Greetings, and welcome to the IntelliJax Q2 2021 Earnings Conference Call. At this time, all participants are in listen only mode. A question and answer session will follow the performance presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Gerard Jackson, Investor Relations.
Call, please go ahead.
Thank you, operator. Good afternoon and thank
you for joining us today for the Intellicheck
Before we get started, I will take
a few minutes to read the forward looking statement. Certain statements in this conference call call, words such as will, believe, expect, anticipate, encourage and similar expressions as they relate to the company or its management As well as assumptions made by and information currently available to the company's management identify forward looking statements within the meaning of the Private These forward looking statements are based on management's current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances, and the company undertakes no obligation to and expressly time, we disclaims any obligation to update or alter its forward looking statements whether resulting from such changes, new information, subsequent events or otherwise. Additional information concerning forward looking statements is contained under the headings of Safe Harbor statements and Risk Factors call, listed from time to time in the company's filings with the Securities and Exchange Commission. Statements made on today's call are as of today, August 3, 2021.
Management will use the financial term adjusted EBITDA in today's call. Please refer to the company's press release issued this afternoon for further definition, reconciliation and context for the use of this term. We will begin today's call with Brian Lewis, Intellicheck's Chief Executive Officer and then Bill White, Intellicheck's Chief Financial Officer, Following their prepared remarks, we will take questions from our analysts and institutional investors. Today's call will be limited to 1 hour, and I will now turn the call over to Brian.
Thank you, Gar, and I welcome everyone to the 2021 Second Quarter Intellicheck earnings call, as you saw in the press release, it was a productive quarter driven by reopening and new client onboarding. Contributing to our progress are the steps we have taken towards time, we provide many more risk insights for our clients. In addition, we are in the process of revamping our pricing model to increase prices upon renewals. I will touch on these things during my prepared remarks, but first to highlight some of the key financials from the press release. Total revenues for the quarter were just shy of 4 $800,000 SaaS revenue was just over $3,200,000 That was a SaaS increase of 16% over Q1 and a 93% increase year over year.
We delivered half of the hardware order that we discussed on our last call for the teleworkstations Financial Services Company number 3 during the 2nd quarter. We had a net loss for the quarter of $738,000 Adjusted EBITDA of negative $46,000 The loss is primarily due to our investments in headcount for sales and development teams In addition to marketing spend to drive our growth initiatives, same store volumes continuing to improve, but while they are on the rise, they are still not up pre pandemic levels. As I said on the last call, in April, we were down 10% to 15% from April of 2019 depending on the retailer. For the Q2, that improved to down 10% overall for the full quarter versus 2019 with improvements each month. Call, I am pleased to say that the digital side of our business continues to increase each month with an increase in digital transaction volumes 484 percent over the past 12 months, there's a kind of the undercounting as some of our clients use our API for both physical and digital transactions 6% of all non age regulated transactions.
Turning to a few of the major financial services clients and what they added during the quarter, call, we're seeing continued growth in our partnerships. Financial Services Company number 1 has an extensive client base of merchants they provide credit cards for. Many are small chains or single stores that sell expensive merchandise like jewelry. These are bank branded cards And the retailer is not the one on the hook to fraud. So our new integration solutions on a handheld device or a web portal In a perfect and economical way, we stopped the retailer's fraud losses both quickly and efficiently.
This network is over 14,000 merchants nationwide, time, we began joint marketing effort with number 1 to introduce our solution to each of these merchants. Financial Services Company 3 completed the rollout of Phase 1 for a national home improvement chain that is initially implementing us At the self checkout point of sale system, we are continuing to work to bring live the other POS systems, assisted checkout, customer service and commercial checkout. As mentioned, they also took delivery of the first half of the hardware order for the TETRA workstation scanners. You may recall that they put these scanners in place So that we can validate passports in addition to driver's licenses and state IDs. We anticipate that the second half of the order will be equally split Financial Services Company 4 has completed the in store rollout of the Midwest Home Improvement team and we expect them to go live with the digital channel for that 2 other retailers this quarter.
