Aware Reports Fourth Quarter and Full Year 2024 Financial Results
Aware Inc. (NASDAQ: AWRE) reported its Q4 and full-year 2024 financial results, showing mixed performance. For full-year 2024, total revenue decreased 5% to $17.4 million, while recurring revenue increased 9% to $12.0 million. The company's net loss improved 39% to $4.4 million.
In Q4 2024, total revenue increased 10% year-over-year to $4.8 million, though recurring revenue decreased 10% to $3.3 million. The quarterly net loss decreased 72% to $1.2 million. The company ended the year with $27.8 million in cash and marketable securities.
Newly appointed CEO Ajay Amlani acknowledged industry challenges including macroeconomic headwinds and government budget constraints, while announcing plans to sharpen go-to-market strategy and enhance execution efforts for 2025.
Aware Inc. (NASDAQ: AWRE) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando performance miste. Per l'intero anno 2024, il fatturato totale è diminuito del 5% a $17,4 milioni, mentre il fatturato ricorrente è aumentato del 9% a $12,0 milioni. La perdita netta dell'azienda è migliorata del 39% a $4,4 milioni.
Nel quarto trimestre del 2024, il fatturato totale è aumentato del 10% rispetto all'anno precedente, raggiungendo $4,8 milioni, anche se il fatturato ricorrente è diminuito del 10% a $3,3 milioni. La perdita netta trimestrale è diminuita del 72% a $1,2 milioni. L'azienda ha chiuso l'anno con $27,8 milioni in contante e titoli negoziabili.
Il nuovo CEO Ajay Amlani ha riconosciuto le sfide del settore, tra cui le difficoltà macroeconomiche e le restrizioni di bilancio governative, annunciando piani per affinare la strategia di ingresso nel mercato e migliorare gli sforzi di esecuzione per il 2025.
Aware Inc. (NASDAQ: AWRE) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un desempeño mixto. Para el año completo 2024, los ingresos totales disminuyeron un 5% a $17.4 millones, mientras que los ingresos recurrentes aumentaron un 9% a $12.0 millones. La pérdida neta de la compañía mejoró un 39% a $4.4 millones.
En el cuarto trimestre de 2024, los ingresos totales aumentaron un 10% interanual a $4.8 millones, aunque los ingresos recurrentes disminuyeron un 10% a $3.3 millones. La pérdida neta trimestral disminuyó un 72% a $1.2 millones. La compañía terminó el año con $27.8 millones en efectivo y valores negociables.
El nuevo CEO Ajay Amlani reconoció los desafíos de la industria, incluidos los vientos en contra macroeconómicos y las restricciones presupuestarias gubernamentales, mientras anunciaba planes para afinar la estrategia de entrada al mercado y mejorar los esfuerzos de ejecución para 2025.
Aware Inc. (NASDAQ: AWRE)는 2024년 4분기 및 연간 재무 결과를 발표하며 혼합된 성과를 보였습니다. 2024년 전체 연도에 대한 총 수익은 $17.4 백만으로 5% 감소했으며, 반복 수익은 $12.0 백만으로 9% 증가했습니다. 회사의 순손실은 $4.4 백만으로 39% 개선되었습니다.
2024년 4분기에는 총 수익이 전년 대비 10% 증가하여 $4.8 백만에 달했지만, 반복 수익은 10% 감소하여 $3.3 백만이 되었습니다. 분기 순손실은 $1.2 백만으로 72% 감소했습니다. 회사는 연말에 $27.8 백만의 현금 및 유가 증권을 보유하고 있었습니다.
신임 CEO Ajay Amlani는 거시경제적 역풍과 정부 예산 제약 등 산업의 도전을 인정하며 2025년을 위한 시장 진입 전략을 강화하고 실행 노력을 개선할 계획을 발표했습니다.
Aware Inc. (NASDAQ: AWRE) a annoncé ses résultats financiers du quatrième trimestre et de l'année complète 2024, affichant des performances mitigées. Pour l'année complète 2024, le chiffre d'affaires total a diminué de 5% à 17,4 millions USD, tandis que le chiffre d'affaires récurrent a augmenté de 9% à 12,0 millions USD. La perte nette de l'entreprise s'est améliorée de 39% à 4,4 millions USD.
