Intellicheck Announces Fourth Quarter and Full-Year 2019 Financials

Record Q4 SaaS revenue of $2.56 Million Drives $106,000 of Net Income
Two New Financial Institutions Signed Including First Canadian Lender

MELVILLE, NY – March 11, 2020 -- Intellicheck, Inc. (Nasdaq: IDN), an industry leader in identification authentication solutions, today announced its financial results for the fourth quarter and full-year ended December 31, 2019. Total revenue for the fourth quarter ended December 31, 2019 grew 118% to $2,896,000 versus $1,330,000 in the prior year comparable period. Quarter over Quarter SaaS revenue for the fourth quarter grew 209% and totaled $2,557,000 versus $826,000 in the prior year comparable period.

Gross profit as a percentage of revenues was 88.8% for the three months ended December 31, 2019 versus 93.1% in the prior year comparable period.

“We are excited by our results that have been driven by our focus on sales and implementations in 2019 that have yielded $2.56 million in SaaS revenue and $106,000 in net income during the fourth quarter. The recent addition of two new financial institutions, including a Canadian lender, will expand both our market penetration and our geographical footprint,” said Intellicheck CEO Bryan Lewis.

“The pace of data breaches and the data that has been harvested makes it clear that identity theft is not going away for banks, credit card issuers, retailers and consumers. In fact, it is going to get worse. Given the ease of identity theft and the record-setting pace of data breaches, more and more market verticals are going to require that individuals authenticate themselves. As we look forward, we believe that our implementation pipeline remains robust and I remain confident that what I told you when I first joined the company two years ago is evident, today. The market is coming to us,” Lewis concluded.

Net income for the three months ended December 31, 2019 was $106,000 or $0.01 per diluted share versus a net loss of ($664,000) or ($0.04) per diluted share the comparable prior year period. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) was $216,000 for the fourth quarter of 2019 versus a loss of ($633,000) in the prior year comparable period. A reconciliation of adjusted EBITDA to net income (loss) is provided elsewhere in this release.

Total revenue for the full year ended December 31, 2019 grew 73% to $7,664,000 versus $4,433,000 in the prior year comparable period. Year over year SaaS revenue grew 126% and totaled $6,100,000 versus $2,700,000 in the prior year comparable period.

Gross profit as a percentage of revenue was 87.0% for the year ended December 31, 2019 versus 91.3% in the prior year comparable period.

The net loss for the fiscal year ended December 31, 2019 improved to ($2,549,000) or ($0.16) per diluted share versus a net loss of ($3,964,000) or ($0.26) per diluted share. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) improved by $1.8 million to a loss of ($1,813,000) for fiscal 2019 versus a loss of ($3,661,000) for fiscal 2018. A reconciliation of adjusted EBITDA to net income (loss) is provided elsewhere in this release.

Cash at the end of fiscal 2019 totaled $3.4 million versus $4.4 million in the prior year comparable period. Stockholders’ equity totaled $11.7 million at the end of the 2019 fiscal year versus $12.9 million at the end of the comparable prior year period. As of December 31, 2019, the Company had net operating loss carry forwards of approximately $17 million.

The financial results reported today do not take into account any adjustments that may be required in connection with the completion of the Company’s review process and should be considered preliminary until Intellicheck files its Form 10-K for the fiscal year ended December 31, 2019.

Conference Call Information:

The Company will hold an earnings conference call today, March 11, at 4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037.

A replay of the conference call will be available shortly after completion of the live event. To listen to the replay, please dial 877-660-6853 and use conference identification number 13699516. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13699516. The replay will be available beginning approximately two hours after the completion of the live event and will remain available until March 26, 2020.