authID secures $10 million deal with AI firm for India market

DENVER - authID Inc. (NASDAQ:AUID), a provider of biometric identity verification solutions, has secured a $10 million contract with an AI company to offer authentication services in India. The multi-year agreement, announced today, spans three years with a minimum annual commitment of $3.33 million for licensing authID's identity platform services.

The partnership aims to integrate authID's technology into the AI company's existing solutions across various industries, including banking, financial services, emergency services, and transportation. authID's platform is designed to deliver biometric authentication with high accuracy and a user-friendly experience while complying with Indian privacy laws.

CEO of authID, Rhon Daguro, emphasized the significance of the deal for the company's expansion into the Indian market. He highlighted authID's capability to deliver biometric identity verification with 1:1B accuracy, which is crucial for the large-scale authentication needs of India's 1.4 billion citizens. Daguro expressed optimism about the growth potential of the biometric authentication industry in India over the next decade.

authID's technology promises rapid biometric identity processing, identifying users as legitimate or fraudulent within a market-leading 700 milliseconds. This efficiency is expected to bolster user confidence in digital identification and transaction security.

This announcement follows authID's ongoing efforts to prevent cybercriminals from compromising account openings or taking over accounts. The company's patented biometric identity platform aims to eliminate the risks associated with passwords and enhance the security of digital ecosystems.

Investors and interested parties should note that this report is based on a press release statement from authID Inc. and should consider the forward-looking nature of the company's statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the successful implementation and adoption of the services provided under the new technology partner agreement.

In other recent news, authID Inc. disclosed a surge in Q1 2024 revenue, reaching $0.16 million, up from $0.04 million last year. However, the company reported a net loss of $3.06 million, primarily due to increased operating costs and non-cash charges. As part of a corporate restructuring, authID reduced its authorized shares from 250 million to 150 million and secured additional funding through a stock offering, selling 1,464,965 shares of common stock.

In partnership developments, authID has entered into multi-year agreements with Imperial Technologies, DataVisor, and Kaiasoft.com. These collaborations aim to enhance their platforms with authID's biometric identity verification solutions, providing advanced tools to prevent account takeovers and protect assets from cybercriminals. The integration of authID's services into these platforms is expected to streamline customer enrollment, reduce abandonment rates, and boost revenue.

In management news, authID announced the appointment of Erick Soto as its new Chief Product Officer. With over 15 years of experience in the industry, Soto will be responsible for leading the development of authID's product lines, Proof and Verified, focusing on enhancing performance, functionality, and user experience. These are the recent developments for authID Inc. as it continues to strategically position itself in the growing authentication market.

InvestingPro Insights

The recent $10 million contract secured by authID Inc. (NASDAQ:AUID) aligns with the company's robust revenue growth trajectory. According to InvestingPro data, AUID has demonstrated impressive revenue growth, with a 655.04% increase in quarterly revenue as of Q2 2024. This substantial contract is likely to further bolster the company's financial performance in the coming years.

Despite the positive news, investors should be aware of some key financial metrics. InvestingPro data shows that AUID's market capitalization stands at $84.86 million, reflecting its status as a smaller player in the tech sector. The company is currently not profitable over the last twelve months, with an adjusted operating income of -$13.49 million for the same period.

InvestingPro Tips highlight that AUID holds more cash than debt on its balance sheet, which could provide financial flexibility as it pursues growth opportunities like the recent Indian market expansion. Additionally, the stock has seen a significant return over the last week, with a 11.64% price increase, possibly reflecting market optimism about the new contract.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for AUID, providing deeper insights into the company's financial health and market position.

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