Q4 2024 authID Inc Earnings Call
Operator: Good afternoon, everyone, and thank you for your participation in today's conference call to discuss authID fourth quarter and full year 2024 financial results.
Okay.
Good afternoon, everyone and thank you for your participation in today's conference call to discuss <unk> fourth quarter and full year 2024 financial results.
Graham Arad: I would now like to turn the call over to authID General Counsel, Graham Arad. Graham, please go ahead. Thank you, operator. Greetings and good afternoon. This is Graham Arad, General Counsel at authID.
I would now like to turn the call over to I D. General Counsel grabbed him I read Graham. Please go ahead.
I.D. Graham: Thank you operator, great. Thanks, and good afternoon. This.
Speaker Change: This is Greg <unk> General counsel.
Graham Arad: Welcome to the authID fourth quarter and full year 2024 earnings conference call. As a reminder, this conference is being recorded.
Speaker Change: Welcome to the oil side, the fourth quarter full year 2024 earnings conference call.
Speaker Change: As a reminder, this conference is being recorded.
Graham Arad: With me on today's call are our CEO, Rhon Daguro, our CFO, Ed Sellitto, and our founder and CTO, Tom Szoke.
Speaker Change: With me on today's call are out the run to go right.
Alicia now founder of <unk> outcomes.
Graham Arad: By now, you should have access to today's press release announcing our fiscal year 2024 results. If you have not received this, the release can be found on our website at www.authid.ai under the investor relations section.
Speaker Change: By now you should have access to todays press release announcing our fiscal year 2020 full results.
Speaker Change: You have not received the release can be found on our website at www Dot all five data AI under the Investor Relations section.
Graham Arad: Throughout this conference call, we will be presenting certain non-GAAP financial information. This information is not calculated in accordance with GAAP and may be calculated differently from other companies similarly titled non-GAAP information. Quantitative reconciliation of our non-GAAP adjusted EBITDA information to the most directly comparable GAAP financial information appears in today's press release.
Throughout this conference call, we will be presenting certain non-GAAP financial information.
This information is not calculated in accordance with GAAP and may be calculated differently from other companies similarly, titled non-GAAP information.
Speaker Change: Quantitative reconciliations of our non-GAAP adjusted EBITDA information to the most directly comparable GAAP financial information appears in today's press release.
Graham Arad: Before we begin our formal remarks, let me remind everyone that part of our discussion today will include forward looking statements. So that forward-looking statement does not guarantee the future performance, and therefore you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Some of these risks are mentioned in today's press release. Others are discussed in our Form 10-K and other filings which are made available at www.fcc.gov.
Speaker Change: Before we begin our formal remarks, let me remind everyone that part of our discussion today will include forward looking statements.
Such forward looking statements are not guarantees of future performance and therefore, you should not put undue reliance on them.
Speaker Change: These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect.
Speaker Change: Some of these risks are mentioned in today's press release.
Others are discussed in our Form 10-K, and other filings, which are made available at www SEC Gov.
Rhon Daguro: I'd now like to introduce our CEO, Rhon Daguro. Thank you, Graham. And thank you all for joining us today to discuss our fourth quarter and full year 2024 results. authID is a biometric authentication company focused on knowing who's behind the device. While artificial intelligence has made incredible strides across many use cases within the last two years, it has also brought advances in deep fake capabilities, which make it increasingly difficult to verify a person's identity.
Speaker Change: I'd now like to introduce <unk> CEO Ron <unk>.
Ron: Thank you Graham and thank you all for joining us today to discuss our fourth quarter and full year 2024 results.
RFID is a biometric authentication company focused on knowing who is behind the device.
Ron: Artificial intelligence is made incredible strides across many use cases within the last two years. It has also brought advances in DPI capabilities, which make it increasingly difficult to verify a person's identity.
Rhon Daguro: I want to start off the call by sharing the statement which captures the role authID plays in today's world. Artificial intelligence is producing the most realistic, inauthentic content the world has ever seen. The only way to allow companies to ensure authenticity is to give them the capability to trust the physical presence of an individual human being. This is what authID delivers.
Ron: I want to start off the call by sharing the statement, which captured the roll off and he plays in today's world.
Ron: Artificial intelligence is producing the most realistic and authentic content the world has ever seen.
Ron: Only way to allow companies to ensure authenticity forgive them the capability to trust the physical presence of an individual human being this is what RFID delivers.
Rhon Daguro: I'm very proud of our 2024 growth, not only across our financial metrics, but also in the foundation we have built to be a dominant player in this rapidly expanding market.
Speaker Change: I'm very proud of our 2020 for growth not only across our financial metrics, but also in the foundation, we have built to be a dominant player in this rapidly expanding market. When I began my tenure as CEO. After he created a product that I believe had the potential to be a winner, but the team was down to the bare minimum the company was in financial strength.
Rhon Daguro: When I began my tenure as CEO, authID created a product that I believe had the potential to be a winner, but the team was down to bare minimum, the company was in financial strain. My mandate was to rebuild authID to deliver strong financial and operational results and rebuild a company that lacked market credibility. So 18 months ago, we set ambitious goals, not to just turn the business around, but to quickly grow by assembling a world-class team, positioning the technology to be market leading in every category of biometric authentication. I am proud to say that we have quickly made great progress in positioning for aggressive growth, and our business has improved across all key metrics.
Speaker Change: Mandate, what the rebuild off I need to deliver strong financial and operational result, and rebuild a company that lack market credibility. So in 18 months ago, we set ambitious goals not just turned the business around but to quickly grow by suddenly the world class team positioning the technology to be market, leading in every category of biometric authentication.
Speaker Change: I am proud to say that we have quickly made great progress in positioning for aggressive growth in our business has improved across all key metrics.
Rhon Daguro: We built a proven go to market plan to execute a high growth year over year strategy, where we centered our entire organization around 300 core accounts divided into three categories, fast high growth companies, large enterprise companies, and channel partners. We calibrated our sales pipeline to the rate of 9 million a quarter and we closed many fast customers as we could, while nurturing large accounts for our 2025 pipeline. To this end, we assembled a team of identity domain experts that large companies can trust and feel confident to do business with. We also had to refine our software to be enterprise ready to service large brand name accounts.
Speaker Change: We built a proven go to market plan to execute a high growth year over year strategy, where we've centered our entire organization around 300 core counts provided the three categories.
Speaker Change: High growth companies large enterprise companies and channel partners, we calibrated our sales pipeline to the rate of $9 million a quarter and it caused many fast customers as we could while nurturing large accounts for our 2025 pipeline.
And we assembled a team of identity domain experts that large companies can trust and feel confident to do business with we also had to refine our software to be enterprise ready to service large brand name accounts. We did it all in just 18 months time and here's what <unk> achieved in 2024.
Rhon Daguro: We did it all in just 18 months time, and here's what authID achieved in 2024. Let's start with booked ARR, which is the total of committed ARR plus estimated usage above committed ARR, 18 months from signing the contract. We set out to achieve a five-year T2D3 growth target, which is triple growth year one, triple growth year two, and double growth in years three, four, and five to get to 100 million in ARR. For the first year, we originally targeted 3 million in booked ARR over 12 months, but we achieved that target within six months. 3 million represented more than 3x in booked ARR from previous years.
Speaker Change: Let's start with booked.
