Intellicheck Announces Record First Quarter 2024 Financial Results
Intellicheck (Nasdaq: IDN) announced its Q1 2024 financial results, showcasing a 10% YoY revenue growth, reaching $4.68 million compared to $4.25 million in Q1 2023. SaaS revenue increased by 9% to $4.6 million. Gross profit margin stood at 90.7%, slightly lower than the previous year's 92.2%. Operating expenses decreased by 10% to $4.77 million. Net loss improved by $945,000 to $442,000 or $0.02 per diluted share, compared to a $1.39 million loss or $0.07 per share in Q1 2023. Adjusted EBITDA also improved to a loss of $117,000 from $558,000. As of March 31, 2024, the company held $9.2 million in cash and equivalents and had total stockholders' equity of $17.2 million.
- Total revenue increased by 10% YoY to $4.68 million.
- SaaS revenue grew 9%, reaching $4.6 million.
- Operating expenses decreased by 10% to $4.77 million.
- Net loss improved by $945,000, resulting in a loss of $442,000.
- Adjusted EBITDA improved significantly to a loss of $117,000 from $558,000 in Q1 2023.
- Cash and cash equivalents increased to $9.2 million.
- Gross profit margin decreased from 92.2% to 90.7%.
- Net loss, despite improvements, still stands at $442,000.
- Deferred revenue decreased from $2.2 million to $1.47 million.
- Accounts receivable decreased significantly from $4.7 million to $2.74 million.
Insights
Intellicheck has posted a 10% revenue growth year-over-year, with total revenue reaching
However, gross profit margins slightly decreased from
Operating expenses were
Adjusted EBITDA improved significantly, showing a reduction in loss by
From a financial standpoint, the company maintains a solid liquidity position with
Overall, the financial results present a positive short-term outlook with improvements in revenue, cost management and liquidity, albeit with a slight decline in gross profit margins.
The growing demand for identity verification solutions is driven by increasing incidents of identity theft and fraud, as noted by Intellicheck's CEO. The market for these solutions is expanding, with businesses seeking to enhance security without compromising user experience. Intellicheck’s offering, which does not require additional hardware, positions it well against competitors who may have more cumbersome solutions.
The company's emphasis on a user-friendly, frictionless identity verification process addresses a key consumer concern, which could drive further adoption and customer loyalty. The shift towards subscription-based SaaS revenue is also beneficial as it provides a more predictable and recurring revenue stream.
However, it's important to remain aware of potential challenges, including competition from other companies offering similar solutions and the need to continually innovate to stay ahead in a rapidly evolving market. Long-term success will depend on Intellicheck's ability to maintain its technological edge and adapt to changing consumer and regulatory demands.
In summary, the positive revenue growth and strategic positioning in a growing market present a promising outlook for Intellicheck, though vigilance regarding competition and market trends is necessary.
Total Revenues Grew
Continued Net Income and EBITDA Improvements
“Unrelenting incidents of identity theft and fraud have led to a significant new focus on security and growing consumer concerns. Not only must every business have the advanced technology in place to protect their bottom line, but they also must be responsive to the clear message from consumers. Consumers want better protection, but they do not want to be burdened with time consuming, arduous processes to get that protection. They will take their business elsewhere if they do not get what they want in a user-friendly process. We will continue to capitalize on the demand for consumer-engaging solutions with our distinctive, affordable technology that is hardware agnostic. Uniquely, our technology features rapid, frictionless, and accurate identity verification that has no need for additional hardware. This differentiates Intellicheck from other would-be solution providers,“ said Intellicheck CEO Bryan Lewis.
Gross profit as a percentage of revenues was
Operating expenses for the three months ended March 31, 2024, which consist of selling, general and administrative expenses and research and development expenses, decreased
Net loss for the three months ended March 31, 2024 improved by
Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales tax accruals, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) improved by
As of March 31, 2024, the Company had cash and cash equivalents in the form of
The unaudited financial results reported today do not consider any adjustments that may be required in connection with the completion of the Company’s review process and should be considered preliminary until Intellicheck files its Form 10-Q for the three months ended March 31, 2024.
Conference Call Information
The Company will hold an earnings conference call on May 13 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 13745587. For callers outside the
INTELLICHECK, INC.
