Robert Eckel: So this is a — could be a complicated question, but I’ll just give a quick simple view of it. So our deal size varies across product lines and business models, and there isn’t such a metric that we view at a company level. But what I can say is our average Knomi customer contributed about $100,000 in 2022 revenues and our average BioSP customer which is a mixture of maintenance and services and licenses contribute to about $140,000 in 2022.
Matt Glover: Dave, the next question is for you. How do you anticipate OpEx trending in 2023.
Dave Barcelo: Yes. So Matt, we’re very comfortable with our current cost structure. We’re running at about $5.5 million to $6 million per quarter and we don’t anticipate adding any significant OpEx in 2023.
Matt Glover: Thanks, Dave. Craig, this next one is for you. Please list and describe your repeatable sales activities. What are you doing to sell your products and services not just show them at a trade show or list them with a reseller? How much did you actually go out and pitch new business in Q4 2022 and so far in Q1 2023.
Craig Herman: Yes, absolutely. So for refined sales strategy, it’s a pretty big topic. If I drill down into it, first, we are constantly going out and connecting directly with customers, supporting our partners in the sales process, whether it’s new logos or expansion. But from a sales strategy or a sales process, the first piece is specialization. So by building out a customer success team that is focused on upsells, renewals, expansion. We have an A team that is focused on new logo growth, specifically as well as partner managers that are working and supporting our partners. We also added BDRs that are very focused on the leads that are coming in and then the follow-up. The second piece is territory product vertical focus and making sure that our messaging and our differentiation is unique for each one of those areas.
So having the right message for the right vertical, the right product against the competition. And the third is a defined process, how do we qualify opportunities? How do we follow-up on opportunities? Again, what is our messaging? We’ve instituted some sales technology that helps us do this more efficiently and more effectively. So again, the sales strategy is encompassing a lot of different pieces, but those are some of the things we’ve instituted just in the last few months.
Matt Glover: Thanks, Craig. Craig, another one for you. What is your refined sales strategy?
Craig Herman: So yes, I think I kind of went through that. But basically, again, the focus is on making sure that the message that we are going out with based on the product, the solution that’s needed, the problems that our customers and prospects are facing that aligns with both our product and our skill sets here.
Matt Glover: Thanks, Craig. Dave, of the $2.6 million recurring revenue in Q4, how much was subscription and how much was maintenance?
Dave Barcelo: Thanks, Matt. That’s an easy one. We had $1.7 million of maintenance in Q4 and about $800,000 of subscription in 2022. Those numbers are about $6.7 million of maintenance, $3.1 million of subscription.
Matt Glover: Great. Thanks. Our next question, please explain the new CloudABIS contract coming soon.
Robert Eckel: Yes. So we’re extremely excited that we’re not at a point where we can actually announce the name, but ABIS is, again, a large-scale biometric ID and duplication service, deduplication service. We are one of the few companies globally that can offer this in the cloud and hosted. Most of them are on-premise. This obviously has an impact on recurring revenue and it is an area of focus for people to be able to get into this product at an easier price point and can get stood up and running faster and more efficiently. So, we’re extremely excited as being one of the leaders in this market. And we’re looking forward to the announcement pretty soon.
Matt Glover: That’s great. Next question. Can you address the stated sales from Q3 2022 that were delayed/pushed to Q4?
Dave Barcelo: Yes. I can take that, Matt. So yes, our — as you know, our Q3, we faced some headwinds, as we talked about last quarter. We had a number of government customers that we were expecting to go live. They were delayed. They have materialized here in Q1, actually. So not much that pushed into Q4, but Q1, we’ve got the launch of a couple of great government projects and some other revenue that shifted over to the right. So we’re happy to see that.
Matt Glover: Our next question, what is the size of your current share repurchase plan? And do you plan to continue to buy back stock?
Dave Barcelo: Yes. Thanks, Matt. Our published plan is $10 million. So we can buy up to $10 million of stock. And at this point in time, we plan on continuing that stock buyback plan. If that changes, if we were to cancel the plan, we would publish that decision.
Matt Glover: Thanks, Dave. Next question, what range of total revenue do you expect in 2023?
Robert Eckel: Yeah, I’ll take that. I mean we’re looking at, as I said earlier, in the script, but then even earlier than that. We’re looking at a 15% annual recurring revenue increase, and we’re looking at the same amount at the total top. So that gives you the ranges when you multiply it out, we finished at $16 million for this year.
Matt Glover: Great. Thanks, Bob. Does Aware expect to burn cash in 2023? And if so, how much?
Dave Barcelo: Yeah, I’ll take that, Matt. So Aware is currently a cash user, our goal, of course, is to become profitable. We believe that, as we hit the end of the year, we plan on exiting the year as cash neutral to cash positive. In the meantime, our usage will continue much the same or I should specify our operating cash usage should continue much the same as it has for the last few quarters. There are cycles to it. Q1, we typically use more cash than we do in the other quarters. You can look at our track record in 2022. And we are incrementally improving each quarter until we get to that cash flow breakeven.
Matt Glover: Bob, can you talk about the competitive environment?
