Craig Herman: Yes, absolutely. Yes, we’ve been working diligently to expand our presence in the gaming market. We’ve been working with strategic partners in this space on potential co-marketing and integrated product opportunities. And will — Q4 events, we started 2024 with partner gaming events in January and a global gaming trade show in February. We have several additional events in the gaming space lined up for this year. We are also extremely excited by the launch of our WordPress and WooCommerce integration. These are platforms that are used by a large number of gaming and retail companies globally. WordPress is one of the leading website management platforms with tens of millions of websites worldwide. Our no-code WordPress plug-in sets the stage to expand in the use cases with other sites in other industry verticals as well.
By leveraging WordPress’s WooCommerce technology, our integration opens the door for any sites, in any vertical that use this market-leading platform to process e-commerce transactions. So back to the specific question in hand though, overall, the response to the gaming space has been enthusiastic about our offering.
Matt Glover: Thanks, Craig. A couple of questions about an article from biometric update published in May 2021 about Imprivata launching facial biometrics for health care through Aware and IDEMIA partnerships. First, is IDEMIA still involved or is it just Aware? Second, why has the rollout taken so long? And finally, is Aware compensated on a per facial recognition transaction or is it a flat fee?
Craig Herman: Sure. We partner in a multiple ways with different partners. And Imprivata is an integrated reseller of our facial recognition product. The go-to-market and adoption is the responsibility of Imprivata and the consumers of the Imprivata product. Our focus is supporting our partners in the way they need to go-to-market. We are also partnering with them from a growth standpoint based on our usage based pricing. So we are excited by the initial partnership and the direction that you sense.
Matt Glover: Thanks Craig. David, in Q4 the company generated $3.7 million in recurring revenue. How much of that was subscription versus maintenance?
David Traverse: Thanks Matt. So of the $3.7 million in the recurring revenue, about 40% which was about a 40% growth from the prior year quarter, the subscription-based revenue contributed about $1.5 million, while the remaining $2.2 million came from both new and prior maintenance contracts. And importantly this included the conversion of a legacy customer, to a multiyear subscription contract during the quarter.
Matt Glover: Thanks David. The next question, salable whereas normally system people search seems to be fully implemented with this brought online during the Q4 quarter. So one-time sale with residual annual maintenance recurring revenue stream is there potential revenue growth with this relationship? Thank you.
David Traverse: Yeah, great question, John. People certainly go live in Q4. This is not a one-time sale, but a subscription base engagement. That will grow as their business in a usable of Aware grows. We are very excited by the opportunity for future growth that we have with them, and partners like this, that are part of our recurring revenue growth model.
Matt Glover: Craig, another one for you, can you comment on the ID, disappointment product where has provided to you IMPRIVATA? Is this primarily where ID Recurring Revenue implementation, when do you expect revenue from the sale? Do you expect revenue from IMPRIVATA to become a significant revenue source? And lastly is Aware uniquely suited to enable DEA compliance or is this achievable with other authentication products also?
Craig Herman: This is the recurring revenue stream. They are leveraging, Aware products but not specifically Aware ID for disappointment. Strength of Aware is that our price can be configured for a wide range of use cases and specific industry engagements as well as this for either SaaS or on-prem solutions. The DEA compliance is the responsibility of IMPRIVATA in this situation.
Matt Glover: Thanks Craig, another one. How are you measuring performance in the partner channel?
Craig Herman: Yeah. As we’ve discussed previously our Ecosystem Hub, serves as a central resource for our partners to access co-marketing, sales enablement and training materials. In addition to the partner, — portal — excuse me, as a valuable resource for both new and established partners, the program itself also facilitates comprehensive metric tracking. To meticulously track, various metrics like the volume of active projects, pipeline level of each partner and the volume of new engagements the name a few. These metrics serve as key performance indicators enabling us to assess the effectiveness of our ecosystem continually. The addition of a Rev Ops resource last year has helped us considerably, on building out the reporting and process Mechanics.
We also begin a search for a head of partnerships to oversee the strategic arm of our go to market. I am extremely excited to announce that Todd Jarvis has joined us to lead our global partner efforts. Todd has had extensive experience building and expanding Global Partner Ecosystems with startups to enterprise tech companies. He’s engaged and started this week. We are looking forward to the impact he will have across our organization and partner ecosystem.
Matt Glover: Thanks Craig. Bob, in 2023 the company exceeded its expectation to grow ARR by at least 15%. Are you thinking about momentum in 2024?
Robert Eckel: Well, it’s a great question and I figured somebody would ask. So our strong performance in 2023 especially the 23% growth in ARR, really demonstrate the impact of our business model transformation and positions Aware for even greater success in the years ahead. So we’ve entered 2024 for a total $12 million of annual recurring revenue. And this is about the same amount of total revenue were generated when I joined the company at the end of 2019 and building upon the solid performance and solid foundation, the baseline that was established in Q4 and 2023. We’re confident that Aware is well positioned to sustain this momentum and drive additional recurring revenue. And we’re looking for this to pave the way for continued double-digit growth and success in the coming year, as we build towards profitability.
Matt Glover: Thank you, Bob. Craig, on the call, you highlighted a recent partnership with ITI which is expanding Aware into the testing market. Can you share what other industries are you targeting in North America?