Au quatrième trimestre 2024, le chiffre d'affaires total a augmenté de 10% par rapport à l'année précédente, atteignant 4,8 millions USD, bien que le chiffre d'affaires récurrent ait diminué de 10% à 3,3 millions USD. La perte nette trimestrielle a diminué de 72% à 1,2 million USD. L'entreprise a terminé l'année avec 27,8 millions USD en liquidités et en titres négociables.
Le nouveau PDG Ajay Amlani a reconnu les défis de l'industrie, notamment les vents contraires macroéconomiques et les contraintes budgétaires gouvernementales, tout en annonçant des plans pour affiner la stratégie de mise sur le marché et améliorer les efforts d'exécution pour 2025.
Aware Inc. (NASDAQ: AWRE) hat seine Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die gemischte Ergebnisse zeigen. Für das gesamte Jahr 2024 sank der Gesamtumsatz um 5% auf 17,4 Millionen USD, während der wiederkehrende Umsatz um 9% auf 12,0 Millionen USD anstieg. Der Nettoverlust des Unternehmens verbesserte sich um 39% auf 4,4 Millionen USD.
Im vierten Quartal 2024 stieg der Gesamtumsatz im Jahresvergleich um 10% auf 4,8 Millionen USD, während der wiederkehrende Umsatz um 10% auf 3,3 Millionen USD zurückging. Der Nettoverlust im Quartal sank um 72% auf 1,2 Millionen USD. Das Unternehmen schloss das Jahr mit 27,8 Millionen USD in bar und handelbaren Wertpapieren ab.
Der neu ernannte CEO Ajay Amlani erkannte die Herausforderungen der Branche an, darunter makroökonomische Gegenwinde und Haushaltsbeschränkungen der Regierung, und kündigte Pläne an, die Markteintrittsstrategie zu schärfen und die Ausführungsbemühungen für 2025 zu verbessern.
- Q4 revenue increased 10% YoY to $4.8M
- Full-year recurring revenue grew 9% to $12.0M
- Net loss improved 39% YoY to $4.4M
- Strong cash position of $27.8M
- Adjusted EBITDA loss improved 15% to $3.9M
- Full-year revenue declined 5% to $17.4M
- Q4 recurring revenue decreased 10% YoY
- Cash position decreased from $30.9M to $27.8M YoY
- Continued net losses despite improvements
- Facing macroeconomic headwinds and government budget constraints
Insights
Aware's Q4 and full year 2024 results present a mixed financial picture with some concerning trends offset by operational improvements. The company's 5% annual revenue decline to
The company's bottom-line metrics showed material improvement with net loss narrowing
Q4 numbers reveal a concerning
New CEO Ajay Amlani's commentary signals a strategic reset with clear acknowledgment of continuing revenue challenges ahead, pointing to industry-specific headwinds including long sales cycles and government budget constraints. The emphasis on "expected near-term revenue fluctuations" suggests investors should brace for potential continued revenue volatility throughout 2025.
Aware's appointment of Ajay Amlani as CEO marks a critical inflection point for the company amid challenging performance metrics. The leadership change comes as Aware confronts a fundamental business challenge: despite operating in the growing biometrics security sector, the company has been unable to translate market opportunity into revenue growth, as evidenced by the
The company's strategic pivot appears to be multi-faceted, focusing on sharpening go-to-market execution, enhancing partnerships, and technology advancement. The
Aware's substantial cash reserves of
The CEO's candid acknowledgment of "long cycles" and "macroeconomic headwinds" signals realistic expectations management rather than overpromising quick turnarounds. The emphasis on 2025 as "a turning point" with "action and accountability" indicates a more disciplined operational approach, likely involving greater focus on execution metrics and possibly organizational restructuring to align with refined strategic priorities.
Appointed Ajay Amlani as the new Chief Executive Officer.
BURLINGTON, Mass., March 05, 2025 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a global biometric platform company that uses data science and machine learning to tackle everyday business and identity challenges through biometrics, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.
