Down quarter for Telos, Trust Stamp, ForgeRock and RealNetworks, but some bright notes
The third quarter was not kind to biometric background check firm Telos. Revenue was $63.6 million, down from the $69 million reported during the third quarter last year. Gross profit slid as well. It was $20.9 million this most recent quarter compared to $24.9 million a year ago.
The full fiscal 2022 is not looking any better. Executives are rounding down on previous guidance.
Telos’ GAAP net loss was 11.5 precent compared to 7.6 percent last year. That is a GAAP net loss for diluted share of 11 cents compared to 8 cents last year.
Cash flow from operations drooped to $12 million compared to $13 million last year. Free cash flow settled to $8.4 million, down from $9.4 million.
Executives say that they beat the high end of their guidance “in all financial metrics.” It is the fourth consecutive quarter of beating their guidance, they said.
Maybe, but they now think fiscal 2022 revenue will be $213 million to $217 million, off significantly from the previous guidance — $226 million to $242 million. That would mean a drop, compared to fiscal 2021 of up to 12 percent.
The CEO, John Wood, issued a statement saying that he is “disappointed” to lower the company’s 2022 outlook. Wood put most of the blame on a shortfall in short lead-time business winds in the secure networks unit.
Larger booked projects will finish this year, he said. It is unclear if that means Telos does not have new larger projects ready to launch.
Trust Stamp net revenues up
Trust Stamp showed a loss in its biometrics business for the quarter third quarter, ended September 30, too.
The company posted a net loss of $3.44 million, or 15 cents per share, compared to $3.04 million, or 16 cents a year ago.
Still, the company had no long-term debt squeezing its finances for the last 12 months. Trust Stamp paid $3.55 to product $1, significantly better than the $9.90 it spent for the same return during the third quarter of 2021.
Net revenue in the third quarter was $1.35 million, compared to $330,000 a year ago. Executives cited contract growth for new and existing customers. Gross profit margin was 60.8 percent compared to 24.5 percent a year ago.
ForgeRock narrows GAAP net loss
Digital ID and access management vendor ForgeRock experienced a different third quarter, and although it suffered a net loss as well, its GAAP net loss narrowed.
It was $10.9 million, or 13 cents, compared to $15.3 million, 44 cents, during the year-ago period. Total revenue was $58.2 million, up 32 percent over the $44.2 million.
Annualized recurring revenue in the third quarter $212.8 million, a 30 percent jump over a year ago. The company says it has closed up at least 30 percent in ARR for seven consecutive quarters.
ForgeRock was bought out during the quarter by Thoma Bravo for $2.3 billion. Regardless of quarterly figures, shareholders will get $23.35 per share in cash out of the deal.
RealNetworks posts final public earnings results
Meanwhile, RealNetworks, one of Silicon Valley’s oldest brands, also swung to a net loss in the quarter. The company is better known today for applying AI and machine learning to live video.
The one-time digital media player reported a loss of $6.7 million, or 14 cents per share, a skosh smaller than the $7.7 million, or 16 cents, net loss a year ago.
Net revenue was $11.7 million compared to $14.3 million reported during the third quarter of 2021. Gross profit fell to $9 million compared to $11 million.
During the quarter, RealNetworks announced it was merging with Greater Heights, which was created by RealNetworks’ founder and CEO, Rob Glaser to take the company private.
Shareholders will receive 73 cents per share in cash.