: In consideration of these delayed customer go lives and volume adjustment, we have reduced our full year revenue guidance to a range of 802.
Dr. CEO: To 900000.
Speaker Change: Ed will walk us through the financial shortly.
Speaker Change: While we are disappointed to bring down our guidance I want to emphasize that this is still four X growth over last year during which I was only fully operational for six months.
Speaker Change: Again, the fact that we are successfully signed customers and taken them live within the same quarter showed significant improvement demonstrating that we are much more capable today than we were six months ago.
Speaker Change: As we sign more clients and ramp customers, our revenue and <unk> projections will get much more consistent.
Speaker Change: Moving to slide six.
Speaker Change: We have invested heavily in improving our technology and in making significant innovation that will unlock adoption of using biometric authentication.
Speaker Change: Made significant strides in advancing privacy capabilities by completely eliminating every single privacy and compliance concerns for adopting biometrics.
Speaker Change: And large enterprise customers have told us they are only doing technology evaluations with off because we have eliminated privacy and compliance issues associated with scoring biometric data.
Speaker Change: We have always wanted to use biometrics or hesitant due to the potential liabilities, while regulations, where biometrics are still being enacted.
Speaker Change: One customer size that you'd have to higher compliance officer, who specialize in biometrics, if they were to use a biometric solution.
Speaker Change: All of that concern is completely gone with our release of version four point out with privacy.
Speaker Change: We can now provide evidenced based identity verification without compromising user biometric privacy.
Speaker Change: This is critical as the world moves away from passive and predicted based identity verification and moving towards evidence based identity verification.
Speaker Change: In addition, we have achieved a tremendous leap and accuracy with a fast match rate of one 1 billion simply explained for every set of 1 billion people, we may get it wrong just months.
Speaker Change: It was 8 billion people on the planet, we would only get it wrong eight times.
Speaker Change: This is near perfect accuracy.
Speaker Change: This is far more accurate than the NIFT standard of one in 100000.
Speaker Change: Or apples phase IV at one in $1 million.
Speaker Change: In this new release, we continue to grow faster and processing fees.
Speaker Change: <unk> added more capabilities to license detection to combat AI and deep <unk>. In addition, we are focused on user flows by improving the algorithms for document capture to improve completion rates as.
Speaker Change: As well as enhance deduplication capabilities that cleanup identity records were fraudulent accounts can exist and lastly to make sure we properly serve our enterprise customers. We have completed the integration needed to incorporate <unk> into their platforms and.
Speaker Change: I am proud of our team and our third quarter accomplishments and we remained focused on executing our strategy and driving growth to finish the year strong.
Speaker Change: With that I would like to turn over the call to our Chief Financial Officer adds Toledo.
adds Toledo: Thank you Ron.
Speaker Change: Ryan highlighted we continued to execute our strategy and expand our market reach to record growth during the quarter.
Speaker Change: The following highlights compare our GAAP results for the quarter and nine months period ended September 32024, with the quarter and nine months period ended September 32023, unless specified otherwise.
Speaker Change: Looking at slide seven.
Speaker Change: Total revenue for the quarter was $249000 compared to $43000 a year ago.
Speaker Change: For the nine month period total revenue was 687000 compared with 118000 a year ago.
Operating expenses for Q3 were $3 8 million flat compared to the prior year for the.
Speaker Change: Nine month period operating expenses were $10 7 million compared with $7 6 million last year.
Speaker Change: The 2024 increase was primarily due to a onetime noncash expense reversal in Q1 2023 of $3 $4 million from the reversal of certain stock based compensation related to employee termination, which was not repeated in 2024.
Speaker Change: Net loss from continuing operations for the quarter was $3 4 million of which noncash charges was <unk> 6 million.
Speaker Change: There was a net loss of $3 7 million a year ago of which non cash charges were $1 6 million.
Speaker Change: For the nine month period net loss from continuing operations was $9 7 million, including $2 2 million in noncash charges.
Speaker Change: This compares to a net loss of $16 4 million for the same period last year, which included $10 4 million in non cash and one time severance charges with approximately $7 $5 million related to the exchange of convertible notes for common stock in 2023.
Speaker Change: Net loss per share for the quarter improved to 31.
Speaker Change: Compared to <unk> 47, a year ago.
Speaker Change: For the nine months period net loss per share improved to 97.
