Q1 2025 Intellicheck Inc Earnings Call
Hi!
Speaker Change: Greetings and welcome to the Intellicheck First Quarter 2025 Earning Conference Call.
Speaker Change: at this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance in storing the conference, please press star zero on your telephone keypad.
Speaker Change: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, to Gar Jackson Investor Relations.
Thank you, sir. You may begin.
Gar Jackson: Thank you, operator. Good afternoon, and thank you for joining us today for the Intellicheck First Quarter 2025 earnings call. Before we get started, I will take a few minutes to read the Ford Looking Statement. Certain statements in this conference call constitute Ford Looking Statements within the meaning of the Private Security's litigation reform act of 1995 as amended.
Gar Jackson: When using this conference call, words such as will, believe, expect, anticipate, encourage, and similar expressions as they relate to the company or its management, as well as assumptions made by an information currently available to the company's management.
Gar Jackson: Identify four-looking statements within the meaning of the Private Security's Litigation Reform Act of 1995.
Gar Jackson: These four looking statements are based on management's current expectations and beliefs about future events.
Gar Jackson: As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances and the company undertakes no obligation to and expressly disclaims in the obligation to update our all-church for looking statements.
Gar Jackson: Whether resulting from such changes, new information, subsequent events are otherwise.
Gar Jackson: Additional information concerning foreign-looking statements is contained under the headings of safe harbor statement and risk factors listed from time to time in the company's filings.
with the Securities and Exchange Commission.
Gar Jackson: statements made on today's call or as up today, May 13th, 2025.
Gar Jackson: Management will use the financial term adjusted Yvada and adjusted Gross Margin in today's call. Please refer to the company's press release issue this afternoon for further definition, reconciliation and context for the use of these terms.
Gar Jackson: We will begin today's call with Bryan Lewis, Intellicheck's Chief Executive Officer, and then Adam Sragovicz, the Chief Financial Officer, who will discuss the first quarter financial results.
Speaker Change: Following their prepared remarks, we will take questions from our analysts and institutional investors.
Gar Jackson: Today's call will be limited to one hour, and I will now turn the call over to Bryan.
Bryan Lewis: Thanks, Gar, and good afternoon everyone, and thank you for joining us for our first quarter 2025 earnings call.
Bryan Lewis: Although it's been less than two months since we last spoke, a lot of things have happened over that span of time.
Bryan Lewis: Before I get started with the discussion about our recent achievements, I would like to put some things into perspective.
Bryan Lewis: We've heard from a number of people that said, yeah, I've looked at this company and there's nothing to see. I usually quickly respond by saying you looked at the old Intellicheck, right?
Bryan Lewis: Since I joined the company, we've grown our recurring revenue stream from under 2 million per year to almost 20 million last year, so quite a difference.
Bryan Lewis: In fact, already in Q1 of this year, including upsells and price increases, we renewed $10 million in annual contract value, demonstrating how sticky we are with our customers.
Bryan Lewis: On a technology front, we completely retooled our tech stack over the course of the past couple of years, taking advantage of AI and data science analysis because we see the information on about 100 million people in North America every year.
Bryan Lewis: We are also making terrific progress on our platform migration program. We are well underway with migrating our clients from Azure platform to AWS, which will result in cloud savings.
Bryan Lewis: Just as important, it will allow for quicker and easier onboarding of new clients and gives us improved data feeds for additional analytics.
Bryan Lewis: As we move forward with the implementation of our strategic initiatives we continue to diversify our client base.
Bryan Lewis: As you know, we used to be very tied to retail credit cards. Now we're growing very quickly in retail banking, title insurance, auto, email account security and background checks, which I am very, very excited about.
Bryan Lewis: We are also making progress in the logistics and shipping market vertical. The amount of theft and fraud that happens there is shockingly large.
Bryan Lewis: I just want to preface our discussion of Q1 with that background because we believe our progress in achieving diverse market adoption lies in the fact that we're different and relevant. We leverage the proprietary barcode on a driver's license, the back of a license, versus all of our competition that templates the front of the license.
