Intellicheck Announces Second Quarter 2022 Financial Results

SaaS Revenues Grew 21% as compared to the same period in 2021

MELVILLE, NY – August 11 2022 - Intellicheck, Inc. (Nasdaq: IDN) (the “Company”), an industry- leading identity company delivering on-demand digital and physical identity validation solutions, today announced its financial results for the second quarter ended June 30, 2022. Total revenue for the second quarter ended June 30, 2022 declined 16% to $4,008,000 compared to $4,797,000 in the same period of 2021. The decline can be attributed to the fact that in this quarter there were negligible non-core hardware sales compared to the prior year quarter which had an extraordinarily large, one-time hardware sale. Quarter-over-Quarter SaaS revenue grew 21% to a record $3,928,000 compared to $3,234,000 in the same period of 2021.

“New use cases, including expanded digital applications, and the growth of our customer base continues to drive increased revenues and transaction volume. We are proud of our success in providing customers and partners with the leading-edge technology and frictionless customer experience that delivers solutions to the challenges of physical and digital identity validation with near perfect certainty. We remain focused on providing our clients with best-in-class adaptable technology solutions as we continue to expand our presence across market verticals,” said Intellicheck CEO Bryan Lewis.

Gross profit as a percentage of revenues was 91% for the three months ended June 30, 2022 compared to 69% in the same period in 2021. The increase in gross profit percentage was driven by lower equipment revenues in the current period. Excluding equipment sales, gross profit as a percentage of revenue was 93% for both quarters ended June 30, 2022 and 2021.

Operating expenses for the three months ended June 30, 2022, which consist of selling, general and administrative expenses, marketing, and research and development expenses were $4,742,000 for the second quarter of 2022 compared to $4,165,000 for the same period of 2021. The increase in operating expenses was driven by higher personnel expenses, professional fees, and marketing expenses. Included within operating expenses for the second quarters of 2022 and 2021 were $446,000 and $749,000, respectively, of non-cash equity compensation expense.

Net loss for the three months ended June 30, 2022 was ($1,098,000) or ($0.06) per diluted share compared to a Net loss of ($836,000) or ($0.04) per diluted share for the same period in 2021.

Adjusted EBITDA (earnings before gains on debt forgiveness, other income, income taxes, depreciation, amortization, and equity compensation expense) was ($583,000) for the second quarter of 2022 as compared to ($47,000) for the same period of 2021. A reconciliation table of adjusted EBITDA to net loss is provided in this release.

As of June 30, 2022, Cash totaled $12.0 million, and stockholders’ equity totaled $18.4 million.

The financial results reported today do not consider any adjustments that may be required in connection with the completion of the Company’s review process and should be considered preliminary until the Company files its Form 10-Q for the three months ended June 30, 2022.

Conference Call Information

The Company will hold an earnings conference call on August 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 13731558. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13731558. The replay will be available beginning approximately three hours after the completion of the live event and will remain available until August 18, 2022.
Read more