Speaker Change: With $3 five for the same period last year.
Speaker Change: Next let's turn to <unk> on slide eight.
Speaker Change: We also monitor and manage our remaining performance obligation or Rps in accordance with GAAP and as noted in our financial statements.
Speaker Change: <unk> provides a measure of the minimum revenue expected to be recognized from a signed contract based on our customers' contractual commitment.
Speaker Change: Before I get into our RPM results for the quarter I wanted to take a minute to illustrate the way that RPM is determined in our business and how it flows into revenue over time.
Speaker Change: This slide illustrates the progression of <unk> into revenue for a particular deal in this case the deal with $10 million in RVO signed in the fourth quarter of 2024, which we announced earlier this week.
Speaker Change: The $10 million. In this example is calculated by looking at the contracted usage minimums or car of $3 $3 million per year over a three year contract term.
Speaker Change: In other words, three years times $3 $3 million per year equaled $10 million in RPM.
This $10 million will be recognized over time as revenue as highlighted in the car column in dark blue.
Speaker Change: As the revenue is recognized.
Speaker Change: <unk> balance highlighted in the purple bars in the lab will decrease accordingly until all revenues recognized.
Speaker Change: Lastly, as discussed in prior earnings call UAC or usage above commitment highlighted in the light blue bars is expected to contribute additional revenue beyond the IPO as the customer ramps volume beyond contractual minimum levels in the second and third contract year.
Speaker Change: In summary, RPI represent the Grand total of car associated with each customer contract transitions into recognized revenue over the term of the contract.
Speaker Change: Moving to slide nine.
Speaker Change: As of September 30, our total RPM was $3 8 million.
Speaker Change: The decrease of <unk> 4 million over the prior quarter due to the impact of certain customers have delayed their go lives and expected usage ramp as Ron referenced earlier.
Speaker Change: As we sign more customer contracts, they will be less variability with respect to our IPO numbers.
Speaker Change: The Q3 IPO includes deferred revenue of <unk> 3 million.
Speaker Change: Deferred revenue represents advanced payments received which are not yet recognized as revenue.
Speaker Change: The current RPI also includes $3 5 million in additional noncash level revenue, which has not been recognized under contracts that were signed in 2023 and through the third quarter of 2020 for.
Speaker Change: This compares favorably with the IPO at the same period last year, which was approximately $1 $9 million.
Speaker Change: We expect to recognize the full <unk> of $3 8 million over the entire life of the contract, which you typically start with a three year term.
Speaker Change: Over the next 12 months ending September 32025, the company expects to recognize revenue of approximately 27% or $1 million of the $3 8 million in IPO based on contractual commitment unexpected usage patterns.
Speaker Change: Given the additional insight we now have on our Q4 pipeline bookings. We also expect to grow our IPO to a range of $13 million to $14 million by the end of the year up from the previously stated target of $12 million to $13 million.
Speaker Change: While the IPO is based on contractual commitments as agreed to by our customers. The expected time to recognize revenues based on our best estimates given the current known facts and circumstances.
Speaker Change: Of course, <unk> always based on the minimum contractual commitments. We have reason to believe in each of these customers will eventually exceed the minimum commitments.
Speaker Change: Now onto our non-GAAP results on slide 10.
Speaker Change: Adjusted EBITDA loss was $2 9 million for Q3, compared with $2 1 million loss for the same period last year.
Speaker Change: For the nine month period, adjusted EBITDA loss of $7 8 million compared with 6.0 million loss for the same period last year.
Speaker Change: The increase in EBITDA losses, primarily due to reinvestment in employees and contractors following Q1 2023 restructuring.
Speaker Change: We also monitor and report on <unk> or annual recurring revenue, which is defined as the amount of recurring revenue earned during the last three months in the relevant period as determined in accordance with GAAP multiplied by four.
Speaker Change: We announced today are as of Q3 increased to $1 million compared to <unk> 2 million of IRR as of Q3 last year.
Speaker Change: Turning to dollar or booked annual recurring revenue, which is the projected amount of annual recurring revenue. We believe will be aired under contracted orders looking at 18 months from the date of signing of each customer contracts.
Speaker Change: The gross amount of bar signed in the third quarter of 2024 was one 5 million up from $1.0 million to $2 million of gross par a year ago.