Speaker Change: <unk>, which is the total of committed <unk> plus estimated usage above committed.
18 months from signing the contract.
Speaker Change: We set out to achieve a five year <unk> growth target, which is triple growth year, one triple growth in year, two and double growth in years, three four and five to get to a 100 million and for the first year, we originally targeted $3 million and booked over 12 months, but we achieved that target within six months $3 million.
Speaker Change: Presenting more than three acts and booked from previous years for 2024, we aimed for a second <unk> growth year targeting $9 million and I'm very happy to report that we achieved that three X goal of $9 million. This year. We also improved our remaining performance obligation or RTL by three five X from $4 million to over four.
Rhon Daguro: For 2024, we aim for our second 3x growth year, targeting 9 million. And I'm very happy to report that we achieved that 3x goal of 9 million this year. We also improved our remaining performance obligation or RPO by 3.5x from 4 million to over 14 million. To reiterate, we have performed at least 3x in both ARR and RPO. Despite our size, we have positioned ourselves to partner with very large customers, some of whom are in the late stages of our sales cycle. We expect to close multiple Fortune 500 and multinational customers in 2025. We have increased our pipeline generation activity with an open pipeline of over 3x the 18 million in bookings we are targeting.
Speaker Change: $14 million.
Speaker Change: To reiterate we have performed at least three X and book era and RPM disc.
Speaker Change: Spite our size, we have positioned ourselves to partner with very large customers some of whom are in the late stages of our sales cycle. We expect the calls multiple fortune 500, and multinational customers. In 2025, we have increased our pipeline generation activity with an open pipeline of over three X the $18 million in bookings we are.
Rhon Daguro: We are adding over 20 million in bookings pipeline per quarter, which we will continue to ramp up. And we're also working diligently to bring our new customers live on the platform and convert our bookings to revenue.
Speaker Change: <unk>.
We're adding over $20 million in bookings pipeline per quarter, which we will continue to ramp up and we are also working diligently to bring our new customers live on the platform and convert our bookings to revenue.
Rhon Daguro: Moving to our fourth quarter highlight. authID closed the largest deal in the company's history in Q4, a $10 million contract over three years with our next generation AI partner in India. We also expanded our relationship with Einstein to enable larger initiatives to provide basic income payments to individuals and families in need around the world. This represents a satisfied customer who increased their usage of authID, a land and expand model we are working to replicate with more customers. We also added several new customers and partners in Q4, including TurboCheck to help verify identity of job candidates, Imperial Technologies to support onboarding for new telecom customers, a FinTech for financing major recreational purposes, Verify to power reusable identities for onboarding and authenticating users across their portfolio brand, and Thales to support the automated underwriting of consumer microlinks.
Speaker Change: Moving to our fourth quarter highlights.
Speaker Change: <unk> closed the largest deal in the company's history in Q4, a $10 million contract over three years with our next generation AI partner in India. We also expanded our relationship with <unk> to enable a larger initiative to provide basic income payment to individuals and families in need around the world. This represents a satisfied customer.
Speaker Change: Increased their usage of often.
Speaker Change: Land and expand model, we are working to replicate with more customers. We also added several new customers and partners in Q4, including turbocharger to help verify identity of job candidates.
Speaker Change: Payroll technologies to support Onboarding for new telecom customers, a fintech for financing major recreational purposes verify to power reasonable identities for Onboarding and authenticating users across their portfolio of brands and salads to report to support the automated underwriting of consumer micro loans.
Rhon Daguro: We continue to build our partner ecosystem and seamlessly work with other platforms in order to leverage mutual market opportunities. These partnerships help us reach their existing customer bases, as well as new verticals.
Speaker Change: We continue to build our partner ecosystem and seamlessly work with other platforms in order to leverage neutral market opportunities. These partnerships help us reach their existing customer basis as well as new verticals in Q4, we announced the partnership with Zen desk to enable their customers to seamlessly access off Eddie do their customer support software and to better address.
Rhon Daguro: In Q4, we announced a partnership with Zendesk to enable their customers to seamlessly access authID through their customer support software and to better address call center use We announced our membership in the Accountable Digital Identity Association, or ADIA, which is a critical step as we work to advance the adoption of reusable digital identities and collaborate closely in the growth of ADIA's standardized framework and ecosystem, which is rooted in biometric The ADIA was founded by Ramesh Kesinapalli, who also founded the FIDO Alliance, the most successful standards body solving for passwords. Our mutual goal is to validate every identity in an interoperable format controlled through biometrics.
Speaker Change: Call Center use cases.
We announced our membership and accountable digital identity Association or Ada EIA, which is a critical step as we work to advance the adoption of reusable digital identity and collaborate closely and the growth of Adi a standardized framework and ecosystem, which is rooted in biometrics. The Adi was founded by our mass Casino Poly, who also funded the fido.
Speaker Change: Alliance the most successful standards body solving for passwords, our mutual goal is to validate every identity and an interoperable format controlled through biometrics <unk>.
Rhon Daguro: authID is working with a major biometric hardware provider to showcase our reusable identity solution by deploying the first identity exchange between the United States and Japan. Our plan is to demonstrate this identity exchange between two different entities across two different countries, all based on the ADIA standard. This has never been done before. This addresses the challenges enterprises face in managing multiple identities for their global employee and contractor workforces. In addition, having a single trusted identity bound to a person's biometrics and reusable across business units and geographical territories reduces the cost of and time and unnecessary friction of onboarding individuals multiple times.
He is working with a major biometric hardware provider to showcase our reusable identity solution by deploying the first identity exchange between the United States and Japan.
Speaker Change: Our plan is to demonstrate this identity exchange between two different entities across two different countries. All based on the AIA standard. This has never been done before.
Speaker Change: This addresses the challenges enterprises face in managing multiple identities for their global employee and contractor work forces. In addition, having a single trusted identity bound to a person's biometrics and reusable across business units and geographical territories reduces the cost and time and unnecessary friction of onboarding individuals multiple.
Rhon Daguro: Enterprises we talked to are excited about the release of the capability for reusable identity.
Speaker Change: Times Enterprises, we talked to you are excited about the release of the capability for reusable identities.
Rhon Daguro: On the technology side, in our 4.0 release, we offer privacy. which represents a quantum leap forward in biometric uptake. providing frictionless security while maintaining the highest standards of data privacy and protection.
On the technology side, and our four <unk> release, we offer privacy, which represents a quantum leap forward and biometric authentication.
Providing frictionless security, while maintaining the highest standards of data privacy and protection as we recently highlighted in our press release. The prison project conducted an independent analysis of <unk> approach to privacy and compliance for biometric authentication classifying op IV is a luminary their highest level of distinction for our leading edge.
Rhon Daguro: As we recently highlighted in a press release, the PRISM project conducted an independent analysis of authID's approach to privacy and compliance versus biometric authentication, classifying authID as a luminary, their highest level of distinction for our leading edge platform. I'm proud of the team's efforts and accomplishments in 2024.
Platform I'm proud of the team's efforts and accomplishments in 2024.