Bryan Lewis: Gardner in their last report said that we are unique in what we do and we're the only ones with what they call privileged access to information to accurately identify a fake or fraudulent ID based on the proprietary nature of these barcodes.
Bryan Lewis: So that brings you up to speed about some of our growth opportunities that we believe people don't fully recognize.
Bryan Lewis: Before I continue talking about recent deals and achievements, this is the appropriate time to share some more exciting news, the appointment of Tim Pooleon to the role of Senior Vice President of Sales.
Bryan Lewis: Timbering's extensive experience in sales leadership, staff development, and business development through his demonstrated ability to drive revenue and foster long-term client relationships.
Bryan Lewis: He is a solid track record of building high-performing teams that consistently exceed targets. Most recently he contributed to King Identity's nearly tenfold growth from 85 million to 800 million as Senior Director Sales Strategic Accounts.
Bryan Lewis: Like the other new members of our senior leadership team, Tim has hit the ground running. Tim has already added three additional sales associates bringing the total to eighteen members under his leadership who are focused on new logos.
Bryan Lewis: Tim started his career as a sales engineer and quickly rose to become a top performing sales professional, earning number one worldwide sales representative accolades at three different, primarily early-stage companies.
Bryan Lewis: Transitioning into leadership, he has hired, scaled, and coached execution focused teams that have delivered significant results in forged deep-clive and team loyalty.
Bryan Lewis: Tears, Kirk Tim's career highlights include being part of three successful IPOs. So he's familiar with rapid growth and we are very excited to have him join the team.
Speaker Change: Now for some sales updates, a provider of a variety of revolving credit products originated through banks, as well as private label and their own brand new credit cards went live in Q1.
Speaker Change: This is an initial small release to work out any kinks in their system. They are now satisfied that all is working as planned and we anticipate that they will be rolling out the full release in the second quarter.
Speaker Change: The client that uses us for password resets on email accounts, which started using us in the US and then moved to Europe , is now rolling us out to Canada.
Speaker Change: We're reminding you that they looked at us and our competitors. They were seeking proven robust technology because they understood what can happen when a crook gains control of an email account linked to your banking, investment, and credit card accounts.
Speaker Change: They knew they needed the most accurate solution, which I believe is Intellicheck.
Speaker Change: Also, one of the largest title companies we spoke about on our last call has gone live using our no-integration portal delivery method
Speaker Change: They are now using our technology in all three of their divisions.
Speaker Change: and they will be doing a full integration into their systems with our direct API. In addition, there will be adding passports to the documents we authenticate for them.
Speaker Change: Title Insurance continues to be a strong area of interest for us. We estimate that we are now working with the title insurance companies that handle approximately 40% of all the title insurance volume in the country. This is another important area where we quickly and effectively stop fraud and in this case on a very high dollar transaction.
Speaker Change: As we continue to build on our efforts to advance our market penetration in this vertical, I can share with you that we are working with another one of the top title insurance companies on finalizing an agreement.
Speaker Change: Currently, we have a proof of concept underway with them so that they can have a first-hand experience with our cutting edge technology. We believe this will ultimately lead to adoption of our technology on a national scale.
Speaker Change: Now for an upgrade on our AWS migration. In April , we migrated three large clients, including one of our top three from Azure to AWS. All with great success.
Speaker Change: This quarter, we have scheduled 11 additional large clients, including another of our top three to move. By the end of the quarter, we expect all of our no integration portal clients will be moved over as well.
The changes to marketing are also having impact.
Speaker Change: Here are a couple of examples. Since we've made the changes to our marketing team in focus, LinkedIn followers are up 16%.
Speaker Change: YouTube Video Views, which have become an important part of selling, are up 141% versus Q4.
Speaker Change: Web site visitors are up 34% and more importantly, visitors are staying 10% longer versus Q4. I attribute this to better outreach, content, and execution.
Speaker Change: On the IR front, we continued to remain active. In March, we presented an attend the I-Access Virtual Conference. There we had a full day of one-on-one meetings with potential investors.
Speaker Change: That was followed by the Planet Microcap Conference late last month. I did an interview with the Planet Microcap Podcast host and a featured presentation. Take a look at the Investor Relations page on the Intellicheck website to access the link to the presentation and the Investor Deck.
