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Intellicheck biometric and anti-fraud SaaS, OneSpan recurring revenues grow

ForgeRock IPO could launch this year
Intellicheck biometric and anti-fraud SaaS, OneSpan recurring revenues grow

Intellicheck earned $2.86 million in the first fiscal quarter of 2021 from its biometrics and authentication solutions, down 8 percent from the prior year Q1, but saw a 24 percent increase in its SaaS revenue to $2.78 million.

The surge in SaaS revenue to 97 percent of the company’s total led to a gross profit of 92.3 percent of revenue, compared to 77.8 percent in the first quarter of 2020. Net loss was just over $1 million, or $0.06 per diluted share, compared to a net income of $27,000, $0.00 per diluted share a year ago.

“In addition to continued growth in our client base, we are seeing current clients employ a variety of new applications for our powerful identity platform,” states Intellicheck CEO Bryan Lewis. “At the same time, we are rapidly advancing in the digital world by offering new and existing clients additional fraud indicators to add to the certainty of person-not-present transactions.”

Intellicheck has added two VPs and a new president within the last couple of months as it expands its biometric authentication services to new market verticals.

OneSpan nears completion of transition to recurring revenue model

In a similar story, OneSpan earnings were down overall for its biometric multi-factor authentication and anti-fraud software, by 10 percent to $50.8 million, but with several reasons for optimism below the surface numbers.

Annual recurring revenue for OneSpan during its fiscal first quarter of 2021 was up 29 percent to $108.5 million, and the company says it experienced a dollar-based net expansion of 119 percent.

Gross profit dipped from $40.3 million in Q1 2020 to $35.5 million, while gross margin remained nearly unchanged, at 70 percent. GAAP net loss was $9.2 million, or $0.23 per diluted share, compared to marginal GAAP net gain a year earlier.

In full-year 2021, OneSpan forecasts revenues between $215 million and $225 million, with recuring revenue making up more than half, and roughly break-even results by adjusted EBITDA.

“We have made tremendous progress in our shift to recurring software revenue, and we expect to be materially complete with this transition by the end of 2021,” OneSpan CEO Scott Clements says. “We expect profitability to improve in the second quarter on higher revenues with increasing contributions from software and services.”

OneSpan is currently embroiled in a conflict with an activist investor calling for the company to transition its fraud prevention, e-signing and biometric technology to a pure software play.

ForgeRock rumored to be prepping for blockbuster digital identity IPO

ForgeRock is working towards an initial public offering (IPO) later this year, according to Bloomberg, with a source suggesting it could seek a valuation of $3 billion to $4 billion, and possible even higher.

The company has grown rapidly as a leading enterprise digital identity platform, with what CEO Fran Rosch told Biometric Update last year was increased demand for its identity and access management (IAM) technologies, and added integrations with numerous biometric providers along the way, such as TypingDNA last August.

The report indicates ForgeRock has engaged with banks to prepare its IPO, which could be launched as soon as the third quarter of 2021.

Okta, which Bloomberg notes is a ForgeRock competitor, became publicly traded in 2017, and its share value has shot up by more than 1,300 percent since then, giving the company an estimated valuation of $37 billion.

When it announced a $93.5 million funding round last year, which valued the company at $767 million, ForgeRock said it had passed an annual run rate of $100 million.

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