authID® [Nasdaq: AUID], a leading provider of innovative
biometric identity verification and authentication solutions, today
announced the Company experienced record year over year growth in
sales of 1,200% for its biometric identity authentication platform.
The company also bolstered its financial position by completing
financing rounds in May and November 2023, securing a combined
$17.6 million in gross proceeds and a debt-to-equity conversion of
almost $9 million. These measures, combined with cost-cutting
efforts and a July reverse stock-split, helped authID regain
compliance with Nasdaq listing rules and provided the capital
needed to secure critical identity-domain experts and deliver on
product innovation.
Record sales momentum followed the mid-year appointment of Rhon
Daguro as CEO, the reconstitution of its Corporate Board of
Directors, and the August appointment of Ed Sellitto as CFO.
Together they transformed the company into a high-performance
technology and sales organization that solves for major identity
authentication challenges.
Daguro and his newly appointed sales leaders quickly built a
robust sales pipeline for both short-term and long-term expansion
and realized successive quarter-over-quarter sales growth,
achieving their 12-month sales goal originally targeted for June
2024 in just six months. The Company secured sales of $0.2
million, $1.0 million and $1.7 million in gross Booked Annual
Recurring Revenue (bARR as defined below) in the second, third, and
fourth quarters of 2023, respectively. The cumulative value of
approximately $3 million in sales represents more than 12 times the
highest total gross bARR that authID had previously reported for an
annual period.
“This level of sales growth in such a short period attests to
the market’s concerns around the security and authentication
breaches attributed to compromised passwords and devices that
dominated 2023 headlines, and which are predicted to continue in
2024. In an all-digital world centered around identity, generative
AI is expected to increase the effectiveness and frequency of fraud
attacks while lowering the bar for launching those attacks,” said
authID CEO Rhon Daguro. “authID is dedicated to ensuring
enterprises ‘Know Who Is Behind the Device’ to prevent
cybercriminals from performing account takeovers and seizing
assets, while delivering the fastest and easiest user
experience.”
authID expects to broaden its ability to provide fast, accurate,
and user-friendly solutions to fight authentication fraud for both
consumers and workforce employees by identifying who is the living
and breathing person behind the device for many authentication use
cases. By simply using a camera and processing a biometric
transaction in 700 milliseconds, authID delivers fast,
frictionless, and precise identity authentication that far
outshines the competition, who at best offer speeds of 4 to 9
seconds, as tested by customers.
Continued Daguro, “We greatly appreciate the patience and
guidance of our investors who put their faith in our ability to
leverage what they’d already built and gave us the opportunity to
succeed. I believe the work done in 2023 puts us on a path to
reward that trust by delivering an innovative product roadmap, an
expanded sales pipeline, and bookings leading to revenue that allow
us to realize our previously stated target of $9 million in bARR
for 2024, a triple growth target over 2023.”
It should be noted the Company will issue financial results for
the fourth quarter and full year of 2023 with its Annual Report for
the year in March.
For further information on how authID can help your organization
secure your workforce or consumer applications against identity
fraud, cyberattacks, and account takeover, schedule a demo.
Non-GAAP Financial Information
The Company provides certain non-GAAP financial measures in this
statement. These non-GAAP key business indicators, which include
bARR and ARR, should not be considered replacements for and should
be read in conjunction with the GAAP financial measures for the
period, which will be published in due course with our Annual
Report on Form 10-K for the period ended December 31, 2023. Please
note that the definitions of these non-GAAP financial measures have
changed as compared to the non-GAAP financial measures reported in
previous periods. Management believes that bARR , when viewed with
our results under GAAP, provides useful information about our
period-over-period activities. bARR is presented because management
believes it provides additional information with respect to the
trends in the performance of our fundamental business activities.
We also rely on bARR as one of a number of primary measures to
review and assess the sales performance of our Company and our
management team in connection with our executive compensation. In
particular bARR is a forward-looking measure and does not give any
indication of the likely results of operations of the Company for
the period just ended, nor of the GAAP financial measures which
will be reported in Form 10-K for the quarter and year just
ended.
