Thomas Szoke, Chief Technology Officer at authID Inc. (NASDAQ:AUID), recently sold shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The transactions, which took place on November 25 and 26, involved a total of 1,001 shares sold at prices ranging from $6.322 to $6.69 per share, amounting to a total value of $6,328.
Following these transactions, Szoke holds 19,018 shares directly, with an additional 12,500 shares held indirectly by his spouse, Ginta Ozola-Szoke. The sales were executed on the open market through a broker-dealer, as noted in the filing. The sales do not appear to involve any options exercises or other derivative securities.
In other recent news, authID reported a substantial rise in its third-quarter revenue, reaching $249,000, a significant increase from the $43,000 reported in the same period last year. This surge is part of a broader trend for the company, which saw a nine-month revenue total of $687,000, up from $118,000 the previous year. However, authID has adjusted its full-year revenue guidance to between $800,000 and $900,000, due to delays in customer Go-Live dates and changes in volume expectations.
Despite these challenges, authID has secured significant contracts and experienced considerable growth in product usage. Notably, the company's Proof product usage grew 25 times, processing nearly 800,000 Proofs in the third quarter. Additionally, user registrations for the Verified product saw a 42-fold increase to over 94,000 in the third quarter.
Despite the positive developments, authID reported a $1.1 million de-booking of booked annual recurring revenue (bARR) due to delays in customer Go-Live dates. The company's adjusted EBITDA loss for the third quarter was $2.9 million, compared to a $2.1 million loss in the same period last year.
The company's strategic focus is now on the financial services sector, with new strategic hires aimed at enhancing partnership development. With these recent developments, authID aims to solidify its market position and achieve its growth targets in the coming year.
InvestingPro Insights
In light of the recent stock sale by authID Inc.'s CTO Thomas Szoke, it's worth examining some key financial metrics and insights provided by InvestingPro to gain a broader perspective on the company's current position.
According to InvestingPro data, authID Inc. has a market capitalization of $66.54 million, reflecting its relatively small size in the tech sector. The company's revenue growth has been impressive, with a 97.4% increase over the last twelve months as of Q3 2024, and a striking 473.69% quarterly revenue growth in Q3 2024. This rapid expansion aligns with the company's position in the dynamic biometric authentication market.
However, investors should note that authID is not currently profitable, as indicated by its negative P/E ratio of -5.1 for the last twelve months. This is further underscored by an InvestingPro Tip highlighting that the company has not been profitable over the last twelve months. Despite this, authID holds more cash than debt on its balance sheet, which could provide some financial flexibility as it pursues growth.
The stock's recent performance has been challenging, with InvestingPro Tips pointing out that the stock price has fallen significantly over the last three months and has taken a big hit over the last week. This volatility is reflected in the stock's price movement, which is currently at 44.24% of its 52-week high.
For investors considering authID, it's important to note that the company is trading at a high revenue valuation multiple and does not pay a dividend to shareholders. These factors, combined with the recent insider sale, suggest that potential investors should carefully evaluate the company's growth prospects against its current valuation and market position.
InvestingPro offers additional insights, with 8 more tips available for authID Inc., providing a more comprehensive analysis for those interested in delving deeper into the company's financial health and market performance.
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