Aware, Inc. (AWRE) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

With a growing pipeline and stronger market in place, I'll turn it over to David for a closer look at our Q1 financials. Over to you, David. Thank you, AJ. Let's take a look at our financial results for the first quarter, which ended on March 31st, 2025. Total revenue was $3.6 million compared to $4.4 million in Q1 of last year. The year-over-year decrease was primarily driven by lower software license sales and a project-driven influx rate from period to period. Recurring revenue was 2.7 million compared to 3.1 million in the prior year period. This year over year difference was due to the timing of subscription term license renewals. Moving down the income statement, operating expenses were reduced to 5.5 million, down 5% for 5.7 million in Q1 of 2025. Operating loss was 1.8 million compared to an operating loss of 1.3 million in the same prior year period. Gap net loss was $1.6 million, or $0.08 per diluted share, compared to gap net loss of $1 million, or $0.05 per diluted share in Q1 of 2024. Our adjusted EBITDA loss for the quarter, which we reconciled gap in our earnings release, was $1.5 million, compared to adjusted EBITDA loss of $1 million in the prior year period. The decline was primarily due to the lower total revenue, slightly offset by reduced lower operating expenses. We continue to operate with discipline. Over the past few quarters, we streamlined operations to set up our new leadership to invest in the right areas for future growth. That work has made us more efficient and put us in a stronger position to scale around our strategic priorities. As we move through Q2 and into the second half of 2025, we do expect expenses to rise, but really just returning to levels more in line with where they were a few quarters ago. These investments are delibera...