AuthID has issued a business update for the second quarter of 2023. Revenues came in at roughly $40k, compared to revenues of about $70k in Q2 of 2022, with the decrease attributed to the discontinuation of a legacy authentication product. But operating expenses were down from $6 million a year ago to $2.8 million in the latest quarter, and Adjusted EBITDA improved from a loss of $3 million in Q2 of 2022 to a loss of $1.7 million in Q2 of this year.
One of the standout achievements in the update is AuthID’s collaboration with ABM, a global leader in facility services. The partnership involves deploying AuthID’s advanced biometric authentication solutions to optimize operations and enhance security across ABM’s extensive workforce. By integrating AuthID’s robust biometric authentication services, ABM aims to elevate security standards while delivering a cost-effective and seamless user authentication experience for critical workforce applications.
The quarter also witnessed AuthID’s continued expansion in the financial services sector. The company onboarded new FinServ customers by deploying its biometric identity and document verification services. These solutions streamline customer onboarding processes and combat fraudulent activities, ensuring a secure and trustworthy environment for financial institutions and their clients.
Additionally, AuthID extended its reach to international recruitment platforms, offering its services to verify the identities of new hires and automate document collection. This strategic move enables the recruitment platform to deliver trusted candidates to their corporate customers, enhancing the overall efficiency and reliability of the hiring process.
The company is under a substantially new management team this year, thanks to a significant corporate overhaul that began in March. The transformation was fueled by a significant investment from Stephen J. Garchik, a long-standing shareholder. This infusion of capital led to crucial changes in AuthID’s leadership and structure. The company’s 2022 Facility Agreement with Garchik was modified, resulting in a $900,000 drawdown and a new financing arrangement worth $3.6 million. This funding injection was aimed at supporting AuthID’s anticipated working capital requirements until the first quarter of the following year.
The investment brought about a shift in the composition of AuthID’s board of directors. Four new board members were appointed by Garchik, including industry experts such as Rhon Daguro, the former Chief Revenue Officer of Socure; AuthID founder Thomas Szoke; Ken Jisser, President of The Pipeline Group; and Michael Thompson, a partner at Hemingway Capital. This influx of fresh perspectives coincided with the resignation of existing Directors Philip Broenniman, Michael Gorriz, Neepa Patel, and Tom Thimot, who also stepped down from his role as CEO.
In Q2, the company appointed three new Vice Presidents of Sales to capitalize on growing demand for secure biometric authentication solutions. AuthID also named former Secure executive Ed Sellitto as its new CFO.
August 11, 2023 – by the FindBiometrics Editorial Team