Intellicheck Announces Fourth Quarter and Full-Year 2022 Financial Results

Fourth Quarter SaaS Revenues Grew 21%
SaaS Revenues Grew 21% Year Over Year

MELVILLE, NY – March 21, 2023 - Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity company delivering on-demand digital and physical identity validation solutions, today announced its financial results for the fourth quarter and full-year ended December 31, 2022. Total revenue for the fourth quarter ended December 31, 2022 grew 17% to $4,551,000 compared to $3,902,000 in the same period of 2021. Quarter-over-Quarter SaaS revenue grew 21% and totaled $4,479,000 compared to $3,715,000 in the same period of 2021 and grew 13% sequentially over the third quarter of 2022.

“I am very pleased with the progress we have made in diversifying our business as we expand our presence in more market verticals. Our broad and growing client base and the continued adoption of our technology with expanded use cases by both existing and new clients underscores the quality and value of our identity validation solutions. As bad actors continue to expand their efforts at every turn, our clients know that by partnering with Intellicheck they have the advantage of technology that delivers a frictionless customer experience that onboards more good clients faster, without the need for expensive hardware, while virtually eliminating fraud quickly, easily, and effectively,” said Intellicheck CEO Bryan Lewis.

Gross profit as a percentage of revenues was 94.8% for the three months ended December 31, 2022 compared to 92.0% in the same period in 2021.

Operating expenses for the three months ended December 31, 2022, which consist of selling, general and administrative expenses and research and development expenses, increased 4% to $4,746,000 for the fourth quarter of 2022 compared to $4,582,000 for the same period of 2021. Included within operating expenses for the fourth quarters of 2022 and 2021 were $687,000 and $393,000, respectively, of non-cash equity compensation expense.

Net loss for the three months ended December 31, 2022 improved to ($561,000) or ($0.03) per diluted share compared to Net loss of ($992,000) or ($0.05) per diluted share for the same period in 2021.

Adjusted EBITDA (earnings before gains on debt forgiveness, interest and other income, provision for income taxes, depreciation, amortization, stock-based compensation expense and certain non- recurring charges) improved to $389,000 for the fourth quarter of 2022 as compared to ($555,000) for the same period of 2021. A reconciliation of adjusted EBITDA to net loss is provided in this release.

Full Year 2022 Results

Total revenue for the full year ended December 31, 2022 declined 3% to $15,966,000 compared to $16,393,000 in the same period of 2021. Included in last year’s revenue were non-recurring hardware sales in Q2 and Q3 that totaled $3.2 million. Year-over-year SaaS revenue grew 21% and totaled $15,728,000 compared to $12,970,000 in the same period of 2021.

Gross profit as a percentage of revenue was 92.0% for the year ended December 31, 2022 compared to 78.6% in the same period of 2021. The increase in gross profit percentage was primarily driven by our concentration of SaaS-based revenues in the absence of last year’s equipment sale.

Operating expenses for the year ended December 31, 2022 were $18,413,000 compared to $20,375,000 for the same period of 2021. Included within operating expenses for the full years of 2022 and 2021 were $2,455,000 and $6,400,000, respectively, of non-cash equity compensation expense.

Net loss for the year ended December 31, 2022 was ($3,851,000) or ($0.20) per diluted share compared to a net loss of ($7,478,000) or ($0.40) per diluted share in the same period of 2021. Adjusted EBITDA (earnings before gains on debt forgiveness, interest and other income, provision for income taxes, depreciation, amortization, stock-based compensation expense and certain non- recurring charges) was ($924,000) for the year ended December 31, 2022 compared to ($924,000) for the same period of 2021. A reconciliation of adjusted EBITDA to net loss is provided in this release.

As of December 31, 2022, the Company had cash and short-term investments in the form of U.S. Treasuries that totaled $10.1 million, and stockholders’ equity totaled $18.5 million.

The financial results reported today do not consider any adjustments that may be required in connection with the completion of the Company’s audit process and should be considered preliminary until Intellicheck files its Form 10-K for the fiscal year ended December 31, 2022.

Conference Call Information

The Company will hold an earnings conference call on March 21, 2023 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 13736979. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13736979. The replay will be available beginning approximately two hours after the completion of the live event and will remain available until March 28, 2023.