Intellicheck Announces Fourth Quarter and Full-Year 2023 Financial Results
- Strong fourth quarter and full-year financial results reported by Intellicheck, Inc. (IDN).
- Net income for the fourth quarter reached $757,000, a significant improvement from a net loss of ($869,000) in the same period in 2022.
- SaaS revenues grew by 18% year over year, totaling $18,595,000 for the full year ended December 31, 2023.
- Operating expenses decreased by 15% to $4,291,000 for the fourth quarter of 2023 compared to $5,054,000 in 2022.
- Adjusted EBITDA improved to $1,169,000 for the fourth quarter of 2023 compared to $389,000 in the same period in 2022.
- None.
Insights
An examination of Intellicheck's financial results reveals a company in the midst of a positive transformation, underscored by a 14% year-over-year growth in total revenue and an impressive 18% increase in SaaS revenues. The significance of these figures lies in the scalability and predictability of SaaS models, which are highly valued by investors for their recurring revenue streams. The reported net income of $757,000, compared to a net loss in the previous year, indicates a successful turnaround in profitability, which could be a signal of effective cost management and operational efficiency.
The company's gross profit margin remains robust at 94.9%, a slight increase from the previous year, highlighting the high-margin nature of the business. However, the full-year net loss of $1,980,000, an improvement from the prior year, suggests that while the company is moving in the right direction, it still faces challenges in achieving consistent profitability. The reduction in operating expenses, down by 15% for the quarter, could reflect a strategic realignment or cost-cutting measures that may have long-term implications for the company's growth trajectory.
Intellicheck's strategic expansion into new verticals such as cryptocurrency suggests an agility to adapt to emerging markets. The entry into this high-growth sector could potentially open up significant revenue streams, but it also exposes the company to the volatility and regulatory uncertainties inherent in the crypto space. Furthermore, the appointment of new leadership in key positions such as CTO and Vice President of Marketing indicates an investment in innovation and market positioning, which could enhance the company's competitive edge and drive future growth.
Investors should note the company's strong cash position, with $9.0 million in cash and short-term investments, providing a solid foundation for continued investment in growth initiatives. However, the reliance on equity-based compensation, as seen in the non-cash equity compensation expenses, should be monitored for its potential dilutive effect on shareholder value.
While the financial results are promising, the disclosure that the results are preliminary and subject to adjustments post-audit introduces an element of uncertainty. Investors should exercise due diligence and consider the potential for revisions that could materially affect the reported figures. The company's adherence to regulatory requirements, particularly in light of its expansion into the cryptocurrency sector, will be important in maintaining investor confidence and avoiding legal and compliance risks.
Achieved Fourth Quarter Net Income of
SaaS Revenues Grew
“We anticipate continued growth driven by our expectations from our pipeline and the number of deals anticipated to go live in Q2 and Q3. We believe that we are on the cusp of a number of sizeable revenue generators that will really move the needle in the back half of the year. These include the addition of new retailers with our long standing bank partners, global media companies, auto, title and now crypto currency, our latest vertical. Additionally, we have made important progress in strengthening our organization with the addition of a new CTO, a new leader for our Channel and Technology Alliances, and a new Vice President of Marketing. We remain committed to giving our clients the innovative tools that allow them to onboard more customers quickly and easily while fundamentally eliminating fraud and building value for our shareholders,” said Intellicheck CEO Bryan Lewis.
Gross profit as a percentage of revenues was
Operating expenses for the three months ended December 31, 2023, which consist of selling, general and administrative expenses and research and development expenses, decreased
Net income for the three months ended December 31, 2023 improved to
Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales tax accrual, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) improved to
Full Year 2023 Results
Total revenue for the full year ended December 31, 2023 increased
Gross profit as a percentage of revenue was
Operating expenses for the year ended December 31, 2023 were
Net loss for the year ended December 31, 2023 was (
As of December 31, 2023, the Company had cash and short-term investments in the form of
The financial results reported today do not consider any adjustments that may be required in connection with the completion of the Company’s audit process and should be considered preliminary until Intellicheck files its Form 10-K for the fiscal year ended December 31, 2023.
Conference Call Information
The Company will hold an earnings conference call on March 21, 2024 at 4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. For callers outside the
A replay of the conference call will be available shortly after completion of the live event. To listen to the replay, please dial 877-660-6853 and use conference identification number 13743896 For callers outside the
INTELLICHECK, INC.
