authID Inc. (NASDAQ:AUID) Q4 2023 Earnings Call Transcript

authID Inc. (NASDAQ:AUID) Q4 2023 Earnings Call Transcript March 20, 2024

authID Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Graham Arad: Good evening, everyone. My name is Graham Arad, General Counsel of authID. Welcome to the authID 2023 Annual Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions]. As a reminder, this conference is being recorded. With me on today's call are our CEO, Rhon Daguro; our CFO, Ed Sellitto; and our CTO, Tom Szoke. By now, you should have access to today's press release announcing our fiscal year 2023 results. If you have not received this, the release can be found on our website at www.authid.ai under the Investor Relations section. Throughout this conference call, we will be presenting certain non-GAAP financial information.

This information is not calculated in accordance with GAAP and may be calculated differently from other companies' similarly titled non-GAAP information. Quantitative reconciliations of our non-GAAP adjusted EBITDA information to the most directly comparable GAAP financial information appear in today's press release. Before we begin our formal remarks, let me remind everyone that part of our discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance, and, therefore, you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Some of these risks are mentioned in today's press release.

Others are discussed in our Form 10-K and other filings, which are available at, sec.gov. For those on the webcast, please note that we will advance the slides. I'd now like to introduce our CFO, Ed Sellitto.

Ed Sellitto: Thanks Graham. 2023 was a pivotal rebuilding period for authID where we leveraged the best that authID had, secured new identity domain talent, instilled new sales discipline and drove strong momentum in our book sales. I'm therefore pleased to report our 2023 GAAP and non-GAAP financial results and metrics. On Slide 3, the following highlights compare results from continuing operations for the 12 month period ended December 31, 2023 with the 12 month period ended December 31, 2022, unless otherwise specified. Total revenue for the year 2023 was $0.2 million compared with total revenue of $0.5 million for the 12 months ended December 31, 2022. The 2022 revenue included $0.3 million in revenue from a legacy authentication product that was discontinued in April 2022.

Verified license revenue was unchanged at $0.2 million for both 2023 and 2022. 2023 operating expenses declined by 52% to $10.9 million compared with $22.8 million for 2022. The reduced expenditure reflects the Company's cost saving measures taken in the first half of 2023, resulting in lower headcount costs and lower third-party vendor costs. In line with the improvement in operating expenses, loss from continuing operations improved by 17% to $19.6 million in 2023, of which noncash and one time severance charges were $10.9 million. This compared with a net loss of $23.7 million in 2022, of which $12.3 million was noncash charges. The 2023 noncash charges were primarily comprised of the onetime conversion expense of $7.5 million related to the exchange of convertible notes per shares of our common stock that the company executed in May 2023.

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