8-K: authID Inc. Presents Investor Slideshow, Highlighting Biometric ID Verification and Authentication

authID Inc. commenced investor presentations on January 14, 2025, showcasing its biometric identity verification and authentication solutions aimed at combating AI-driven fraud.

Summary

• authID Inc. has started using a presentation for investors, focusing on their biometric ID verification and authentication technology.
• The company aims to eliminate fraud by ensuring the physical presence of an individual, especially with the rise of AI-generated deepfakes.
• authID's solution matches a 'live' person to their biometric record in 700 milliseconds.
• The company's go-to-market strategy targets FAST 100 (smaller, fast-moving organizations), FAT 100 (large enterprises), and FASTER 100 (channel partners).
• authID projects a path to $100M+ in cumulative bookings by 2027, following a T2D3 growth pattern (3x/3x/2x/2x/2x) from 2023.
• Contract bookings are expected to convert to revenue over a 3-year period.
• Q3 2024 GAAP revenue was $0.31M, and for the nine months ended September 30, 2024, it was $0.97M.
• Q3 2024 Booked Annual Recurring Revenue (bARR) was $1.88M, compared to $1.15M in Q3 2023.
• The company is focusing on securing new customer contracts, establishing financial commitments, ramping up revenue, and retaining customers through upsells and cross-sells.

Sentiment

Score: 7

Explanation: The presentation is generally positive, highlighting growth opportunities and a strong leadership team. However, it also acknowledges risks and challenges associated with forward-looking statements and market competition.

Positives

• authID's technology offers a fast (700 milliseconds) and accurate biometric authentication solution.
• The company's focus on data privacy and compliance with global biometric data privacy standards is a positive differentiator.
• The company has a clear go-to-market strategy targeting different customer segments.
• authID is experiencing growth in Booked Annual Recurring Revenue (bARR), with Q3 2024 showing an increase compared to Q3 2023.
• The company has a strong leadership team with experience in building a $100M+ ARR ID verification business.

Negatives

• The presentation includes forward-looking statements that are subject to various risk factors, including the company's ability to attract and retain customers and compete effectively.
• The company's revenue recognition is dependent on customers going live with the service and ramping usage to their full volume expectations, which may take time.
• The company's Q3 2024 GAAP revenue was $0.31M, which is relatively low.

Risks

• The company's ability to attract and retain customers is a key risk factor.
• Successful implementation of services under new customer contracts and their adoption by customers' users is crucial.
• The company faces competition in the biometric ID verification and authentication market.
• Changes in laws, regulations, and economic conditions could impact the company's performance.
• The uncertain impact of global events like wars and inflationary pressures pose risks.

Future Outlook

authID aims to achieve $100M+ in cumulative bookings by 2027, following a T2D3 growth pattern from 2023. The company expects contract bookings to convert to revenue over a 3-year period.

Management Comments

• Rhon Daguro, CEO, brings proven success in building profitable software and professional services firms, and has extensive identity domain knowledge.
• The team has deep domain expertise and experience building a $100M+ ARR ID Verification business within 3.5 years.

Industry Context

The presentation highlights the increasing market adoption of biometrics, driven by technologies like Apple FaceID and CLEAR, and the explosive growth in fraud due to generative AI. The company believes that every digital organization will ultimately add biometrics to their stack.

Comparison to Industry Standards

• The presentation mentions Socure Inc., where Rhon Daguro previously served as Chief Revenue Officer, helping the company attain unicorn status with over $100 million in annual recurring revenue at a $4.5B valuation.
• The presentation references Apple Face ID and Google Face Unlock as examples of biometric technologies driving market adoption.
• The presentation references CLEAR, TSA, Global Entry, & Aadhaar as examples of market adoption of biometrics.

Management Changes

Stakeholder Impact

• Shareholders: The presentation provides information about the company's strategy and financial performance.
• Customers: The presentation highlights the benefits of authID's biometric authentication solution for improving security and user experience.
• Employees: The company's growth plans could create opportunities for employees.
• Suppliers: The company's growth could lead to increased demand for suppliers' products and services.

Next Steps

• Secure new customer contracts with booked Annual Recurring Revenue.
• Establish contractual commitments from customers.
• Implement new customers and recognize revenue.
• Ramp usage and exceed minimum commitments.
• Retain customer contracts and expand relationships with upsells and cross-sells.

Key Dates