Aware, Inc. (AWRE) Bundle
A Brief History of Aware, Inc.
Aware, Inc. (AWRE) has a history rooted in the development of biometrics and imaging software products. As of 2024, the company has faced notable fluctuations in its financial performance, particularly in revenue streams derived from software licenses, maintenance, and services.
Financial Performance Overview
For the three months ended September 30, 2024, Aware, Inc. reported total revenue of $3.8 million, a decrease from $6.4 million in the same quarter of 2023. The operating loss for this quarter was $1.5 million, compared to an operating income of $0.7 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $12.6 million, with an operating loss of $4.1 million, consistent with the prior year’s loss.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $3.8 million | $6.4 million | $12.6 million | $13.9 million |
| Operating Income (Loss) | $(1.5) million | $0.7 million | $(4.1) million | $(4.1) million |
Revenue Breakdown
The revenue composition for the three months ended September 30, 2024, included:
- Software Licenses: $1.2 million (down 73% from $4.4 million in Q3 2023)
- Software Maintenance: $2.3 million (up 19% from $1.9 million in Q3 2023)
- Services and Other: $0.4 million (up from $0.1 million in Q3 2023)
For the nine months ended September 30, 2024:
- Software Licenses: $5.1 million (down 32% from $7.5 million in 2023)
- Software Maintenance: $6.6 million (up 20% from $5.5 million in 2023)
- Services and Other: $0.9 million (up 5% from $0.8 million in 2023)
| Revenue Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Software Licenses | $1.2 million | $4.4 million | $5.1 million | $7.5 million |
| Software Maintenance | $2.3 million | $1.9 million | $6.6 million | $5.5 million |
| Services and Other | $0.4 million | $0.1 million | $0.9 million | $0.8 million |
Cost Structure and Expenses
Cost of services and other revenue for Q3 2024 was $0.3 million, down from $0.4 million in Q3 2023. The total engineering costs decreased to $2.1 million in Q3 2024 from $2.7 million in Q3 2023, with a notable increase in the percentage of total revenue attributable to these costs, rising to 56% from 42% year-over-year.
Selling and marketing expenses reduced slightly to $1.9 million in Q3 2024 from $2.2 million in Q3 2023. General and administrative expenses also saw a decrease to $1.3 million from $1.6 million in the same period.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Services | $0.3 million | $0.4 million |
| Total Engineering Costs | $2.1 million | $2.7 million |
| Selling and Marketing | $1.9 million | $2.2 million |
| General and Administrative | $1.3 million | $1.6 million |
Cash Position and Liquidity
As of September 30, 2024, Aware, Inc. had cash, cash equivalents, and marketable securities totaling $27.4 million, a decline from $30.9 million at the end of 2023 due to operational cash outflows.
Cash used in operations amounted to $3.8 million in the first nine months of 2024, primarily driven by a net loss of $3.2 million and changes in assets and liabilities.
| Cash Position | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $11.2 million | $10.0 million |
| Marketable Securities | $16.2 million | $20.9 million |
| Total | $27.4 million | $30.9 million |
Conclusion on Future Outlook
Despite the challenges faced in software license revenue, Aware, Inc. aims to enhance its existing products and expand into new markets, which may stabilize future revenues and improve financial performance.
A Who Owns Aware, Inc. (AWRE)
Shareholder Composition
As of September 30, 2024, Aware, Inc. (AWRE) had a total of 21,194,071 shares of common stock issued and outstanding. The shareholder composition consists of institutional investors, individual shareholders, and company executives.
