Intellicheck Mobilisia Reports Strong SaaS Growth Amid Retail Challenges

Intellicheck Mobilisia ((IDN)) has held its Q4 earnings call. Read on for the main highlights of the call.

The latest earnings call from Intellicheck Mobilisia painted a picture of robust growth tempered by certain sector-specific challenges. The company reported strong revenue growth in its SaaS offerings and successful diversification into new verticals, which helped mitigate some of the difficulties faced in the retail sector. Despite increased operating expenses, Intellicheck achieved a positive adjusted EBITDA, showcasing effective cost management strategies. However, the decline in the retail sector and rising expenses continue to pose challenges for the company.

Record SaaS Revenue Growth

Intellicheck Mobilisia reported a remarkable 17% quarter-over-quarter growth in SaaS revenues for Q4, totaling a record $5.9 million. For the entire year, SaaS revenues grew by 7%, reaching a new high of $19.8 million. This growth underscores the company’s successful expansion in its software-as-a-service offerings.

Successful Vertical Channel Diversification

The company has made significant strides in diversifying its vertical channels, with notable growth in sectors such as automotive, title insurance, email, social media, and retail banking. Title insurance, in particular, saw an impressive 2,500% growth, while other sectors like automotive and retail banking grew by 13% and 17%, respectively.

New Major Contracts and Renewals

Intellicheck successfully renewed and expanded a contract with a prominent domestic bank, increasing its value by approximately 15% to a mid-seven figure annual amount. This renewal highlights the company’s strong client relationships and ability to secure significant contracts.

Positive Adjusted EBITDA

For the year, Intellicheck achieved a positive adjusted EBITDA of $520,000, a significant improvement from a loss of $377,000 in 2023. This positive result reflects the company’s effective cost management and operational efficiencies.

Retail Transaction Volume Decline

Retail transaction volumes in Q4 declined by 9% from Q4 2023, exceeding the anticipated 15% drop. This decline indicates ongoing challenges in the retail environment, which remains a significant part of Intellicheck’s business.

Increased Operating Expenses

Operating expenses surged by 41% in Q4 2024 compared to the same period in 2023. This increase was primarily driven by higher research and development expenses and cloud computing costs, reflecting the company’s investment in future growth.

Challenges in Retail Sector

The retail sector continues to face difficulties, with bankruptcies and cautious consumer spending affecting transaction volumes. Retail still accounts for approximately 75% of scan volume, highlighting the sector’s importance to Intellicheck’s business.

Forward-Looking Guidance

Looking ahead, Intellicheck remains optimistic about its growth prospects, particularly in the latter half of 2025. The company plans to continue its diversification strategy and invest in IT initiatives, including transitioning from Azure to AWS for cost savings and faster implementations. Intellicheck is also focused on strengthening its customer success team to improve client relationships and secure more contract renewals.

In summary, Intellicheck Mobilisia’s earnings call revealed a company navigating growth and challenges with strategic diversification and effective cost management. While the retail sector presents ongoing difficulties, the company’s strong SaaS revenue growth and positive adjusted EBITDA are promising indicators of its resilience and potential for future success.