DECEMBER 31, 2023 and 2022 |
|||||||
|
(Unaudited) |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands except share
|
||||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
3,980 |
|
|
$ |
5,196 |
|
Short-term investments |
|
5,000 |
|
|
|
4,880 |
|
Accounts receivable, net |
|
4,703 |
|
|
|
2,637 |
|
Other current assets |
|
692 |
|
|
|
608 |
|
Total current assets |
|
14,375 |
|
|
|
13,321 |
|
|
|
|
|
||||
PROPERTY AND EQUIPMENT, NET |
|
666 |
|
|
|
749 |
|
GOODWILL |
|
8,102 |
|
|
|
8,102 |
|
INTANGIBLE ASSETS, NET |
|
575 |
|
|
|
273 |
|
OTHER ASSETS |
|
90 |
|
|
|
8 |
|
|
|
|
|
||||
Total assets |
$ |
23,808 |
|
|
$ |
22,453 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
884 |
|
|
$ |
358 |
|
Accrued expenses |
|
3,245 |
|
|
|
3,156 |
|
Income taxes payable |
|
— |
|
|
|
90 |
|
Equity awards liability |
|
4 |
|
|
|
54 |
|
Liability for shares withheld |
|
190 |
|
|
|
221 |
|
Deferred revenue, current portion |
|
2,209 |
|
|
|
906 |
|
Total current liabilities |
|
6,532 |
|
|
|
4,785 |
|
|
|
|
|
||||
OTHER LIABILITIES |
|
|
|
||||
Deferred revenue, long-term portion |
|
— |
|
|
|
1 |
|
Total liabilities |
|
6,532 |
|
|
|
4,786 |
|
|
|
|
|
||||
|
|
|
|
||||
STOCKHOLDERS’ EQUITY: |
|
|
|
||||
Preferred stock – |
|
— |
|
|
|
— |
|
Common stock – |
|
19 |
|
|
|
19 |
|
Additional paid-in capital |
|
150,822 |
|
|
|
149,233 |
|
Accumulated deficit |
|
(133,565 |
) |
|
|
(131,585 |
) |
Total stockholders’ equity |
|
17,276 |
|
|
|
17,667 |
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
23,808 |
|
|
$ |
22,453 |
|
INTELLICHECK, INC.
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 |
|||||||
|
(Unaudited) |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands except share and
|
||||||
REVENUES |
$ |
18,906 |
|
|
$ |
15,966 |
|
COST OF REVENUES |
|
(1,375 |
) |
|
|
(1,275 |
) |
Gross profit |
|
17,531 |
|
|
|
14,691 |
|
|
|
|
|
||||
OPERATING EXPENSES |
|
|
|
||||
Selling, general and administrative |
|
15,127 |
|
|
|
12,707 |
|
Research and development |
|
4,680 |
|
|
|
6,014 |
|
Total operating expenses |
|
19,807 |
|
|
|
18,721 |
|
|
|
|
|
||||
Loss from operations |
|
(2,276 |
) |
|
|
(4,030 |
) |
|
|
|
|
||||
OTHER INCOME (EXPENSE) |
|
|
|
||||
Interest and other income (expense) |
|
234 |
|
|
|
(5 |
) |
Total other income (expense) |
|
234 |
|
|
|
(5 |
) |
|
|
|
|
||||
Net loss before provision (benefit) for income taxes |
|
(2,042 |
) |
|
|
(4,035 |
) |
Provision (Benefit) for income taxes |
|
(62 |
) |
|
|
124 |
|
|
|
|
|
||||
Net loss |
$ |
(1,980 |
) |
|
$ |
(4,159 |
) |
|
|
|
|
||||
PER SHARE INFORMATION: |
|
|
|
||||
Loss per common share - |
|
|
|
||||
Basic/Diluted |
$ |
(0.10 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
||||
Weighted average common shares used in computing per share amounts - |
|
|
|
||||
Basic/Diluted |
|
19,243,179 |
|
|
|
18,838,971 |
|
INTELLICHECK, INC.
