Intellicheck (IDN) 21 Mar 242023 Q4 Earnings call transcript

Greetings and welcome to the Intellicheck Fourth Quarter and Year-End 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gar Jackson with Investor Relations. Thank you. Mr. Jackson, you may begin.

operator. you, Thank thank Intellicheck and Call. joining today us Good Quarter you and the Fourth Earnings Full for afternoon for Year XXXX

expressions encourage Before believe, Litigation made Certain in words will similar currently or identify read expectations and as the based as we within When Act the and meaning the call management its future I Reform used few the statements XXXX. expect, about company of get to Private beliefs management such Litigation XXXX of the minutes amended. of they Securities relate constitute are by take on to These forward-looking of management's as well call, the Act Securities statements events. in the as this statements forward-looking a statement. anticipate, conference company's available current meaning will, assumptions this statements within Reform information Private conference and forward-looking to forward-looking started, as

or otherwise. inherently disclaims any As the alter obligation subsequent such expressly and any changes, in resulting susceptible to whether company to or undertakes new they update And statements, changes and projection events its obligation or circumstances. with from uncertainty no to forecast, forward-looking information, are

term. for use XXXX. further this issued the for and Additional Commission. Statements Safe Please time as EBITDA Risk Securities the will this term Factors of filings made forward-looking to release company's context are is listed on XX, call to use time headings information Exchange concerning Harbor reconciliation today's March contained press refer the Management and under with from statements today's of definition, Statement today, company's of and call. financial in in the adjusted the afternoon

Intellicheck's QX with full Ishmael, year results. financial We Bryan then the CFO, and XXXX CEO; begin Jeff will and who will discuss call and today's COO Intellicheck's Lewis,

the call I analysts from turn over investors. be will remarks, X Following to hour. And questions their take Bryan. will will and limited prepared our institutional we now call Today's to

Year Call. joining Intellicheck thank Earnings XXXX today Gar, and and for for you the all Thanks, us Fiscal QX XXXX

One calls excited that of we on with were the I point breakeven Jeff that I'm better. been out have is end going meetings year that throughout to previous things delivered or we to and adjusted goal. the emphasizing EBITDA and

For positive of QX, positive income we positive net for full the adjusted XXXX million of year EBITDA adjusted achieved and $XXX,XXX. a $XXX,XXX, the a of $X.XX EBITDA

Our margins gross to profit XX% remain running year. for strong, continue at the

positive. that expect we into will expectations, will this anticipate and also XXXX growth our adjusted XXXX Given we continue EBITDA trend end

from into recap the I fourth substantive the wins same some have of going the we some and of Driven to for some have to Before the upgrades first we team, get to we by quarter we software. with our changes approximately the highlights XXXX, share made I'm reduced costs time, made engineering IT by significant year-over-year XX%. At the changes the some realized organization. you in

program step API. against integrate. data to them positive in we milestone. cloud-agnostic, to downtime simpler makes another test over issue. This switch are led noteworthy immediately website redundancy now rewrite the it we and distinctive also simulated get and and complete platforms. now more distinction a parallel XXXX has active-active is cloud can seeing forward go a This can if through it results. does too our security an Not eliminate we because bed transit, an has will our We're the as advancement impact. our throughout provider Anyone essentially of already much on This but Azure. have is only it because We to as is improvement reduce cloud clients move means expenses off our important active-active further This of provide will which are

they us give happy the the at were call For keys, of contract with but they them how promptly were in signed, tell us production tell were X the We integrate keys. which had in them the day needed -- prospect ready the we we their had and for day a excited key and to did. example, love next We integration. missed had a We ease step. to excitement, they they

Our don't improvements our revitalized IT stop thanks to technology there, organization.

new simpler their a facial released own Previously, also screens. We remote clients way if and clients documents digital for our capture proprietary built needed. biometrics capture and much to our

tool white clients allow into the do and it. integrating or new clients and well switching so we can extremely have to to over labeled be web now existing that we hooks. they a This client's system X still be we if choose, been X has While received, currently this clients simple offer integrated existing can with either tool

value We The have make our and course our decrease time Throughout team enhance of we to we continue conjunction will in spot to they in is the our will our experience product, substantially data to XXXX, new ability with in create clients, tool. come important they continue build the with accurate. base up and completed has new of because XX% while even tool more to to all to in processed believe complete, revenue an ones. methods grow with transactions is in clients. Data the people through earnest QX. continues seen America data clients new highlight our we that began lake Intellicheck number believe new this with for Across digital are will machine is impressive, existing North science of cases, provides and to new and clients. use This that already increase that of our to learning

cybersecurity that pleased new hired of fantastic track I'm has We ignite a impact. She happy we high-growth Marketing. as VP am record to say also report already helping of and making at sales QX, several in is our changes notable that Christine Elson companies. I she an marketing. had in technology to to

collaborative design think clients succeeded. with we hired design branding we with branding the work message As branding to interviews company with and our and our to discussed, and Through we help previously a make the clear. our team,