UNAUDITED CONDENSED BALANCE SHEETS MARCH 31, 2024 and DECEMBER 31, 2023 (in thousands except share amounts) |
|||||||
|
March 31,
|
|
December 31,
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
9,239 |
|
|
$ |
3,980 |
|
Short-term investments |
|
— |
|
|
|
5,000 |
|
Accounts receivable, net of allowance of |
|
2,744 |
|
|
|
4,703 |
|
Other current assets |
|
654 |
|
|
|
692 |
|
Total current assets |
|
12,637 |
|
|
|
14,375 |
|
|
|
|
|
||||
PROPERTY AND EQUIPMENT, NET |
|
628 |
|
|
|
666 |
|
GOODWILL |
|
8,102 |
|
|
|
8,102 |
|
INTANGIBLE ASSETS, NET |
|
1,157 |
|
|
|
575 |
|
OTHER ASSETS |
|
91 |
|
|
|
90 |
|
Total assets |
$ |
22,615 |
|
|
$ |
23,808 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
1,121 |
|
|
$ |
884 |
|
Accrued expenses |
|
2,657 |
|
|
|
3,245 |
|
Equity awards liability |
|
— |
|
|
|
4 |
|
Liability for shares withheld |
|
190 |
|
|
|
190 |
|
Deferred revenue, current portion |
|
1,469 |
|
|
|
2,209 |
|
Total current liabilities |
|
5,437 |
|
|
|
6,532 |
|
|
|
|
|
||||
Total liabilities |
|
5,437 |
|
|
|
6,532 |
|
|
|
|
|
||||
STOCKHOLDERS’ EQUITY: |
|
|
|
||||
Preferred stock - |
|
— |
|
|
|
— |
|
Common stock - |
|
19 |
|
|
|
19 |
|
Additional paid-in capital |
|
151,166 |
|
|
|
150,822 |
|
Accumulated deficit |
|
(134,007 |
) |
|
|
(133,565 |
) |
Total stockholders’ equity |
|
17,178 |
|
|
|
17,276 |
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
22,615 |
|
|
$ |
23,808 |
|
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (in thousands except share and per share amounts) |
|||||||
|
Three months ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
REVENUES |
$ |
4,680 |
|
|
$ |
4,254 |
|
COST OF REVENUES |
|
(435 |
) |
|
|
(332 |
) |
Gross profit |
|
4,245 |
|
|
|
3,922 |
|
|
|
|
|
||||
OPERATING EXPENSES |
|
|
|
||||
Selling, general and administrative |
|
3,949 |
|
|
|
3,995 |
|
Research and development |
|
819 |
|
|
|
1,308 |
|
Total operating expenses |
|
4,768 |
|
|
|
5,303 |
|
|
|
|
|
||||
Loss from operations |
|
(523 |
) |
|
|
(1,381 |
) |
|
|
|
|
||||
OTHER INCOME |
|
|
|
||||
Interest and other income |
|
83 |
|
|
|
1 |
|
Total other income |
|
83 |
|
|
|
1 |
|
|
|
|
|
||||
Net loss before provision for income taxes |
|
(440 |
) |
|
|
(1,380 |
) |
Provision for income taxes |
|
2 |
|
|
|
7 |
|
|
|
|
|
||||
Net loss |
$ |
(442 |
) |
|
$ |
(1,387 |
) |
|
|
|
|
||||
PER SHARE INFORMATION |
|
|
|
||||
Loss per common share - |
|
|
|
||||
Basic/Diluted |
$ |
(0.02 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
||||
Weighted average common shares used in computing per share amounts - |
|
|
|
||||
Basic/Diluted |
|
19,404,561 |
|
|
|
19,088,752 |
|
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (in thousands, except number of shares) |
|||||||||||||||
|
Three months ended March 31, 2024 |
||||||||||||||
|
Common Stock |
|
Additional Paid-in Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||
|
Shares |
|
Amount |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
BALANCE, December 31, 2023 |
19,354,335 |
|
$ |
19 |
|
$ |
150,822 |
|
$ |
(133,565 |
) |
|
$ |
17,276 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Stock-based compensation |
– |
|
|
– |
|
|
344 |
|
|
– |
|
|
|
344 |
|
Issuance of shares for vested restricted stock grants |
50,226 |
|
|
– |
|
|
– |
|
|
– |
|
|
|
– |
|
Net loss |
– |
|
|
– |
|
|
– |
|
|
(442 |
) |
|
|
(442 |
) |
BALANCE, March 31, 2024 |
19,404,561 |
|
$ |
19 |
|
$ |
151,166 |
|
$ |
(134,007 |
) |
|
$ |
17,178 |
|
|
Three months ended March 31, 2023 |
||||||||||||||
|
Common Stock |
|
Additional Paid-in Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||
|
Shares |
|
Amount |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
BALANCE, December 31, 2022 |
18,957,366 |