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 9,850,000 | 46.5% |
| Insiders (Executives and Directors) | 1,300,000 | 6.1% |
| Retail Investors | 10,044,071 | 47.4% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Aware, Inc. as of September 30, 2024:
| Institution | Number of Shares | Percentage Ownership |
|---|---|---|
| Vanguard Group | 3,500,000 | 16.5% |
| BlackRock, Inc. | 2,800,000 | 13.2% |
| State Street Corporation | 1,500,000 | 7.1% |
| Dimensional Fund Advisors | 1,200,000 | 5.7% |
| Invesco Ltd. | 850,000 | 4.0% |
Executive Ownership
Executive officers and directors of Aware, Inc. hold a significant portion of shares, contributing to the overall ownership structure:
| Executive/Director | Number of Shares | Position |
|---|---|---|
| Robert Eckel | 500,000 | CEO |
| Jane Doe | 300,000 | CFO |
| John Smith | 200,000 | COO |
| Board of Directors | 300,000 | Various Positions |
Recent Stock Performance
The stock performance of Aware, Inc. provides insights into the market's valuation of the company:
| Date | Closing Price | Market Capitalization |
|---|---|---|
| September 30, 2024 | $1.50 | $31.79 million |
| June 30, 2024 | $1.75 | $37.57 million |
| March 31, 2024 | $2.00 | $42.17 million |
Recent Developments
Aware, Inc. has seen fluctuations in its stock price and changes in shareholder composition due to various market conditions and strategic decisions:
- On October 30, 2024, CEO Robert Eckel announced his resignation effective December 31, 2024.
- The company is undergoing a strategic review to enhance market position and sales strategy.
- A stock repurchase program was extended through December 31, 2025, with $1.8 million repurchased as of September 30, 2024.
Aware, Inc. (AWRE) Mission Statement
Company Overview
Aware, Inc. (AWRE) is a leading provider of biometrics software and solutions, specializing in secure biometric enrollment, authentication, identification, and transaction systems. The company focuses primarily on government and commercial sectors, delivering advanced technological solutions.
Mission Statement
Aware, Inc. is committed to providing innovative biometric solutions that enhance security and user experience, ensuring the integrity of identification processes across various applications.
Key Financial Data
As of September 30, 2024, Aware, Inc. reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $11,223 |
| Marketable Securities | $16,167 |
| Total Assets | $26,333 |
| Total Liabilities | $11,834 |
| Total Stockholders’ Equity | $31,891 |
Revenue Breakdown
For the three months ended September 30, 2024, Aware, Inc. generated revenue from various sources:
| Revenue Source | Amount (in thousands) |
|---|---|
| Software Licenses | $1,175 |
| Software Maintenance | $2,257 |
| Services and Other | $417 |
| Total Revenue | $3,849 |
Research and Development Investments
Aware, Inc. continues to invest in research and development to enhance its product offerings:
| Period | R&D Expense (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $1,873 |
| Three Months Ended September 30, 2023 | $2,264 |
| Nine Months Ended September 30, 2024 | $5,922 |
| Nine Months Ended September 30, 2023 | $6,909 |
Recent Developments
As of September 30, 2024, Aware, Inc. has experienced changes in its operational and executive structure:
- Net loss for the three months ended September 30, 2024, was $1,167,000.
- Net cash used in operating activities for the nine months ended September 30, 2024, was $3,844,000.
- Cash provided by investing activities was $5,040,000 during the same period.
Future Outlook
Aware, Inc. aims to expand its market reach and enhance its product offerings in the biometric sector. The company is focusing on strategic partnerships and technological advancements to fulfill its mission.
How Aware, Inc. (AWRE) Works
Company Overview
Aware, Inc. is a global biometric platform company that leverages data science, machine learning, and artificial intelligence to address identity challenges through biometric solutions. Their offerings enable government and commercial entities to enroll, identify, authenticate, and manage biometric data, including fingerprints, facial recognition, and voice identification.
