Intellicheck, Inc. · NASDAQ:IDN
Intellicheck — Investor Presentation (April 2020)
23 slides from Intellicheck's investor presentation, Apr 3, 2020
Slide 1: Intellicheck: Authentication made simple
INTELLICHECK Authentication made simple Investor Presentation — April 3, 2020
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 PROFITAB
Slide 4: Financial Services — Use Cases
FINANCIAL SERVICES — USE CASES In-Store, Online, Call Centers - the victim’s stolen data is used to open an account Estimated stolen in 2018 The victim’s stolen data is used where they have an account Estimated to cost Retailers through 2020 Domain of Organized Crime Estimated to cost Retailers per
Slide 5: Key Identity Theft Statistics
KEY IDENTITY THEFT STATISTICS 1 45 M M Names, Social Security Numbers, and Dates of Birth breached at Equifax in 2017 — The beginning of the glut 8 B n The number of records exposed in data breaches in 2019 All of this data means traditional Knowledge Based Authentication (KBA) A Simple Solution: Th
Slide 6: Q4 and 2019 Highlights
Q4 AND 2019 HIGHLIGHTS FIRST ADJUSTED EBITDA POSITIVE QUARTER SINCE Q3 2014 SAAS REVENUE UP: 64% sequentially over Q3 2019 209% over Q3 2019 Total 2019 revenue up 73% over Total 2019 SaaS revenue up 126% 2018 over 2018 INTELLICHECK | A
Slide 7: Business Model Changes Driving Growth
BUSINESS MODEL CHANGES DRIVING GROWTH WHO HOLDS GET VALUE PROFFESIONAL, THE BAG? (s FOR SERVICES (AY TEAM Sell to and through Pay Per-Scan with Professionalized by our Banks, Banks typically minimums versus Implementation Team pay the price for Pay Per-Store pricing with accountability and identity
Slide 8: Most New Clients and All Major Renewals on Pay Per-Scan Platform
MOST NEW CLIENTS AND ALL MAJOR RENEWALS ARE ONA PAY PER-SCAN PLATFORM RETAIL SALES CYCLE IS SEASONAL — PAY PER-SCAN ALLOWS US TO SHARE THE BENEFIT OF STOPPING FRAUD DURING THE PEAK SHOPING SEASONS THE PAY PER-STORE PRICING MODEL DID NOT ALLOW INTELLICHECK TO BENEFIT FROM GROWTH IN SCAN VOLUMES WHEN
Slide 9: Quarterly Revenue 2018-2019
QUARTERLY REVENUE 2018-2019 $3,500,000 $3,000,000 Q12018 Q22018 Q32018 Q42018 Q12019 Q22019 Q32019 42019 ———TotalRevenue 9 =—=SaaS Revenue INTELLICHECK
Slide 10: Quarterly EBITDA 2018-2019
QUARTERLY EBITDA 2018-2019 Q12018 22018 Q32018 Q42018 Q12019 Q22019 032019 7042019 -$1,200,000 ae FATA — INTELLICHECK
Slide 11: Why Do We Win?
WHY DO WE WIN? INTELLIC OUR EFFICACY “Prior to using it in the field, we scanned over 1,000 known counterfeits, each one was detected by the device” NYS DMV Owen McShane to CBS News NO NEW HARDWARE REQUIRED Easily integrated into existing point-of-sale system, check readers, or utilized through a no
Slide 12: These Changes Have Led to Notable Wins and Improved Financial Results
THESE CHANGES HAVE LEDTO NOTABLE WINS AND IMPROVED FINANCIAL RESULTS
Slide 13: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Reference client for any new prospect Fully deployed in their fraud call centers Added 10 new retailers to online applications in Q4 Renewed in 2018 on a per-scan model at increased fees Per-scan effective Q3 2019, drove 75% sequential revenue growth No
Slide 14: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Signed in December 2018 Brought 1,000 location Electronics Retailer live in October Recently placed a $220,000 hardware order for ID authentication in bank branches Working to get their 4 largest Retailers live ASAP Signed in March 2019 60-Day Pilot move
Slide 15: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Signed in Q2 2019 Online bank for mobile enrollment Authentication plus facial recognition for AML/KYC account opening Signed in Q3 2019 700+ locations 259 locations live today, with roll out ongoing
Slide 16: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Signed in January 2020 In the process of deploying to their US call centers, with multiple use cases Deployment to Canadian call centers scheduled for Q2 Signed in December 2019 5,000 retail locations 4-Month paid pilot
Slide 17: Change Results — Other Wins
CHANGE RESULTS — OTHER WINS 56% fee increase at a 1,000 location Big-Box Retailer i 500 Auto Dealerships now potential clients, a prospective pipeline for new deals A fantastic, reputable, differentiated source of credibility versus our peers After Black Friday, we were informed Intellicheck essenti
Slide 18: ROI for Banks, Issuers, and Retailers
ROI FOR BANKS, ISSUERS, AND RETAILERS NO NEW HARDWARE REQUIRED FRICTIONLESS Typically works through existing Basic authentication takes less point of sale platform, a mobile than 3 seconds device, or online WE MAKE IT EASY FOR CLIENTS AND SIMPLE END CU OMER SECURE Pre-populates the application, Frau
Slide 19: COVID-19 Update
COVID-19 UPDATE | STORE CLOSURES DO NOT MEAN ZERO REVENUE ON-LINE BUSINESS, MULTIPLE “ESSENTIAL BUSINESS” CLIENTS, PER- STORE REVENUES AND PER-SCAN MONTHLY MINIMUMS DRIVE REVENUE g WE CONTINUE TO SIGN CLIENTS — RENEWED FOCUS ON WEB j AUTHENTICATION GIVEN STORE CLOSURES [ff \NTELLICHECK IS OPEN — COR
Slide 20: Why Intellicheck?
WHY INTELLICHECK? WE ARE SIGNING CLIENTS IN MULTIPLE VERTICALS f DEMONSTRATED PRICING POWER AT TIME OF RENEWAL —ae J WE ARE ONBOARDING CLIENTS FASTER THAN EVER f THE ACHIEVEMENTS ARE DRIVING IMPROVED FINANCIAL PERFORMANCE THIS IS THE THE RESET NEW INTELLICHECK IS WORKING
Slide 21: Financial Overview
FINANCIAL OVERVIEW
Slide 22: SaaS Revenue Growth and Balance Sheet
SaaS Revenue Growth Balance Sheet (as of Dec. 31) Positioned for Growth 2019 Q4 Financial Highlights $2,557,000 in Q4 (+209% YoY) 89% Q4 gross margin * Cash: $3.4 MM * Stockholder Equity: $11.7 MM * Debt free * Consumer authentication — large markets without clear market leaders * Identity theft red
Slide 23: Intellicheck: Contact
INTELLICHECK Authentication made simple BRYAN LEWIS BILL WHITE 516.453.6647 516.992.1985 blewis @intelliched: com biwinite@iitellicheck Gom GAR JACKSON Global IR Group 949.873.2789 Galt @globalitarouis:cont