The Company defines Booked Annual Recurring Revenue or bARR , as
the amount of annual recurring revenue represented by the estimated
amounts of annual recurring revenue we believe will be earned under
such contracted orders, looking out eighteen months from the date
of signing of each customer contract. The net amount of bARR
reflects the deduction of the bARR of contracts previously included
in reported bARR , which were subject to attrition during the
quarter. The gross and net amount of bARR signed for the full year
2023 was $2.94 million, compared to $0.23 million of bARR signed in
2022.
The company defines Annual Recurring Revenue or ARR, as the
amount of recurring revenue derived from sales of our Verified
products during the last three months of the relevant period as
determined in accordance with GAAP, multiplied by four.
bARR may be distinguished from ARR, as bARR does not take
specifically into account the time to implement any contract for
our SaaS services, nor for any ramp in adoption, or seasonality of
usage of the authID products, but is based on the assumption that
18 months after signing these matters will have been generally
resolved. bARR and ARR have limitations as analytical tools, and
you should not consider them in isolation from, or as a substitute
for, analysis of our results as reported under GAAP. Some of these
limitations are:
- bARR & ARR should not be considered as predictors of future
revenues but only as indicators of the direction in which revenues
may be trending. Actual revenue results in the future as determined
in accordance with GAAP may be significantly different to the
amounts indicated as bARR or ARR at any time.
- bARR and ARR are to be considered “forward looking statements”
and subject to the same risks, as other such statements (see note
on “Forward Looking Statements” below).
- bARR & ARR only include revenues from sale of our Verified
products and not other revenues.
- bARR & ARR do not include amounts we consider as
non-recurring revenues (for example one-off implementation
fees).
Forward-Looking Statements
This Press Release includes “forward-looking statements.” All
statements other than statements of historical facts included
herein, including, without limitation, those regarding the future
results of operations, booked Annual Recurring Revenue (bARR),
Annual Recurring Revenue (ARR), the plans and objectives of
management for future operations of both authID Inc. and its
customers or business partners, are forward-looking statements.
Such forward-looking statements are based on a number of
assumptions regarding the successful implementation of the services
which are the subject of the referenced agreements, authID’s
present and future business strategies, and the environment in
which authID expects to operate in the future, which assumptions
may or may not be fulfilled in practice. Actual results may vary
materially from the results anticipated by these forward-looking
statements as a result of a variety of risk factors, including the
Company’s ability to attract and retain customers; changes in laws,
regulations and practices; changes in domestic and international
economic and political conditions, the as yet uncertain impact of
the war in Ukraine, inflationary pressures, increases in interest
rates, and others. See the Company’s Annual Report on Form 10-K for
the Fiscal Year ended December 31, 2022 filed
at www.sec.gov and other documents filed with the SEC for
other risk factors which investors should consider. These
forward-looking statements speak only as to the date of this
release and cannot be relied upon as a guide to future performance.
authID expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statements contained in this release to reflect any changes in its
expectations with regard thereto or any change in events,
conditions, or circumstances on which any statement is based.
About authID Inc.
authID (Nasdaq: AUID) ensures cyber-savvy
enterprises “Know Who’s Behind the Device”TM for
every customer or employee login and transaction. Through
its easy-to-integrate, patented, biometric identity platform,
authID quickly and accurately verifies a user’s identity,
eliminating any assumption of ‘who’ is behind a device and
preventing cybercriminals from taking over accounts. authID
combines digital onboarding, FIDO2 login, and biometric
authentication and account recovery, with a fast, accurate,
user-friendly experience – delivering identity verification in
700ms. Establishing a biometric root of trust for each user
that is bound to their accounts and provisioned
devices, authID stops fraud at onboarding, eliminates password
risks and costs, and provides the faster, frictionless, and
more accurate user identity experience demanded by
operators of today’s digital ecosystems. For more information,
visit www.authID.ai.
authID Media Contact
Rhon Daguro, CEOInvestorRelations@authid.ai
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