challenges distinctions the clients. the are hardware are out: simplicity no hardware-free, we process X and go-anywhere calling certainly identity a clients the engagements truly weeks important that Our platform the of We and most that validation ease important and few Meetup with for and some use the industry. Fintech had of designed of biggest speaking that is high-profile the from than Fintech best We liters opportunities identity payments reinforce future lending their X,XXX to that be The moved XXXX, in banking, Meetup would never shows. to provides event the have and Christine agenda we facing of industry their shape fintech. Intellicheck they a lined profile customers presence there on and customers upping said we has had. We believe create the brings a forward. trade issues, in together at experience strong their Intellicheck the more for fintech, ago. we and discuss, is conferences focus up knew

shows public Chris and a brand trade focuses Our and from executive cybersecurity risk. authorities a and to Joshua up, and February, year. forum universities, on financial meetings account another important rates a which that the and This be tech show. well-attended with we'll of sports number and He during fraud SVP and together suppliers fraud, event talk and Insights, cybersecurity focus it build be influencers. These was opportunity Coming Meyer, and Sales, the connect this how to for the Baker, we'll awareness It enterprise yet facility Datas many attending conversion provides first just are senior-level attending increases of industry. a managers attended personnel Stadium colleges next-gen brings on Managers Chris delivered event. teams, in executive, on one-on-one trade of held to prevention crime by AML, XX%. Previously

turning services use company bringing with QX. addition to on clients in long-standing retailers. financial We So wins now client that saw are to expansion our additional an of cases new also

potentially One of was challenges. we things that into was retail team management as foresaw running the a

portfolio our So focusing a became focus. served on verticals of diversifying

retailers shutting fact our the retailers our off locations, XX%. QX assumptions were as down major were at we correct largest in Given transactions are that

new verticals our to time, clients that not clients with use We confident see cases are believe working. retail You is tied new the these that in traditional wins this by that -- to pivot banking new will retail that expand in addition and and believe said, we retail decision. That we more banking we we doors continue that end made right by than new the the our being retail seeing, X,XXX reductions year. to the new and more penetration should channels are we currently the than of offset over anticipate

the During online wholesale quarter, #X a brought beauty fourth company. financial XXX-location supply services company

in integration They account also month. provides over on cases no utilizing XXX,XXX store locations as is They additional locations improvement, XX transactions openings to a and cases Intellicheck addition In go that transfers hotel debit they new home live regional retailer and XXX-location services a step also and this and were first have lookup. anticipate account bank with of new digital expect are in volume the account the a with by expect card count, openings but schedule, branded of for with lawn a with year-end: and running. the live X,XXX X,XXX and account in X begun wire addition, are one and of to QX present the addition certain application. new use live #X to a in up the working throughout the and company and and to is about is for behind bring bring cases equipment a in-branches states openings. Financial account integrations pilots X February, in were new company retailers now card other fully revenue-generating implemented a products They garden completed use transaction credit farming they they lookup, clothing supplies. over over They in year. The gaming QX card, current launched for expanding be to and bit

the of are cases. QX viewing runs into they the or an that Intellicheck recall, X,XXX their use early with to digital now in-branch expect bank rollout you late If so in proof locations concept. incorporate They had well work QX. first This

with simplifies new other case, of branches. after other are Intellicheck realized because for opening Intellicheck account were working are a simplifies to they and bank an implemented. cases incorporate digital to The with They increase. account hoped bank how a X,XXX use expanding openings account use they Intellicheck their digital opening, opening, we now into Because other XX% around increase But new accounts. impressive started locations of had single over the in X% regional way how

banking working extensive on You completed now, a pleased secure security Right app. their implementation. to bringing organizations, very they may remember, they we large now And to like an were all mobile we with go is and QX, initiative have in year sense with I an signed just Like time-consuming am bank. contract targeting been audits be audits top very with them. are effort, our agreement to report have X the this the a will time. their that new takes live so digital QX a

the We will updates on progress on provide continue calls. integration to future

win. a and excited this We tremendous what Intellicheck, when size are and we this great a the foundation XXXX with bank of goes We validation for that by do of is believe beyond. a provides

another forward. excited step We by very are

being products North utilized America. Our are now outside of

Our their people. will We believe reaching renowned using international X client people to in a turn clients validate to now and global multinational U.K. America Intellicheck Intellicheck tech in that is North we for nearly more company validate media worldwide see the that is needs. need people billion to

reached year, title again, direct space. Title through we this QX or X or the of process QX minimum continuing see companies. signed sales manufacturers inbound this in that the rollout of a of transactions. of the expansion, annual have working we is signed locations largest to with The fully expand with expected XXX,XXX with in out Between to We in insurance either is volumes market all of automotive an continue that occur QX. in one vertical them needs are reseller of Between to and directly should also signing to automotive year, resellers. through to 'XX anticipate approximately resellers. space deal another we and of full additional largest with QX X,XXX the both the and auto QX roll resellers where We either X