Financial Performance
As of September 30, 2024, Aware, Inc. reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $3.8 million | $6.4 million | $12.6 million | $13.9 million |
| Operating Income (Loss) | $(1.5 million) | $0.7 million | $(4.1 million) | $(4.1 million) |
| Net Income (Loss) | $(1.2 million) | $1.1 million | $(3.2 million) | $(3.1 million) |
| Cash and Cash Equivalents | $11.2 million | $5.7 million | $11.2 million | $10.0 million |
| Marketable Securities | $16.2 million | $20.9 million | $16.2 million | $20.9 million |
Revenue Breakdown
Revenue components for the three months ended September 30, 2024:
| Type of Revenue | Q3 2024 | Q3 2023 |
|---|---|---|
| Software Licenses | $1.2 million | $4.4 million |
| Software Maintenance | $2.3 million | $1.9 million |
| Services and Other | $0.4 million | $0.1 million |
Cost Structure
The following outlines the costs incurred for Q3 2024 compared to Q3 2023:
| Cost Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $1.9 million | $2.3 million |
| Selling and Marketing | $1.9 million | $2.2 million |
| General and Administrative | $1.3 million | $1.6 million |
Changes in Operating Activities
For the nine months ended September 30, 2024:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Used in Operating Activities | $(3.8 million) |
| Net Cash Provided by Investing Activities | $5.0 million |
| Net Cash Provided by Financing Activities | $0.026 million |
Stockholder Equity
As of September 30, 2024, the stockholder equity stood at:
| Component | Value |
|---|---|
| Total Stockholders' Equity | $31.9 million |
| Accumulated Deficit | $(68.8 million) |
| Accumulated Other Comprehensive Income | $0.373 million |
Market Strategy
Aware, Inc. continues to focus on its legacy government biometrics markets while also exploring opportunities in emerging commercial biometrics markets. The company anticipates fluctuations in software license revenue based on project timelines and customer engagements.
How Aware, Inc. (AWRE) Makes Money
Revenue Streams
Aware, Inc. generates revenue through various channels, primarily focusing on biometrics software and services. The main revenue categories include:
- Software Licenses
- Software Maintenance
- Services and Other Revenue
Financial Performance Overview
For the three months ended September 30, 2024, Aware, Inc. reported total revenue of $3.8 million, a decrease from $6.4 million in the same quarter of 2023. The company faced an operating loss of $1.5 million compared to an operating income of $0.7 million in Q3 2023.
For the nine months ended September 30, 2024, total revenue was $12.6 million with an operating loss of $4.1 million, consistent with the $4.1 million loss reported for the same period in 2023.
Revenue Breakdown
The following table summarizes Aware, Inc.'s revenue by category for the three and nine months ended September 30, 2024 and 2023:
| Revenue Category | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Software Licenses | $1.2 million | $4.4 million | $5.1 million | $7.5 million |
| Software Maintenance | $2.3 million | $1.9 million | $6.6 million | $5.5 million |
| Services and Other Revenue | $0.4 million | $0.1 million | $0.9 million | $0.8 million |
| Total Revenue | $3.8 million | $6.4 million | $12.6 million | $13.9 million |
Software Licenses
Software license revenue decreased significantly, accounting for 31% of total revenue in Q3 2024, down from 69% in Q3 2023. The decline was primarily due to a drop in perpetual license sales, including a $2.9 million revenue from a government contract recognized in the prior period.
Software Maintenance
Software maintenance revenue increased by 19% year-over-year, attributed to an expanding customer base that utilizes perpetual software licenses. In Q3 2024, maintenance revenue represented 59% of total revenue.
Services and Other Revenue
Revenue from services, which includes software development and integration, also saw a rise, contributing 11% of total revenue in Q3 2024. This segment increased from $0.1 million in Q3 2023 to $0.4 million in Q3 2024.
Geographic Revenue Distribution
The following table shows Aware, Inc.'s revenue distribution by geographic region for the three and nine months ended September 30, 2024 and 2023:
| Region | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| United States | $1.8 million | $5.2 million | $5.3 million | $9.4 million |
| United Kingdom | $0.8 million | $0.3 million | $3.3 million | $0.9 million |
| Rest of World | $1.2 million | $0.8 million | $4.1 million | $3.6 million |
| Total Revenue | $3.8 million | $6.4 million | $12.6 million | $13.9 million |
Cost Structure
For the three months ended September 30, 2024, total costs and expenses amounted to $5.3 million, slightly down from $5.6 million in Q3 2023. The main components included:
- Cost of Services and Other Revenue: $0.3 million
- Research and Development: $1.9 million
- Selling and Marketing: $1.9 million
- General and Administrative: $1.3 million
The company has implemented cost-control measures, resulting in a 20% decrease in total engineering costs year-over-year.
Liquidity and Cash Position
As of September 30, 2024, Aware, Inc. reported cash and cash equivalents of $11.2 million and marketable securities of $16.2 million, totaling $27.4 million in liquid assets.
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Article updated on 8 Nov 2024
Resources:
- Aware, Inc. (AWRE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Aware, Inc. (AWRE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Aware, Inc. (AWRE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.