Aware, Inc. AWRE 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

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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.