signed software of title the providers their largest use to have We business. small of companies run one also that

an really transaction expand estate We their to is seeing of an a platform significant integral in real creates incorporated the We incremental in opportunity believe are larger growth rollout and looking that fraud. fully platform in into now, part that pickup space a the QX. are they being

age-restricted grow. the space and in-person in to unattended use Our growth in continues both cases

of They're proof closed a but distribution in access and the deal live is an long with lounges Intellicheck they hotels. of signed will loyalty company by which Conexus way a Age, companies. developed and time vending for liquor hotel was quarter, stop sales True simple During provide going to live we the in will the finally fourth underaged. stores at to additional year, up chain signed year. of X before machine that QX, QX Also convenience deployment unattended Convenience user National ramping concept starting the access be we a to with we going They year. A this begin Association used the to provides to to be a Stores are ago authenticate expect the to nationwide a of large throughout very in QX that and this app. slowly the given

company. a are say and be also to I happy Integration cryptocurrency the vertical the account In use be report transfers. be much believe mandatory expand they market sales keeping our QX, wins look that current pipeline the going fraud throughout May. With going clients pilots they the companies. you results who as will case Intellicheck. In new are X all live validate be extremely to the wire the We could we as I pipeline will see believe signed open to we make transfer the it going see over next on provide in live that for that people QX will an of QX, I'll we am which to of signed that, the the forward for QX. The continue meaningful is well markets. to robust We over wallet we They of closing, on turn live go validation crypto so in created, wallet. growth by and another X end year well working they all payments has quarters. In significant underway, to that more Jeff, future as for our as team details well, quarters updated rest with to and financials. bodes

and continued progress been will and I'm making our all to Bryan. spend across our you, the investment the continue levels into redistribute pleased efforts as fuel that Thank of organization profitability. with we areas our have growth we recalibrate

Our were prior XX.X% fourth higher the year. revenues quarter versus

$XXX,XXX an adjusted versus share have with price year, the scan $X.XX the per EBITDA-neutral continue now a higher gain to a report of year. average committed our for We where the adjusted results per year prior achieved And goal finished we of or we on basis.

increases. to continued scan increase realized accounts legacy we prior encouraging customers. especially growth value we average are the see rightsizing eye each our critical As in the XX% X to internal the revenue, a continued to as continues per versus as our in it month, Bryan pleased by encouraging consecutively progression been SaaS mentioned XX-month SaaS metrics testament which years. Continuing revenues disciplines earlier, a to to to last the of of trailing of year have achieved also see our enforce has cast CPI is the and for it's price the our on speak This price the

expenses our ensure the focus that area. achieve continuing investments are maintain on our We this to our on operating expected also we return in to

and our restructuring the realize share started Within increase details I results. we our our quarter subsequent more period, the QX of the to after adjusted midyear the benefits fourth of EBITDA. summary in will efforts

channel remarks. We will later have on I also launched also program, provide details more in our the which successfully

have in revenues for team to pipeline our that noticeable going necessary of engagement, bookings drive be a the combination to to in XXXX program We sales believe XXXX. this driver and provide forward. of our bookings customer the and growth We will and expect increases sales efforts impact important support this on an

increased period quarter $X,XXX,XXX the of $X,XXX,XXX XXXX to results. now our quarter in record Revenue Turning to XXXX. a compared same for of the fourth XX.X% fourth to

compared which period quarter a XXXX. increase to the SaaS the period revenues XXXX. provider, XX.X% represented XXXX our fourth period same fourth $X,XXX,XXX fourth Gross the reflected as Our in XXXX revenue for ] for percentage our for also a from revenue. same from quarter occurred to same XXXX cloud credit quarter of $X,XXX,XXX receipt nominal of of grew [ the The was XX.X% and of XX% the of XX.X% during of service profit of

to a continue and to our considering credits are ensuring migration minimize for cloud-agnostic service We be availability any these structure customers. our as downtime we to nonrecurring

gross we team been we've As has in continue margins we've maintain progresses. the modeling reoccurring performance range our to during product quarters, infrastructure. the discussed to been able XX% re-architecture of we the cost as But margin last as few a to XX% as improve of shown, XX% cloud

to same the research to the consist decreased with scrutinize quarter and for were structure which or and Included $XXX,XXX, of fourth for administrative, expense. quarter will $X,XXX,XXX $X,XXX,XXX of that cost noncash and general development expenses period $XXX,XXX expenses, for continue selling, $XXX,XXX We level. Operating of goal of expenses, to maintain of compensation XX.X% XXXX to our fourth operating and compared within the and XXXX XXXX the XXXX. respectively, equity marketing

period, restructuring realized in for fourth the there X were benefits notable the we of our the While efforts increase quarter.

