Intellicheck Mobilisa Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 12, 2025

Key Takeaways

  • Positive Sentiment: Second quarter revenue grew 10% year-over-year to $5.1 M with adjusted EBITDA improving by $145 K to $75 K and cash balances rising to $8.6 M.
  • Positive Sentiment: The company secured multi-year expansions with a Southeast regional bank (low 7-figure year-one revenue, ramping to high 7-figure total) and a large credit-card issuer under a 3-year, mid-7-figure ACV contract, plus integration with a $20 B credit union via a core banking platform.
  • Positive Sentiment: Marketing efficiencies drove a 30% increase in inbound prospects quarter-over-quarter, LinkedIn impressions up 300%, and average price-per-scan gains of 25-36% by prioritizing higher-priced verticals like title insurance, automotive, and background checks.
  • Positive Sentiment: About 95% of clients migrated from Azure to AWS, targeting over $300 K in annual cost savings, simplified code deployment, faster onboarding, and enhanced GPU support for AI initiatives.
  • Negative Sentiment: Integration issues arose with a high-volume social media client after code changes prevented processing most ID documents, but engineering teams are collaborating on a solution with no firm resolution timeline.
AI Generated. May Contain Errors.
Earnings Conference Call
Intellicheck Mobilisa Q2 2025
00:00 / 00:00

There are 2 speakers on the call.

Operator

Greetings, and welcome to the Intellicheck Q2 twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gar Jackson, Investor Relations.

Operator

Thank you. You may begin.

Speaker 1

Thank you, operator. Good afternoon, and thank you for joining us today for the Intellicheck second quarter twenty twenty five earnings call. Before we get started, I will take a few minutes to read the forward looking statement. Certain statements in this conference call constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. When used in this conference call, words such as will, believe, expect, anticipate, encourage and similar expressions as they relate to the company or its management as well as assumptions made by and information currently available to the company's management identify forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Speaker 1

These forward looking statements are based on management's current expectations and beliefs about future events. As with any projection or forecast, they inherently are susceptible to uncertainty and changes in circumstances, and the company undertakes no obligation to and expressly disclaims any obligation to update or alter its forward looking statements, whether resulting from such changes, new information, subsequent events or otherwise. Additional information concerning forward looking statements is contained under the heading of Safe Harbor statement and risk factors listed from time to time in the company's filings with the Securities and Exchange Commission. Statements on today's call are as of today, 08/12/2025. Management will use the financial terms adjusted EBITDA and adjusted gross margin on today's call.

Speaker 1

Please refer to the company's press release issued this afternoon for further definition, reconciliation and context for the use of these terms. We will begin today's call with Brian Lewis, Intellicheck's Chief Executive Officer and then Evan Shrugovich, Intellicheck's Chief Financial Officer, who will discuss the second quarter financial results. Following their prepared remarks, we will take questions from our analysts and institutional investors. Today's call will be limited to one hour, and I will now turn the call over to Brian. Thanks, Gar, and thank you all for joining us for today's earnings call.

Speaker 1

Our second quarter total revenue grew to $5,100,000 from $4,700,000 in the prior year period with adjusted EBITDA of $75,000 for the quarter, which is a $145,000 improvement versus the year ago period. Additionally, we ended the quarter with $8,600,000 in cash at quarter end, an increase of $3,500,000 versus a $5,100,000 balance at the end of the first quarter. During the second quarter, we had some significant achievements that I will recap for you. Among the highlights we will be discussing are the multiyear expansions of our relationships with some of our major banks and credit card issuer clients, including the significant upsell we accomplished with the leading regional bank headquarters in the Southeast. We will also be sharing with you the results of our efforts on contract renewals where we are demonstrating continued strength as well as some new wins.

Speaker 1

We will discuss organizational moves that are that we made within our sales staff and some metrics that show that our marketing spend, while lower than last year, is showing significant gain. Additionally, we made major progress on our AWS customer migration project that was undertaken for a multitude of reasons. During the second quarter, we announced some very exciting news on that regional bank front. We completed the extensive contract negotiations with a large regional bank as well as all of the integration work. They began their rollout, and we began invoicing that bank in July.