Full Year 2024 Financial Overview
- Total revenue decreased
5% to$17.4 million from$18.2 million in 2023. - Recurring revenue increased
9% to$12.0 million , compared to$11.0 million in 2023. - Net loss improved
39% to$4.4 million , compared to$7.3 million in 2023. 2023 was negatively impacted by the$2.7 million write-off related to March 2022 investment in Omlis Limited. - Adjusted EBITDA loss improved
15% to$3.9 million compared to$4.6 million in 2023. - Cash and cash equivalents and marketable securities were
$27.8 million at the year end. - Repurchased 137,051 shares at a cost of
$0.2 million during the year.
Fourth Quarter 2024 Financial Overview
- Total revenue increased
10% year-over-year to$4.8 million , compared to$4.4 million in the fourth quarter of 2023. - Recurring revenue decreased
10% year-over year to$3.3 million , compared to$3.7 million in Q4 2024. - Net loss decreased
72% year-over-year to$1.2 million , compared to$4.2 million in the prior year period. 2023 was negatively impacted by a$2.7 million write-off related to March 2022 investment in Omlis Limited. - Adjusted EBITDA loss improved
32% to$0.8 million compared to$1.2 million in 2023.
Management Commentary
“In my first 30 days at Aware, I’ve seen firsthand the deep commitment of our team to innovation and the strength of our security solutions at a time when advanced protection has never been more critical,” said CEO Ajay Amlani. “To drive the growth Aware deserves, we are taking decisive action. The biometrics industry operates in long cycles, and while macroeconomic headwinds and government budget constraints remain challenging, we are sharpening our go-to-market strategy, enhancing execution efforts, and unlocking new revenue opportunities to accelerate our momentum.
“2025 is a turning point for Aware—one of action and accountability. We are refining our strategy and positioning the business for long-term success. While we acknowledge expected near-term revenue fluctuations, our focus remains on laying the groundwork for sustainable growth. Our strategy is clear: capitalize on the expanding market opportunity in biometric security by strengthening key partnerships, accelerating technology advancements, and executing with greater focus and discipline. With a strong balance sheet and an exceptional team, I’m energized to lead Aware into its next chapter and raise the bar for security in our industry.”
Fourth Quarter 2024 Financial Results
Revenue for the fourth quarter of 2024 was
Net loss for the fourth quarter of 2024 totaled
Adjusted EBITDA loss (a non-GAAP metric reconciled below) for the fourth quarter of 2024 totaled
Full Year 2024 Financial Results
Revenue for the year ended December 31, 2024, was
Net loss for the year ended December 31, 2024, totaled
Adjusted EBITDA loss (a non-GAAP metric reconciled below) for the year ended December 31, 2024, was
Cash, cash equivalents and marketable securities totaled
Webcast
Aware management will host a webcast today, March 5, 2025, at 5:00 p.m. Eastern time to discuss these results and provide an update on business conditions. A question-and-answer session will follow management’s prepared remarks.
Date: Wednesday, March 5, 2025
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Webcast: Register Here
The presentation will be made available for replay in the investor relations section of the Company’s website. The audio recording will be available for approximately 90 days following the live event.
About Aware
Aware is a global biometric platform company that uses data science and machine learning to tackle everyday business and identity challenges through biometrics. For over 30 years we’ve been a trusted name in the field. Aware’s offerings address the growing challenges that government and commercial enterprises face in knowing, authenticating, and securing individuals through frictionless and highly secure user experiences. Our algorithms are based on diverse operational data sets from around the world, and we prioritize making biometric technology in an ethical and responsible manner. Aware is a publicly held company (NASDAQ: AWRE) based in Burlington, Massachusetts. To learn more, visit our website or follow us on LinkedIn and X.
Safe Harbor Warning
Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties, such as estimates or projections of future revenue, earnings and non-recurring charges, and the growth of the biometrics markets. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements.