They continue to find new use cases for authentication. In order to prevent Financial Services Company 8 continued the rollout of our services into their online application process and are continuing to build into their mobile app We expect to deliver in early Q4. Outside of our core financial institutions, we brought a Baltimore based credit union live in June. They wanted to stop fraud immediately, so they're using 2 of our new integration products to validate IDs for new account openings To use our platform for all Tether line transactions. We're also pleased with the execution of another element of our strategic plan.
We signed deals with several interesting software providers to enable them to use our technology inside their applications as resellers. The first is a provider of loan origination and servicing software. We have already identified their first client and are expecting to take them live near the end of the quarter. We second provide software to help customers apply for credit online or at in store kiosks for multiple credit providers. Development is ongoing with this reseller.
While I'm not certain of the transaction volumes either of these resellers may deliver, It shows that we are making data on our plan to extend the reach of the sales force to each channel partners. As you can see, we've been pretty busy and we believe we will continue this pace. Our optimism is based on what I touched on earlier, our commitment to take the critical steps that are key to continuing this trajectory. Our investment in the sales team is paying off and we continue to expand the team with the addition of another senior salesperson during the quarter with more hiring in the pipeline. As we have said before, given the amount of opportunities we see, we will continue to hire sales people as fast as Bruce feels you can effectively train them.
Given what I'm seeing from the growth of a very realistic pipeline, the hiring is working and I want Bruce to keep it up. Marketing is also having an impact on a number of qualified sales leads that have increased 6 fold over Q1. While many of these leads are in the age regulated phase, the rest show that the awareness of IntelliCheck is increasing and some are from potentially large clients as well as significant channel partners. The nice thing about the age regulated clients is they are quick to close and are highly profitable, especially under our new pricing model. In the age regulated space, it accounts for approximately 6% of our SaaS revenue.
Under the new price model, we are earning an average 5 times as much. So I like this type of client with a low cost of acquisition. I would say that as impressive as the marketing initiative has been so far, call, we believe it is only in 2nd year. I mentioned the new pricing model and we view this as another important element in our continued success. Clients generally have an idea of how many transactions they will do in a year and they certainly do at renewal time.
The new contracts and renewals clients commit to a set number of transactions per year. The more they commit to, the lower the cost. As part of doing Advance Day prepay will also lower their cost of transaction. With a lowballed transactions and run out, we can continue to pay at the higher price We'll commit to a new contract at a higher transaction volume. This has been well received by our clients even as we raise fees at renewal.
So far, all renewals have been at higher rates, which again, we believe shows the value our clients place and the certainty our platform provides. We continue to expand the capabilities of our platform. This allows us to expand into the much larger identity market call, we are working to bundle the products to help a growing number of FinTech Companies, Several of our clients perform their KYC functions more easily and quickly. We are improving our internal technology so that we can be agnostic when it comes to the services that our time, we plan on working with multiple partners for different services so that our clients can pick the service they can do best, Knowing that we are starting with our ID validation tools, which provide the most certainty. We continue to build on our channel partner strategy, including discussion with companies that are often considered competitors, but actually do things entirely different than we do, we feel we could become the best first step for their clients as well.
I was recently speaking with a market research analyst, and he said something that really put it in context for me. He said in speaking with a bank client his firm consults with, time, I told him that OCR was 60% effective and followed up with, with that, I might as well flip a coin. Through our investment in sales and marketing, people are beginning to understand we are different and that we bring certainty to the transaction as opposed to a point to us. We believe that our investment in expanding the platform will help us bring that certainty to more markets. I'm excited for Intellatek's future.
That, I will turn it over to Bill to discuss the financials in more detail.
Thank you, Brian, and a good day to our shareholders, guests and listeners. Call, I'd like to discuss some of the financial information that was contained in our press release for the Q2 ending June 30, 2021. I'll begin with our 2nd quarter results. Quarter over quarter SaaS revenue grew 93 percent to $3,234,000 versus $1,671,000 in the prior year. Total revenue for the Q2 ended June 2021 increased 160 percent to 4,797,000 compared to $1,842,000 in the prior year comparable period.