Speaker 1

As a reminder, this three year contract has year one revenues in the low 7 figure range and ramps in year two and three to have a total contract value in the very high 7 figures over the contract duration. I'm also pleased to report that the large banking credit card issuer that is using our technology in branch, online, in their call center, in their auto loan group for the issuance of new white label credit card and for account lookup that has been buying bucket that's now assigned to a new three year tiered contract that is pacing at an annual contract value in the mid 7 figure range. We believe this is yet another demonstration of the value add that IntelliCheck technology provides for our customers and their clients across multiple market verticals. We believe that there is great promise to further expansion of our relationships with our largest clients across all sectors. With the addition of our SVP of customer experience and account management, Sandra Bauer, and the changes she has made to the customer success team, many new initiatives are starting with large clients.

Speaker 1

The two three year agreements previously discussed are examples of those changes working. In another example of doing more with existing clients, one of our top three clients added a 50 location department store retailer that went live late in the quarter. In addition to credit cards, this client also has a significant buy now, pay later business. They have begun using our authentication at their retailers for that size of the business as well. While retail may be off, it's good to see clients continuing to add retailers in new ways to finance with IntelliSet as the first step, and we believe that there is still significant opportunity for growth with both in mall and off mall retailers who are dealing with fraud issues.

Speaker 1

We also believe that is what some view as a headwind now will eventually become a tailwind. And the more retailers and use cases our clients have using Intellicheck, the stronger that tailwinds will be. It's important to note that we continue to see pricing power that drove both our average price per scan and new business price per scan, which were up 2536%, respectively, versus the prior year. Part of this is being driven by a shift in the market vertical mix as we have put more focus on a new and expanding number of verticals that include title insurance, automotive, notary services, and background checks, where we charge a much higher price per scan. Yet the volumes for these clients are lower than large retail change.

Speaker 1

At the same time, we have reduced our focus and emphasis on individual bars and restaurants that were both high maintenance and low revenue per venue. This is a perfect example of a market where our channel partner makes sense. Lots of target clients, but low revenue per client, so we are now shifting that individual bar and restaurant business to one of our channel partners. Turning now to our social media client. What we were waiting for finally happened.

Speaker 1

The volume of ID verification transactions we're expecting finally started coming in. Unfortunately, it appears that this client has recently changed some code on their end, and as a result, we are currently unable to process nearly all of the documents that they are sending. Rest assured, we were working on the situation, and our engineers are in contact with this client's engineering team to find a solution. It was agreed that we would hold a comprehensive in person meeting to discuss the solution as well as look at entire suite of Intellicheck technology offerings to see how we might help them. We believe that the most effective solution is to embed our scan scanning technology as the first step in their workflow, and that will be one of the topics of discussion.

Speaker 1

We are pleased that this has reached the very top of the identity organization management there, and both our SVP of sales, Tim Poulin, and I have spoken with them. I look forward to the engineers finding a solution. I stand by what we shared with you before regarding the crucial role we can play as a partner to this social media giant with our industry leading technology. The top issue they said they are facing is account takeover and all the issues that come with that for them, reputational ruin, crime, and underage access. Given what we do for all of our financial institutions and our email clients, they understand we can do it for them.

Speaker 1

We'll keep you posted as new developments occur. On the sales front, I am optimistic about the changes Tim Pool and his masons coming on board in April. He has revitalized the sales staff with new sales executives for all seasoned strategic account representatives focused on targeting major accounts. He's also hired a dedicated channel manager to strengthen our coverage in strategic verticals and provide consistent new revenue streams. Although we have channel partners in place previously, we need to have a substantive focus on driving revenues through these accounts and onboarding new strategic partners.

Speaker 1

Our new channel manager will have a dual role of both signing up leasing partners and driving revenue through our existing partner base. To that point, on previous calls that we've spoken about our commitment to sign the companies that provide the backbone backbone software for generally smaller banks and credit unions that want to outsource that function. These software providers are really the only way to reach this potential client base. I am pleased to say that we've signed our first. We will be going live in November through their platform with a $20,000,000,000 credit union and have other credit unions on this platform interested in our solutions.