Rhon Daguro: As I mentioned earlier, the rise of artificial intelligence is challenging identity verification solutions to contend with the most sophisticated fraud attacks that leverage deepfakes, public available AI models, and camera injection software. At authID, we are meeting this rising AI threat by combining the sophistication of biometric liveness and injection attack detection, while also delivering speed, accuracy and privacy to allow broad adoption for all organizations. The market has told us that there are three key pillars for adoption of biometric solutions, and our foundation for differentiating authID in the market. Starting with speed. Instead of traditional 7 to 10 seconds for other vendors, authID can process new identities in a blazing 700 milliseconds for the best possible user experience, or even faster at 25 milliseconds for simple selfie biometric authentication.
Speaker Change: As I mentioned earlier.
Speaker Change: The rise of artificial intelligence is challenging identity verification solutions to contend with the most sophisticated fraud attacks that leveraged defects public available AI models and camera injection software.
At Op IV, we are meeting this rising AI threat by combining the sophistication of biometric likeness and injection attack protection, while also delivering speed accuracy and privacy to allow broad adoption for all organizations. The market has told US that there are three key pillars for adoption of biometric solution and our foundation for differentiation.
<unk> op IV and the market.
Speaker Change: Starting with speed instead of traditional seven to 10 seconds for other vendors.
Speaker Change: But he can process new identities in a blazing 700 milliseconds for the best possible user experience, we're even faster at 25 seconds for simple selfie biometric authentication.
Rhon Daguro: Next is accuracy, which we measure by false match rate, meaning the probability of matching a face to the wrong user account. No other vendor matches our one to one billion false match rate, which leads the market by at least 4x. More importantly, even with our speed, there is no compromise to The third key to adoption is privacy and compliance. Stringent legislation already exists in the form of CCPA, BIFA, QB and GDPR, with new laws being enacted globally all the time. The potential liability for compliance failures around biometric data creates a tremendous amount of hesitation around the use of biometric.
Speaker Change: Next is accuracy, which we measure by false match rate, meaning the probability of batching and face to the wrong user account no. Other vendor matches, our $1 1 billion false match rate, which leads the market by at least Forex more importantly, even with our speed there is no compromise to accuracy.
Speaker Change: The third key to adoption is privacy and compliance.
Speaker Change: <unk> legislation already exists in the form of Ccta, Biffa Kobe and GDP are with new laws being enacted globally. All the time the potential liability for compliance failures around biometric data creates a tremendous amount of hesitation around the use of biometrics with the introduction of privacy key.
Rhon Daguro: With the introduction of PrivacyKey, we are the first to offer biometric authentication without needing to store any biometric By leveraging public key technology, the baseline for all enterprise encryption and crypto. This helps authID customers implement biometrics with built in compliance.
Speaker Change: We are the first to offer a biometric authentication without needing to store any biometrics bye.
Speaker Change: By leveraging public key technology, the baseline for all enterprise encryption and crypto.
Speaker Change: This helps RFID customers implement biometrics with built in compliance.
Rhon Daguro: We also achieved an industry first with the ability to revoke biometrics to comply with corporate password rotation policies. It's a challenge in biometrics without requiring the person to effectively get a new face. This capability unlocks critical enterprise use cases where revocability is necessary in any company's IT compliance policy. This commitment to privacy and the market-leading ability to deliver it further helps our customers eliminate the biggest hurdle in adoption. fear of biometric data being stolen. Identity verification technology is critical to corporations and governments. As AI continues to advance, authID offers a critical solution for our customers, while also eliminating barriers to biometric adoption.
Speaker Change: We also achieved an industry first with the ability to revoke biometrics to comply with corporate password rotation policies, it's a challenge and biometrics without requiring the person to effectively get a new face. This capability unmatched critical enterprise use cases, where revoke ability is necessary in any company.
Compliance policy this commitment to privacy and the market leading ability to deliberate further helps our customers eliminate the biggest hurdle and adoption.
Speaker Change: Fear of biometric data being stolen.
Speaker Change: Identity verification technology is critical to corporations and governments as AI continues to advance <unk> offers a critical solution for our customers. While also eliminating barriers to biometric adoption customers choose us because we fulfill the requirements of speed accuracy and data privacy.
Rhon Daguro: Customers choose us because we fulfill the requirements of speed, accuracy, and data privacy.
Rhon Daguro: Before I turn to Ed to cover the financials, Dale will show you a three-minute demo so you can see for yourselves how we help our customers combat AI-generated fraud. So I'd love to talk about the type of fraud that our prospective customers experience. So across the top, we have examples of the same fraudster impersonating different victims. The victims are across the bottom. They steal someone's likeness either from social media, LinkedIn, Facebook, Instagram, find those likenesses, train a model, and overlay that likeness on top of themselves. And unfortunately, they can use this very effectively to bypass some of the legacy tools for account opening and authentication.
Before I turn to add to cover the financials. They will show you a three minute demos. So you can see for yourself, how we help our customers combat AI generated fraud.
Speaker Change: So I'd love to talk about the type of fraud that are prospective customers experience.
Speaker Change: So across the top we have examples of the same fraudster impersonating different victims.
Speaker Change: The victims or across the bottom they steal someone's likeness either from social media Linkedin, Facebook Instagram find those likenesses trainer model and overlay that like this on top of themselves.
Speaker Change: And unfortunately, they can use us very effectively to bypass some of the legacy tools for account opening.
Speaker Change: And authentication.
Rhon Daguro: All right, so I wanted to show some of the tooling that these sponsors use to commit this type of fraud. So on the bottom left, we have my actual face. Then we introduce a mapping of my face so we can track data points. Then we load up our target model of the person we wish to impersonate. And then ultimately, we merge the two to create this likeness. so that it appears live to be used for fraudulent purposes across digital accounts opening and biometric authentication. This type of tool is becoming more widespread and easily accessible.
Speaker Change: Alright, so I wanted to show some of the tooling that the sponsors who used to commit this type of fraud. So on the bottom left we have my actual space.
Speaker Change: Then we introduced a mapping of my face so we can track data points.
Speaker Change: And then reload up our target model of the personal English to impersonate.
Speaker Change: And then ultimately we merged the two so creates this likeness.
Speaker Change: So that it appears lives to be used for.
Speaker Change: Fraudulent purposes across digital account opening and biometric authentication.
Speaker Change: This type of tool.
Speaker Change: Is becoming more widespread and easily accessible and these types of fraud attacks or what <unk> is well positioned to stop.
Rhon Daguro: And these types of fraud attacks are what authID is well-positioned to stop.
Rhon Daguro: Now to go through an example of how one would use this in practice for account opening, a fraudster would steal potentially the ID of the victim through a data breach. It could be legitimate, or it could be some digitally rendered version of that ID credential. Then secondly, as you saw me do live, I can steal the likeness of my target victim, create a deepfake video feed, or overlay their likeness onto a live version of myself to pass biometric and liveness detection. And ultimately, what the fraudster will then do is go through an account opening flow through a bank.
Speaker Change: Now to go through an example of how one would use us in practice for account opening.
Speaker Change: Our structure would still potentially the tid.
Speaker Change: Victim through our data breach it can be a legitimate or it could be some digitally rendered version of that I'd credentials.
Speaker Change: And then secondly, as you saw me do your lives.
Can steal the likeness of my target victim.
Speaker Change: Create a video feed or overlay there like the central library of myself to past biometric and liveliness detection.
And ultimately what the fracture will then do is go through an account opening flow through a bank.
