Intellicheck Announces Record Third Quarter 2023 Financials

SaaS Revenues Grew 17% Year Over Year

MELVILLE, NY – November 8, 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 third quarter ended September 30, 2023. Total revenue for the third quarter ended September 30, 2023 grew 19% to $4,760,000 compared to $4,012,000 in the same period of 2022. SaaS revenue grew 17% and totaled $4,635,000 compared to $3,970,000 in the same period of 2022.

“I am pleased to report that it was another solid quarter of year over year growth with record SaaS revenues that are up 17% versus the prior year quarter. I am particularly excited about the strides we have made this quarter in continuing to expand the adoption of our technology solutions beyond banking and credit card issuers into a growing number of market verticals that include real estate, automotive and further penetration into digital validation. Our ‘no hardware needed’ product gives us a unique advantage as does our proven rapid response and 99% plus proven accuracy. We continue to demonstrate that we provide a frictionless, engaging customer onboarding experience that verifies and validates a customer wherever and however clients need identity verification. This is a critical first step in the workflow of knowing the person you are dealing with is who they say they are,” said Intellicheck CEO Bryan Lewis.

Gross profit as a percentage of revenues was 91.0% for the three months ended September 30, 2023 compared to 91.1% in the same period in 2022.

Operating expenses for the three months ended September 30, 2023, which consist of selling, general and administrative expenses and research and development expenses, increased 18% to $5,147,000 for the third quarter of 2023 compared to $4,378,000 for the same period of 2022. Included within operating expenses for the third quarters of 2023 and 2022 were $342,000 and $729,000, respectively, of non-cash equity compensation expense.

Net loss for the three months ended September 30, 2023 improved to ($644,000) or ($0.03) per diluted share compared to Net loss of ($724,000) or ($0.04) per diluted share for the same period in 2022.

Adjusted EBITDA (earnings before gains on debt forgiveness, non-restructuring severance expenses, interest and other income, provision for income taxes, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) was ($271,000) for the third quarter of 2023 as compared to $75,000 for the same period of 2022. A reconciliation of adjusted EBITDA to net loss is provided in this release.

As of September 30, 2023, the Company had cash and short-term investments in the form of U.S. Treasuries that totaled $8.9 million, and stockholders’ equity totaled $17.1 million. The unaudited financial results reported today do not consider any adjustments that may be required in connection with the completion of the Company’s quarterly review process and should be considered preliminary until Intellicheck files its Form 10-Q for the three and nine months ended September 30, 2023.