Speaker Change: The gross amount of bar signed in Q3 also increased quarter over quarter from the gross bar of <unk> 6 million in Q2.
Speaker Change: Our Q3 bar included expansion into telecommunications and retail technology use cases.
Speaker Change: Net buyer, which reflects the deduction of bar from contracts previously included in our reported bar that we're subject to attrition during the quarter.
It was approximately $0 compared to $1 million of Fr signed in the third quarter of 2023.
Speaker Change: The reduction from gross to net bar in Q3 due to the impact from certain customers that have delayed their go lives and expected usage here.
Speaker Change: As previously explained during our first quarter earnings call far comprises two components, which we refer to as car in USD.
Speaker Change: Car or committed annual recurring revenue represents a total annual customer contractual commitment through fixed license fees and minimum acreage commitments. These.
Speaker Change: These commitments are directly recognizes revenue and each contract here after the customer goes live with the service.
Speaker Change: Q3, 2024 car represented <unk> six $1 million approximately 53% of reported box.
Speaker Change: UAC our estimated usage above commitment is an estimate of annual customer usage that will exceed contractual commitments.
Speaker Change: The Q3 2024 UAC represents the remaining <unk>, five 4 million or 47% of reported bar.
Speaker Change: Turning to our revenue growth stages on slide 11.
Speaker Change: As we work to build the sustainable recurring revenue stream, we continually review our progress through the following revenue growth stages.
Speaker Change: The first milestone we use to monitor our growth as bookings as measured by bar.
Speaker Change: For the nine month period in 2024, we realize the total gross par of $188 million approximately a 48% increase over the same period in so let me say great.
Speaker Change: Regarding our customer financial commitments, we monitor our revenue performance obligation our IPO.
Speaker Change: As I detailed earlier as at the end of the quarter, we secured over $3 $8 million, an IPO at $1 $9 million increase over the IPO secured by the end of Q3 2002 accurate.
Speaker Change: Our third reporting metric is revenue recognized in accordance with GAAP.
Speaker Change: Our year to date revenue of 687 grew substantially over the same periods in 2023.
Speaker Change: And as our customer contracts mature, we will increase our focus on monitoring and customer retention and expansion.
Speaker Change: <unk> will include refining our sales and support methodologies to deepen our customer relationships and increase the value added by our services.
Speaker Change: Continued usage growth use case expansions renewals and the sale of new relevant products.
Speaker Change: Looking at our full year targets and guidance for 2024 on slide 12.
Speaker Change: As Ron mentioned, while we were pleased to see our usage ramp showing up in Q3, we were expecting to see this ramp sooner.
Speaker Change: As a result, a portion of the revenue anticipated in 2024 will be shifted out of the year, which has impacted our full year guidance.
Speaker Change: Considering these great customer go lives and adjustments to their volume expectations for the full year 2024, we now expect revenue in the range of 800 to $900000 based on the contracts we have in place and as we continue to monitor our customer implementations throughout the rest of the year.
Speaker Change: While not the seven next year over year growth you originally expected.
Speaker Change: Signed contracts this would still represent a forex year over year revenue growth.
Speaker Change: Looking to book era.
Speaker Change: Our sales pipeline grow in the third quarter to over $33 million.
Speaker Change: Based on this robust growth in there for projected close dates as well as the large customer contracted out earlier. This week, we remain committed to our previously stated target of $9 million in bar for 2024, which represents a three <unk> year over year bookings growth.
Speaker Change: And as I mentioned earlier, we also now expect to grow our IPO to a range of $13 million to $14 million up from the previously stated target of $12 million to $13 million.
Speaker Change: With that operator, we would now like to open up for questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
We will pause for just a moment to compile the Q&A roster.
Speaker Change: Your first question comes from the line of Keith Sullivan with robots Advisors. Your line is now open. Please go ahead.
Speaker Change: Hi, Ron Congrats on the on.
Speaker Change: On the order from India could you expand upon that a little and then I have a couple of follow ups.
Speaker Change: Much of keeping the privacy of the customer, but certainly it is a partner in India that is focused on generation AI coding and coding development. So what does that mean basically they're a platform that will basically act like.
Speaker Change: Tens of thousands of human developers.
Speaker Change: And now utilizing.
Speaker Change: Generation AI platform to do that coding in and probably one source at the time.
