8-K: authID Inc. Releases Preliminary Unaudited Financial Estimates for 2024

authID Inc. announces preliminary unaudited financial results for the year ended December 31, 2024, alongside forward-looking statements and non-GAAP financial measures.

Summary

• authID Inc. has released preliminary estimated unaudited financial information for the twelve months ended December 31, 2024.
• The company cautions that final results could vary significantly due to customary year-end closing, review, and audit procedures.
• The presentation includes forward-looking statements regarding future operations, growth, sales, revenue guidance for 2024, booked Annual Recurring Revenue (bARR), Annual Recurring Revenue (ARR), cash flow, and financial position.
• The company provides certain non-GAAP financial measures, including Adjusted EBITDA, bARR, and ARR.
• Adjusted EBITDA for 2024 is estimated to be between -$11.8 million and -$12.0 million.
• The company defines ARR as the amount of recurring revenue recognized during the last three months of the relevant period as determined in accordance with GAAP, multiplied by four.
• The company defines Booked Annual Recurring Revenue or bARR, as the amount of annual recurring revenue represented by the estimated amounts of annual recurring revenue we believe will be earned under such contracted orders, looking out eighteen months from the date of signing of each customer contract.
• The company's estimated revenue for 2024 is $4.0 million.
• The company's estimated gross bookings for 2024 is $14.0 14.5 million.
• The company's estimated cash balance for 2024 is $1.3 million.
• The company's estimated remaining performance obligation for 2024 is $2.9 million.

Sentiment

Score: 4

Explanation: The sentiment is cautiously negative due to the significant Adjusted EBITDA loss and low cash balance, despite positive growth in gross bookings. The company's reliance on non-GAAP measures and forward-looking statements adds to the uncertainty.

Positives

• Gross Bookings are estimated to be $14.0 14.5M for 2024.
• Remaining Performance Obligation is estimated to be $2.9M for 2024.

Negatives

• Adjusted EBITDA is estimated to be between -$11.8 million and -$12.0 million for 2024.
• The company's estimated cash balance for 2024 is $1.3 million.

Risks

• Final results for 2024 could vary significantly from preliminary estimates due to year-end closing, review, and audit procedures.
• Forward-looking statements are subject to various risk factors, including the company's ability to attract and retain customers, implementation of new contracts, competition, and economic and political conditions.
• The company's ability to achieve estimated bARR is subject to the risk of customer adoption and usage of services above contractual minimums.

Future Outlook

The company provides forward-looking statements regarding future operations, growth, sales, revenue guidance for 2024, booked Annual Recurring Revenue (bARR), Annual Recurring Revenue (ARR), cash flow, and financial position.

Management Comments

• Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results.
• Management believes that bARR and ARR, when viewed with our results under GAAP, provide useful information about the direction of future growth trends of the Company's revenues.

Industry Context

The announcement provides insights into authID's financial performance and strategic direction within the identity verification and authentication industry, but lacks specific comparisons to competitors or detailed industry analysis.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards or comparable companies.
• Without further information, it's difficult to assess authID's performance against industry benchmarks.

Stakeholder Impact

• Shareholders should be aware of the potential for significant variations between preliminary estimates and final results.
• Investors should carefully consider the risk factors associated with forward-looking statements.
• Employees may be affected by the company's financial performance and strategic decisions.

Key Dates