Speaker Change: There we also had two full days of meetings with interested investors.
Speaker Change: These forms also provided us with the opportunity to network with other potential business prospects.
Speaker Change: What we saw at these conferences tells us investors interest is certainly there and it is being strengthened by key data points.
Speaker Change: We are the market differentiator in digital and physical ID validations.
Speaker Change: Our product and process are different and more effective than our competitors. Our gross margins are around 90% and are very scalable. And the value proposition we offer speaks to the reality. Fraud isn't going away. It is escalating.
Speaker Change: These developments are outgrossed of the implication of our strategic plan and its emphasis on a diversification strategy.
Speaker Change: Economic data underscores just how important our move away from a retail first emphasis has proven. The latest Wallet Hub Economic Index released less than a month ago shows consumer confidence is down nearly 8% from the same time last year.
Speaker Change: This represents the fourth lowest point for consumer sentiment in the past five years. Consumers are putting off retail purchases in the face of economic disruption and uncertainty.
Speaker Change: As we move forward, we will continue to make adjustments to the implementation of our strategic initiatives where we believe they are needed as market changes and economic conditions evolve. I will now turn the call over to Adam for further discussion of our Q1 results.
Adam Sragovicz: Thank you, Bryan. We are pleased to give you more information about the numbers of our first quarter of 2025 and more detail.
Adam Sragovicz: Our first quarter revenues were 5% higher versus the prior year, even in this challenging macro environment.
Adam Sragovicz: Adjusted EBITDA also improved by $100,000 versus 2024, putting us at roughly break even with only a very small $17,000 loss for the quarter.
Adam Sragovicz: Revenue for the first quarter of 2025 increased 5% to a first quarter record of $4,894,000 compared to $4,680,000 in the same period of 2024.
Adam Sragovicz: Our SaaS revenue for the first quarter of 2025 grew 6% to $4,868,000 from $4,609,000 during the same period of 2024, and represented over 99% of our first quarter revenue.
Adam Sragovicz: Gross Profit as a percentage of revenues was 89.7% for the quarter, which included 210 basis points of amortization expense related to the software development projects previously
Adam Sragovicz: This compares to 90.7% that includes 50 basis points of amortization expense in the first quarter of 2024.
Adam Sragovicz: and now we will be introducing a new metric for evaluating our business performance, our adjusted gross margin that excludes the software amortization expense.
Adam Sragovicz: R-Adjusted Gross Margin Improve to 91.8% in Q1 of 2025 compared to 91.2% in Q1 of 2024.
Adam Sragovicz: This is the first time in our conversation with you today and in our press release and financials file just before this call with the SEC, we are reporting this new metric.
Adam Sragovicz: We believe that this is a useful way to view our business since Gaprose Margin shows a lower number for Q1 of 2025 only because of the non-cash amortization of software development costs.
Adam Sragovicz: When removing this non-cash item as many software companies do, we see continued strong margins even as revenue grows.
Adam Sragovicz: We did capitalize $166,000 this quarter and expected to do roughly the same in the second quarter of 2025.
Adam Sragovicz: Operating expenses which consist of selling, general, and administrative, marketing, and research and development expenses.
Adam Sragovicz: decreased $28,000, or 1%, to $4,740,000 for the first quarter of 2025 compared to $4,768,000 for the same period of 2024.
Speaker Change: You can see the reductions specifically in SG&A of about $500,000 compared to the first quarter of last year, notably due to more efficient marketing spend.
Speaker Change: On an accounting basis, R&D expenses are $468,000 higher in Q1 of 2025, driven largely by the fact that we have put many of our projects into production and are now capitalizing very few of our ongoing engineering expenses.
Speaker Change: The weighted average deluded common shares was $19.8 million for the first quarter of 2025, compared to $19.4 million for the same period of 2024.
and Adam Sragovicz. Thank you. Thank you.
Speaker Change: As to the company's liquidity and capital resources at March 31, 2025, the company had cash and cash equivalence of $5.1 million.