Rhon Daguro: Let's say that flows on the left. And on the right, the fraudster would have tooling that allows them to push in stolen copies of identities for this digital accounts opening. So here we see a fraudster pushing in a stolen copy of someone's ID digitally, both for the front and the back. And then secondly, I'll take that biometric that they've created through a deepfake or generative AI and use that biometric impersonation of that individual to pass the biometric match plus a liveness detection. Now, unfortunately, this works with some of our competitors in the market.
Speaker Change: Let's say that flows on the left and on the right. The France, who would have tooling that allows them to push him stolen copies of identities for this digital account opening so here, we see a fraudster pushing in.
Stolen copy of someone's digitally.
Speaker Change: Both for the front and the back.
And then secondly.
Speaker Change: Take that biometric that they've created through a deep acre agenda.
Speaker Change: And use that biometric impersonation of that individual surpass the biometric match plus aliveness detection.
Speaker Change: Now Unfortunately, this works with some of our competitors in the market.
Rhon Daguro: Thankfully, authID solution is well positioned to detect these types of fraud attacks.
Thankfully our solution is well positioned to detect these types of attacks.
Rhon Daguro: Thanks, Dale. We are very excited about our technology and our customers are equally excited.
Speaker Change: Thanks, Neil we are very excited about our technology and our customers are equally excited I'd like to pass the call to actually know our CFO.
Ed Sellitto: I'd like to pass the call to Ed Sellitto, our CFO. Thank you, Ron, and thank you all for joining us today. Looking at slide 9, total revenue for the quarter was approximately $0.2 million, compared to $0.07 million a year ago. For the year, total revenue was $0.89 million compared with $0.19 million a year ago, and at the top of our expected range of $800,000 to $900,000. Operating expenses for Q4 were $4.9 million compared with $3.3 million last year. For the full year, operating expenses were $15.6 million compared with $10.9 million in 2023. The 2024 increase is primarily due to a one-time non-cash expense reversal in Q1 2023 of $3.4 million of certain stock-based compensation related to employee terminations, which was not repeated in 2024.
Speaker Change: Thank you Rob and thank you all for joining us today.
Rob: Looking at slide nine total revenue for the quarter was approximately <unk> 2 million compared.
Compared to 0.0 7 million a year ago.
Rob: For the year total revenue was 0.8 9 million compared with 0.1 hundred $9 million a year ago and at the top of our expected range of 800 to $900000.
Rob: Operating expenses for Q4 were $4 9 million compared with $3 $3 million last year.
For the full year operating expenses were $15 6 million compared with $10 9 million in 2023.
Rob: The 2024 increase was primarily due to a onetime noncash expense reversal in Q1 2023 of $3 $4 million of certain stock based compensation related to employee terminations, which was not repeated in 2024.
Ed Sellitto: as well as reinvestment in employees and contractors following the Q1 2023 restructuring. Net loss from continuing operations for the quarter was $4.6 million, of which non-cash charges were $0.6 million, compared with a net loss of $3.2 million a year ago, of which non-cash charges were $0.5 million. For the full year, net loss from continuing operations was $14.3 million, including $2.8 million in non-cash charges. This compares to a net loss of $19.6 million for the same period last year, which included $10.9 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.
As well as reinvestment employees and contractors following the Q1 2023 restructuring.
Rob: Net loss from continuing operations for the quarter was $4 6 million.
Rob: Of which noncash charges was <unk> 6 million.
Rob: Compared with a net loss of $3 $2 million, a year ago of which noncash charges were zero point $5 million.
Rob: For the full year net loss from continuing operations was $14 $3 million, including $2 8 million in noncash charges.
Rob: This compares to a net loss of $19 6 million for the same period last year.
Rob: Which included $10 9 million in noncash and onetime severance charges with approximately $7 5 million relating to the exchange of convertible notes to common stock in 2023.
Ed Sellitto: Net loss per share for the quarter was $0.49 compared with $0.41 a year ago. For the full year, net loss per share improved to $1.40 compared with $3.19 last year.
Rob: Net loss per share for the quarter was 49% compared with 41 a year ago.
Rob: For the full year net loss per share improved to $1 40, compared with $3 19 last year.
Ed Sellitto: Next, let's turn to RPO on slide 10. Remaining Performance Obligations, or RPO, provides a measure of the minimum revenue expected to be recognized from our signed contracts based on our customer's contractual commitment. As of December 31st, 2024, our total RPO was $14.26 million, an increase of $10.43 million over the prior quarter, due to the impact of the large $10 million contract secured in the fourth quarter. This compares favorably with the RPO at the same period last year, which was approximately $4 million and is above our expectation of $13 to $14 million. We expect to recognize the full RPO of $14.26 million over the entire life of the contract.
Rob: Next let's turn to RPI Phi Tech.
Remaining performance obligation or RVO provides a measure of the minimum revenue expected to be recognized from our signed contracts based on our customers' contractual commitments.
Rob: As of December 31, 2024, our total ARPA was $14 6 million, an increase of $10 $43 million over the prior quarter due to the impact of the large $10 million contract secured in the fourth quarter.
Rob: This compares favorably with the RP are at the same period last year, which was approximately $4 million and it was above our expectation of $13 million to $14 million.
We expect to recognize the full IPO of $14 $6 million over the entire life of the contracts.
Ed Sellitto: You're typically signed with a three-year term.
Rob: Which are typically signed with the three year term.
Ed Sellitto: Onto our non-GAAP results on slide 11. Adjusted EBITDA loss was $4.1 million for Q4, compared with a $2.7 million loss for the same period last year. For the full year period, adjusted EBITDA loss was $11.9 million compared with an $8.7 million loss for the same period last year. The increase in EBITDA loss is primarily due to reinvestment in employees and contractors following the Q1 2023 restructure.
Onto our non-GAAP results on slide 11.
Rob: Adjusted EBITDA loss was $4 1 million for Q4, compared with $2 $7 million loss for the same period last year.
Rob: For the full year period, adjusted EBITDA loss was $11 $9 million compared with an $8 7 million loss for the same period last year.
Rob: The increase in EBITDA loss is primarily due to reinvestment of employees and contractors. Following the Q1 2023 restructuring.
Ed Sellitto: We also monitor and report on ARR, or Annual Recurring Revenue, which is defined as the amount of recurring revenue earned during the last three months of the relevant period as determined in accordance with GAAP, multiplied by four. The amount of ARR as of Q4 is $0.8 million compared to $1.0 million of ARR as of Q3 and $0.3 million of ARR for the same period last year. The temporary quarter-over-quarter decrease was driven by the accounting impact of the modification of a customer contract due to a delayed go-live timeline, as we previously discussed in Q3.
We also monitor and report on IRR or annual recurring revenue, which is defined as the amount of recurring revenue earned during the last three months of the relevant period as determined in accordance with GAAP multiplied by four <unk>.
Rob: Mountain <unk> as of Q4 zero point $8 million compared to one.
Rob: Millions of IRR as of Q3 and.
Rob: <unk> 3 million of IRR for the same period last year.
The temporary quarter over quarter decrease was driven by the accounting impact of the modification of a customer contract due to the way to go about timeline as we previously discussed in Q3.
