Aware (AWRE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 36% year-over-year to $4.3 million, driven by new customer acquisitions, expanded relationships, and higher software license and maintenance sales.

• Operating loss narrowed to $1.1 million, a 54% improvement, and net loss improved to $1.1 million ($0.05 per share) from $2.7 million ($0.13 per share) in Q2 2023.

• Recurring revenue comprised 67% of total revenue in the first half of 2024, increasing 31% year-over-year in Q2.

• Strategic initiatives included expanding the partner ecosystem, entering new commercial markets, and appointing a new Chief Product Officer.

• Cash, cash equivalents, and marketable securities totaled $27.4 million as of June 30, 2024.

Financial highlights

• Q2 2024 total revenue was $4.3 million (up 36% year-over-year); six-month revenue was $8.7 million (up 17%).

• Recurring revenue for Q2 was $2.7 million (up 31%); six-month recurring revenue was $5.9 million (up 14%).

• Operating expenses for Q2 were $5.7 million, down 7% year-over-year; six-month expenses down 8% to $11.3 million.

• Adjusted EBITDA loss for Q2 was $1.0 million, improved from $2.4 million a year ago.

• Gross margin for Q2 was 93.8%; gross margin on services and other revenue improved to 24%.

Outlook and guidance

• Management expects double-digit revenue and annual recurring revenue growth for full-year 2024, with sustainable positive cash flow targeted for 2025.

• Cash resources are expected to be sufficient to fund operations for at least the next twelve months.