Facephi Biometria (FACE) H2 2023 earnings summary

Executive summary

• 2023 turnover reached €25.2M, a 12.9% increase year-over-year, following an audit-driven revenue adjustment and strong international expansion.

• Revenue recognition model changed per auditor recommendation, deferring some 2023 revenue to 2024, aligning with best practices.

• Company reported a consolidated net loss of €4.3M, reversing a €1.1M profit in 2022, mainly due to increased costs and provisions.

• Significant investments in R&D and technology, with €4.2M capitalized in 2023 and ongoing product innovation.

• 98% of revenue generated outside Spain, with notable growth in APAC and Middle East.

Financial highlights

• Turnover rose to €25.2M in 2023 from €22.3M in 2022, up 12.9% year-over-year.

• EBITDA for 2023 was €0.67M, reflecting positive operational performance despite increased costs.

• Net consolidated result was a loss of €4.3M, compared to a €1.1M profit in 2022.

• Net equity increased to €20.0M from €15.2M, mainly due to capital increases.

• Cash and cash equivalents at year-end: €2.7M, up from €2.2M.

Outlook and guidance

• Revenue recognition changes are expected to result in a strong 2024, with Q1 turnover forecast at €6.49M, over three times higher than the previous year.

• Management expects improved profitability in 2024 through cost control, product margin enhancement, and leveraging deferred revenue.

• A binding agreement with Hancom Inc. for a €5M convertible loan and exclusive APAC distribution is expected to close in 2024.

• Cash flow projections indicate a need for additional short-term funding, with several financing alternatives under negotiation.