Intellicheck, Inc. (NASDAQ:IDN) Q2 2023 Earnings Call Transcript

I’m happy to be intel inside, like I said at the beginning of the call, that a lot of people have — we’ve seen you go through our system. You just never knew it was us because — where somebody just asked for your license, you don’t know that it’s us doing it. I’m happy with that model. And again, if it can get me in places. And I think automotive is always a great example. There’s something like 16,000 rooftops out there. I don’t want to knock on every one of them. But if I can get the software provider that is in most of them, to integrate our system, that’s a quick and easy win.

Scott Buck: Yes, that makes a ton of sense. And then I guess last one for me. Is it fair to suggest that you’ll be managing the business at this kind of breakeven adjusted EBITDA level, as long as you see meaningful revenue opportunities that just take a little bit of additional investment?

Bryan Lewis: Yes, we’re going to — look, I think that we’re going to invest prudently, right? I’m not a big fan of spending cash on wild goose chases and things. If it makes sense, we’re going to do it. If we continue to grow the way that we are, our margins suggest that there should be enough for investment and also building up the cash pool. We know where we need to invest. We know what that dollar amount is and it’s not tons and tons of money. So — our goal is to be EBITDA neutral until we know that where we’re at and then after a certain point, we can’t help but be EBITDA positive no matter what we do.

Jeffrey Ishmael: Yes, one of the biggest questions we’ve got since I started was at what point are you guys going to hit adjusted EBITDA neutral? And so rather than throw highly aggressive aspirational goals out there 2 years ahead. It’s like let’s just go ahead and let’s that, that adjusted EBITDA neutral which we are tracking for and we’ll be hitting this year. If you take a look at our trailing 12-month adjusted EBITDA we’re just under negative $200,000. So we’re tracking towards that in Q3 and Q4 coming up, that would bridge that gap. But to Bryan’s point, we’re going to continue investing in the business but expect to see that ROI too. And if we don’t find that expected return, then it’s going to fall straight to the bottom line, if you can see that meaningful driver at the top line.

Scott Buck: That’s helpful. I guess I’ll try to squeeze in one more since I’m at the tail end here. How do you think about the current marketing efforts? And how often do you revisit what kind of ROI you might be getting on your marketing?

Bryan Lewis: So that’s one of the things that we’re looking at. And I think one of the reasons that we decided to make some changes in that and also why we’ve hired an agency to help us with that. I think we got a lot of people who are really good in sales at the company but marketing is definitely a different animal. And again, that’s sort of where we’re going to put some money out to get — to make sure that we’re doing it right and that they’re measuring and telling us what we’re doing, helping us, as Jeff said earlier in the call that we’re really reanalyzing our whole digital spend, where we’re getting what we wanted out of it. And these folks are suggesting that we weren’t, so that’s why we put it on pause while we figure out how to get it done better.