First, this we we'd QX, in costs in decreasing efforts, to project. anticipate We tied period. levels in see the will in of support are QX like re-architecture $XXX,XXX the capitalizing capitalization amount that see and similar to of we our

] period the voluntary question as and period. of the with recorded historically sales customers limited initiated The of was it taxes the that XXXX were for the transactions, disclosure $XXX-some well collected for we for finalized liability [ and certain invoiced in on $XXX,XXX necessary state within XXXX company required QX XXXX. thousand sales as determined QX while not agreement Second, taxes has through and have the periods primary being the for

for it record within X.X% are would expenses versus tax constant have most fourth period the reduction the entire amounts the Adjusted operating decreased $XXX,XXX basis. necessary for by stock-based liabilities expense, X the entries, on a decreased the X amount to same not compensation quarter is any our periods. While XXXX. in notable The these material year, which was of to

As continue compensation compares of last approximately call, decrease we discussed expenses comprise of expenses trend will operating figure. with of stock-based our to expect XX%. XX% historical XX% our comprising our to and in to prior that This noncash total our XX%

adjusted loss for to a net a of of quarter for reported fourth the company period XXXX. gain same income to EBITDA. XXXX compared net $XXX,XXX for and the $XXX,XXX Turning share for of per was a Net the the compared gain $X.XX share of diluted net of $X.XX XXXX period fourth quarter gain to XXXX. diluted same per of loss a of The

the periods As sales noted adjustments the million XXXX. of of same QX million for above, XXXX common the liability The weighted reflect average shares quarter the were tax the of XX.X entries. XX.X to compared fourth period for diluted

of we gain We our to which versus cash of fourth for also EBITDA are a quarter XXX%, income increased period ensure same $XX,XXX Adjusted $X,XXX gain $X,XXX,XXX of reserves, $XXX,XXX to the continue in XXXX. of same the the of interest XXXX for in properly $XXX,XXX XXXX. compared in resulting or period generated managing a

to $XX,XXX,XXX Now year full XXXX for results. to compared the increased of period XXXX. $X,XXX,XXX Revenue to full the or of XX.X% turning our year same XXXX $XX,XXX,XXX in

from for driven service of concentration was providers revenues. credit expense. in our XXXX. by for Excluding specifically noncash grew operating primarily for had and of within was were was as Gross increased and XXXX of year full profit our expenses, we for negligible of research the cloud year marketing year for of equipment, general XX.X% to of XX.X% gross the full to primarily from the percent increase $XX,XXX,XXX This years the on increase expenses gross respectively, or general for of and to higher XXXX same XXXX margin for year severance-related costs, percentage compared by X.X% $X,XXX,XXX, the SaaS revenues a for profit $XX,XXX,XXX impact full XXXX XXXX which of to a consist full SaaS-based $XX,XXX,XXX administrative period the margin $X,XXX,XXX and full year our equity compared or expenses full The received and our full revenue the year development $X,XXX,XXX XX.X% selling, XXXX. The administrative, driven Included and $XXX,XXX. of compensation expenses, of $XX,XXX,XXX XXXX. results. Operating $X,XXX,XXX

most a net for The and expense, loss to which within As as for included for year mentioned share a by the for XXXX The the were XX.X entries, year diluted $X,XXX,XXX the share represented operating $XXX,XXX the share XXXX compensation $X,XXX,XXX the XXXX XXXX loss expenses of results same the product diluted earlier and entries in the common $XXX,XXX same growth the loss were have impact of optimization XX.X basis Adjusted X a included average compared these Adjusting same decreased the diluted full noticeable full net our our of loss EBITDA tax period XXXX. to X liability gain and to quarter, the full $X.XX compared million an XXXX. XXXX. The entry versus to for compared a year net year fiscal entries fiscal the of million X.X% our $XXX,XXX per $XXX,XXX X of for The net above of increased of only for 'XX for for full per $XXX,XXX the $X.XX per period of of full was of would period entries for $XXX,XXX improved in and on loss loss diluted versus improved year the XXXX. revenue periods. constant sales compared the year year reported of of for company these of improved $X.XX year fourth XXXX. The shares of of full the which to notable weighted of net reduction XX.X%. to noticeable stock-based 'XX result.

resources. capital and liquidity company's the to Turning

the the liabilities under of of years XXXX no equivalents minus in of and defined million. million beginning XXXX secured of There has totaled cash $X.X million; recognized consideration the the accounts. adjustment collateral not XX, Citibank utilized deposit on assets outstanding a currently and company this $XX.X of company million current $XX.X of an by One; assets facility, is working facility sales $X revolving as tax $XXX,XXX total amounts equity liabilities company December through stockholders' XXXX. The Citibank at equity in facility recognized of the current was that credit with quarter. to for cash during Capital stockholders' that $X.X of balance The capital, and that's XXXX, As had and million; are

now the Turning progress for Intellicheck on further believe of to represented initiatives. number has on of up we initiatives internal us our certainly for we key as well changes significant XXXX that set a executed year a growth in XXXX.