Ed Sellitto: Turning to BAR, or Booked Annual Recurring Revenue, which is the projected amount of annual recurring revenue we believe will be earned under contracted orders looking at 18 months from the date of signing of each customer contract. The gross amount of bar signed in the fourth quarter of 2024 was $7.13 million, up from 1.67 million of gross bar a year ago. Our Q4 bar was driven by the large deal with our next generation AI partner in India. For the full year, 2024 gross bar was $9.01 million, up from $2.94 million in 2023, and in line with our expectations.
Rob: Turning to bar or booked annual recurring revenue, which is the projected amount of annual recurring revenue. We believe will be earned under contracted orders looking at 18 months from the date of timing of each customer contract.
The gross amount of bar signed in the fourth quarter of 2024 was $7 one $3 million up from $1 $6 7 million of gross bar a year ago our.
Rob: Our Q4 bar was driven by the large deal with our next generation AI partner in India.
Rob: For the full year 2024, gross bar was 9.01 million up from $2 $94 million in 2023 and in line with our expectation.
Ed Sellitto: NetBAR, which reflects the deduction in BAR from contracts previously included in reported BAR that were subject to attrition during the quarter, was approximately $6.86 million compared with $1.67 million of NetBAR signed in the fourth quarter of 2023. 2024 Net Bar was $7.38 million compared with $2.94 million in 2023. The reduction from gross to net bar in 2024 is due to the impact from certain customers that have delayed their goal lives and expected usage ramp.
Rob: Net bar, which reflects the deduction in bar from contracts previously included in reported bar that was subject to attrition during the quarter with approximately $6 eight 6 million compared with 167 million of net bar side in the fourth quarter of 2023.
224, net bar was $738 million compared with $2 $94 million in 2023.
Rob: The reduction from gross to net bar in 2024 is due to the impact from certain customers that have delayed their go lives expected usage rate.
Ed Sellitto: As previously explained during our quarterly earnings call, BAR comprises two components which we refer to as CAR and UAC. The Q4 2024 CAR, or Committed Annual Recurring Revenue, represents $3.68 million, with 2024 full-year CAR representing $4.68 million, both approximately 52% of reported BAR. UAC, or Estimated Usage Above Commitment, is an estimate of annual customer usage that will exceed contractual commitment. The UAC comprises the remaining $3.45 million of Q4 BAR and $4.33 million of full-year 2024 BAR, both approximately 48% of reported BAR.
Rob: As previously explained during our quarterly earnings call. Our comprises two components, which we refer to as car and UHC.
The Q4, 2024 car or committed annual recurring revenue represents $368 million with 2020 for full year car, representing $4 $6 million to $8 million, both approximately 52% of reported bar.
Rob: UAC, our estimated usage about commitment.
Rob: An estimated annual customer usage that will exceed contractual commitments.
Rob: UAC comprises the remaining three four or five Q4 bar and for 33 million our full year 2024 bar, both approximately 48% of reported bar.
Ed Sellitto: Turning to our revenue growth stages on slide 12. I'll take a moment now to summarize our progress through the following revenue growth. The first milestone we use to monitor our growth is bookings, as measured by bar. In 2024, we realized the total gross bar of $9.01 million, approximately a 3x increase over the same period in 2023. The next milestone is our remaining performance obligation, or RPO. As I detailed earlier, as of the end of the year, we've secured approximately $14.3 million in RPO, a $10.2 million increase over the RPO secured by the end of 2023.
Rob: Turning to our revenue growth stages on slide 12.
I'll take a moment.
Our progress through the following revenue growth stages.
Rob: The first milestone we use to monitor our growth as bookings as measured by bar in 2024, we realized a total gross par of $9 1 million approximately a three <unk> increase over the same period in 2023.
Rob: The next milestone is our remaining performance obligation or RPM.
Rob: As I detailed earlier as at the end of the year, we've secured approximately $14 $3 million in RPM.
Rob: $1 2 million dollar increase over the <unk> are secured by the end of 'twenty three.
Ed Sellitto: Our third milestone is revenue, recognized in accordance with GAAP. Our 2024 revenue is $0.89 million. grew approximately 0.7 million over the same period in 2023.
Rob: Our third milestone is revenue recognized in accordance with GAAP.
Rob: Our 2020 for revenue <unk> eight 9 million grew.
Rob: Grew approximately <unk> 7 million over the same period in 2023.
Ed Sellitto: And as we've called out in prior earnings calls, we will increase our focus in monitoring our customer retention and expansion in 2025 as our customer contracts mature. We'll optimize our sales and support efforts to deepen our customer relationships and increase the value added by our services through renewals, usage growth, and customer expansions through additional use cases and product upsells.
Rob: And as we've called out in prior earnings calls, we will increase our focus and monitoring our customer retention and expansion in 2025 as our customer contracts mature.
Rob: We optimize our sales and support efforts to deepen our customer relationships and increase the value added by our services through renewals usage growth and customer expansion through additional use cases and product sets.
Operator: With that, Operator, we would now like to open up for questions. Thank you, sir.
Speaker Change: With that operator, we would now like to open up for questions.
Operator: And to ask a question, you can submit your written questions through the webcast chat or by pressing star one one on your telephone and wait for your name to be entered. To remove yourself from the queue, press star 118. Please stand by while we compile the Q&A room. Again, that is star 11 if you do have a question through the telephone.
Speaker Change: Thank you Sir and to ask a question you can submit written questions through the webcast chat or by pressing star one one on your telephone and wait for your name to be announced.
To remove yourself from the queue Press star one again.
Speaker Change: Please standby, while we compile the Q&A roster.
Speaker Change: Again that is star one one if you do have questions through the telephone.
Speaker Change: One moment please for our first question.
Ricky Solomon: It comes from the line of Ricky Solomon with Wilmot. Ricky, your line is open. Yeah.
Speaker Change: He comes from the line of Ricky Solomon with Walmart Ricky Your line is open.
Ricky Solomon: Hey, Ron, in your sales conversations, what are the things that customers are looking at? And why are they choosing authID over other options? Thanks, Ricky. Can you hear me? Yes. All right. Awesome. Yeah. Hey, thanks. Thanks for the question.
Yeah.
Brian: Hey, Brian.
Speaker Change: And your sales conversations what are the things the customer customers are looking at and why are they choosing RFID over.
Brian: Actions.
Ricky Solomon: Thanks, Ricky can you hear me.
Speaker Change: Yes, alright awesome. Thanks, Yes, hey, thanks for the question, so what's really exciting with the last.
Rhon Daguro: So what's really exciting with the last release of the software, we've been actually been placed in a lot of these large enterprise, you know, organizations, POC. So in these POCs, we are we are having use cases around new customer onboarding, workforce authentication, time in attendance, so people showing up to work and they don't want to log in, they just want to scan their face. Real big issues around downloading sensitive documents like W-2s, tax forms. The very big one right now that's really taking a lot by storm is this account takeover, where people are coming in and they're impersonating somebody else and they're kind of moving stuff around personal data and money.
Speaker Change: Release of the software we've been actually been placed in a lot of these large enterprise.
Speaker Change: Organizations POC so in these <unk>.
Speaker Change: We are we are having use cases around new customer onboarding.
Speaker Change: Workforce authentication time and attendance of people showing up to work and I don't want a logging I just want to scan their face.
Speaker Change: Real big issues around downloads downloading sensitive documents like W. Twos tax forms.
Speaker Change: Very big one right now that's really taking off.