Speaker Change: Those applications that are being coded predominantly in the region of India and beyond are being shipped with username password as the default cyber security protocol and the partnership we have put in place that will be the default OEM.
Speaker Change: Security provider for all those applications. So it's a fantastic partnership and that we will be able to ship biometrics as a default application to all their customers and clients throughout India and that target. So we're very excited about the partnerships looking forward to doing that.
Speaker Change: Bringing in and delivering for those customers.
Speaker Change: Okay.
Speaker Change: I was wondering if you could help me understand a couple of things number one.
Speaker Change: So it's.
Speaker Change: It's great that you brought on new customers and you are bringing them on SaaS or.
Speaker Change: But I'm trying to understand why the.
Speaker Change: The revenue guidance for Q4, which is implied in your annual guidance is flat again, given that new customers are going live.
Speaker Change: And then also.
Speaker Change: <unk>.
Speaker Change: No.
Speaker Change: Hello, $1 1 million de booking of bar.
Speaker Change: Bar represents revenue 18 months out.
Speaker Change: I'm trying to understand I mean, theyre going slower does that mean that.
Speaker Change: Net revenues.
Speaker Change: Now further than 18 months out or does that mean that you.
Speaker Change: Good and estimate the usage properly I, just want to kind of understand that better.
Speaker Change: So I'll take I'll take that first part and Ed I'll ask you to jump in on the second part.
Ed: So essentially like for.
Speaker Change: The delays are.
Speaker Change: Ladies and go lives occur for various reasons. We we are focused on supporting the customers and helping them go lives and sometimes they have some issues and so we're really focused on preserving that relationship as opposed to.
Speaker Change: In 14, and ruining the partnership relationship as opposed to focusing on getting those customers live so basically delays.
Speaker Change: We're going to kind of work with that customer works through those delays because once we do get the miles.
Speaker Change: We can start to realize that volume.
Speaker Change: As I said earlier, we believe we will ultimately receive all of that expected revenue in 2025, instead of 2020 for essentially the ramp and getting them live just starting to happen here in Q3. So all of that good news I'm seeing in terms of those improvements. So it came a little bit later and then thus the ramping started happening in Q3. So this is why.
Speaker Change: We're reducing the guidance is because we basically ran out of runway.
Speaker Change: The go lives, obviously delay and impact the accounting treatment of our revenue so.
Speaker Change: Unfortunately, that's just the.
Speaker Change: The result of this we don't expect this to be a trend though to continue in the future.
Speaker Change: Hi.
Speaker Change: In terms of how we're doing this as a business I'm really pretty pleased.
Speaker Change: Pleased with the usage ramp showing up and if you saw in that chart. We are drastically improving the number of transactions per product over the course of the period will be over the last six months and over the last year and even jumping from Q2 to Q3, we're still seeing double digit growth on both product site.
Speaker Change: Usage, so from a investor perspective, or from a customer perspective, you want to see adoption and you want to see that growth happening again. Unfortunately for us it came a little delayed but as we sign more clients.
Speaker Change: The ramp.
Speaker Change: Ramping customer event and ramping revenue and also arc yield projections and.
Speaker Change: And you have more of those to sample against that will allow us to be much more consistent in our estimates.
Speaker Change: One of the things that we have a lot of pride in our what we're trying to do to make sure that were very accurate in this is that we.
Speaker Change: We are working with our clients to make sure that they have.
Speaker Change: Our team is ready and their resources and their projects aligned sometimes we sign a customer are they ready to go live and then some other major priority comes up and now instead of being up.
Speaker Change: Number two our primary number three it gets shifted.
Speaker Change: Three months or two months or they don't have resources. So we're also.
Speaker Change: We're taking the steps to make sure that their plan is aligned with our plan and then secondarily.
Speaker Change: We're making sure that we as a technology team.
And our own people are in place and our technology in place to help make sure that the product is integrated a lot faster. So they are just a couple of really remediation that we're doing to make sure that we can make this more consistent.
Speaker Change: And Adam do you want to take the second part of that question.
Okay.
Adam: Sure Yes.
Adam: Ron I think that what you said it all.
Speaker Change: Covered a lot of what I would have answered I would just add that as for the bar point at the end that we do measure bar with the expectation of 18 months from contract signing so in this case of a delayed go live we exactly to your point, we reduced the bar associated with that and the net bar.