period, expense-savings During to drive $X expense initiated we at the rightsizing securing the and QX team a and efficiencies. million structure product, initiative operational our properly and aimed necessary talent marketing

a team to efforts. the us our data SaaS science as intelligence platform, in re-architecture reporting to During well with on cloud-agnostic structure team role hired Engineering, working and the our as bringing the in towards Jonathan has QX. drive QX broader recalibrating of as VP was promoted period, that of Jonathan CTO moving Robbins subsequently additional who been of talent we the our

to As on in the Olson to this our the revenues Bryan of Christine that wins. new additional that the the logo mentioned, and brought as We recognition we sales team further person support January to right believe Christine Marketing. brand of is drive Intellicheck of needs drive provide and year, VP

sales and marketing. results, much in breakeven of structure areas initiatives As increase product of have we our we decreased goal the demonstrable These investments revenue, quarter operating made in a year executed reflected are on to or adjusted in and expense expense XX.X% and versus our the our prior delivering better. our on a fourth impact G&A out moved EBITDA of expenses had already where shifts to and XX.X% spend compared our previously significant initiatives, in discussed

we our will to are support see initiatives. continue decrease of spend broad marketing a significant percentage sales range year-over-year, a in spend X% our R&D and expenses to and 'XX. expect OpEx of approximately leverage Overall, while XX% to increases see brands we in marketing our to by against growth to expenses, As expecting increase

XXXX. and the XXXX business, be marketing we will increasing profitably head sales should head we and caliber able believe expect count program this count in are year-end the are on to drive the to with hired side While that We in significantly be a significantly the team equivalent finished that XX-person count we we structured growth of spend our has achieve. have the a we to financial brand now that expect support

improve previously the earlier cost adjusted near increased the our adjustments for for increased noted structure, XX.X%. As when full which mentioned to versus in X.X% year XXXX, continue remarks, to revenue we while

budgets. gross higher our for the plans, XXXX. A our and disciplines consistency the 'XX adjusted moving remained have ensuring entire result will achieve margins position exceeded EBITDA the result positive to now combined for year be holding which to in an us and year, the puts breakeven on operating a a in XXXX We for to for of committed have executing we EBITDA adjusted revenue that into start more all team accountable their position FY

the will launch our deal we accepting portal, channel prior where conduct leads of are partners. we the our we regarding Since and quarter, out sales with the our results of the program, our partner early efforts start partner happy seeing. will the formulation program, discussed During that team I'm also where the from rolled registration have we registered and

We also successfully first have our cohort signed partners. of

to excited sectors. a and are see of We group within presence will law enforcement that expand automotive, the partners our government

of continue more XX,XXX consideration outlook, integrators. In XX%, value-added expect providers while to our we technology top continued gross than we approximately ecosystem system architecture improve our our margins XXXX data retailers, of a partner government to contractors, intelligence to has capabilities. see and One of and solution signings

the to initiatives implemented expense expect in also see result We continued we leverage a in expenses operating as XXXX. our of

by and We results who revenue balance in the look points XXX forward of initiatives. call QX continued will our these driving spend sharing previously to being our committed decrease our component the we As closing, expect to of we stock-based to versus compensation. In discussed, that discuss outlook. XXX with XX% total turn strong our to within our corporate new QX XXXX improvement the of maintaining Brian, noncash performance, sheet remain with basis to value back shareholder you May. I'll now

Thanks, Jeff.

have in implementation. deals back revenue will the As for number I said, close QX and lot going longer growth the the pipeline that activity and longer of significant we my of in in larger drive deals of mentioned with a live we believe in take remarks, half to prepared always I've a Like year. QX the

We move now the use with the needle cusp title include half bank bank back revenue sizable believe our that we year. These on global latest are new cryptocurrency, vertical. the and number generators of really autos, partners, the the long-standing of will companies, retailers additional our in of media the cases,

As we we've volumes our year-over-year at of in general. store retail seen door driven counts traffic the believe it some by today, first weaker quarter reducing in clients scanning stands is declines that partners larger and our in

mentioned X in longer anticipated prepared my times live. onboard customers, implementation originally I had for we to now larger example, than that regional the remarks, as Additionally, have banks are

million we stands range QX throughout As million growth year-over-year the in it revenues today, year. remainder $X.X the of with anticipate sequentially to of $X.X accelerating the

operator questions. now our positive structures, turn for that adjusted the margin and place, we the growth and we EBITDA in XXXX. I positioned expense hires our and your will we in are accelerated With over gross be to new the believe to pipeline take have call well to

Our comes Securities. line of from Northland Grondahl with Instructions] first [Operator question Mike the

trends kind a all? down pricing pressure, out. you I into And of I don't just are pricing with like about per of that average a you I was know you kind to what that if meant scan talk kind increase the point, are curious, at XX%. talked you you power? could pricing retailers -- transaction seeing I'm transaction, think pricing overall? segue maybe seeing big Trying then could think called just at Bryan, if of you like amongst bit. overall understand in little like Or one about XX%

Okay.