Speaker 1

Our channel partner manager is working with their partner manager to build build out the launch plan, and you'll see press releases and a lot of marketing around that as we get closer to launch. Our marketing programs have really helped us gain ground in promoting our business value, making our outreach more effective. The more people that know who Impellatech is and how we stop fraud differently than the rest of our competitors who simply template the fundamental license, the easier it is for our sales team to get meetings. Looking at some of the stats, it's clear that the new marketing marketing efforts are working. A few examples of the progress we are making include new inbound prospects are up 30% over q one.

Speaker 1

Interest from banking and finance users is up 79% on Google Analytics over q one. LinkedIn impressions are up 300% over q one. Video views are up 19% over q one. We also launched the Intellitech podcast series in q two and released five episodes, and we published seven blog posts during the quarter. Both the blog posts and the podcast can be found under the resources tab on our website.

Speaker 1

My goal here was and remains thought leadership and brand awareness, and we believe the stats and inbound leads show we are achieving that. In fact, this is good time to share with you a little color on our revenue breakdown per vertical. Now keep in mind that there's a fair bit of volatility to these figures for a number of reasons. For example, we believe the branch banking business will remain fairly consistent. But if one of our banks brings on board or for that matter loses a retail client, the mix between banking and retail can shift dramatically.

Speaker 1

In addition, as we have repeatedly said, there is significant seasonality to retail volume. Retail is also volatile because of consumer confidence, tariff concerns, inflation impacts, and other things that impact retail sales in general. That being said, this is where we believe our q two revenue breakdown by vertical stand. Banking and lending lending contributed approximately 38%. Retail was approximately 25%.

Speaker 1

Age restricted was approximately seven. Order was approximately five, and title insurance was approximately 2%. On the IT product front, we have spoken about the AWS migration from the Azure platform, and I'm pleased to say that we now have approximately 95% of our clients migrated onto the AWS platform. We expect our savings to be in excess of $300,000 annually going forward. These savings are of particular benefit because we believe they will more than offset the additional g t GPU spending for AI that is becoming ever more important in what our data science team is doing for future product offerings for our clients and to bolster our current offering.

Speaker 1

It's important to point out that this migration wasn't solely focused on cost savings. It was also designed to make it easier for our developers to write and release code and for our sales engineers and customer success team to onboard new customers faster and more easily. It also provides expanded data feeds that allow for additional risk analytics to inform our client's decisioning processes. The back end we write to make the move to AWS also made the code much simpler and platform agnostic. We can now easily move between cloud providers based on client needs and additional savings.

Speaker 1

Although we don't anticipate any additional platform migrations at this time, we believe it is good to be in affordable position if necessary. As part of our efforts to raise visibility with both investors and prospects, we are continuing to attend and speak at key conferences. We will be presenting at the Civility Microcap Conference on August 20 as well as hosting one on one meetings. For more information and to schedule a meeting, please visit the Sidoti website at sidoti.com/events. It isn't necessary to be the Sidoti client to schedule a meeting or listen to the presentation.

Speaker 1

On the trade show front, we are looking forward to Finno Bay fall where I will be speaking on September 9. We will also be presenting MoneyLive in Chicago, September 15. Several of our major banking clients will be attending, and we are looking forward to seeing them and meeting with additional prospects. Finally, we will be participating at the ACAMS, the Association of Certified Anti Money Laundering Specialist Conference, which is scheduled for September in Las Vegas. I will be speaking there on the sixteenth.

Speaker 1

I will now turn the call over to Adam who will go into more details about our financial results. Thank you, Brian. In addition to GAR's forward looking statements, please note we occasionally use rounding during this call. For more detailed and authoritative financial information, please refer to our press release and to our quarterly report filed earlier today on Form 10 Q with the SEC. It's great to share more details around the numbers of the 2025.

