Biometrics revenues up for authID, Nuance in Q3
AuthID.AI doubled its revenues in the second quarter of its fiscal 2021, compared to the same period a year earlier, with roughly $600,000 generated by its biometric identity proofing and authentication solutions.
Revenues for the first half of the year increased from $1.1 million last year to $1.2 million, and net loss decreased by 12 percent over the past three months to $3.1 million, and by 24 percent over the first six months to $5.5 million. Adjusted EBITDA loss for the quarter was unchanged at $1.4 million.
Total liabilities on authID’s balance sheet were reduced from $9.3 million at the end of calendar 2020 to $3.7 million as of June 30, 2021, as it received voluntary conversion notices to exchange roughly $6.2 million in convertible notes and the bulk of accrued interest for 1.2 million post-split shares of common stock.
The company rebranded from Ipsidy in June to reflect its mission of allowing all organizations to “Recognize their customers,” and executed a 1-for-30 reverse stock split in preparation for up-listing to a national exchange as announced earlier this year.
“To realize our mission to eliminate passwords and become the preferred platform for biometric authentication, our new leadership team will drive success by leveraging channel partnerships as a force multiplier,” comments Tom Thimot, authID.ai CEO. “The authID team will also launch our campaign to service the U.S. market with new self-service capabilities aimed at quickly onboarding thousands of small and medium-sized businesses, who can benefit from our low-friction identity proofing and authentication services. We are confident that our product and go to market strategies will increase the demand for authID’s software as the market realizes that matching a customer biometric to access an account is more secure with less friction than traditional passwords and one-time passwords via SMS.”
AuthID expanded its partner network in the Americas during the quarter through a deal with Inetum, and signed up several sharing economy and ecommerce businesses to fight fraud with its biometric identity proofing through a U.S. channel partner.
Biometrics boost Nuance earnings
Nuance Communications booked $336.6 million in GAAP revenues and earnings per diluted share of negative $0.09 in Q3 2021, and while operating income was down on a GAAP basis, it increased according to non-GAAP metrics, with improved results from its biometrics business.
Both GAAP and non-GAAP revenues were the same, and both also came in at $298.6 million in Q3 last year. GAAP net loss was $26.3 million, compared to a net income of $2.3 million in the same period a year ago, though non-GAAP net income was $50.4 million, well up from $40.5 million in the third quarter of 2020.
The company sold off its medical transcription and electronic healthcare record implementation business lines on March 1, shortly before a deal was reached on a proposed merger with Microsoft. That deal is intended to close by December 31, 2021, with Nuance exiting public trading.
“In Enterprise, our Digital Engagement and Security & Biometrics solutions saw continued adoption throughout the quarter, leading to a return to year-over-year growth in Q3,” states Nuance CEO Mark Benjamin. “Overall, Enterprise revenue increased 5 percent year-over-year, driven by the adoption of these solutions. We are encouraged by the company’s overall performance year-to-date, and feel we are set up for a strong end to fiscal year 2021.”