In a recent financial disclosure, biometric software products, services, and solutions provider, Aware Inc., reported a marked increase in its revenue for the third quarter of 2023.
According to the released figures, the total revenue for this quarter soared by 112 percent, amounting to $6.4 million compared to the $3.0 million generated in the third quarter of the preceding year. This significant uptick was mirrored in the net income which totaled $1.1 million or $0.05 per diluted share, showcasing a transition from the net loss of $2.7 million or $(0.13) per diluted share reported in the second quarter of 2023. The Adjusted EBITDA, a non-GAAP metric, was also reported at $0.4 million, indicating a substantial improvement from the adjusted EBITDA loss of $2.4 million in the previous quarter.
The upward trajectory in financial performance extends beyond the third quarter into the cumulative performance across the first nine months of 2023. The total revenue for this period witnessed a 16 percent increase, totaling $13.9 million as opposed to $11.9 million in the same period of the previous year.
However, the net loss for this period stood at $3.1 million or $(0.15) per diluted share, a dip when compared to the net income of $31,000 or $0.00 per diluted share reported in the same period in 2022. The Adjusted EBITDA loss for this period was narrowed down to $3.3 million from an adjusted EBITDA loss of $3.9 million reported in the same year-ago period.
On the business development front, Aware secured a notable $3.4 million contract with the U.S. government during the third quarter, a contract which has the potential to value up to $5.1 million with the inclusion of annual maintenance options. Additionally, the company successfully deployed AwareABIS to three law enforcement agencies. In a bid to further its market reach and capabilities, Aware launched a formal partner program and enhanced its AwareID® platform with facial identification capabilities.
These enhancements were well-timed as Aware’s facial presentation attack detection (PAD) algorithms delivered strong results in the National Institute of Standards and Technology’s Face Analysis Technology Evaluation (FATE) Benchmarking test.
Reflecting on the performance, Robert Eckel, Aware’s Chief Executive Officer and President, expressed satisfaction, particularly highlighting the successful securing of several deals expected to significantly contribute to the recurring revenue.
“With a reinforced partner-centric sales strategy, positive customer renewal rate, success with expansion of existing customers and high-fidelity pipeline of promising opportunities, we continue our confidence that we can achieve or exceed our financial goals to grow total revenue and ARR by 15 percent in 2023 and to exit the year with neutral cashflow,” he said.