Trust Stamp and Vsblty lead gains among publicly-traded biometrics providers: earnings round-up
Trust Stamp and Vsblty have reported major revenue gains from their biometric technologies, while more modest gains were reported by BIO-key, Precise Biometrics, Ping identity and ForgeRock. AuthID is leaning into its biometrics portfolio, and Idex Biometrics is optimistic about the prospects for biometric payment cards rollouts this year.
Intellicheck, meanwhile, has postponed its first quarter 2022 earnings call to allow for the completion of an external audit of its equity compensation program. The company anticipates revenues of approximately $3.39 million for the first three months of the year.
BIO-key software continues gains
Revenues earned by BIO-key during the first quarter of its fiscal 2022 year for its biometrics and IAM solutions improved three percent to $1.94 million, compared to $1.89 million in the same quarter a year ago.
The Q1 revenue gain was driven by a year-over-year increase in software license fees of just under a million dollars, which alone represents more revenue than the $935,000 the company reported in Q4 2021 revenues. The company is focussed on growing the more predictable base of annual recurring revenue from software licenses, which also yields higher margins than its biometric hardware business.
Total operating expenses were up on higher research and development investment, and BIO-key reports an operating loss of $1 million, compared to $0.8 million in Q1 2021. Net loss was likewise slightly higher, at $1 million, or $0.12 per share.
BIO-key CEO Michael DePasquale says the company is confidant in its full-year revenue guidance of $10 million to $13 million, with approximately 70 percent of the lower end amount consisting of software.
“Looking forward, we see an expanding worldwide opportunity to grow our software license revenue base, driven by the compelling security, scalability, ease of use and deployment, and customer value proposition of our PortalGuard IAM platform, along with an expanding array of security solutions,” states DePasquale. “Customers are increasingly recognizing PortalGuard’s, flexibility and differentiated multi-factor authentication capabilities, with support for sixteen different factors including BIO-key’s industry-leading Identity Bound Biometric capabilities.”
DePasquale also anticipates break-even operations around the lower end of the guidance range, depending on the mix of hardware and software.
Precise reports strong Q1 with 39 percent revenue gain
Precise Biometrics reports revenues of 28.3 million Swedish Kronas (US$2.81 million) in its first quarter of 2022, with EBITDA improving to SEK 4 million ($0.4 million), reduced operating losses and improved overall earnings.
Earnings for Precise in Q1 were a loss of SEK 1.2 million ($120,000), improved from a loss of SEK 3.5 million ($350,000) in the same period a year ago, and earnings per share were flat, after a loss of SEK 0.01 in Q1 last year. This was despite the company’s revenues from biometric algorithms being negatively impacted from the global component shortage significantly more than a year earlier.
“We have begun 2022 in a strong manner in both our product segments,” Precise Interim CEO and VP of Sales Fredrik Sjöholm comments. “We continue to grow with stable, recurring revenues in Digital Identity. We are also continuing our expansion within Algo, with a continued focus on new projects with established partners in the mobile segment. Algo has shown growth despite a negative impact from component shortages and macroeconomic factors, which paves the way for accelerated growth when market conditions improve. We continue to work in accordance with our strategic agenda, in which we focus on working with strategic partners, focused targeting of new geographies and broadening into new verticals. At the same time, we remain open to new acquisitions. To better reflect and follow up on our business, we have introduced segment reporting, in which Algo and Digital Identity have been our two product segments since January 2022.”
Trust Stamp net revenue leaps over 400 percent in Q1
Trust Stamp net revenue leaped from just over half-a million dollars in the first quarter of 2021 last year to $2.82 million in the first quarter of this year.
Gross profit improved by almost 674 percent, and gross profit margin from 51.6 percent a year ago to 75.4 percent. Operating loss, accordingly, decreased by $0.3 million to $1.64 million, and net profit margin improved from negative 381.7 percent to negative 60 percent.
“This strong financial and operational performance reflects Trust Stamp’s ability to capture diversified market opportunities and grow existing commercial relationships to generate long-term revenue streams,” says Trust Stamp CEO Gareth Genner. “Notably, we expanded upon an existing customer relationship within the government sector while increasing our scope of work with multiple Fortune 500 commercial clients in the financial services sector. Our technology has garnered interest across multiple government use cases in the United States and internationally, addressing pressing concerns around the privacy and security of legacy biometric implementations. Towards this end, Trust Stamp has made a significant investment in expanding our government-facing business development team and are in active discussions with several overseas governments.”
The company also uplisted to the Nasdaq earlier this year.
Vsblty reports dramatic gain for full-year 2021
Vsblty revenues were up 164 percent to $1.6 million for 2021, compared to $607,000 in 2020, as the company’s Vector facial recognition, and VisionCaptor and DataCaptor computer vision solutions drove its software-as-a-service (SaaS) and annual recurring revenues higher.
Revenues in Q4, 2021 surpassed Vsblty’s full-year 2020 result, and were nearly twenty times higher than Q4 2020.
CEO Jay Hutton outlined gains and progress in recurring revenue, retail analytics and biometric smart city deployments.
“In terms of its 2021 balance sheet, VSBLTY reported a year-end cash balance of $4.9 million (USD),” says Hutton. “As of the close of 2021, VSBLTY has an Accounts Receivable balance of $1.4 million (USD) with the largest portion due from its joint venture partner, the Latin America-based Winkel Media. Hutton also explained that VSBLTY has provided $.6 million in funding to Winkel as of December 31, 2021, as part of its obligations as a joint venture partner. In addition, the Company has a $1.0 million investment in inventory for continued store installations at Winkel Media as of December 31st, 2021. Hutton added, “Once Winkel has fully paid off its AR obligation the media company will then pay down to VSBLTY this bridge loan obligation. We anticipate that the entire bridge loan of $.6 million will be fully repaid in calendar year 2023.”
Idex reports early success from biometric payment card commercialization
The popularity of the biometric payment card built with Idemia’s F.Code and Idex Biometrics’ TrustedBio fingerprint module recently launched in its first commercial deployment by Swedish challenger bank Rocker “has exceeded expectations,” according to Idex CEO Vince Graziani.
Idex is anticipating further launch announcements with other Idemia customers later in the year.
The company booked revenues of $989,000 in the first quarter of 2022, an improvement of 26 percent sequentially and 58 percent y-o-y. Net loss was $8.1 million, or $0.01 per share.
“As stated, our opportunity pipeline is expanding, and we anticipate announcing numerous design wins across the remainder of 2022,” Graziani says. “As discussed earlier in this interim report, we are aware of production delays at one of our subcontractors, brought about by the recent reimposition of COVID-related restrictions by the Chinese government. The subcontractor has expressed confidence that it will be able to meet its second quarter commitments to us, but we are monitoring this situation closely.”
AuthID pivots, Ping and ForgeRock keep growing
AuthID revenue was flat on a y-o-y basis in Q1 2022, at $0.6 million, while net loss doubled from $2.5 million to $5.3 million.
CEO Tom Thimot says the company will exit its legacy businesses in South Africa and Brazil, and focus its investments on growing its biometric identity verification opportunities.
The company raised $22 million earlier this year, and forecast that it will turn cashflow-positive in 2024.
Ping Identity reports that its annual recurring revenue growth accelerated for the fifth consecutive quarter in Q1 2022, reaching 21 percent, while total revenue grew 23 percent to $84.7 million.
Similarly, ForgeRock’s ARR grew by 35 percent, and total revenue grew by 18 percent to $48.1 million.