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Jun 30, 2024
Bio-key Q2 2024 Earnings Report
BIO-key reported reduced net loss and cash used in operations on lower Q2'24 revenues.
Key Takeaways
BIO-key's Q2 2024 revenues decreased to $1.1 million from $1.9 million in Q2 2023, primarily due to delays in software license fee recognition and lower project-related services revenue. However, the company reduced its net loss to $1.7 million from $2.6 million year-over-year, driven by improved gross profit and reduced operating expenses.
Q2'24 revenues decreased to $1.1M from $1.9M in Q2'23 due to delays in software license fees and lower project-related services revenue.
Gross profit improved to $0.9M (77.0% gross margin) in Q2'24 vs. $0.3M (16.7% gross margin) in Q2'23, primarily reflecting the impact of a $1M hardware reserve in Q2'23.
Q2'24 operating expenses were reduced by $0.2M versus Q2'23 due to ongoing cost management initiatives.
Net loss improved to $1.7M in Q2'24 compared to a net loss of $2.6M in Q2'23, primarily due to a $1M hardware reserve in Q2'23.
Forward Guidance
BIO-key expects to benefit from increasingly stringent regulatory standards and cyber insurance underwriting requirements. The company anticipates variable performance on a quarter-to-quarter basis, based on the timing of customer contracts, but remains confident in driving sequential growth on a full year basis. BIO-key is focused on building a growing base of high-margin annually recurring revenues (ARRs) and implementing cost reduction opportunities to accelerate their path to profitability and positive cash flow.
Positive Outlook
- Growing enterprise awareness of zero-trust Identity and Access Management solutions.
- Growth potential for the new Passkey:YOU solution.
- Benefits from the rollout of increasingly stringent regulatory standards and cyber insurance underwriting requirements.
- Building a growing base of high-margin annually recurring revenues (ARRs).
- Implementing cost reduction opportunities.
Challenges Ahead
- Q2 was impacted by delays in closing software license contracts.
- Lower non-recurring, project-related services revenue versus the year-ago period.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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