So there. in see commits certainly that think sell and And in revenue. pricing, of that where want that if terms have pricing Because the client always only want somebody is the also And looking a theft. we people something pricing on through accurate it bringing you're we that there's are. into accurate you're think lot say, of people of we're as time don't at places really cutting and gets if we lot when age-restricted your power space. pressure, as financially is there's us, to win a I'd I identity Where as hurts our as I

markets because So overall, and trouble. and core people while really those and care, our in that title in and things the -- even crypto crypto banking kind say of you're in I'd all empty, auto get where you

it that do worth Is systems to the where don't And age-restricted the in, going willing for day, to end really again, what people some fined. they're you the power bad just think walk at the matters get work. they're it, to it from pricing When have get but really some of business? guys, the we catch I the of going it are away caught, to spaces. So

probably to come they'll us. back So

this And overall, areas the I -- of up volumes year their I'm think of at volumes. QX this terms retail. I'm to in in transaction terms compare than at some now. retailers I asking, in In year XX% between anywhere looking what very -- our seeing to last you're to Mike, are QX down numbers Transaction of transactions. if other continue some XX% go of we large year, looking to

talking People about I'm retailers credit interest that everything getting or people the rates. are about got down shutting maxed reading, cards stores. XXX So worried we've

that one other into transaction. think really and reasons So made that diversifying of really a getting I we sure the markets on dependent were that aren't that that's we

something, you If to important. need or reach it's or really e-mail

making aren't do that to into that. sure more You getting and we're Those we're have businesses and to subject conditions, like more it. economic

out can that the ones then, to of in understand kind you the the back And revenue it. to closely. half growth, some X And Trying maybe know, sizable Got some release, really we the that press 'XX? help of call you out statement wins move will new need track in wins figure which I trying to don't needle. really

be very I -- -- I important these higher. really volumes, could be should us, but automotive getting locations I X,XXX think that much think certainly minimums. to certainly guaranteed with partnerships that look are at

It other their I of could think the back the could significant with the cases revenue. getting significant the Age year. be be and True revenue half at be the regional into partnership MAX use to banks could

it's lot things. of of I think a combination So a

with been everything the the everywhere of just on that And end retailers is, could I about that Some sure takes get DevOps of up would their hope. wanted don't yesterday. the at so, stamp -- that have takes longer us of just us we so And business it their really back the larger is with that again, go, like folks hope large the and some it certainly safe the rightly are longer they making some hacked. with, working it InfoSec help than working of we've always business we're than is things we that the approval organizations. blow and seems people year, people the of pilots And it give longer the amount -- would to

think place a that pilots that really of combination have the it's of afterwards. some deals the then I some hitting So signed of and we in we the

of what And are it. just revenue percent then Got retail transactions, lastly, roughly still? customers' they

why better that doing a Jeff the But It's the much of they're of so focusing there's if the again, transactions. percentage banking, fee, so diversifying. They're not And just say look greater financial hit us and one out. everything also we're that there, is upwards break And to largest again, economic-dependent. making up retailers some of his I'm off at our of something it overall services is hard on were through to head. still number that it's again, XX%. top still comes a about is again But four, volume I significant will much have probably going headwinds, so becoming services. But they're financial financial banking regular and numbers -- transactions. just that hitting service certainly majority, of certainly, But might

the line from comes question next Wainwright. Our of with Buck Scott H.C.

Bryan, color a similar million could card-not-present? material on pricing. a million a was that between to pricing-wise auto look give hoping you little Or I transactions nature? $X.XX just could following customers up hoping of bit was on $X.XX here of I little the charge difference you -- give do you

else. -- age-restricted everything the It's looking more -- really at kind versus time pricing in difference a of there's only what we're is

card-not-present is transaction to a say transaction. What they're they're to that, dealer, we going doing like volume auto be raise a the who if going be almost it's to retailer for continue pricing. So I will an certainly like is -- doing

I That the think his said XX% in overall deal remarks, closing. we year. Jeff that we every been includes were have up for about

So what and saving you we we're doing else. know raise we're And And for dealers can We're how much done. pushing we going that's people. enough we've of because get everybody you pricing wow, for we that for auto we are and the a did to always price see combination realize, them. the

revenue like the That's It not But And to we're right? going certainly then and sounds wanted taking growth. little between improve the EBITDA helpful. you're off margins see to growth, Great. balance about on ask I here profitability bit. the 'XX, gas foot a

No, all. no, no. at Not

bring think exist that we hard Jeff the growth. for systems fast didn't as lot before put a time, a place. able I financial at running and to diligence are as in has the all can as same really we and And been

was have program we then it we things -- money quickly right growth. And I which making in certainly, and we channel finally picture going the also we've accelerate got salespeople, and team sort of have to the we are to spending sure a the that So of where and how right the branding it the marketing, the believe place. think move and I really think can that better we're

are for. growth is what going So we

money We blowing that making a spending tied revenue, company me. and making not we're markets. got Jeff the in most All revenue to sure in employees are we've recent while the is over to corner we all the the care growing from we're about sure there, ton of

where ]. [ in we growth can So

Jeff. ahead, Go

mean we're got we're do is I high very I cognizant cognizant we're our And mean to is what I look things looking definitely count, towards moving of spend. a I that because want don't at say, of team that XX employee we've people. at either. how I'm deploying the revenue the No, going I of we watch overheat employee. one and to per was

