Intellicheck, Inc. · NASDAQ:IDN
Intellicheck — 3rd Annual ROTH Conference 2020
22 slides from Intellicheck's conference presentation, Mar 16, 2020
Slide 1: Intellicheck: Authentication made simple
INTELLICHECK Authentication made simple 32"4 Annual ROTH Conference March 16, 2020 (Nasdaq: IDN)
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. oon Words such as "will," "believe," "expect," "anticipate*, "encouraged" and similar expressions, as they relat
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 ‘ A Simple Salutian: The as
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 VF INTELLICHECK |
Slide 7: Business Model Changes Driving Growth
BUSINESS MODEL CHANGES DRIVING GROWTH WHO HOLDS THE BAG? (s Sell to and through Banks, Banks typically pay the price for identity theft fraud INTELLICHECK GET VALUE FOR Pay Per-Scan with minimums versus Pay Per-Store pricing model TEAM Professionalized by our Implementation Team with accountability
Slide 8: Impacts/Benefits of Per-Scan Pricing Model
IMPACTS/BENEFITS OF PER-SCAN PRICING MODEL 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 T
Slide 9: Quarterly Revenue 2018-2019
QUARTERLY REVENUE 2018-2019 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $500,000 $o Q12018 Q22018 Q32018 Q42018 Q12019 Q22019 Q32019 42019 ————TotalRevenue -—=SaaS Revenue NTELLICHECK
Slide 10: Quarterly EBITDA 2018-2019
QUARTERLY EBITDA 2018-2019 Q12018 22018 Q32018 Q42018 Q12019 Q22019 032019 /042019 -$1,200,000 ae FATA — INTELLICHECK
Slide 11: Why Do We Win?
WHY DO WE WIN? 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 New NO NEW HARDWARE REQUIRED Easily integrated into existing point-of-sale system, check readers, or utilized through a no-integrati
Slide 12: These Changes Have Led To
THESE CHANGES HAVE LED TO NOTABLE WINS AND IMPROVED FINANCIAL RESULTS 57 | NTELLICHECK Authentication made simple
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 grow
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 00 Signed in March 2019 60-Day Pilot m
Slide 15: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES @e FINANCIAL SERVICES COMPANY 5 — START UP NEO-BANK * Signed in Q2 2019 * Online bank for mobile enrollment ¢ Authentication plus facial recognition for AML/KYC account opening EZ FINANCIAL SERVICES COMPANY 6 — PROVIDER OF SUB-PRIME UNSECURED LOANS * Sig
Slide 16: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES FINANCIAL SERVICES COMPANY 7 — GLOBAL COMPANY FOR PAYMENT, TRAVEL, AND EXPENSE MANAGEMENT SOLUTIONS AND ONE OF THE LARGEST CREDIT CARD ISSUERS ¢ Signed in January 2020 « Inthe process of deploying to their US call centers, with multiple use cases « Deplo
Slide 17: Change Results — Other Wins
CHANGE RESULTS — OTHER WINS + 56% fee increase at a 1,000 location Big-Box Retailer After Black Friday, we were informed Intellicheck essentially eliminated their fraud An expanding use case for authentication « 500 Auto Dealerships now potential clients, a 36 Integrations in 2019 versus 3 in all of
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: Why Intellicheck?
WHY INTELLICHECK? WE ARE SIGNING CLIENTS IN MULTIPLE VERTICALS WE HAVE IMPROVED OUR PRICING MODEL AND DEMONSTRATED PRICING WE ARE ONBOARDING CLIENTS FASTER THAN EVER THE ACHIEVEME ARE DRIVING IMPROVED FINANCIAL PERFORMANCE THIS IS THE THE RESET NEW INTELLICHECK IS WORKING INTELLICHECK | Authentica
Slide 20: Financial Overview
FINANCIAL OVERVIEW 57 | NTELLICHECK Authentication made simple
Slide 21: 2019 Q4 Financial Highlights
2019 Q4 Financial Highlights SaaS Revenue Growth Balance Sheet (as of Dec. 31) Positioned for Growth YF iINTELLICHECK $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 * I
Slide 22: Intellicheck
INTELLICHECK Authentication made simple BRYAN LEWIS BILL WHITE 516.453.6647 516.992.1985 blewis@intellicheck.com bwhite@intellicheck.com GAR JACKSON Global IR Group 949.873.2789 gar@globalirgroup.com