Aware, Inc. has issued its financial results for the fourth quarter and full fiscal year ending December 31, 2022. The company’s revenues for the fourth quarter of 2022 remained stable at $4.1 million, compared to $4.0 million in the same quarter of the previous year. However, recurring revenues increased by 16 percent, reaching $2.6 million or 65 percent of total revenue.
Aware’s Knomi selfie-based authentication solution saw significant growth over the past year with the addition of seven new partners, offering opportunities for expansion in Latin America, Europe, the Middle East, and Africa.
Aware also highlighted its presence in the federal market, with its solutions being used in all three branches of the US federal government and 12 of 15 executive branch departments. The company’s platform, AwareID, received SOC 2 certification in 2022, demonstrating its high level of security and data confidentiality capabilities.
Aware President and CEO Robert Eckel stated that the company’s past investments are beginning to yield returns in recurring revenue. Aware has a solid balance sheet with cash and marketable securities of $29 million, he noted, which provides sufficient runway to execute its growth strategy and remain opportunistic. Eckel added that the company has an exciting pipeline of opportunities that they are starting to convert at an encouraging pace. Aware’s refined sales strategy is picking up momentum and creating repeatable sales activities that give the company’s management confidence in their ability to deliver annual recurring revenue growth of at least 15 percent in 2023, positioning Aware to reach positive operating cashflow going into 2024.
Revenue for the full year 2022 was $16.0 million, compared to $16.9 million in 2021, primarily due to lower revenue from services. However, the company’s net loss for the year ended December 31, 2022, totaled $1.7 million, compared to a net loss of $5.8 million in the same year-ago period, thanks in part to a $5.7 million gain on the sale of their prior principal executive offices.
Adjusted EBITDA loss for 2022 came in at $5.4 million, compared to an adjusted EBITDA loss of $3.8 million in 2021.
March 10, 2023 – by the FindBiometrics Editorial Team