So efforts, like re-architecture don't as that Jonathan his research-constrained. works you're on it's think

more will spend, case you compelling need work a have to across that communicate and you entire the If team.

marketing all team. Hey, relations, the As what's on of out balance to those, all needs be going all new, that we're be but a effective. parcels are to shows our going These let's let's attending work of conferences. these trade as

the EBITDA guardrails that not a limiter those we're really making So publicly. committed of in red place, achieving in there's but sure levels we stay

me. one for Great. That's last then And helpful.

see about repurchase [indiscernible]? as cash? capital to starts In an thinking we of more stock that are internally, cash terms with share allocation, the of how generate you business Could aggressive uses the

could to is little everything's on brings what say always We're of that the full a at makes portfolio. kind tuck-in I'd into be stock repurchase Look, technology the going everything from company that add And sense most look really our to small we to shareholder think there table. a value. that with

something very and So door, a interesting, come things we've lot other all know of start-ups really accurate really, across cool us they step. got first -- a but and where without our it's used

what Intellicheck most looking. for growth -- the future for again, the makes would of always also sense and we're So And it the shareholders.

the added all detail the in today. Appreciate prepared Great. remarks

Thanks, Great. Scott.

of the D.A. comes Rudy line question Davidson. next Our with from Kessinger

XX% of it know of this around is X/X? from but there's it X/X if or bounce services kind going to mess you Bryan put it you to take Jeff, it? I it's financial is you -- guess, coming in some slide I gave, coming got cost a there is Like back from X/X? Is my data I question. that's the Is had of any Of retail? like that kind

quarter use It's pure in to range. down XX%, banks. as of the going more we as banks to add then more going add cases. be It's also And significant banking probably every we a that have XX% portion it, that

move down. to continues it So

Yes.

[ you saw but some to as ] throughout What seen you to-date then what past margin in it And it... you you -- in QX? have QX. Okay. down in said said XX% far gotten QX, know year-over-year Or is I as decline? quarter-to-date? worse quarter Has like level of decline XX%

XX%. I've QX. basically and seeing anywhere think in the I down guys I XX%. upwards I at been think down just part ]. we're fall XX% large was what and [ got the looking are I that's some We've reason, The QX, trying of and between think numbers of --

Okay.

than So QX? in a bit far worse QX thus

numbers so versus X shopping, do money. everybody yes, see and just are. holiday to of months I last because because X of and comparing that's the first is this lot apples-to-apples But we retail -- the months not in those always what year spending can decline in comparing a QX of so like -- I'm a year,

I you then, do said sequentially one I want the clear, And guess, thing Okay. to year. you expect growth accelerate to throughout be that

these QX, that versus does year-over-year the accelerate maybe all just the a year? them just and you to Like -- that -- banks and cases? like QX some initial forth? And could push the so X in QX kind so into new that on the growth of I mean so versus -- Is use banks other wins, what big And by these X-figure-a-year QX, the improving of you revenue X-figure-a-year opportunities? does growth just that where large should mean, end is customer of have? are

our then this how there's think get other be of apps large digital they and roll branch use XXXX. fast in same running. large up need. like a at that and into mobile matter bank, they're the in should same just going to start because and And banks again, do just everything It's everything with that their all I the looking of cases, Look,

part with now sure of the to in and to team the always a particularly something channel gone through of also chasing well. I that take digital But think we're able be them, and singles integrate after of has we're doubles our we're making we're things as long time. world, the really is And the our partners. not doing seeing, one simplicity certainly as the strategy is our they sales tools really, also the whales

in at with the more deals should deals. existing kind of some folks kind we'll be same that $XX,XXX of that bring easy to So to the I of bring adding grow because to they're continuing expect while frequency to clients, the up, $XX,XXX X-figure see time,

prove lumpiness think, the to revenue hoping and are, of same and way we So we that the land how time, a stay. sure that commissions they a so really to sales bringing deals we're the stuff they happy combination they're the and make continue less that growth, in big giant are for I guys important things in making are, at brings and that good sure make

to moves quickly. side, the nobody from go of when move it But still not. the have people point we realize else whole doing quickly want marketing us. getting we're the validation, know they we And our still say same business more the types can through do, it, when who and the things that's think really ID InfoSec the do and is that Always we all to different So of because what everybody people things. we right, are they I and messaging those opinion, right, people can see are, that how in

of and combination very of that deals think things are the bringing used the going sort of big the year we're across a to us and be in. It this So small. size board to I put very all

as that that Now we we're get sure making mid-range well.