Speaker Change: A lot by storm is this account takeover, where people are coming in and Theyre impersonating somebody else and their kind of moving stuff around and around personal data and money.
Rhon Daguro: Wire transfer is a big use case. Personal information changes, high risk transactions, even stuff like deleting databases. These are very, very critical things that they need really strong authentication. Single identity source of truth. So making sure that there's no duplicate Ricky Solomon inside anybody's identity database. So making sure everybody's unique. And then more recently, replication of biometrics.
Wire transfer is a big use case.
Speaker Change: Personal information changes high risk transactions, even stuff like the leading database and these are very critical things that they need really strong authentication.
Speaker Change: A single identity source of truth, so making sure that there is no duplicate linky Solomons inside anybody's identity database on making sure everybody is unique and then and then more recently reputation of biometrics.
Rhon Daguro: As these companies are actually looking to solve these use cases and looking at biometric providers, really, they're centering their kind of like scorecard around, you know, kind of like three major pillars. First one, how fast can we do the biometrics so speed? Second one is how accurate is it? Because right now the NIST standard is only 1 in 100,000 false match rate, where we're at 1 in a billion. And then the last piece is, do I get in trouble for deploying biometrics because I'm not complying to law? And so we had this story around a chief compliance officer saying, you know, I'd love to use biometrics, but I just simply can't because I'm not a biometric expert and I don't want to subject myself to any liability.
Speaker Change: As as these companies are actually looking to solve these use cases are looking at biometric providers really they're centering their kind of like scorecard around you are kind of three major pillars first one how fast can we do the biometric. So speed second one is how accurate is it because right now the new standard is only.
Speaker Change: One in 100000 and false match rate, where we're at one of the $1 billion and then the last piece is do I get in trouble for deploying biometrics, because I'm not complying to law and.
Speaker Change: So we had the story around a chief compliance officer, saying I love to use biometrics, but I'll, just simply can't because I'm not a biometric expert and I don't want to subject myself to any liability. So we basically had have to hit all three of these categories, which is speed accuracy and privacy. So if those those scorecard items against those use cases, what is what our.
Ricky Solomon: So we basically have to hit all three of these categories, which is speed, accuracy and privacy. So it's those scorecard items against those use cases is what our customers are looking for. Yeah, and if you look at let's say privacy key and ADAA you know, coming all together.
Speaker Change: <unk> are looking at with us.
Speaker Change: Yeah, and if you look at let's say privacy key in AIA.
Ricky Solomon: I mean, how are how are customers looking at that? Like Can we be looking at something where, you know, a solution based on ADAA? be instead of like a business use cases, you laid out like consumer facing where, where businesses trust one identification source for say, if I log on to my Chase app, or if I log on to my Fidelity app, or like, how do you see that going forward? Thank you guys.
Speaker Change: Coming altogether.
Speaker Change: I mean, how are customers looking at that like.
Speaker Change: Could we be looking at something where.
Speaker Change: Our solution based on EIA can be instead of like a business use cases, you laid out like consumer facing where where businesses trust one identification source for let's say if I log onto my chase Apple or if I log onto my fidelity app or like how do you see that going forward.
Rhon Daguro: I love that question because there's actually two really big parts around ADIA. The first big part around ADIA is exactly how you described. Can an organization like Wells Fargo trust an identity that's been banking with Bank of America or trust an identity that's been banking with Chase? And so how does one bank be able to leverage the history and the activity and the longevity of that identity's behavior at a different institution as a form of knowing that that's Ricky Solomon, as opposed to just doing a simple KYC check, which is what's your favorite color? What year car did you drive?
Speaker Change: Yes.
Speaker Change: Thanks. Thank you I love that question, because Theres actually two really big parts are on EIA. The first big part of on Adi is exactly how you described.
Speaker Change: Can.
Organization like Wells Fargo trusted identity, that's been banking with bank of America or trusted identity, that's been banking with chase and so how does one bank be able to leverage the history and the activity and the longevity of that identities behavior at a different institution as a form of knowing that thats Ricky solid.
Speaker Change: <unk> as opposed to just doing a simple Ky C check which is what's your favorite color what caught your car D. G drive or what was your address 10 years ago. They would rather trust another institution, who has had history with you.
Rhon Daguro: Or what was your address 10 years ago? They would rather trust another institution who has had history with you as opposed to just answering KYC questions. So that reusability has actually been requested of us. And in fact, many institutions have been trying to produce this. Name your favorite credit bureau. They're going to have this thing called their name plus the word ID right behind it. And they've been trying to, a lot of organizations have been trying to create a unified ID. The problem is they were never built on a standard. So what ADIA does is create that standard that everybody can use.
Speaker Change: As opposed to just answering <unk> question. So that Reusability has actually been requested of us and in fact, many institutions have been trying to produce this name your favorite credit card our credit Bureau, theyre going to have the same called their name plus the word I'd right behind it and they've been trying to a lot of organizations are trying to <unk>.
Speaker Change: A unified I'd. The problem is they were never built on our standards. So what <unk> does is create that standard that everybody can use the REIT. The beauty of that standard. It was founded by robust test Nepali who founded the Fido Alliance. So that means that all 84 members of the Fido alliance, including the major top five.
Rhon Daguro: The beauty of that standard, it was founded by Ramesh Kesanapalli, who founded the FIDO Alliance. So that means that all 84 members of the FIDO Alliance, including the major top five enterprise tech organizations, they're all part of it. And the hope and what we're starting to see is people are adopting that standard. So one, you got to have an adoption. Two, you have to have a standard that everybody can follow. And three, can you actually demonstrate it?
Speaker Change: Enterprise Tech organizations that are all part of it and they're really the.
Hope and what we're starting to see as people are adopting that standard. So one you've got to have an adoption to you have to have Stan standard that everybody can follow them. Three can you actually demonstrated so that's that's used case number one is coming to the company trusts. The second more exciting use cases, what we're seeing right now is like seeing an organization who has multiple.
Rhon Daguro: So that's use case number one is company to the company trust. The second more exciting use case is what we're seeing right now is like seeing an that they acquired over a period of time, but yet they did not integrate the business. I'll give you an example, because this is my favorite company, Disney. Disney owns many brands, ESPN, all the way down to Marvel, all the way down to Hulu, all the way down to Pixar. And if you can imagine, they're not going to blend all of those companies together and have them all work in a unified system or the same payroll system or the same identity system.
Speaker Change: Simple business entities that they acquired over a period of time, but yet they did not integrate the business I'll give you. An example, because this is my favorite company Disney Disney owns many brands ESPN, although without the Marvel all the way down to Hulu, all the way down to Pixar and as you can imagine they are not going to blend all of those companies together and have them all.
Speaker Change: All work in a unified system or the same payroll system or the same identity system. They are actually each operating entity, but there is still part of the same family. So how does one manage an identity that where the onboarding to Hulu, but they still need to log into pixar or they need to log into marvel or they need to log into ESPN. Because there are also a part of the same parent company. So.
Rhon Daguro: They're actually each operating entity, but they're still part of the same family. So how does one manage an identity that where they onboard into Hulu, but they still need to log into Pixar or they need to log into Marvel or they need to log into ESPN because they're also part of the same parent company. And so that same ADIA solution can work within an organization who has many entities, or it can help us work with independent entities that have nothing to do with that without each other, but they could still trust that identity if they follow the standard.
