Aware Reports Fourth Quarter and Full Year 2022 Financial Results
BURLINGTON, Mass., March 09, 2023 (GLOBE NEWSWIRE) -- Aware, Inc. (NASDAQ: AWRE), a leading authentication company applying proven and trusted adaptive authentication to solve everyday business challenges with biometrics, today reported financial results for the fourth quarter and fiscal year ended December 31, 2022.
Fourth Quarter 2022, Full Year 2022 and Recent Operational Highlights
“Looking ahead, Aware’s transformation is well underway, with our past investments beginning to yield returns in recurring revenue. Our plan is supported by a solid balance sheet with cash and marketable securities of $29 million, which provides sufficient runway to execute our growth strategy and remain opportunistic, as appropriate. We entered the new year with an exciting pipeline of opportunities that we are starting to convert at an encouraging pace. Our refined sales strategy is gaining momentum and creating repeatable sales activities that give us confidence in our ability to deliver annual recurring revenue (ARR) growth of at least 15% in 2023 and positioning the company to achieve positive operating cashflow exiting 2023.”
Fourth Quarter 2022 Financial Results
Net loss in the fourth quarter of 2022 totaled $1.8 million, or ($0.08) per diluted share, which compares to net income of $2.6 million, or $0.12 per diluted share, in the third quarter of 2022 and net loss of $1.3 million, or $(0.06) per diluted share, in the same year-ago period.
Adjusted EBITDA loss (a non-GAAP metric reconciled below) for the fourth quarter of 2022 was $1.5 million, compared to adjusted EBITDA loss of $2.5 million in the third quarter of 2022 and adjusted EBITDA loss of $0.9 million in the same year-ago period.
Cash and cash equivalents, and marketable securities totaled $29.0 million as of December 31, 2022, compared to $30.0 million as of December 31, 2021.
Full Year 2022 Financial Results
Net loss for the year ended December 31, 2022 totaled $1.7 million, or $(0.08) per diluted share, compared to net loss of $5.8 million or ($0.27) per diluted share, in the same year-ago period. Net loss for the year ended December 31, 2022 was favorably impacted by a $5.7 million gain on the sale of our prior principal executive offices.
Adjusted EBITDA loss for the full year ended December 31, 2022 was $5.4 million, compared to adjusted EBITDA loss of $3.8 million in the prior year.
Date: Thursday, March 9, 2023
The presentation will be made available for replay in the investor relations section of the Company’s website. The audio recording will be available for approximately 90 days following the live event.
Safe Harbor Warning
Risk factors related to our business include, but are not limited to: i) our operating results may fluctuate significantly and are difficult to predict; ii) we derive a significant portion of our revenue from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities; iii) a significant commercial market for biometrics technology may not develop, and if it does, we may not be successful in that market; iv) we derive a significant portion of our revenue from third party channel partners; v) the biometrics market may not experience significant growth or our products may not achieve broad acceptance; vi) we face intense competition from other biometrics solution providers; vii) our business is subject to rapid technological change; viii) our software products may have errors, defects or bugs which could harm our business; ix) our business may be adversely affected by our use of open source software; x) we rely on third party software to develop and provide our solutions and significant defects in third party software could harm our business; xi) part of our future business is dependent on market demand for, and acceptance of, the cloud-based model for the use of software: xii) our operational systems and networks and products may be subject to an increasing risk of continually evolving cybersecurity or other technological risks which could result in the disclosure of company or customer confidential information, damage to our reputation, additional costs, regulatory penalties and financial losses; xiii) our intellectual property is subject to limited protection; xiv) we may be sued by third parties for alleged infringement of their proprietary rights; xv) we must attract and retain key personnel; xvii) our business may be affected by government regulations and adverse economic conditions; xviii) we may make acquisitions that could adversely affect our results, xix) we may have additional tax liabilities; and xx) our business and operations could be adversely affected by health epidemics, including the current COVID-19 pandemic, impacting the markets and communities in which we, our partners and clients operate.
We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2021 and other reports and filings made with the Securities and Exchange Commission.
CONDENSED CONSOLIDATED BALANCE SHEETS
We define recurring revenue as the portion of Aware revenue that is based on an annual term or shorter arrangements and is likely to continue in the future, such as annual maintenance or subscription contracts. We use recurring revenue as a metric to communicate the portion of our revenue that has greater stability and predictability. We believe that recurring revenue assists in providing an enhanced understanding of effectiveness of our efforts to transition to a subscription-based business model.
Adjusted EBITDA and recurring revenue are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with U.S. GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above in arriving at adjusted EBITDA and investors should not infer from our presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring. The following table includes the reconciliations of our U.S. GAAP net income (loss), the most directly comparable U.S. GAAP financial measure, to our adjusted EBITDA for the three and twelve months ended December 31, 2022 and 2021 and for the three months ended September 30, 2022 and (ii) our U.S. GAAP revenue, the most directly comparable U.S. GAAP financial measure, to our recurring revenue for the three and twelve months ended December 31, 2022 and 2021.
Aware is a registered trademark of Aware, Inc.
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Cybersecurity Solutions Session
Solutions Showcase Session
Continental Breakfast Served