Our question Van with Jeff from Rhee next line Craig-Hallum. the comes of

there. Rudy Several here, on maybe follow to one

you signs incremental the that? put value of Even of the majors ballpark, you not us us give ACV churn the new any the signings, of ink. them are all just of together, ballpark just that in anything as have a Can could that In but terms you a or maybe a you putting that swag implemented in aside hand give the mentioned, else, QX. of of contracts yet signed

out worried idea go expect plan XXXX on impact of is things. to giving whether without we to the live I'd a to going giving guidance -- our better is seems that because kind having a number What they're so of be We call on next where end certainly about year.

I've that am what very become much buckets comfortable team just would I and also sales that -- buckets. is seems smaller that say say sell my I ACV to I'll what with people So only bigger very to seen the

for consensus signed comfortable ACV the some people terms I with I'm underestimation in where really year with have what it -- my for seen what what what So an means things. happy be expect could it's in growth mind, of the comfortable has where of signed. it and always, to and and I be. very I'm

back not bit. you of just well, a XX% lot certainly maybe in then to a about it. those in And a Got putting the volume terms going And line. -- little and a accelerating think to Not then I on revenue down maybe mean, trends? what's of 'XX? are you And reductions of some, on do maybe there XX% as XX% How do scan Okay. about but group, retail anticipate what the scan bit retailers.

versus you can a to little retailers So is people of around solutions? that somehow just potentially to parse your your dry it. maybe closing due maybe a how you just think much finding the parse bit. How Just doors activity just versus about reduced that and economic way you that can

just shutting are their most, If lost branding then they and I'm looking they're at -- to the and that stores that stores are either because down of or the people -- didn't their sense they're down at about reading you're anymore them maybe to make that. looking retailers the it that the down didn't sort ones want

-- is mostly seeing So is down types they're things. those where what large mostly amounts I'm of those

are that them, across reading it that all If stores look while. way of I rest but of a there they're for up think, lost about their kind again, retailers right, certain I have they're and think that smaller. we've been I the

down. offset are it, neutral looking out, or doesn't big up. overall, guys the slightly up their people at fairly the take But we So

where XXX% last XX% from anywhere to time So they of year. were this

is be I is -- as some So there lost who I now as their who lot but money that's seeing that folks we're think retailers I a hey, of well think way. I what partially, about, think just definitely really thinking it should are spending

'XX mean yes. you guide. tackle you're obviously that? this think do for How about Yes, scans I mean, I do giving annual at the you how point? to thought retail

I'm on Look, trend holidays, ]. spend a really year Christmas knows, lot crazy it and economy. a could see much continues, don't of this and I And it [ let in money, now people back I the take sitting think happens that don't a Everything more if saying, while. is diving something they're don't I to who they header. this retail be slightly values that it reading off, for is but expect

worse if money we don't to anything, out see where QX, approving think it more. So potentially And than get start maybe about and much are people I getting once we now. spending of

Got it. I and Qs know I if RPOs, Jeff, handy. And Got it. Ks. it's don't the in you the know that have

I don't Scott. -- not in front of me,

Jeff, right. but that's all

I I'm have don't sorry. Yes, one of in prepared actually, make sorry. have I'm I the probably that me, sure next on don't but call. piece No, of I I'll -- that's front data

We've I to to the reached session. for Mr. And the turn closing Lewis back like our Bryan comments. of that, floor with end would question-and-answer over

you, operator. Thank

that reduce do. but bar say, and And satisfied build to of you Vice we which or changes against make changes program, are multiple I What strength constantly progress, continue organization. our of a no, Caring a productivity line in was a And the requires So I'd in I'm that of have hesitate Marketing. cost CTO, say as growth where Everything made, told integrate growth everybody we I that and process closing, sales get bottom in we that it performance, we in an have service. the if analyzing we new be year channel services, about can us. am on from can to are we can XXXX understand we we accelerate change from the it for implemented we for ourselves new costs. through you the the our raise will everybody partner that happy with I I our to is you asks, new the pragmatist. with new has impact organizations measure deal year. And a and our have large and President they much and deals think we're I continually benefit already would don't see before to structural so where before, new that channels this think

-- recognize it while we implementation, that these... [Technical are to streamline to ways while that that totally wish our might that. there clients we and and take So do but We work Difficulty] with the these partnerships a

standing ladies please and you, gentlemen, please Lewis, Ladies gentlemen, by. continue. Mr. and Thank stand for by.

Well, to fails. sorry about it Got everybody. call for love your that on

and take a when I also of end, these long have of lot benefits. time, So big just value a a long-term lot deals to say they

there. changed So also it, and get we and business make out feel double also while that they're we single we model worth sure every the

sharing today. So with anticipate again, news come, thanks with look and my for good joining all to We to us more really you. we it forward

So excellent an night. have

concludes teleconference. This today's

disconnect may your this You Thank for lines you participation at time. your