Speaker 1

As Brian mentioned, our second quarter revenues were 10% higher versus the same period in the prior year. We also saw continued strong pricing up 10% for new business versus the 2025. You can see the strategy paying off, pursuing verticals such as auto and title insurance with higher cost per scan. Adjusted EBITDA also improved by $145,000 versus 2024 with a gain of $75,000 for the quarter. Revenue for the 2025 increased 10% to a first quarter record of $5,100,000 compared to $4,700,000 in the same period of 2024.

Speaker 1

Our SaaS revenue for the 2025 was also up 10% to $5,080,000 from $4,600,000 during the same period of 2024 and represented over 99% of our second quarter revenue. Gross profit as a percentage of revenues was 89.8 percent for the quarter, which included about two sixty basis points of amortization expense related to the software development projects previously discussed. This compares to 90.5% that included about 60 basis points of amortization expense in the 2024. Our adjusted gross margin, which you may remember as a new metric we introduced in the 2020 improved to 92.2% in 2025 compared to 91% in 2024. We capitalized $47,000 this quarter and don't expect to see any more capitalization next quarter.

Speaker 1

It has been a remarkable journey of modernization for Intellicheck where 2024 plus $781,000 of capitalization expense. This was mostly driven by the software that we have been developing for deployment on AWS that, as Brian mentioned, is now in production. Operating expenses, which consist of selling, general and administrative, marketing, and research and development expenses, increased 455,000 or 10% to 4,900,000.0 for the 2025 compared to 4,400,000.0 for the same period of 2024. On an accounting basis, R and D expenses were $528,000 higher in 2025. But as I just mentioned, we capitalized 781,000 of r and d expenses in 2024 and only 47,000 in q two of this year.

Speaker 1

Beginning in q three, we expect that r and d costs will hit the P and L in their entirety for our current offerings. The weighted average diluted common shares was 19,800,000.0 for the 2025 compared to 19,500,000.0 for the same period of 2024. As for the company's liquidity and capital resources, at 06/30/2025, the company had cash and cash equivalents of $8,600,000 We shared with you last quarter that we expect 2025 to be a high point in 2025 of cash, but we expect to finish the year higher than where we were in q one. As we look at the timing of customer payments and future processing costs related to those, we believe this forecast will hold. At quarter end, there was working capital, which is current assets minus current liabilities of $7,100,000 total assets of $23,100,000 and stockholders' equity of 18,000,000.

Speaker 1

At this point, we usually talk about liquidity available from financing in the company's $2,000,000 revolving credit facility with Citibank. There are no amounts outstanding under this facility, and the facility was not utilized during 2025. We are gradually winding that relationship down. On another note, you may soon see a filing of an s three, also known as a shelf registration. This will allow Intellicheck to sell shares in the market efficiently if the need or unusual opportunity arises.

Speaker 1

You have heard about our cash balances being strong, and we don't currently have any reason to sell shares in the market. You may also note that it will be filed without any particular bank or purpose mentioned. We do see having a registration statement like this on file as being good corporate housekeeping. We are really just renewing the company's previous filing that was made in 2020. As a CFO and an Intellicheck employee and shareholder, it is gratifying to see the execution of Brian's and the rest of the leadership strategy.

Speaker 1

With such a solid cash position, growing revenue and strong pricing, I am confident in our ability to drive sustainable growth and deliver continued value to our shareholders and customers. We look forward to sharing our Q3 results with you in November. I'll now turn the call over to the operator, who will take your questions.

Operator

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your questions from the queue.

Operator

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. The first question is from Rudy Kessinger from D. A. Davidson.

Operator

Congrats

Speaker 1

on the quarter and certainly on a large deal with that Southeastern Regional Bank. Mhmm. I wanna start there with that regional bank. I I I know there was a low 7 figure kind of year one commitment that was that had straight line rev rec. Has that Mhmm.

Speaker 1

Step up in their revenue begun to flow yet in q three, or or when is it expected to begin generating? That's when we yeah. Hey, Rudy. Yeah. We started invoicing.

Speaker 1

Remember, they had been small client for a while. We started invoicing for the bank branches in July. Okay. So just to be clear, that that step up in revenue should should be present for all of q three? Correct.

