Bio-key Q4 2023 Earnings Report
Key Takeaways
BIO-key International, Inc. reported preliminary Q4 2023 results, featuring a 26% revenue increase driven by hardware sales and a reduced net loss due to higher revenue and lower operating costs. The company is focused on expanding its market presence and reducing costs to achieve profitability.
2023 revenue increased by 29% to $9.1 million.
SG&A expenses were reduced by $2.1 million (22%) in 2023.
Net loss for Q4 2023 was reduced by over 40% compared to the previous year.
BIO-key is focused on SaaS and subscription-based business model, leveraging channel partners for growth.
Bio-key
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Bio-key Revenue by Segment
Forward Guidance
BIO-key anticipates leveraging its differentiators and addressing gaps in IAM approaches to improve top- and bottom-line performance in 2024, building on recurring revenues with a blended gross margin of approximately 65%.
Positive Outlook
- Increased deployment of enhanced IAM solutions as enterprises transition to the cloud.
- Growing array of security incidents highlighting potential cybersecurity vulnerabilities.
- Regulatory requirements and stringent Cyber Insurance standards mandating enhanced multi-factor authentication.
- Passwordless authentication gains traction.
- Company expects passkey authentication to continue to expand its penetration in 2024.
Challenges Ahead
- Challenges of authenticating users that ‘rove’ among workstations.
- Preventing unauthorized account sharing and delegation.
- Q4’23 bottom line included a $2.8M non-cash reserve on slow moving hardware inventory purchased for our Africa initiatives.
- Company continues to explore opportunities to convert inventory into cash.
- Audit of 2023 financial statements has not been completed and are subject to change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income