Michael Grondahl: Got it. Okay. Hey, thanks, guys.
Operator: Next question comes from Allen Klee with Maxim Group. Please go ahead.
Allen Klee: Yes. Good afternoon. In Identity, strong growth. Trying to understand to what degree — I remember that maybe it was a year or two ago, there was one quarter where a marketing campaign of a bank ended and it had some impact. Is there anything of that the strength is maybe not recurring because there’s kind of a shorter-term contract that might be ending or do you just think that you’re just being a little cautious on macro overall? Thank you.
Max Carnecchia: Sure, Allen. Well, I think two things. First, the example you’re using, I think it was a little over 12 months ago. We had a — one of our partners supports a gaming customer, online gaming. And the gaming company introduced a new game, and there was an age verification requirement. And we used that as an example of some of the episodic nature of transaction volumes in our Identity business. And that was a very popular game, and you had to verify that you were over 13 years old to be able to play. And they had over 1 million kids or results sign up to play the game and that drove some revenues for us that they just weren’t going to repeat the next quarter because unless there was a new spectacular blockbuster game.
We see that the banking community, when they run a marketing campaign, I don’t think there’s anything here to call out. We had strong transaction volumes with the banks, as I indicated. I think the other thing that I neglected to indicate is, obviously, we’ve got the benefit of the HooYu acquisition. So we had — you’ve HooYu with us for the — I think it was almost a full quarter on a year-over-year same-store basis comparison, right?
Allen Klee: That’s helpful. And then for your full biometric solution, can you give us an update of kind of where it stands in terms of where you are going to the market? And how we can think about maybe the sales process and what the size of those deals could potentially be compared to what you’ve been doing before? Thank you.
Max Carnecchia: No problem. So yeah, this is — obviously, you would imagine that MiPass, the multimodal biometric solution, which allows you to use both face and voice and the corresponding likeness of both of those biometric attributes, to have a very high assurance, very low friction way of authenticating who’s on the other side of that device. And with a likeness, obviously, it’s not — it’s not an AI or a bot or some sort of recording or a replay. But back to your question, that’s a very new thing. We announced it at Money 2020 last year. It’s now in full production and available. We’ve got a couple of customers for it. We’ve got even more, not just pipeline, but folks who are testing it and using it to figure out how they’re going to insert it into their production environments.
Hard for me, I think just based on the amount of data we have, it’s probably hard for me to give you a sense of what we think the average deal size is going to be, but there’s a pretty wide swing there is to the place where we can add value. We certainly could find smaller opportunities in midsized businesses where we’re going to manage that service for them, maybe in conjunction with MiVIP. And that’s going to be something that’s maybe $50,000 or EUR50,000 a year, where we’ve got some much larger opportunities where this could be not just hundreds of thousands, but potentially millions of dollars a year and more oriented towards a true subscription as opposed to a transaction pricing model. Hopefully, that’s helpful, Allen.
Allen Klee: That’s great. Thanks. My last question, it sounds like you’re doing great on the patent side. What should we, from the outside, be kind of looking for over the next six to 12 months of news flow related to what’s going on?
Max Carnecchia: Yeah. The two things I would keep an eye open for. The first is the ongoing PTAB rulings. So having that patent trade office rule on the patents that are out there that USAA is using to try to campaign against the banking industry. So more news there. Obviously, we’re not involved in that, but we’re following that very closely. And then as we indicated in the prepared remarks, we still have our declaratory judgment action that’s on appeal. And we do expect over the course of the next six months to hear something in that matter.
Allen Klee: Okay. Great. Congratulations. Thank you.
Max Carnecchia: Thanks.
Operator: [Operator Instructions] Our next question comes from Scott Buck with H.C. Wainwright. Please go ahead.
Scott Buck: Hi. Good afternoon, guys. Thanks for taking my questions. First one, Max, on the macro, is it just as simple as folks getting better visibility around what the Fed is going to do and interest rates and — what else is out there that could potentially alleviate some of these potential customer concerns?
Max Carnecchia: Gosh, Scott. I think you’re giving me way too much credit to be a global economist here. What we hear from our customers is things are slowing for them, right? We’re a B2B company. And from B2B to C, I mean, obviously, there’s end consumers on the endpoint of the device, but we’re mostly going through those — those banking institutions or through partners. And they are the ones that are seeing loan growth and mortgage refinancing and e-locks and credit card delinquencies. That’s where they’re seeing the slowdown. Now — that’s a big part of our business is helping these customers grow their portfolios and grow their revenues. With the fraud dimension of where we’re playing, where we’ve been growing, when the economy slows, fraud goes up, and so there is, I wouldn’t call it silver lining, but there is a — there’s a positive cycle that thinks that the negative side outweighs the positive side by a couple of factors.