Speaker Change: As a practice, we don't provide guidance, but we do try to read all of the reports written about us and couldn't help but note the consensus for a Q1 2025 cash was $3.4 million.
Speaker Change: This is a full $1.7 million lower than where we ended up.
Speaker Change: We expect the cash number to be even higher for the second quarter.
Speaker Change: and to end the 2025 year at a level higher than Q1 as well. This reflects discipline on the operating expense side as well as revenue that continues to grow. This is a byproduct of the positive cash flow that we expect to show for the 2025 year.
Speaker Change: At quarter and there was working capital which is defined as current assets minus current liabilities of $6.6 million total assets of $24.5 million and stockholders equity of $17.6 million.
Speaker Change: One final liquidity note, the company has a $2 million revolving credit line with Citibank. That line may be secured by accounts receivable. There are no amounts outstanding under this facility and the facility was not utilized during 2025.
Speaker Change: On past earnings calls, we've shared our progress in marketing and customer satisfaction as well as our systems migration and development. Today, you heard about a very important piece of the puzzle coming together on the sales side, which should pave the way for even greater growth, especially through the development of channel and partner opportunities.
Speaker Change: We look forward to sharing our Q2 results with you in August . I'll now turn the call over to the operator who will take your questions.
Speaker Change: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
One moment please, Oli Pohl, for questions.
Speaker Change: Our first question comes from Mike Grondahl with Northland Futurities. Please proceed with your question.
Pigeaux, thanks.
Speaker Change: How much, the 40% of the title market that you have in exposure to?
Speaker Change: Roughly, what's your penetration of that market? And where do you think it goes?
So, yeah, I look at the market.
Speaker Change: Mike is sort of two things, you know, that 40% is if you look at the market share, you know, there's plenty of people to do studies on this, you Google, who are the top guys?
and they're just what percentage they have.
Now, um...
Speaker Change: You know, I look at the one we talked about today, you know, that very very large one. I always think that when we're not integrated into their systems, we're not seeing all the business, but that's why they're doing an integration to our API. And then the other half of it, there's all those small guys.
and what I'd say is...
You know, and those are the resellers that we're dealing with.
Speaker Change: and, you know, what I really like is I was looking at the numbers and if I look at the transaction volumes, actually I'm sorry, the revenue volume.
Speaker Change: You know, in Q1 of this year, the revenue from title is about 350%, and that's almost equally split between us going direct to the large folks, you know, the revenue in Q1, us going direct to the large folks, and the resellers, you know, the partners that we picked to hit all the small folks.
Speaker Change: So I think it's paying off. People are certainly talking about us. You know, we have a ton of inbound leads, but they tend to be the smaller guys which we then just turn over to our partners.
Got it. And then...
What would you say your next three largest verticals are?
Banking.
and Otto.
and then, you know, quite honestly, age-restricted.
Speaker Change: If I just look at the numbers with banking, you know, kind of dorking that. Again, just to talk about numbers and things. The revenue from retail banking is up about 50% versus Q1 of last year.
So, you know, we're growing in that case.
Speaker Change: on their retail branches and digital, right? Because either the bank starts in the digital world and then moves us into the bank branches.
Speaker Change: Often times they do that because it's easier to stop at least part of the front.
Speaker Change: because they don't have to build anything. They're using our tools, our capture delivery method while they figure out how to get us in the branches, or they go the other way around.
Speaker Change: One of the banks that we've been dealing with for a while just moved us into their call center and their help desk. So they figure out we can use this everywhere. So everything digital and then everything in mag branch.
Got it, in, in.
Speaker Change: Last one, you know, historically your exposure to retail has been about, and not retail branch banking, but just retail shopping has been 70%, 70% roughly.
Where? What would you describe that exposure as today?
Speaker Change: And is that still acting as a small drag and kind of what was that drag if it was a drag in one queue and how do you see it playing out the rest of the year?
You're dead.
Speaker Change: Companies that went out of business, you know, so our customers, customers that went out of business and then just regular retail malaise revenue from retail was down 26%
from Q1 2024.
So, you know, as a percentage, it's certainly dropping. Now...