Speaker Change: Reflect the fact that that revenue ramp will likely happen after 18 months from signing.
Speaker Change: However, we do still have the customer and we do are working diligently to get them.
Speaker Change: Fully ramped.
Speaker Change: As Ron just described and we do have.
Speaker Change: Definitely we'll be working to drive to the original Barr and beyond although it is not reflected in the net.
Speaker Change: Number for that reason.
Speaker Change: Great. Thank you.
Speaker Change: Again, if you would like to ask a question. Please press star number one on your telephone keypad.
Speaker Change: Your next question comes from the line of Gary <unk> of deep knowledge of investing please go ahead.
Speaker Change: Thank you Hey, guys I've got a couple of questions about the guidance you've given here.
Speaker Change: You kept the bar number for the year the guidance at 9 million if I look at slide 11 in the presentation. It looks like your bar for the first three quarters of the year was just under $2 million and then if I go to.
Speaker Change: Slide eight where you lay out the bar for the new $10 million contract, we add that up that looks like about $15 million. So you signed this.
Speaker Change: It looks like $15 million.
Speaker Change: Bar contract plus another almost $2 million why.
Why is the Barnum of for this year are you looking for $9 million to me it looks like it should be $17 million. If it were just where you were plus the new customer.
Speaker Change: Yes, Ryan I can take this one.
Speaker Change: Hey, guys nice to hear from you. Thanks for the question.
Speaker Change: I will just clarify the calculation on the $10 million contract I think that might help here so for the $10 million of RPI.
Speaker Change: We discussed in the deal that was announced earlier this week.
Speaker Change: A three year over three year period that is $3 3 million per year in car.
Speaker Change: So the UAC on that deal would be another three 3 million per year for a total of $6 6 million in bar.
Speaker Change: Contract car, a $3 3 million UAC is about double that three three for a total of $6 six adding.
Speaker Change: Adding that $6 6 million as part of the $1 9 million in Q3 year to date bar leaves us with the $8 $5 million of bar. If you just add those two together.
Speaker Change: We do have the pipeline that we believe we are at least close the remaining 500, K gap and get us to $9 million for 2024.
Speaker Change: Got it okay. So you were gone off the Max number not the total number that makes sense.
Speaker Change: The other question I have France, a little bit of a follow up.
Speaker Change: Ricky was asking.
The last couple of quarters, you've had large increases in revenue as you've started to onboard customers and that started to ramp.
Speaker Change: Given that you had that book of business that was building.
Speaker Change: And I understand you had delays implementing some of this business in the third quarter, Okay got it.
Speaker Change: But why would revenue be coming down in both the third and fourth quarter, because thats what happened and then what youre guiding to.
Speaker Change:
Speaker Change: Why is the existing business not at least going forward and then what.
Speaker Change: Delayed implementations you had in the second and third quarter, we start to see that in the fourth quarter right or what am I missing.
Speaker Change: Yes.
Speaker Change: That one as well.
Speaker Change: So yes, <unk> is based on the contractual commitments by each of our customers.
Speaker Change: In select situations, including customers with delayed volume ramp we may have to give a customer a concession in the best interest of the company that would reduce our <unk>.
Speaker Change: And we retain the customers benefit from there you suggest they grow.
So.
Speaker Change: That.
Speaker Change: It really actually I should say.
Speaker Change: The delay in the delay.
<unk> of the customer is causing us to make a concession in the sense of modifying the contract and move it out to future years and.
Speaker Change: By extending the term by by one year.
Speaker Change: Will reduce the revenue recognized over the remaining period of the contract the extended period of the contract and the result of that mechanically from one quarter to the next would be a reduction in the in the run rate for that customer, which is why we're seeing the revenue go down just between Q3 and Q4, however, with our.
Speaker Change: Expected ramp and exceeding of those minimums as well as new customers coming online, we do expect that to.
Speaker Change: To continue to turn in the other direction.
Speaker Change: Okay got it thank you.
Speaker Change: Mhm.
Speaker Change: Your next question comes from the line of <unk> Solomon Epilemma Advisors. Your line is open. Please go ahead.
Speaker Change: Yeah.
Speaker Change: So can you talk about some of the types of customers and use cases that you're looking at in terms of your pipeline.
Speaker Change: I like to look forward, a little bit and kind of understand where you think the business is going in and what types of customers are using are going to be using the product.