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (Unaudited) (in thousands, except number of shares) |
|||||||||||||||||
|
Common Stock |
|
Additional
Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||||
|
Shares |
|
Amount |
|
|
|
|||||||||||
BALANCE, December 31, 2021 |
18,660,369 |
|
|
$ |
19 |
|
$ |
146,455 |
|
|
$ |
(127,426 |
) |
|
$ |
19,048 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
— |
|
|
|
— |
|
|
2,778 |
|
|
|
— |
|
|
|
2,778 |
|
Issuance of shares for vested restricted stock grants |
296,997 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
— |
|
|
|
— |
|
|
— |
|
|
|
(4,159 |
) |
|
|
(4,159 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, December 31, 2022 |
18,957,366 |
|
|
$ |
19 |
|
$ |
149,233 |
|
|
$ |
(131,585 |
) |
|
$ |
17,667 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
— |
|
|
|
— |
|
|
1,646 |
|
|
|
— |
|
|
|
1,646 |
|
Issuance of common stock for vested restricted stock units and earned performance stock units |
421,689 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Shares forfeited in exchange for withholding taxes |
(24,720 |
) |
|
|
— |
|
|
(57 |
) |
|
|
— |
|
|
|
(57 |
) |
Net loss |
— |
|
|
|
— |
|
|
— |
|
|
|
(1,980 |
) |
|
|
(1,980 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, December 31, 2023 |
19,354,335 |
|
|
$ |
19 |
|
$ |
150,822 |
|
|
$ |
(133,565 |
) |
|
$ |
17,276 |
|
INTELLICHECK, INC.
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 |
|||||||
|
(Unaudited) |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(In thousands) |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(1,980 |
) |
|
$ |
(4,159 |
) |
Adjustments to reconcile Net loss to net cash (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
282 |
|
|
|
285 |
|
Stock-based compensation |
|
1,596 |
|
|
|
2,455 |
|
Allowance for credit losses |
|
49 |
|
|
|
17 |
|
Change in accrued interest and accretion of discount on short-term investments |
|
(206 |
) |
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
||||
(Increase) in accounts receivable |
|
(2,115 |
) |
|
|
(462 |
) |
(Increase) decrease in other current assets |
|
(84 |
) |
|
|
34 |
|
(Increase) in other assets |
|
(82 |
) |
|
|
— |
|
Increase (decrease) in accounts payable and accrued expenses |
|
622 |
|
|
|
(260 |
) |
Increase (decrease) in deferred revenue |
|
1,302 |
|
|
|
(367 |
) |
(Decrease) in other current liabilities |
|
(31 |
) |
|
|
(1,023 |
) |
Net cash (used in) operating activities |
|
(647 |
) |
|
|
(3,480 |
) |
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchase of property and equipment |
|
(93 |
) |
|
|
(192 |
) |
Proceeds from maturity of short-term investments |
|
5,000 |
|
|
|
— |
|
Purchases of short-term investments |
|
(4,914 |
) |
|
|
(4,880 |
) |
Software development and other costs |
|
(407 |
) |
|
|
— |
|
Net cash (used in) investing activities |
|
(414 |
) |
|
|
(5,072 |
) |
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds of insurance financing arrangement |
|
49 |
|
|
|
319 |
|
Withholding taxes paid on RSU vesting |
|
(57 |
) |
|
|
— |
|
Repayment of insurance financing arrangement |
|
(147 |
) |
|
|
(222 |
) |
Net cash (used in) provided by financing activities |
|
(155 |
) |
|
|
97 |
|
|
|
|
|
||||
Net (decrease) in cash |
|
(1,216 |
) |
|
|
(8,455 |
) |
|
|
|
|
||||
CASH, beginning of year |
|
5,196 |
|
|
|
13,651 |
|
|
|
|
|
||||
CASH, end of year |
$ |
3,980 |
|
|
$ |
5,196 |
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
||||
Cash paid for interest |
$ |
2 |
|
|
$ |
5 |
|
Cash paid for income taxes |
$ |
80 |
|
|
$ |
31 |
|
Adjusted EBITDA
We use Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adjusting net loss for certain reductions such as interest and other income and certain addbacks such as income taxes, impairments of long-lived assets and goodwill, sales tax accrual, depreciation, amortization, and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing our financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as impairments of long-lived assets and goodwill, sales tax accrual, amortization, depreciation, and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate our operations and can compare the results on a more consistent basis to the results of other companies. In addition, Adjusted EBITDA is one of the primary measures management uses to monitor and evaluate financial and operating results.