Speaker Change: We've got customers who are adding retailers, but it's just right now, I think people are kind of maxed out on their cards and other things, so it's not...
Speaker Change: You know, it's not one of our growth drivers at the moment. It's certainly the way that I put it. You know, again, I think should the economy turn around it becomes a really nice tailwind, but I just think it also points to the fact that getting into other markets has been really good for us.
Speaker Change: and again, I always stress that we, you know, we focus on the markets where it really hurts if you're not right.
Speaker Change: You know, and I look at a lot of things in terms of age restricted products and other stuff like that people look at us as a revenue limiter versus you know any other problem because they'll just go by insurance instead of cutting their sales so we target where it really hurts.
Speaker Change: if you're not sure that you know who you're dealing with.
Speaker Change: Great. Well, and I'd just say that 6% sass year-over-year growth. You had to grow through that down 26 in retail, so. Yeah, yeah. That's great.
Speaker Change: Yeah. I'm glad you picked up on that because it seems like a lot don't, you know, and even last year, you know, we didn't grow a lot in revenue, but, you know, it...
Speaker Change: that was overcoming a giant drop in retail revenue. If you look at the amount of retailers either closed down stores or completely went bankrupt, I think the diversification strategy has really worked.
Cool. Hey, thanks a lot guys.
Thanks, bye.
Speaker Change: Our next question comes from Rudy Kessinger with DA Davidson. Please proceed with your question.
Hey, great. Thanks for taking my questions, guys. I guess.
Rudy Kessinger: He's following up on retail down 26% year of year in Q1. Can you show what percentage of revenue retail was in Q1, just so maybe we can try to back into what the rest of the business is growing, X retail because obviously it's got to be growing pretty nicely.
Rudy Kessinger: Yeah, if I look at, you know, and it's these are, you know, kind of back of the envelope. So you really got up, you know, because
Rudy Kessinger: and sometimes data engines clean as I like. But I'd say that at this point in time, retail and banking were about equal. Let me just pull up that spreadsheet.
Michael Grondahl, Scott Buck.
Thank you.
Speaker Change: Yeah, I mean, retail and retail banking, I'm going to consider about equal in terms of revenue. So I'll show you again how the growth is sort of offset it. You know, age restricted is going to be.
You know, say 8% of revenue, auto around the same the same.
Okay.
Speaker Change: Got it. And then I saw your first revenue in SAS RPOs, we're up three and a half million quarter with a quarter to be both or the highest they've ever been. Was that from the renewal signed last quarter with that large minute bank or what drove the big increase? Was there any new deals in there that drove that?
Yeah, a lot of it is we've begun moving.
Speaker Change: A lot of our customers to a pricing model where they either pay us, they'll sign a contract, like let's take some of our big banks, they sign a contract for three years and they'll either pay us.
Speaker Change: A year upfront, or at least a quarter upfront, so we're moving very much off of that billing in our ears.
Speaker Change: to you know what you're going to do, you're going to pay us for it. And you know, we give a slight discount if you pay a year ahead, then if you pay a quarter ahead, you know, because it sort of makes it a lot easier for us to do our billing and all that kind of stuff.
Okay.
Speaker Change: Got it. And then any update on the large social media customer and their anticipated rollout as well as the large regional bank that I believe last quarter you said you were in pricing discussions with for a multi-year seven-figure deal with a Q3 expected rollout.
Speaker Change: Yeah, so we had just had a great conversation with social media and they're like, yeah, no, if you're doing everything we want you to do, you just got to be patient with us because we're kind of strange and volumes go where we're really worried and interested in things and she's, you know, they like...
Speaker Change: It could be this, and then it could be massive next month, and then we say we don't care about that anymore.
Speaker Change: The Large Regional Bank, you know, all the terms and everything, you know, are done. We're now going through procurement.
Speaker Change: You know, so everything's been agreed to, but now it's got to do what banks do with procurement and anybody's ever dealt with that knows that it can take a bit, but we are, you know, actively developing to the new middleware that they built.
Speaker Change: You know, they continue to use us and pay for everything in the digital world because that's where they started. So you know, everything looks good and as soon as we get everything finalized and the paperwork signed, we certainly will be putting on an announcement.