Speaker 1

Okay. Got it. Okay. And then and then I wanna ask about the social media client. It it sounds like there's some integration issues or technical issues you guys are working through.

Speaker 1

Just any kind of timeline to a resolution that you have visibility to today? And and could you also maybe just, you know, give us a sense of how big this customer could be based on those scan volumes you were seeing prior to this technical issue? They they would be a significant client to us. You know, I know that my team was on with them today. They're continuing to look at the issue.

Speaker 1

I think, you know, one of the things my team is talking to them about is how we help them in terms of what they're doing. You know, they've repeatedly said the two of the most important countries to them are The United States and Canada. The most important thing in those countries to be able to use for authentication is the driver's license. They love what we're doing, but they they also admit that their technology you know, a lot of this is stuff that they built back when everything was more or less manual review, and it's not fast enough for what they need to do. If things like image quality are poor, and that's the kind of stuff we're telling.

Speaker 1

We can tell them that and have it be taken, or we can let them know it's a driver's license. You do scanner, not a photo. So that's what we're going through. You know? They are motivated.

Speaker 1

We are motivated. It's just, you know, now it's a matter of, you know, they're and they're looking at it, and our team is looking at Where do they get the resources to do sort of this new work? You know, they're very pleased with what we do. They know they have a problem on their hands, and now it's how do we get it fixed. The good thing is we're, you know, we're I in my mind, talking at the high enough levels, and they said, here are the people that are gonna get it done because they have financial incentives to do so.

Speaker 1

So it's you know, we've been working with them since they turned the the faucet on, and, you know, we're all trying to figure out as quick as possible. That's all I could say. I wish I could say next Tuesday, but, you know, we're we're working through it. Okay. And then last one for me.

Speaker 1

Just what was the update on retail scan volumes in in the quarter? Any improvement or further decline from what you saw in q one? And just how are things trending there so far in q three? Yeah. I'd say two things.

Speaker 1

One is the good thing is banking is more than it is, you know, more than offsetting retail. Retail was down 2% quarter over quarter and down 20% year over year, But banking was up 12% q one to q two and up about 85% year over year. Very helpful. Good good seeing the bank side. Thanks for taking my questions, congrats, Ken.

Speaker 1

Thanks, sweetie.

Operator

The next question is from Mike Grundahl from Northland Capital Markets. Please go ahead.

Speaker 1

Hey, guys. This is Logan on for Mike. Thanks for taking our question. Sure. First, so with SaaS and total revenue up 10% year over year, can you help us quantify that with how that correlates to retail revenue in terms of percentage of total revenue and how much retail was down year over year?

Speaker 1

Thanks. But the retail retail revenue year over year down 20%. You know? And, again, but, you know, offset by things like banking and other sectors that were up. And, also, if you look at the numbers that I gave out on the call, you'll see that they think they add up to around 76%.

Speaker 1

The rest of it are other markets, and that's where we're looking at where do we have you know, I like those other kind of little markets, things that are coming to us, you know, so we look at that as areas of where maybe should we shift some marketing and sales focus. But, yeah, overall, retail as a percentage of sort of major revenue was 25, and retail revenue was down 20% year over year. Okay. Great. And then we did on that.

Speaker 1

Yeah. Mhmm. No. Continue. Yep.

Speaker 1

Yeah. And, you know, and that 20% down is a combination of, you know, there are significant amounts of our customers, clients, and retail who went out of business last year. And then, you know, obviously, the consumer isn't doing as much in some areas as they were before. That's great. And then building on that, what are some of the smaller verticals you guys are most excited about going forward in terms of you'd be taking a bigger piece of the total revenue?

Speaker 1

Like, I'm yeah. And it's funny because the talking to the sales team and helping them with some stuff today. I think I I my personal belief is background check is gonna be really, in my mind, exciting. They're smaller for us right now. You know, I'm hearing, you know, anywhere from no cuts to four cuts in the interest rate, you know, Fed rates between now and the end of the year.

