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Aware, Inc. (AWRE - Free Report) reported a loss per share of 5 cents in the second quarter of 2024, narrower than the year-ago period’s loss of 13 cents per share.
Revenues in Detail
Aware registered revenues of $4.3 million in the second quarter, up 35.7% year over year.
Solid revenues from the majority of the segments drove the topline.
Segment Details
Aware derives revenues from three segments — Software licenses, Software maintenance and Services and other.
For the quarter under review, Software licenses revenues were $1.8 million, up 74.7% from the year-ago quarter.
Software maintenance revenues during the second quarter were $2.2 million, up 21.9% year over year. The uptick primarily resulted from software maintenance related to Aware’s sales of perpetual software licenses.
Services and other revenues totaled $0.4 million, down 6.6% year over year.
Geographic Details
Aware derives revenues from three regions — the United States, the United Kingdom and the Rest of World.
Revenues from the United States were $1.7 million in the second quarter (down 15.9% year over year), while revenues from the United Kingdom were $1.3 million (up 420.7% year over year).
Revenues from the Rest of World region were $1.3 million in the second quarter, up 47.3% year over year.
In the quarter under review, Aware’s gross profit increased 41.7% to $4.1 million. The gross margin expanded 396 basis points to 93.8%.
Operating Expenses Analysis
Selling and marketing expenses increased 6.9% to $2.1 million. Research and development expenses declined 17.6% year over year to $1.9 million, while general and administrative expenses declined 8.8% to $1.4 million. Total operating expenses of $5.4 million decreased 6.9% year over year.
Profitability
Operating loss totaled $1.3 million in the reported quarter, down from $2.9 million in the year-ago period.
In the second quarter, Aware’s net loss was $1.1 million compared with the year-ago quarter’s net loss of $2.7 million.
Adjusted EBITDA during the reported quarter was a loss of $0.9 million, down from the year-ago quarter’s loss of $2.4 million.
Liquidity & Debt Management
Aware exited second-quarter 2024 with cash and cash equivalents of $11.5 million compared with $14.3 million at the first-quarter end.
Net cash used in operating activities at the end of second-quarter 2024 was $3.1 million compared with $3.7 million a year ago.
Our Take
Aware exited the second quarter of 2024 with encouraging top-line and bottom-line results. Solid revenues from the majority of its segments and geographic regions were also impressive. During the reported quarter, the gross margin expanded, which bodes well.
During the quarter, the company renewed and expanded key contracts across the United Kingdom, Brazil and EMEA, including a $0.4 million license expansion in Europe. Aware also showcased its pioneering authentication solutions at key industry events during the same time. These raise our optimism.
However, lower revenues from the Services and other segment and in the United States were discouraging. The company incurred an operating loss during the quarter, which is also disappointing.
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Aware (AWRE) Q2 Earnings & Revenues Improve Y/Y, Gross Margin Up
Aware, Inc. (AWRE - Free Report) reported a loss per share of 5 cents in the second quarter of 2024, narrower than the year-ago period’s loss of 13 cents per share.
Revenues in Detail
Aware registered revenues of $4.3 million in the second quarter, up 35.7% year over year.
Solid revenues from the majority of the segments drove the topline.
Segment Details
Aware derives revenues from three segments — Software licenses, Software maintenance and Services and other.
For the quarter under review, Software licenses revenues were $1.8 million, up 74.7% from the year-ago quarter.
Software maintenance revenues during the second quarter were $2.2 million, up 21.9% year over year. The uptick primarily resulted from software maintenance related to Aware’s sales of perpetual software licenses.
Services and other revenues totaled $0.4 million, down 6.6% year over year.
Geographic Details
Aware derives revenues from three regions — the United States, the United Kingdom and the Rest of World.
Revenues from the United States were $1.7 million in the second quarter (down 15.9% year over year), while revenues from the United Kingdom were $1.3 million (up 420.7% year over year).
Revenues from the Rest of World region were $1.3 million in the second quarter, up 47.3% year over year.
Aware, Inc. Price, Consensus and EPS Surprise
Aware, Inc. price-consensus-eps-surprise-chart | Aware, Inc. Quote
Aware Gross Margin
In the quarter under review, Aware’s gross profit increased 41.7% to $4.1 million. The gross margin expanded 396 basis points to 93.8%.
Operating Expenses Analysis
Selling and marketing expenses increased 6.9% to $2.1 million. Research and development expenses declined 17.6% year over year to $1.9 million, while general and administrative expenses declined 8.8% to $1.4 million. Total operating expenses of $5.4 million decreased 6.9% year over year.
Profitability
Operating loss totaled $1.3 million in the reported quarter, down from $2.9 million in the year-ago period.
In the second quarter, Aware’s net loss was $1.1 million compared with the year-ago quarter’s net loss of $2.7 million.
Adjusted EBITDA during the reported quarter was a loss of $0.9 million, down from the year-ago quarter’s loss of $2.4 million.
Liquidity & Debt Management
Aware exited second-quarter 2024 with cash and cash equivalents of $11.5 million compared with $14.3 million at the first-quarter end.
Net cash used in operating activities at the end of second-quarter 2024 was $3.1 million compared with $3.7 million a year ago.
Our Take
Aware exited the second quarter of 2024 with encouraging top-line and bottom-line results. Solid revenues from the majority of its segments and geographic regions were also impressive. During the reported quarter, the gross margin expanded, which bodes well.
During the quarter, the company renewed and expanded key contracts across the United Kingdom, Brazil and EMEA, including a $0.4 million license expansion in Europe. Aware also showcased its pioneering authentication solutions at key industry events during the same time. These raise our optimism.
However, lower revenues from the Services and other segment and in the United States were discouraging. The company incurred an operating loss during the quarter, which is also disappointing.