Great. Thanks, Jack.
Thank you.
Speaker Change: Our next question comes from Scott Buck with H.C. Wayne Wright. Please proceed with your question.
Scott Buck: Hi, good afternoon, guys. Thanks for taking my questions. Bryan, you brought up shipping and logistics. Yeah. Give us a little color on how you guys are helping out there and maybe how you size that opportunity.
Speaker Change: I think it's going to be larger than I initially thought is actually a conference being held of shipping and logistics people to talk about fraud.
Speaker Change: The main way that we're used in this space is many truckers.
Speaker Change: are hired remotely, you know, long haul truckers, you know, they don't work for, you know, say the company whose stuff they're moving.
Speaker Change: and it is organized crime and they show up with the fake license.
Speaker Change: and they never see that truck again. So you're talking, you know, upwards of, you know, quarter million to, you know, a million dollars in loss per truck.
Speaker Change: So, it is a big concern. So, they want to know, you know, a couple of things. One, the person actually does have a CDL. The license is real. This person does exist.
So that's where we're playing in space.
Speaker Change: We started off with one company. The thing I like about this space is they all talk.
Speaker Change: and that's how we're now into others. Our first customer was a reference without us even asking and called up his buddies or two other companies and said you got to put this in place.
Speaker Change: Great, that's helpful. And then I wanted to check in and see where you are with resellers. Have you kind of mature that go to market strategy, or is there a lot more room there to improve?
Speaker Change: I think there's plenty of room to improve. One of the people that Tim hired is somebody to come in and
Speaker Change: sort of, I'd say, light up the resellers after we get them, because, you know, I think that you need to be making sure the sales, you know, the reseller salespeople know about us.
Speaker Change: No, you know, how to present us, you know, all those types of things, and there's certainly a lot of other resellers that, you know, we're in, you know, now I'd say deep talks in particularly in banking where there are a lot of
Speaker Change: Small community banks and credit unions who want to use us but don't build their own back end, you know, they outsource that. So getting into that outsource stack is really important to us. But excuse me, it's very interesting. It's sort of like
Speaker Change: Every time I kind of look around and I'm doing some research, I'm like, oh, there's another interesting space we should get to through a reseller.
for, again, anytime I see a large market.
Speaker Change: made up of small companies. I'd rather get to that through a reseller. And again, I like them because since their volume each is lower, you know, the price per transaction is higher and that makes it much more interesting to us and the reseller.
Speaker Change: Yeah, no, that makes sense. And then last one, it looks like the account receivable balance has been climbing the last few quarters. If you make changes to your payment terms, or is there something else mechanical going on there, or just the he has been plowed with the business.
Speaker Change: No, that's mostly changes to our pricing model and how we're working it, so that...
now instead of always billing at arrears.
Speaker Change: We're making people commit to a number of transactions and then they prepay that either quarterly so they'll commit to an annual number of transactions and they either prepay it annually or quarterly, as opposed to us saying, okay we'll see what you did every month and then go billion.
Speaker Change: Yeah, okay. That makes sense. I appreciate the time, guys. Thank you very much.
Thank you.
Williams.
Speaker Change: Our next question comes from Jeff Henry with Craig Hallum. Please proceed with your question.
Jeff Henry: Great. Thanks for taking the questions. I've got a few. So, first, on the metrics front, anything you can share that's a leading indicator here that you might be able to quantify for us, whether it's pipeline value, maybe pending ARR, you've got a lot of lead time on these things. So, visibility into the dollar value of ARR that is to go live. I know
Jeff Henry: Look, I think we've got, you know, I look at the sort of the value of the ARR, what we know that we've got.
You know, committed, if you will.
and again...
Jeff Henry: You know, some of this ARR, you know, one customer would put him into, you know, a top three.
Top 3 or 4 of our customers.
who all are very large customers.
Speaker Change: So, you know, that's how I'm looking at it. That's how, you know, Adam can say that he expects us to be generating, you know, more cash each quarter, you know, pipeline. It's always, that's the reason I got Tim around. I want to make sure that we do have a real and true pipeline, but I'm looking at more what we have.
