Facephi Ends 2024 Strong with Double-Digit Growth Across Key Metrics: TCV, ARR, Turnover, and EBITDA

Eli GrantTuesday, Apr 29, 2025 3:21 pm ET
2min read

FacePhi Biometría S.A., a leader in biometric authentication and anti-fraud solutions, has capped off 2024 with a resounding performance, achieving double-digit growth across critical financial metrics. The company’s first-half results, paired with strategic expansions and operational improvements, signal a trajectory toward sustained profitability and market dominance.

Financial Highlights: Growth Anchored in Recurring Revenue and Structural Efficiency

FacePhi’s turnover rose by 20% year-on-year to €11.7 million in the first half of 2024, driven by aggressive international expansion and a focus on recurring revenue streams. The company’s Annual Recurring Revenue (ARR) has more than doubled since late 2022, surging from €12.7 million to €27.4 million by mid-2024—a 25.7% increase from year-end 2023. This metric, a key indicator of subscription-based business health, reflects FacePhi’s success in locking in long-term contracts with clients across financial services, telecoms, and government sectors.

Meanwhile, normalized EBITDA improved by 10% compared to the first half of 2023, despite one-off restructuring costs of €1 million. Management emphasized that operational efficiencies and a streamlined structure—now “at its target size”—position the company for “significantly higher EBITDA and turnover growth in 2025.”

Strategic Momentum: From APAC to EMEA, a Global Play

FacePhi’s growth is underpinned by its aggressive international footprint expansion. Partnerships with Hancom in Asia-Pacific, new alliances in Pakistan, and market entries in Poland and South Africa have diversified its revenue base. The company now serves clients in 25 countries, with a focus on high-growth regions like Southeast Asia and Africa.

The company also bolstered its product offerings with innovations such as behavioral biometrics and a Know Your Business (KYB) platform, which cater to rising demand for advanced identity verification in regulated industries.

Equity and Capital: A Strong Foundation for Scaling

FacePhi’s financial health is further buoyed by restated net equity, which grew by 6.2% in the first half of 2024 to €23.2 million, driven by €7.4 million in shareholder contributions from Hancom and Nice & Green. Total capital injections are projected to exceed €11 million by year-end, enhancing liquidity for expansion.

Working capital improved by €0.9 million, nearing break-even—a critical milestone for a company in its growth phase.

Challenges and the to Profitability

Despite these gains, FacePhi’s Q2 2024 EBITDA remained negative at €800,000, reflecting upfront investments in R&D, market entry costs, and regulatory compliance (e.g., EU AI Act alignment). However, management projects break-even EBITDA by Q1 2025, assuming current growth trajectories and cost discipline.

The Investment Case: A Leader in Digital Identity’s Golden Age

FacePhi operates in a sector primed for growth. The global biometric authentication market is projected to reach $39.2 billion by 2030, fueled by digital transformation and cybersecurity concerns. FacePhi’s Total Contract Value (TCV) hit €150 million in Q2 2024, a 40% year-over-year jump, underscoring its ability to secure large enterprise contracts.

With a 20% turnover growth rate and a recurring revenue model that now accounts for over half its ARR, FacePhi is well-positioned to capitalize on this tailwind. Its partnerships with major institutions—such as a recent deal with a European bank worth €500,000—signal confidence in its solutions.

Conclusion: A Catalyst for 2025 and Beyond

FacePhi’s 2024 performance is a testament to its strategic execution and the secular demand for its services. Key metrics—doubling ARR, 20% turnover growth, and a path to EBITDA profitability—paint a compelling picture of a company poised to deliver outsized returns.

Investors should note the risks: scalability challenges, regulatory hurdles, and the need to convert TCV into net income. Yet, with a strengthened balance sheet, a global footprint, and innovations like its KYB platform, FacePhi is building a moat in the digital identity space.

If its 2024 momentum continues, FacePhi could become the anti-fraud benchmark its management envisions—turning double-digit growth into a multi-year success story.

Data sources: FacePhi Biometría S.A. financial reports, shareholder updates, and management commentary.

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