Intellicheck, Inc. · NASDAQ:IDN
Intellicheck — Marathon Capital Management Investor Presentation (November 2019)
20 slides from Intellicheck's conference presentation, Nov 12, 2019
Slide 1: Intellicheck, Inc. Investor Presentation
Intellicheck, Inc. (NYSE American: IDN) Marathon Capital Management Investor Presentation November 12, 2019 Vf INTELLICHECK
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as "will," "believe," "expect," "anticipate“, "encouraged" and similar expressions, as they relate to
Slide 3: Intellicheck at a Glance
Intellicheck at a Glance * Identity as a Service instantly authenticates ID’s to stop: * Identity theft * Underage access to age-restricted products Primary focus is stopping identity theft in the financial services and retail markets which we believe is the fastest path to revenue growth and profit
Slide 4: Q3 2019 Highlights
Q3 2019 Highlights * Total revenue up 24% sequentially over Q2 2019 and 86% over Q3 2018 ¢ SaaS revenue up: * 40% sequentially over Q2 2019 * 89% since year-end 2018 * 140% over Q3 2018 ¢ Adjusted EBITDA loss is down almost 43% from Q2 2019 and 57% from Q3 2018 marking the best results since Q3 2014
Slide 5: Key Identity Theft Statistics
Key Identity Theft Statistics * The first half of 2019 had 3,800 breaches exposing 4.1 billion records * 145 million names, social security numbers and dates of birth breached at Equifax in 2017 — the beginning of the glut ¢ All of this data means traditional Knowledge Based Authentication (KBA) doe
Slide 6: Focus on Financial Services — Use Cases
Focus on Financial Services — Use Cases Credit Card Applications The victim’s stolen data used to open an account ¢ Estimated $3.4 Bn stolen in 2018 Card Not Present The victim’s stolen data used where you have an account * Estimated to cost retailers $130 Bn now through 2023 Non-Receipted Returns D
Slide 7: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 ¢ 4 Major changes leading to growth. We reset: > Where we focus resources > How and to whom we sell > Pricing model > Implementation ¥ INTELLICHECK
Slide 8: These changes have led to notable wins and improved financial results
These changes have led to notable wins and improved financial results ¥ INTELLICHECK
Slide 9: Change Results - Banks
Change Results - Banks * Bank1 * Reference client for any prospect * Now working with Innovations team for new projects within the bank . dent out our web-based product to the fraud call center this mont * Bank 2 * Oldest banking client * Originally very low pricing * Brought on no new retailers in
Slide 10: Change Results - Banks
Change Results - Banks * Bank 3 * Closed in December 2018 * Paying monthly SaaS subscription fees ¢ Working to deploy their 4 largest retailers * 1% retailer brought live in October - 1,000 location electronics superstore ¢ Expect full bank branch deployment in Q2 2020 * Bank 4 * Closed in March 201
Slide 11: Change Results - Banks
Change Results - Banks * Bank5 * On-line bank for mobile enrollment * First joint sale with one of our facial recognition partners * Authenticate the license, facial recognition comparison to photo * Proof of concept and reference client * Banks 6 - FinTech Company * 700+ locations for payday and un
Slide 12: Change Results — Other Wins
Change Results — Other Wins * 51% increase in revenue for 3,000-location retailer with parsing only solution * Speaking with retailer’s bank about how to pilot authentication * October pilot started for a 580-location department store chain; full deployment expected at the end of Q1 2020 * Integrati
Slide 13: Impact of Per-Scan Pricing
Impact of Per-Scan Pricing * Most new clients and all major renewals are per scan, cyclical to the retail sales cycle * Based on limited retailers we have had fully deployed for a full year, on average: * 21% of scans come in Q1 * 23% come in Q2 and Q3 * 33% in Q4 * As we gather more data we will re
Slide 14: ROI for Banks, Issuers and Retailers
ROI for Banks, Issuers and Retailers * No new hardware required — Typically works through existing point of sale platform, a mobile device, or online * Frictionless — authentication takes less than 3 seconds * Simple — pre-populates the application, less work for the customer and results in fewer da
Slide 15: Why Intellicheck?
Why Intellicheck? ¢We are signing banks and retailers ¢ We have improved our pricing model ¢We are on-boarding clients faster than ever ¢These achievements are driving improved financial performance This is a new Intellicheck and the reset is working ¥ INTELLICHECK
Slide 16: Financial Overview
Financial Overview ¥ INTELLICHECK
Slide 17: 2019 Q3 Financial Highlights
2019 Q3 Financial Highlights * $1,564,000 in Q3 (+140% YoY) * ~S$4.4 MM 12-month trailing through Q3 * 87% Q3 gross margin * Cash: $2.8 MM * Stockholder Equity: $11.2 MM * Debt free * Consumer authentication - large markets without clear market leaders * Identity theft increasing * Top financial ins
Slide 18: Q3 2019 Financial Summary
Q3 2019 Financial Summary oe Q3 2018 Q3 2019 — El Revenue $ 1,039,581 1,930,201 890,620 86% SaaS Revenue $ 650,676 $ 1,563,672 $ 912,996 140% included above Operating Expenses $ 2,081,513 $ 2,251,672 $ 170,159 8% EBITDA $ (1,048,466) $ (456,939) $ 591,527 56% Net Loss $ (1,131,219) $ (568,230) $ 562
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation GAAP net loss to non-GAAP adjusted EBITDA: (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net loss s (668.230) $ (L131219) S$ (2,654,898) s (6.299.551) Reconciling items Interest and other income (12,294) 165) (64.378)
Slide 20: Contact Information
Contact Information Bryan Lewis 516.453.6647 blewis @intellicheck.com Bill White 516.992.1985 bwhite @intellicheck.com Gar Jackson Global IR Group 949.873.2789 gar@globalirgroup.com ¥ INTELLICHECK
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