Speaker Change: in commited or near commited customers or contracts, and that's all looking very good and very robust for us.
Speaker Change: Okay, and on the congrats on the edition of Tim and curious in the interview process, what was it specifically? He's got obviously a very accomplished history, but what stood out to you as most applicable? What gets you excited about hiring him?
Speaker Change: One is, you know, if you remember, I started off in sales and, you know, and ran sales teams and went in and grew.
you know, the productivity and all that kind of stuff.
and in speaking with him.
Speaker Change: I realize that we were very much of the same mindset and how we manage people, how much rope do we give them before we say there's not going to make it.
Speaker Change: You know, a couple of things like that. And then, you know, I had a...
Speaker Change: I see a couple of psychologists who do this for living, for companies, give him some assessments and things and they're like, this guy is perfect for your company and the way that you need to grow out your sales team. So between, I would say,
The professional-like-mindedness, and then having that being...
Confirmed by, you know, outside sources.
Speaker Change: worked out very well. I've been doing a search for a bit and what I liked about Tim also was came through from a reference from somebody that I highly respect.
Hmm.
Speaker Change: and I think you referenced in this script that Tim brought three sales reps already. I think if I recall you had said you hired three in last quarter as well, but I'm particularly interested in these three. I think you said the prior three were more, I took it to be junior, more tele sales historically, but wanted their own names on some accounts. Curious what the making model of the three folks you just brought in.
Speaker Change: much more senior. You know, guys who have been doing enterprise sales and understand, you know, the long-term cycle of it, you know, so I think we've got the right, getting the right blend of a team of young hungry kids who are not afraid to work the phone.
Speaker Change: and learn how to do everything that needs to be done to close enterprise sales, and then folks that have significant enterprise sales experience.
Speaker Change: and honestly, you know, looked at what it is we have.
to Salo and sort of said, you know...
Speaker Change: The same thing that I've heard from investors, and it's like, why isn't everybody buying this? I could sell this to anyone. I'm like, you're the type of people that I need on board.
Speaker Change: Great, and two last numbers, questions, resellers, just in terms of...
Speaker Change: I don't know if you want to take it like aero that's in the pipe.
Speaker Change: What percent of that error in the pipe has come through resellers versus direct and then just the last quantum numbers question, the digital data point. I don't know that we've heard that in a while. You used to break it out. I think you're trying to grow digital as a percent of gravity, just where that is now.
Speaker Change: that I can't, that one I don't have right in front of me, but digital is a...
Speaker Change: of our business because if you think about so much of what we're doing in title and in automotive and other things is really digital because most of it is a lot of it's remote, you know, that people buy cars remotely, you know, or you close on your house remotely, you know, and then also the retail banking.
Again, we've got...
Speaker Change: Almost every bank but one is we're in the call center or we're in their website or we're part of their mobile app so digital certainly is grown and it's almost to the point that
Speaker Change: I don't even think about it because it's just one of the many ways that we sell our product. It's just one of the tools that's out there. Oh, do you want digital? Okay, here's our capture. Right, and we go. But I'll certainly make sure we have that number for, you know, the next time or, you know, that we speak.
in terms of the resellers.
Speaker Change: In almost every market where I'm comfortable with what we have in terms of the resellers, I'm just looking at some numbers on my remarkable here. It's almost 50-50.
Speaker Change: Again, if I look at a lot of motives, the big folks come direct to us, but everybody else were doing it through reseller. Same thing with title.
Speaker Change: But again, you know, I think that there are some other markets where it's going to be almost all resellers.
Speaker Change: You know, like the whole background check space, which I'm very excited about, you know, I don't want to go hit, you know, certainly there's like two big guys, we'll go get them but everybody else want to be done through a reseller, which is why, you know, we brought in this person.
to work under Tim to really light these accounts up.
Okay, great, thanks fine, appreciate it.
Thank you.
and Adam Sragovicz. Thank you. Thank you.
Speaker Change: Okay, there are no further questions at this time. I would now like to turn the floor back over to Brian Lewis for closing comments.
