Intellicheck, Inc. (NASDAQ:IDN) Q3 2023 Earnings Call Transcript

A – Bryan Lewis: I am – it’s funny, we had a board meeting today and we were talking about that a lot. I think that we have said pretty much all year that this was going to be somewhat of a growth year for the new sales team and that we expected them to start bringing things in, in the back half of the year. I think that they are definitely, definitely doing that. If I look at, just last quarter we closed 27 age-restricted places, nine title companies. In addition to that software company that should hopefully get us to a bunch more, we did an online survey company, an online therapy company, a new auto finance company, a handful of automotive dealerships, in addition to the ones brought into us by our resellers. So between what I’m already seeing and the pipeline, I think that the team is making good on what we said and what we anticipated and planned for.

Mike Grondahl: Got it. Hey, thank you.

Bryan Lewis: Thanks Mike.

Operator: The next question we have is from Rudy Kessinger of D.A. Davidson. Please go ahead.

Rudy Kessinger : Hey, great. Thanks for taking my question. I just want to clarify, Jeff, on the R&D. So you’re saying there’s $395,000 of severance, but only $131,000 you back out for adjusted EBITDA?

Jeff Ishmael: That’s correct. Yeah, there was only one position that ultimately we didn’t replace. The rest was a recalibration and an uptick in the skill sets of that team.

Rudy Kessinger : Okay, got it. That’s helpful. Bryan, it sounds like, you just mentioned quite a few deals that were closed in the quarter, but it seems like these are smaller deals. I guess, what was the average contract, ACV of those deals signed in the quarter? And did you sign any larger deals in the quarter that could turn into six-figure customers or no?

Bryan Lewis: We – what I’d say is part of our issue is – I’ll answer it in two parts. Some of these could be rather large, because auto finance company can be pretty big. I think the software company that provides basically the backbone for most of the small and mid-sized title companies could be very big. We talked about the number two title company in the country, so we’ve got a lot of things that I think are potentially be very big. The only thing is, a lot of our very, very large clients, which it’s almost where – that’s where we really sort of have to show people, don’t want to be discussed at all. So, I can say that I am very happy with the things that we’ve announced. I’m very happy with what the team is doing. And I think that as we said, we were building a lot into the second half of the year, continued growth going into – I look at the pipeline, what we’re doing, what the sales team is bringing in, very, very, very robust.

Then I also combine that with what, Jonathan and team have done. Now we can go out and in two seconds white label our product to match what, somebody who wants to make their product look like in a digital world. It can be installed with absolutely almost no work, just a redirect on the URL. Those are the types of things that speed up deals, because it’s basically almost – it’s turning what was a major integration into an almost near no integration onboarding. So yes, I would say that we have.

Rudy Kessinger : Okay. And then on the two southeast regional banks, it seems like those deals have continued to push quarter-after-quarter. Are those pilots generating revenue? And if not, when do you think those two deals will start generating revenue? And then just lastly, sneaking two in one here, just what is your expectation for the seasonal strength in Q4 in scanning volumes relative to past years?