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Sep 30, 2021
Bio-key Q3 2021 Earnings Report
BIO-key reported Q3 revenue growth driven by increased IDentity-as-a-Service cloud revenue.
Key Takeaways
BIO-key International, Inc. reported a 38% year-over-year increase in Q3 revenue, driven by growing demand for its cloud-based PortalGuard identity and access control solution and expansion of its Channel Alliance Partner program. The company is revising its full-year revenue guidance due to delays in large-scale projects in Africa.
Q3 revenue increased by 38% year-over-year, reaching $1.3 million, and 31% sequentially from Q2.
License fee revenues increased to $870k in Q3'21 from $346k in Q3'20.
Approximately 80% of total software and service revenue is now represented by recurring software subscription revenue.
The company revised its full-year 2021 revenue guidance to a range of $5.5M to $7M.
Bio-key
Bio-key
Forward Guidance
BIO-key revised its full-year 2021 revenue guidance to a range of $5.5M to $7M due to the timetable of material revenues from Africa pushed into 2022.
Positive Outlook
- Growing portfolio of high-margin, Software-as-a-Service solutions.
- Rapidly increasing cybersecurity sector.
- Strong capital position.
- Talented development and sales teams.
- Mid-point of revised revenue guidance represents 120% growth over 2020 revenue.
Challenges Ahead
- Timetable of material revenues from Africa pushed into 2022.
- Revised full-year 2021 revenue guidance to a range of $5.5M to $7M; down from prior estimated range of $8-12M.
- Company has a history of losses and limited revenue.
- Company's ability to execute and deliver on contracts in Africa is uncertain.
- The duration and severity of the current coronavirus COVID-19 pandemic and its effect on our business operations, sales cycles, personnel, and the geographic markets in which we operate.