Speaker Change: That same Abi solution can work within an organization, who has many entities or it can help us work with independent entities that have nothing to do with.
Speaker Change: Without each other but they could still trust that identity. If they follow the standard. So that's the that's the big opportunity that's the Holy Grail for four actually eradicating fraud completely and <unk> been really focused on delivering that through Adi because what we love about the standard because this standard is rooted all.
Rhon Daguro: So that's the big opportunity. That's the holy grail for actually eradicating fraud completely. And AuthID has been really focused on delivering that through ADIA because what we love about the standard is because this standard is rooted all in biometrics. And so we've been very active in that forefront. And then obviously Privacy Key allows us and allows every organization that participates in ADIA to be fully, fully compliant around storage of biometrics and making sure that nobody's going to get in trouble for keeping people's biometrics stored. And again, we don't store it. So that helps with enterprises adopting.
Speaker Change: <unk> biometrics and so we've been we've been very active in that forefront and then obviously privacy key allows us and allows every organization that participates in AIA to be fully fully compliant around storage of biometrics and making sure that nobody is getting in trouble for keeping people's biometrics.
Speaker Change: And again, we don't start so that that helps with that.
Speaker Change: Enterprises adopting the standard.
Ricky Solomon: Great, thanks.
Ricky Solomon: Hey, one more question. I'll let someone else So you mentioned, you know, closing fortune, I forget the language in the press release, but large enterprises this year, like what gives you confidence that, that, you know, that's, that's actually going to happen in the near future? Yeah, thanks for the question. And that's what I'm super, super excited about.
Speaker Change: Great. Thanks, Hey, one more question and I'll, let someone else ask a question. So you mentioned.
Speaker Change: Closing fortune I forget the language in the press release, but large enterprises. This year like what gives you confidence that that.
Speaker Change: That's actually going to happen in the near future here, yes.
Yes, thanks for the question and Thats, what Im Super Super excited about because 2024, we did.
Rhon Daguro: Because 2024, we did, we did, we made a bet earlier in the year saying, okay, what will allow large Fortune 500, Fortune 500 companies adopt biometrics. And so that's why I was very specific saying, hey, what are the blockers? One was speed, we got that nailed. Second one was accuracy, we got that one nailed. Privacy and compliance was the third one. And we got that nailed. And it took us a long, longer in 2024 to do that. So we had, we had set out back in April to say, let's go solve this. We were trying to go into PLCs with our with our customers and partners in the summer, but we're still delayed in building the tech.
Speaker Change: We made a bet early in the year, saying okay.
Speaker Change: What will allow large fortune 500, fortune 500 companies adopt biometrics and so that's why I was very specific saying hey, what are the blockers. One was speed we got that nailed second one was accuracy, we got that one.
Speaker Change: Privacy and compliance and the third one and we got that nailed and it took us a little long longer in 2020 for it to do that so we had we had set out back in April to say, let's go solve this we were trying to go into <unk> with our with our customers and partners in the summer, but we're still delayed in building. The Tac we finalize the Tac we got it into what I call MVP status that we have.
Rhon Daguro: We finalized the tech, we got it into what I call MVP status that we got into beta that we got the beta program. So we kind of were a little bit later in the year to deliver it. But now that we're in PLCs with that technology, the results are just awesome. So we're in these very late stages of these sales cycles with a number of these major enterprises to date. It's only a matter of time before we sign them. The response to the outreach in regards to the performance and the privacy piece has just been phenomenal.
Speaker Change: Got it into the beta that we got the beta program. So we kind of were a little bit later in the year to deliver it but now that we're in plc's with that technology. The results or are just awesome right. Now. So we're in that we're in these very late stages of the sales cycle with a number of these major enterprises to date.
Speaker Change: It's only a matter of time before we sign them.
Speaker Change: Sponsor to this to the outreach in regards to the performance of the privacy piece has just been phenomenal. So just super excited I mean privacy and compliance alone represent the biggest hurdles for these fortune 500 accounts for it in terms of facing in terms of Adair.
Rhon Daguro: So just super excited. I mean, privacy and compliance alone represent the biggest hurdles for these Fortune 500 accounts in terms of facing, in terms of adopting biometrics. And we've basically gotten rid of every single one of those. So, and then we're starting to see that again, we're in late stages of those particular deals.
Speaker Change: Adopting biometrics and we've basically gotten rid of every single one of those so we're starting to see that again, we're in late stages of those particular deals.
Ricky Solomon: You know, was hoping that we would get a couple more right before this announcement, but we're very excited that we'll be able to close those.
Was hoping that we would get a couple more right before this announcement, but we're very excited.
Speaker Change: That will be able to call those this year.
Ricky Solomon: Awesome. Thank you. Thanks, Ricky.
Speaker Change: Awesome. Thank you.
Ricky Solomon: Ron, we've actually had a couple of questions on the same subject. is on the webcast asking about these major contracts. And can you give a little bit more color about how long it takes to sign such a contract? And and then the sort of the time to bring them live and revenue generating and also how long we might expect to see the length of Well, the typical contract terms that we deal with anything in the cybersecurity and it's also represented here in authID, usually the contracts are two to three years. In terms of the large enterprise deals.
Thanks, Ricky Ron we've actually had a couple of questions on the same subject from listeners on the webcast asking about these major contracts and can you give a little bit more color.
Speaker Change: How long it takes to sign such contracts.
Speaker Change: And.
Speaker Change: And then sort of the time to.
Bring them live and revenue generating and also how long we might expect to see the length of those contracts.
Speaker Change: Well the typical contract terms that we deal with anything in the cyber security and it also represented here in op ideas that usually the contracts are two to three years.
That's the typical timeframe for how long the contracts will hold.
Speaker Change: What we sign them up for it and also we don't want to sign them up for too long because it also limits our ability to upsell cross sell we do give discounts early on obviously to acquire customers. We don't want to extend the discounts all the way through to the point where our.
Speaker Change: Cost of goods go up and go down so we want we want to have flexibility for what's right for the business and what's right for the customer at that time. So that's typically two to three years in terms of the large enterprise deals.
Rhon Daguro: If you can, if you think about like the, just the example I just gave you with Disney, where there could be many multiple lines of businesses. And so some, some of these large enterprises have this thing called a core enterprise service, where they will standardize the security program across all the various entities, or each division will have their own core security enterprises. And then they have to individually figure out how to work with each other. So when we come into an enterprise, our goal is to capture the entire, in the entire enterprise. But obviously, we want to get in there with one use case.
If you think about like the just the example, I just gave you with Disney where there can be many multiple lines of businesses and so some some of these large enterprises have this thing called a core enterprise service, where they will standardize a security program across all the various entities or each division will have their own core security enterprises.
Speaker Change: And then they have to individually figure out how to work with each other so when we come into an enterprise. Our goal is to capture the entire in the entire enterprise space.
Speaker Change: But obviously, we want to get in there with one use case and typically what happens when you're in a large enterprise. They say hey, we got to stop buying one vendor for each thing. So anytime you have a vendor that does something very special or very unique you must run it by the cyber Security Committee and get approval and also share it because we.