Speaker 1

To me, that could unleash a ton of refinancing, and that means, you know, a lot of new title insurance needs to be looked at. I think that will be good for us if that happens. You know, in addition to it, I think, it'll really be helping, you know, just, you know, consumer sentiment and spending and all that kind of stuff. It'd be nice to see that going into the holiday season. But, you know, certainly, we're looking at a lot of things in the gig economy and what's going on, which, you know, in in effect is another type of background check.

Speaker 1

Because you you read about what's going on with, you know, drivers and other things like that. I think consumers are demanding, and I think the providers of the services are realizing that they've gotta make sure that they hired who they thought they were hiring. And not only that, the person behind the wheel is the person that they hire. Because there is a large business out there selling, you know, the driver's app just like renting out, you know, an old taxi medallion in New York City. So that's what we're looking at more and more is the person you're hiring who they say they are, especially in a remote world.

Speaker 1

You know, it's another story that came out the other day about a nurse, supposed to pretend nurse, you know, who treated, I think, 4,000 patients just got busted. You know, people have to make sure that they are hiring the right person. So I'm I'm kinda excited about that space. Got it. And then one more from us.

Speaker 1

Anything to call out on the sales pipeline and performance of the sales team now under the leadership of Tom? Thanks. Yeah. I I understand. Yeah.

Speaker 1

I think pipeline I think a combination of having, you know, some really good senior guys who know how to really run with the deal, and then also what we're seeing the leads coming in from the marketing. I mean, it's night and day from what we had when, you know, with the last marketing going on. And, I love the fact that it's probably less than half the cost, and we're getting probably three times the result. So the pipeline is really full. I think, you know, very interesting.

Speaker 1

You know, not only is it new pipeline, but if you just think about, you know, the the company we signed with that provides the backbone software for, you know, these banks, you know, we already have one, and we've got at least five more that are interested, and we haven't even really launched yet. You know? And I think that a lot of these are very much me too. So once you find one of the players in this space, the others get very interested in you because they know that you work. Got it.

Speaker 1

Thanks, guys. Congrats on the quarter. Thank you.

Operator

The next question is from Jeff Van Rhee from Craig Hallum Capital Group. Please go ahead.

Speaker 1

Great. Thanks. I'll add my congrats. Few for me. The the large bank credit card issuer, you're in in branch online auto loans, etcetera.

Speaker 1

You referenced a new three year ACV mid seven figure range. What was that customer running prior? They're slightly lower than that. They but they've been expanding drastically. You know, it's funny.

Speaker 1

We were having a quarterly business review with the risk people, and they're like you know, they basically were saying that their credit card folks are signing on new customers so fast. They don't even know it half the time. So, you know, they expect to continue to be expanding. And it's just like, I like the predictability of it because they're doing what everybody else was, you know, saying, hey. We're gonna commit to this this year.

Speaker 1

And then next year, you know, we've got tiers, and they can pop it as they see that they're bringing in more as opposed to we kinda knew what they were gonna be doing, but they buy a bucket and they expect it to last maybe a year and be lasting nine months, and then we have to redo it. So this is, like, simpler for all of us and allows me to have more predictability or, you know, visibility into what I expect out of them in a year. Mhmm. On the retail down 20%, how's that feeling so far this quarter? I haven't really looked at the numbers so far this quarter.

Speaker 1

You know, they were down we were down 2% from q one into q two. I'm not you know, I can my gut is I'm just looking at the numbers and saying nothing drastic. You know, no no other change. Think, you know, I'm I'm feeling like we're about where we're gonna be at the bottom if if there is one. Again, I hope I'm I'm not gonna word you that we do see rate cuts and things because I think that would help that sector.

Speaker 1

Mhmm. You you mentioned a channel partner and something around credit unions. I missed that. You mentioned you signed a $20,000,000,000 credit union, if if I heard that part right. But just can you just recap there?