Neil Cataldi: Oh, sorry. Sorry, we do have one more question. My apologies. We have Neil Cataldi with a blueprint capital management.
Please proceed with your question.
Neil Cataldi: Hey, Bryan. Great job on the call today. Lots of information to digest here. You mentioned background checks a couple times and said you're really excited about that vertical. No one asked about it. I was wondering if you could help us. How should we think about it? How to size it? Where are they doing these background checks? I know you announced a win in that space. Is it just that one or there are others? Maybe help us.
map that out a little bit.
Neil Cataldi: Yeah, sure. So we're talking to a couple, you know, my goal is, you know, again, there's two big guys. I want to get them direct and then, you know, there are, you know, I think we used.
Neil Cataldi: Two background check companies. They're small. I'd never want to go sell to them directly. And the folks that we are dealing with for resellers are looking at and their existing customers are a lot of the big box stores.
You know, a large- [inaudible]
You know, a potentially very large market.
Neil Cataldi: If you just look at the number of people, I mean, that's how I decided I could have thought this was something that we should go after and I wish I had it in front of me but I don't I went in and looked at what are the number of background checks done every year and they're all divided up into either firearms or firing both were very large numbers.
Neil Cataldi: and that's why I figured let's go find the right partner to get to them.
Neil Cataldi: So, you know, that's the thing that I like. For the most part, you know, there's always people getting jobs, there's always people moving around. It doesn't just have to be big box stores, you know, we need to, you know, our customers require it, that we want background checks on everybody, you know, for everything from, you know, criminal history to, are they lying about their degree? [inaudible]
Neil Cataldi: and you know, it does happen a lot. So, like, it even happened to our CTO's niece who was in the nurse.
Neil Cataldi: In seems to be, you know, that's why I'm excited about the market, you know, and, you know, we're still new to it. We're playing with these folks. They're very excited. We're looking forward to doing a big joint announcement when we get, you know, I should say they get their first customer and we're a part of that.
Speaker Change: Okay, and that's the announcement that you had in December of last year with, I don't know if I'm saying the right, but ATEO data, is that right? Yep, yep, and then it just took them a bit to, you know...
get
Speaker Change: You know, get integrated. You know, and that's the funny thing. It's like, you know, retail would like we're not touching our point of sale systems in Q4, but everything else kind of slows down to because everybody takes, you know, holiday vacations and all that kind of stuff. So anything you sign in Q. [inaudible]
for
Speaker Change: You know, he isn't going to get anywhere near alive it seems, until he intakes you one.
Speaker Change: So, they've got it live, they've got it selling. I think we've got a bunch of other really interesting reseller opportunities to, by the way, in everything from folks that sell hardware to banks that we can be incorporated into, again, this background space. So, that's why reselling is a big portion of our strategy going forward.
Okay, thanks a lot.
Cool.
Alright. There are no further questions up there. Yeah, I'm sorry Maria. No, it's okay. I was just going to pass it over to you, Bryan, who's for closing comments.
Speaker Change: Okay, all right. So thanks everybody for being on the call. I also want to share another conference opportunity note with you all. I'm going to be presenting at the Laddenberg Thalman Technology Expo 25 in New York City on Wednesday, May 21st.
Speaker Change: Adam is going to be on hand as well if you want a one-on-one meeting. I think we still have
Speaker Change: A few dances left in our dance card. You can go to their website at ladenberg.com
Speaker Change: So, just that including our call today, my message is this, watch this space and the runway for Intellicheck to grow. We believe that our anticipated growth will be driven by our new Senior Vice President sales and a newly revitalized team.
Speaker Change: You know, partnered with real progress in our customer relations program driven by our, you know, relatively new VP of customer success.
Speaker Change: I have reiterated marketing, the numbers I think speak for themselves, and this new marketing firm that we're working with.
Speaker Change: You know, we're finally seeing the finish line in sight with our AWS migration.
Speaker Change: and then the new partnerships that we've been speaking about reselling and new opportunities
Speaker Change: So we all have very high expectations for ourselves and what's to come and we look forward to updating you on Intellicheck 2.0 in our next call in August . So thanks again for joining us today and everyone have a great evening.
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