On November 1, 2023, Aware Inc (AWRE, Financial), a global biometric platform company, released its financial results for the third quarter ended September 30, 2023. The company reported a significant increase in total revenue, reaching $6.4 million, a 112% increase from the $3.0 million reported in the third quarter of 2022. This growth was primarily due to an increase in software licenses revenue.
Financial Highlights
For the nine months ended September 30, 2023, total revenue increased by 16% to $13.9 million, compared to $11.9 million in the same period last year. Operating cash flow for the third quarter of 2023 totaled $2.5 million, compared to cash usage of $2.0 million in the same year-ago period.
Net income for the third quarter of 2023 totaled $1.1 million, or $0.05 per diluted share. This is a significant improvement from the net loss of $2.7 million, or $(0.13) per diluted share, in the second quarter of 2023. The company's strong balance sheet shows $27.5 million of cash and cash equivalents and marketable securities.
Operational Highlights
Aware Inc (AWRE, Financial) secured a $3.4 million contract with the U.S. government, which includes five-years of annual maintenance options that could value the total contract at $5.1 million. The company also launched a formal partner program to increase revenue streams by leveraging Aware’s biometric solutions. Furthermore, Aware Inc (AWRE) enhanced its AwareID® platform with facial identification capabilities, superior backend support, and optimized user experience.
Management Commentary
Robert Eckel, Aware’s Chief Executive Officer and President, commented on the company's performance. He said,
Our strong third quarter performance reflects our continued efforts to increase ARR and drive sustainable future growth. This quarter we secured several deals that we expect to meaningfully contribute to our recurring revenue, including a multi-year contract with a large agency of the U.S. federal government."
Eckel also highlighted the company's confidence in achieving its financial goals, stating,
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% in 2023 and to exit the year with neutral cashflow."
Future Outlook
Based on the results for the first nine months of 2023, and line of sight into the fourth quarter ending December 31, 2023, the Company reiterates its full-year guidance for total revenue and annual recurring revenue (ARR) growth of 15% and to exit the year with neutral operating cash flow.
Explore the complete 8-K earnings release (here) from Aware Inc for further details.