Speaker 1

It sounded like you're formulating a bit of a new push there. Yeah. Sure, Jeff. So one of the things we've been talking about is, you know, there are a ton of small banks and credit unions out there that, you know, our sales guys talk to, and they're like, I love it, but I don't run my own software. So you need to go talk to an alloy, a Jeff Henry, a Galileo, you know, those types of companies that provide sort of the whole bank processing, you all the computer systems that they need.

Speaker 1

And those folks usually have, you know, choices for, you know, who do you wanna use for payments, do you wanna use for credit card issuance, who do you wanna use for, you know, IDB. So, you know, we found this, you know, this one large credit union. Just I was talking to them. They wanted us. We went to their provider.

Speaker 1

The provider said, yep. We'll get you going. We've got a queue. You'll be live in November. And then we just started talking, you know, by chance.

Speaker 1

We had other credit unions we've been talking to that were also used this one platform. So they're looking forward to us going live, and, you know, and, you know, we're gonna start the real marketing. So, you know, my goal and one of the things that I've, you know, tapped Gmail with is, you know, the guy leading the channel charge is these are important to us. You know, it's it's basically core banking, which I like. You know, again, simple.

Speaker 1

You know, one of the things that I love about, you know, this $20,000,000,000 credit union that's going with us, you know, they talked through. Yeah. We used this for your competitors, that one, that one. None of them were given a satisfactory result. They used our our web based portal product to check us against them, and that's when they said we have to have you because they saw such an increase in, you know, fraud stoppage.

Speaker 1

Interesting. Very helpful. And and last for me, the large social media player that turned on, obviously Mhmm. Unfortunate that you've got, you know, the integrations bundled up here. But, presuming, you'll get on the on top of that in an off to distant future.

Speaker 1

But what what did you learn from the early volumes? I mean, obviously, you got a glimpse of what they were intending to throw at you. Was it the type of volume, the the scale of volume, or were there any learnings in just that early glimpse in terms of what they wanna use you for and how? It was the scale of volume that, you know, they had said from day one. So, you know, we were very pleased to see that.

Speaker 1

Something obviously changed in their software because in you know, prior to them a few weeks prior to them really open out the process, we began to see that the fail rate of you know, this is what they were sending us is basically illegible. Because they send us photographs of of the front and back of the document, and then we extract all the data out of that. They basically became unreasonable, you know, even looking at them with your eyes, like, what is that kind of thing? So we're working with them to figure out what changed on their end. I think the the things that we've learned, you know, in in the conversation since then, you know, as we're working with both business and and development side, is that they know they got a fraud problem.

Speaker 1

They know that they have, you know, they've got particular focus on North America, and they're they know that the way to authenticate people because it's about every single person they're dealing with in that area has a driver's license. And they wanna make sure that we get it installed correctly. And, you know, that's what we're talking through. So Mhmm. You know, in my mind, all good stuff.

Speaker 1

Unfortunate that, you know, something changed. They were kinda laughing about their technology in doing this. Like I said, I think, bit earlier, much of what they wrote was when you you could take two days to do an authentication. And now they realize that, you know, some of the tools that they wrote just aren't up to snuff, and they're working with us to figure out what we can do to help them augment those tools. Mhmm.

Speaker 1

Got it. Helpful. Congrats again. Thanks, Jeff.

Operator

There are no further questions at this time. I would like to turn the floor over to Brian Lewis for closing comments.

Speaker 1

Thanks, operator. So in closing, I think this quarter demonstrated that, you know, we're delivering on a commitment to grow by making changes, aligning our resources, I think, to where, you know, we get bigger bang for the buck and continuing to evolve our market presence and getting branding and other things out there. And, hopefully, that continues to deliver value for you, our clients, and and their clients and the customers they serve. I also just wanna remind everybody, think it's very telling that four our four largest clients have committed to and signed multiyear renewal agreements. I think that's a real validation of our technology, and I like the fact that it it adds additional predictability for our business.

Speaker 1

We are gonna continue to expand our market penetration in our existing verticals. As as you have seen, we're doing a pretty good job with that, and we are definitely landing and expanding our presence in new ones. So we look forward to sharing more new developments with you guys on our next call in November. And with that, I'd like to thank you for joining with us today.

Operator

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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