authID 2025 Q1 Earnings Revenue Growth Amid Widening Losses

authID (AUID) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company saw an impressive revenue increase, rising 88.2% from the previous year to reach $296,256. Despite this growth, the company faced challenges with its net loss widening to $4.34 million, or $0.40 per share, compared to $3.06 million, or $0.32 per share, a year ago. This performance was below market expectations, reflecting ongoing financial difficulties. authID remains optimistic, underscoring its strategic initiatives to capture revenue growth opportunities in the expansive biometric authentication market.

Revenue

The total revenue of authID surged by 88.2% to $296,256 in 2025 Q1, up from $157,378 in 2024 Q1, showcasing significant growth in sales.

Earnings/Net Income

authID's losses deepened to $0.40 per share in 2025 Q1 from a loss of $0.32 per share in 2024 Q1. The net loss widened to $4.34 million, a 41.9% increase from the previous year, indicating a challenging quarter for earnings.

Price Action

The stock price of authID tumbled 8.35% during the latest trading day, plummeted 18.48% during the most recent week, and dropped 5.84% month-to-date.

Post-Earnings Price Action Review

The strategy of investing in authID shares following revenue increases on report release dates and holding for a month has shown moderate returns over the past five years. An annualized return of 9.16% was achieved, with 66.88% of months yielding positive returns, although this is below the benchmark's annualized return of 13.81%. The portfolio's best year was 2019, garnering a 24.02% return, while the worst year was 2022 with a -17.95% return. The maximum drawdown was 23.55%, occurring from January 1, 2022, to September 30, 2022, requiring 18 months for recovery.

CEO Commentary

Rhon Daguro, Chief Executive Officer, expressed optimism about authID's growth prospects, citing strong demand for biometric solutions due to rising cyber threats. Although large deal cycles slowed Q1 bookings, the pipeline remains robust. Strategic priorities focus on securing Fortune 500 clients and enhancing partnerships, with progress made on both fronts. Daguro anticipates accelerated growth later in 2025.

Guidance

authID targets $18 million in total bookings for 2025, expecting substantial revenue growth as existing contracts begin contributing. The company reported a remaining performance obligation (RPO) of $13.85 million, anticipating further increases aligned with future bookings. Closing large deals could significantly impact meeting this target, with one potential deal alone possibly fulfilling the entire $18 million goal.

Additional News

Recently, authID secured nearly $9 million through two financing rounds, enhancing its balance sheet and expanding its investor base. This capital infusion supports scaling efforts and new opportunities, including the creation of an advisory board with two expert advisors, Eric Swider and Donald Nitti. Both advisors bring extensive experience in various industry and government sectors where authID's solutions address critical needs. The company also signed a paid live production trial agreement with a Global Fortune 500 prospect, aiming for a longer-term agreement. Additionally, authID advanced to final stages with a biometric hardware provider to integrate its solutions into employee credentials, reflecting strategic progress in expanding partnerships.