Risk factors related to our business include, but are not limited to: i) our operating results may fluctuate significantly and are difficult to predict; ii) we derive a significant portion of our revenue from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities; iii) a significant commercial market for biometrics technology may not develop, and if it does, we may not be successful in that market; iv) we derive a significant portion of our revenue from third party channel partners; v) the biometrics market may not experience significant growth or our products may not achieve broad acceptance; vi) we face intense competition from other biometrics solution providers; vii) our business is subject to rapid technological change; viii) our software products may have errors, defects or bugs which could harm our business; ix) our business may be adversely affected by our use of open source software; x) we rely on third party software to develop and provide our solutions and significant defects in third party software could harm our business; xi) part of our future business is dependent on market demand for, and acceptance of, the cloud-based model for the use of software: xii) our operational systems and networks and products may be subject to an increasing risk of continually evolving cybersecurity or other technological risks which could result in the disclosure of company or customer confidential information, damage to our reputation, additional costs, regulatory penalties and financial losses; xiii) our intellectual property is subject to limited protection; xiv) we may be sued by third parties for alleged infringement of their proprietary rights; xv) we must attract and retain key personnel; xvi) our business may be affected by government regulations, government cost cutting initiatives and adverse economic conditions; and xvii) we may make acquisitions that could adversely affect our results, and xviii) we may have additional tax liabilities.
We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2023 and other reports and filings made with the Securities and Exchange Commission.
AWARE, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue: | ||||||||||||||||
Software licenses | $ | 2,642 | $ | 1,994 | $ | 7,779 | $ | 9,529 | ||||||||
Software maintenance | 2,006 | 2,183 | 8,577 | 7,674 | ||||||||||||
Services and other | 149 | 197 | 1,033 | 1,041 | ||||||||||||
Total revenue | 4,797 | 4,374 | 17,389 | 18,244 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of services and other | 315 | 239 | 1,132 | 1,273 | ||||||||||||
Research and development | 1,835 | 2,215 | 7,757 | 9,124 | ||||||||||||
Selling and marketing | 1,840 | 1,837 | 7,678 | 7,955 | ||||||||||||
General and administrative | 2,281 | 1,870 | 6,367 | 6,549 | ||||||||||||
Loss on write-off of note receivable | — | 2,695 | — | 2,695 | ||||||||||||
Fair value adjustment to contingent acquisition payment | — | — | — | (812 | ) | |||||||||||
Total costs and expenses | 6,271 | 8,856 | 22,934 | 26,784 | ||||||||||||
Operating loss | (1,474 | ) | (4,482 | ) | (5,545 | ) | (8,540 | ) | ||||||||
Interest and other income | 281 | 303 | 1,167 | 1,285 | ||||||||||||
Loss before provision for (benefit from) income taxes | (1,193 | ) | (4,179 | ) | (4,378 | ) | (7,255 | ) | ||||||||
Provision for (benefit from) income taxes | (1 | ) | 59 | 53 | 59 | |||||||||||
Net loss | $ | (1,192 | ) | $ | (4,238 | ) | $ | (4,431 | ) | $ | (7,314 | ) | ||||
Net loss per share – basic | $ | (0.06 | ) | $ | (0.20 | ) | $ | (0.21 | ) | $ | (0.35 | ) | ||||
Net loss per share – diluted | $ | (0.06 | ) | $ | (0.20 | ) | $ | (0.21 | ) | $ | (0.35 | ) | ||||
Weighted-average shares – basic | 21,158 | 21,001 | 21,139 | 21,013 | ||||||||||||
Weighted-average shares – diluted | 21,158 | 21,001 | 21,139 | 21,013 |
AWARE, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands) | ||||||||
(unaudited) | ||||||||
December 31, 2024 | December 31, 2023 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 12,972 | $ | 10,002 | ||||
Marketable securities | 14,842 | 20,913 | ||||||
Accounts and unbilled receivables, net | 4,002 | 3,855 | ||||||
Property and equipment, net | 477 | 579 | ||||||
Goodwill and intangible assets, net | 5,096 | 5,511 | ||||||
Right of use asset | 3,964 | 4,260 | ||||||
All other assets, net | 1,291 | 1,176 | ||||||
Total assets | $ | 42,644 | $ | 46,296 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Accounts payable and accrued expense | $ | 2,341 | $ | 1,986 | ||||
Deferred revenue | 5,163 | 5,537 | ||||||
Operating lease liability | 4,244 | 4,475 | ||||||
Total stockholders’ equity | 30,896 | 34,298 | ||||||
Total liabilities and stockholders’ equity | $ | 42,644 | $ | 46,296 |
Non-GAAP Measures
We define adjusted EBITDA as U.S. GAAP net loss plus depreciation of fixed assets and amortization of intangible assets, stock-based compensation expenses, other (expense) income, net, and income tax provision. We discuss adjusted EBITDA in our quarterly earnings releases and certain other communications, as we believe adjusted EBITDA is an important measure. We use adjusted EBITDA in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, and evaluating short-term and long-term operating trends in our operations. We believe that the adjusted EBITDA financial measure assists in providing an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals. We believe that the adjusted EBITDA adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making.