Speaker Change: I'll share as much as I can as you obviously pipeline as the names are obviously private but I'll talk about just in general the types of customers and clients.
Speaker Change: We are focused predominantly in the financial services sector.
Speaker Change: Just came off of 2000 2020, just recently.
Speaker Change: Our technology and our core team really focuses on financial services. So that's really the core of where we're applying our pipeline.
Speaker Change: Do have additional major verticals outside of that pipeline that Argos financial services.
Speaker Change: Retail management hotels casinos healthcare.
Speaker Change: And.
Speaker Change:
Speaker Change: I already said it.
Speaker Change: The retail retail technology.
Speaker Change: Telecom, we just signed telecom this quarter as well.
Speaker Change: For that we had in the press release, but these these.
Speaker Change: The pipeline is predominantly financial services the banks.
Speaker Change: Those large payments institutions in workwear plc's with those organizations now and we're hoping that's what's going to drive the bigger opportunities here through 2025.
Speaker Change: Okay. Thank you.
Speaker Change: Your next question comes from the line of Deane today, Chris. Your line is now open. Please go ahead.
Chris: Hi, Ron congratulations on the new contracts.
Chris: Could you give us some color on the financial capacity of the Indian firm that is obligated under the terms of the $10 million minimum commitment contract.
Speaker Change: I cannot unfortunately.
Speaker Change: Okay I just was wondering.
Speaker Change: But the volume.
Speaker Change: Yes.
Speaker Change: Not that identity is the financial capacity.
Speaker Change: Good color.
Speaker Change: Okay.
Speaker Change: <unk>, what can you share.
Speaker Change: Well, we certainly grant hygiene, we certainly believe that capability.
Speaker Change: Hey, this is about the bundle that's the question.
Speaker Change: Yes. It is.
Speaker Change: First organization.
Speaker Change: It's a multibillion dollar organization.
Speaker Change: Okay.
Speaker Change: One is or no.
Speaker Change: Again, if you would like to ask a question press star one on your telephone keypad.
Speaker Change: Okay.
Speaker Change: While we are waiting.
Speaker Change: Another question in case, there is one John spoke a little bit more about the key people that you have.
Speaker Change: We've added so you're talking about.
Speaker Change: Alright, great briefly talk a little bit more about what you expect them to bring to the organization.
Speaker Change: Okay.
Speaker Change: Well as the as the announcements for the $10 million contract with that partner as you can see partnerships are very important to offer these business I've been talking about this for almost a year now where in order for the business to start to see accelerated growth in my in my previous company.
Speaker Change: We use partnerships to add 262 customers a quarter at that type of speed of that type of scale. So way off I got at scale is through that partnership program with Donna strongly and onboard. We finally have a dedicated expert on the partnership leadership product as opposed to all of US we're working through that leader.
Speaker Change: No.
Speaker Change: We're working through that partnership focus together and now we have a dedicated leader that's going to focus on that so her job in her responsibility is to not only extrapolate the $10 million to MIT out of that partnership I'd like I had alluded to and what our bar numbers. We're talking about is we're actually looking to do more than that usage UAC.
Speaker Change: And go above and beyond and so the way we do that is obviously through the partnership channel and that's what Dan is expertise.
Speaker Change: And then Eric <unk> on that front will be added to the organization.
Speaker Change: Financial services expert.
We worked with them in the past she worked on the Big Fat 100 financial services deals specifically.
Speaker Change: And in short period of time from just bringing on board. He has brought a new financial services customers for us to go into <unk> with our proof of concepts with so those two additions were very strategic for us we've been waiting for the opportunity to pick up people like that's obviously off to get to a point of success, where we can demonstrate.
Speaker Change: Right, we can close small deals big deals for us to attract them and Luckily, we did that and we've been able to add him to the team.
Speaker Change: Great. Thank you.
Speaker Change: I will now turn the call back over to Mr. Taken ROE for the closing remarks.
Speaker Change: Alright, Thank you everybody for listening to the call today, we look we look forward to speaking with you when we report our fourth quarter and full year 2020 for results in 2025. Thank you again for joining us.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.
Please wait the conference will begin shortly.
Speaker Change: Sure.
Speaker Change: Sure.
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Speaker Change: Yes.
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Yes.
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Speaker Change: Yes.
Speaker Change: Okay.
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Speaker Change: Thanks.