We consider Adjusted EBITDA to be an important indicator of our operational strength and performance of our business and a useful measure of our historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes interest and other income, impairments of long-lived assets and goodwill, sales tax accrual, stock-based compensation expense, all of which impact our profitability, as well as depreciation and amortization related to the use of long-term assets which benefit multiple periods. We believe that these limitations are compensated by providing Adjusted EBITDA only with GAAP net loss and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net loss presented in accordance with GAAP. Adjusted EBITDA as defined by us may not be comparable with similarly named measures provided by other entities.
|
(Unaudited) |
||||||||||||||
|
Three Months Ended
|
|
Years Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income (loss) |
$ |
757 |
|
|
$ |
(869 |
) |
|
$ |
(1,980 |
) |
|
$ |
(4,159 |
) |
Reconciling items: |
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
(82 |
) |
|
|
124 |
|
|
|
(62 |
) |
|
|
124 |
|
Non-restructuring severance expenses |
|
- |
|
|
|
58 |
|
|
|
548 |
|
|
|
58 |
|
Sales tax accrual |
|
227 |
|
|
|
308 |
|
|
|
227 |
|
|
|
308 |
|
Interest and other expense (income) |
|
(53 |
) |
|
|
5 |
|
|
|
(234 |
) |
|
|
5 |
|
Depreciation and amortization |
|
71 |
|
|
|
76 |
|
|
|
282 |
|
|
|
285 |
|
Stock-based compensation expense including liability classified awards |
|
249 |
|
|
|
687 |
|
|
|
1,596 |
|
|
|
2,455 |
|
Adjusted EBITDA |
$ |
1,169 |
|
|
$ |
389 |
|
|
$ |
377 |
|
|
$ |
(924 |
) |
About Intellicheck
Intellicheck (Nasdaq: IDN) is an identity company that delivers on-demand digital and physical identity validation solutions for KYC, AML, fraud, and age verification needs. Intellicheck validates identities for financial services, fintech companies, BNPL providers, e-commerce, and retail commerce businesses, law enforcement and government agencies across
Safe Harbor Statement
Statements in this news release about Intellicheck’s future expectations, including: the advantages of our products, future demand for Intellicheck’s existing and future products, whether revenue and other financial metrics will improve in future periods, whether Intellicheck will be able to execute its turn-around plan or whether successful execution of the plan will result in increased revenues, whether sales of our products will continue at historic levels or increase, whether brand value and market awareness will grow, whether the Company can leverage existing partnerships or enter into new ones, whether there will be any impact on sales and revenues due to an epidemic, pandemic or other public health issue and all other statements in this release, other than historical facts, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These statements, which express management’s current views concerning future events, trends, contingencies or results, appear at various places in this release and use words like “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “potential,” “predict,” “project,” “sense”, “strategy,” “target” and similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and “would” are forward-looking statements within the meaning of the PSLRA. This statement is included for the express purpose of availing Intellicheck, Inc. of the protections of the safe harbor provisions of the PSLRA. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as: market acceptance of our products and the presently anticipated growth in the commercial adoption of our products and services; our ability to successfully transition pilot programs into formal commercial scale programs; continued adoption of our SaaS product offerings; changing levels of demand for our current and future products; our ability to reduce or maintain expenses while increasing sales; our ability to successfully expand the sales of our products and services into new areas including health care and auto dealerships; customer results achieved using our products in both the short and long term; success of future research and development activities; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity with our customer’s businesses; our ability to successfully market and sell our products, any delays or difficulties in our supply chain coupled with the typically long sales and implementation cycle for our products; our ability to enforce our intellectual property rights; changes in laws and regulations applicable to the our products; our continued ability to access government-provided data; the risks inherent in doing business with the government including audits and contract cancellations; liability resulting from any security breaches or product failure, together with other risks detailed from time to time in our reports filed with the SEC. We do not assume any obligation to update the forward-looking information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240321816707/en/
Investor Relations: Gar Jackson (949) 873-2789
Media and Public Relations: Sharon Schultz (302) 539-3747
Source: Intellicheck, Inc.
FAQ
What was Intellicheck, Inc.'s net income for the fourth quarter of 2023?
How much did SaaS revenues grow year over year for Intellicheck, Inc.?
What was the percentage change in operating expenses for Intellicheck, Inc. in the fourth quarter of 2023?
How did Intellicheck, Inc.'s adjusted EBITDA change in the fourth quarter of 2023 compared to 2022?