We define recurring revenue as the portion of Aware revenue that is based on a term arrangement and is likely to continue in the future, such as annual maintenance or subscription contracts. We use recurring revenue as a metric to communicate the portion of our revenue that has greater stability and predictability. We believe that recurring revenue assists in providing an enhanced understanding of effectiveness of our efforts to transition to a subscription-based business model.
We define ARR as the amount of annualized recurring revenue that is likely to continue in the future, such as annual maintenance and subscription contracts. We use ARR as a metric to assess the trajectory of our recurring revenue and we believe that ARR assists in providing an enhanced understanding of effectiveness of our efforts to transition to a subscription-based business model.
Adjusted EBITDA and recurring revenue are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above in arriving at adjusted EBITDA and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring. The following table includes the reconciliations of our U.S. GAAP net loss, the most directly comparable U.S. GAAP financial measure, to our adjusted EBITDA for the three months and year ended December 31, 2024 and 2023 and our U.S. GAAP revenue, the most directly comparable U.S. GAAP financial measure, to our recurring revenue for the three months and year ended December 31, 2024 and 2023.
AWARE, INC. | ||||||||||||||||
Reconciliation of GAAP Net loss to Adjusted EBITDA | ||||||||||||||||
(In thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net loss | $ | (1,192 | ) | $ | (4,238 | ) | $ | (4,431 | ) | $ | (7,314 | ) | ||||
Depreciation and Amortization | 141 | 141 | 562 | 578 | ||||||||||||
Stock based compensation | 504 | 428 | 1,132 | 1,525 | ||||||||||||
Loss on write-off of note receivable | — | 2,695 | — | 2,695 | ||||||||||||
Fair value adjustment to contingent acquisition payment | — | — | — | (812 | ) | |||||||||||
Interest income | (281 | ) | (303 | ) | (1,167 | ) | (1,285 | ) | ||||||||
Provision for (benefit from) income taxes | (1 | ) | 59 | 53 | 59 | |||||||||||
Adjusted EBITDA | $ | (829 | ) | $ | (1,218 | ) | $ | (3,851 | ) | $ | (4,554 | ) |
Revenue Breakout | ||||||||||||||||
(In thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Recurring revenue: | ||||||||||||||||
Software subscriptions | 1,292 | 1,492 | 3,391 | 3,316 | ||||||||||||
Software maintenance | 2,004 | 2,183 | 8,575 | 7,674 | ||||||||||||
Total recurring revenue | 3,296 | 3,675 | 11,966 | 10,990 | ||||||||||||
Non-recurring revenue: | ||||||||||||||||
Software licenses | 1,351 | 502 | 4,389 | 6,213 | ||||||||||||
Services and other | 150 | 197 | 1,034 | 1,041 | ||||||||||||
Total non-recurring revenue | 1,501 | 699 | 5,423 | 7,254 | ||||||||||||
Total revenue | $ | 4,797 | $ | 4,374 | $ | 17,389 | $ | 18,244 |
Aware is a registered trademark of Aware, Inc.
Investor Contact
Matt Glover
Gateway Group, Inc.
949-574-3860
AWRE@gateway-grp.com