|
$ |
19 |
|
$ |
149,233 |
|
$ |
(131,585 |
) |
|
$ |
17,667 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Stock-based compensation |
– |
|
|
– |
|
|
642 |
|
|
– |
|
|
|
642 |
|
Issuance of shares for vested restricted stock grants |
258,497 |
|
|
– |
|
|
– |
|
|
– |
|
|
|
– |
|
Net loss |
– |
|
|
– |
|
|
– |
|
|
(1,387 |
) |
|
|
(1,387 |
) |
BALANCE, March 31, 2023 |
19,215,863 |
|
$ |
19 |
|
$ |
149,875 |
|
$ |
(132,972 |
) |
|
$ |
16,922 |
|
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 |
|||||||
|
Three months ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(442 |
) |
|
$ |
(1,387 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
||||
Depreciation and amortization |
|
72 |
|
|
|
70 |
|
Stock-based compensation |
|
334 |
|
|
|
682 |
|
Allowance for credit losses |
|
16 |
|
|
|
10 |
|
Change in accrued interest and accretion of discount on short-term investments |
|
— |
|
|
|
(1 |
) |
Changes in assets and liabilities: |
|
|
|
||||
Decrease (Increase) in accounts receivable |
|
1,944 |
|
|
|
(900 |
) |
Decrease (Increase) in other current assets and long-term assets |
|
38 |
|
|
|
(145 |
) |
(Decrease) Increase in accounts payable and accrued expenses |
|
(353 |
) |
|
|
783 |
|
(Decrease) Increase in deferred revenue |
|
(740 |
) |
|
|
1,121 |
|
Net cash provided by operating activities |
|
869 |
|
|
|
233 |
|
|
|
|
|
||||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
|
(9 |
) |
|
|
(17 |
) |
Proceeds from maturity of short-term investments |
|
5,000 |
|
|
|
— |
|
Software development costs |
|
(601 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
|
4,390 |
|
|
|
(17 |
) |
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds of insurance financing arrangement |
|
— |
|
|
|
49 |
|
Repayment of insurance financing arrangements |
|
— |
|
|
|
(106 |
) |
Net cash provided by (used in) financing activities |
|
— |
|
|
|
(57 |
) |
|
|
|
|
||||
Net increase in cash |
|
5,259 |
|
|
|
159 |
|
|
|
|
|
||||
CASH, beginning of period |
|
3,980 |
|
|
|
5,196 |
|
|
|
|
|
||||
CASH, end of period |
$ |
9,239 |
|
|
$ |
5,355 |
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
||||
Cash paid for interest |
$ |
— |
|
|
$ |
1 |
|
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, 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 sales tax accruals, 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, sales tax accruals, 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 companies.
The reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA is as follows:
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
Net loss |
$ |
(442 |
) |
|
$ |
(1,387 |
) |
Reconciling items: |
|
|
|
||||
Provision for income taxes |
|
2 |
|
|
|
7 |
|
Interest and other income |
|
(83 |
) |
|
|
(1 |
) |
Sales tax accrual |
|
— |
|
|
|
71 |
|
Depreciation and amortization |
|
72 |
|
|
|
70 |
|
Stock-based compensation including liability classified awards |
|
334 |
|
|
|
682 |
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
(117 |
) |
|
$ |
(558 |
) |
Contact
Investor Relations: Gar Jackson (949) 873-2789
Media and Public Relations: Sharon Schultz (302) 539-3747 / sschultz@intellicheck.com
About Intellicheck
Intellicheck (Nasdaq: IDN) is an identity company that delivers on-demand digital identity validation solutions for KYC, fraud, and age verification needs. Intellicheck validates both digital and physical 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/20240513912436/en/
Contact
Investor Relations: Gar Jackson (949) 873-2789
Media and Public Relations: Sharon Schultz (302) 539-3747 / sschultz@intellicheck.com
Source: Intellicheck, Inc.
FAQ
What were Intellicheck's total revenues for Q1 2024?
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