Rhon Daguro: And typically, what happens when you're in a large enterprise, they say, Hey, we got to stop buying one vendor for each thing. So anytime you have a vendor that does something very special, or very unique, you must run it by the cybersecurity committee, and get approval and also share it. Because we don't want to buy 13 different technologies, we don't want to have 13 different vendor contracts, we don't have 13 different account teams, do you want to be able to standardize on the best and make sure there's best practices across. So for example, we went into this very large payroll provider on the planet, largest payroll provider in the planet, they brought us into a particular use case around download, downloading sensitive documents.
Speaker Change: Don't want to buy 13 different technologies, we don't want to have 13 different vendor contracts that will have 13 different account teams do you want to be able to standardize on the best and make sure those best practices across so for example, we went into this very large payroll provider on the planet <unk> payroll provider in planet. They brought us into a particular use case around.
Rhon Daguro: And then when they shared it internally, another group that's been looking at biometrics, had no idea that that was happening. But there was another group that was looking at biometrics and said, Hey, well, what is that technology you're looking at? Can we speak to them? And then all of a sudden, they introduced this to them, and then we're all we're in a different POC. And that keeps going, and it keeps going. And then sometimes their evaluations will go for three months, sometimes they'll go for one month. In our case, because biometrics is new, it's got to go through several committees for approvals.
Download downloading sensitive documents and then when they shared it internally another group that's been looking at biometrics had no idea that that was happening but there is another group that was looking at biometric and said hey, well what is that technology youre looking at can we speak to them.
Speaker Change: And then also they introduced us to them and then we're all we're in a different plc and that keeps going and it keeps going in and then sometimes there are evaluations will go for three months, sometimes they'll go for one month in our case because biometrics is new it's gotta go through several committees for approval, but also at the same time, it's exposing <unk> to all the various use.
Rhon Daguro: But also at the same time, it's exposing AuthID to all the various use cases that they have. And it's allowing us to put together, we think, a very large deal. So we can go from a regional use case, to now a multi-state use case, to now a full country use case, and now even a global use case. And so it takes time and we've built that into the deal cycle. We say anywhere between six to nine months, we're right around that timeframe, six to nine months on some of these deals that were in late stage.
<unk> that they have and it's allowing us to put together. We think are very large deals. So we can go from a regional use case to now of multistate use case to now a full country use case and now even though global use case and so it takes time and we built that into the deal the deal cycle, we say anywhere we can.
Six to nine months, we're right around that timeframe six to nine months on some of these deals that were in late stage. We did have a little delay when we're releasing the privacy kept the technology, but those arent lost deals. We just had a little push in terms of a delay in delivering but.
Rhon Daguro: We did have a little delay when we were releasing the privacy technology, but those weren't lost deals. We just had a little push in terms of a delay in delivering.
Rhon Daguro: But that's kind of like the DNA of these large deals. And it's no different than when I worked at Oracle or any other of these large enterprises where we're still trying to take down big cybersecurity initiatives.
Speaker Change: Yes.
Speaker Change: That's kind of like the DNA of these large deals and it's no different than when I worked at Oracle or any other of these large.
Speaker Change: Enterprises, where we're still trying to take down.
Speaker Change: Big Cyber security initiatives.
Operator: That's great. Thank you very much.
That's great. Thank you very much.
Operator: Reminder, if you want to ask a question, comment, what is it, star? Yes, if you do have a question through the telephones, it's star 11 to get in the https://www.authid.co.uk Yeah, thanks. Thanks for your question.
As a reminder, if you want to ask a question come in whether it's the stall.
Speaker Change: Yes, if you do have questions through the telephone is star one one to get in the queue.
Speaker Change: Or you can ask your question.
Speaker Change: And the Boston on the webcast.
Ron we have another question could you just talk a little bit more about the progress, we're making with channel partners and how you see.
Speaker Change: That.
Speaker Change: Moving forward in the future.
Speaker Change: Yeah. Thanks, Thanks for your question Chad.
Rhon Daguro: Channel Partners for us is just super special. There's two types of channel partners that we look at. One is the OEM partner who says, Hey, listen, We know biometrics are going to be used. We are lacking biometrics in our platform. We're not going to go and buy one. And I'm sorry, we're not going to go buy a company and we're not going to go build one. So the best thing to do is partner with the best in the marketplace, integrate it into our platform and offer it to all our customers. We love those. because it doesn't require my sales team to go after them.
Speaker Change: Channel partners for Us.
Speaker Change: It's just Super special there are two types of channel partners that we look at one is the OEM partner, who says hey listen.
Speaker Change: We know biometrics are going to be used we are lacking biometrics and our platform, we're not going to go and buy one I'm sorry, we're not going to go buy a company and we're not going to go build one so the best thing to do is partner with the best in the marketplace integrated into our platform and offer it to all our customers we love those deals because it doesn't require <unk>.
Rhon Daguro: It's built into their platform. They have their own sales team to go after them, and then they can go and sell to their own customers. So for us, we love those opportunities. And we have spun up several of those OEM opportunities, including the India announcement that we just made. And we're about to sign up a couple more. So very excited about that OEM channel partner opportunity.
Speaker Change: Sales team to go after them, it's built into their platform. They have their own sales team to go after them and then they can go and sell to their own customers. So for US we love those opportunities and we have spun up several blows OEM opportunities, including the India announcement that we just made.
Speaker Change: And we're about to sign up a couple of months. So very excited about that OEM channel partner opportunity on the other side of the partner channel is those that want to resell our technology and they refer customers and clients. So we've actually had several partners already start to turn in more of their clients into us referring to.
Rhon Daguro: On the other side of the partner channel is those that want to resell our and they refer customers and clients. So we've actually had several partners already start to turn in more of their clients into us, referring their clients into us saying, hey, this client wants to use the authID technology. They go ahead and they set us up with their customer. They introduce us. Even this morning, we just had a phenomenal one where a partner introduced us to a client. Client, you know, we got warmed intro'd because the client already had vetted the partner, the partner trusts authID.
Speaker Change: Our clients into us, saying, Hey, this client wants to use the RFID technology.
Speaker Change: They go ahead, and they set us up with their customer they introduce us even this morning, we just had a phenomenal one.
Speaker Change: Partner introduced us to a client client, we got warmed intro because the client already had had.
Speaker Change: <unk> had vetted the partner the partner Trust Trust off so it's a very warm introduction. So the channel partnership business has been gone going very well and I think it's going to help lead to some of the larger big deals that we've been talking about.
Rhon Daguro: So it was a very warm introduction. So the channel partnership business has been going very well. And I think it's gonna help lead to some of the larger big deals that we've been talking about.
Rhon Daguro: Okay, well, thank you, Ron.
Speaker Change: Okay, well. Thank you Ron that seems to be all the questions. We have right now so perhaps it's time to wrap it up.
Operator: That seems to be all the questions we have right now.
Operator: So perhaps you'd like to wrap it up. Fantastic. Well, thank you everyone for joining us. We'd like to thank you all for listening today, listening to the call. Look forward to speaking with you all when we report our first quarter results for 2025. And again, thank you for joining us. Have a nice day. Thank you.
Fantastic.
Speaker Change: Thank you everyone for joining us.
We'd like to thank you all for listening today listening to the call look forward to speaking with you all when we report our first quarter results for 2025 and again, thank you for joining us having I'd say.
Operator: And ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Thank you and ladies and gentlemen. This does concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: So.
Speaker Change:
Speaker Change: [music].