Gross profit as a percentage of revenue was 69.4% for quarter ended June 30, 2021 compared to 88.6% for the quarter ended June 30, 2020. During the quarter, we sold scanning equipment to a bank that is continuing to roll out our software to their bank branches, which are normally sold at lower margins. Excluding the sales of hardware in both periods on a pro form a basis, gross profit as a percentage of revenue was 93.3 Operating expenses consist of selling, G and A and research and development expenses increased by 69% or 1,600 and $55,000 to $4,067,000 for the quarter ended June 30, 2021 versus $2,402,000 for the same quarter in 2020. The increase is primarily due to higher stock based compensation costs, increased headcount and expanded research and development efforts. The company posted a net loss of $738,000 for the 3 months ended June 30, 2021 compared to a net loss of 700 $60,000 for the quarter ended June 30, 2020, the net loss per diluted share was 0 point 04 dollars versus a net loss per diluted share of 0.05 point in the prior year period.
Adjusted EBITDA for the quarter ended June 30, 2021 was negative $46,000 Compared to a negative EBITDA of $619,000 in the June 30, 2020 quarter. Interest and other Income were negligible for the quarter ended June 30, 2021 2020. I'd now like To focus on the company's liquidity and capital resources, as of June 30, 2021, the company had net cash of 11,900,000 working capital defined as current assets minus current liabilities of $13,300,000 total assets of 25 point $4,000,000 and stockholders' equity of $22,100,000 During the 6 months ended June 30, 2021, call, the company used net cash of $1,200,000 compared to net cash provided of $11,200,000 during the 6 month period, June 30, 2020. Net cash used in operating activities was $1,076,000 for the 6 month period ended June 30, 2021, Compared to $262,000 for the same period in 2020. Net cash used in investing activities was $182,000 for this 6 months of 2021 compared to net cash used of $110,000 for the 6 month period ended June 30, 2020, And we generated $77,000 from financing activities for the 6 month period ended June 30, 2021 compared to $11,600,000 for the same period in 20 20, the company has a $2,000,000 revolving credit facility with Citibank that is secured by collateral accounts.
There are no amounts outstanding under this facility. We currently anticipate that our available cash as well as expected cash from operations will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months. As of December 31, 2020, the company had net operating loss carry forwards of $17,000,000 I'll now turn the call over to the operator to take your questions. Operator?
This time, we will be conducting a question and answer session. Your first question comes from Mike Glendale with Northland Securities. Please state your question.
Hey, Brian and Bill, congrats on the quarter. And especially the 93% SaaS growth year over year, Is there any way you can at least roughly break that down between maybe new accounts, existing accounts and price increases, just to kind of give us a flavor of the drivers?
I'm going to say the majority is going to be from new usage at existing and adding in new clients because our big Our larger contracts are coming up for renewal now. The 2 main ones with number 4 and number 3 call are now and at the end of the year. I'd say that a small but significant portion, I guess, As a percentage of what it was in the age restricted space, but it's still a small portion of the revenues. So I'm going to say that most of it A good chunk of it are the firms that we had brought on over the course of the pandemic that weren't really producing At the level of the normal world and then the rest is going to be new clients. But off the top of my head, I don't have the specific breakdown of
Got it. Got it. In implementations, did they bounce back in 2Q and kind of what does the backlog look like for new implementations?
Sure, Bill. You just lift up those numbers since you weren't we were just talking about it right before the call.
Yes. Implement The completion completed through the end of July were 2019 and there's about 40 in backlog.
Got it. And Bill, would you expect those 40 to get implemented this year still?
We're hoping. Some of the holdup would be on the customer side, Mike, and how fast they can move
Then they've got to get out and get it to their clients and things. But generally, again, retailers We'll tend to lock down anything in Q4 in terms of touching a point of sale system. They don't go much past mid October. But the good thing is in the sort of the expanded world we're selling to and particularly with retailers And then also banks doing for their own sort of teller workstation and other things, they don't have the same restrictions or fears about touching their point of sale During the holiday season.
Got it. Great. Well, hey, nice to see the SaaS growth again. Thanks, guys.
Thank you.
Your next question is from Jeff Van Buren with Craig Hallum. Please go ahead.
Great. Thanks for taking my questions, guys. Just a couple for me. On the pipeline question, I might have missed it or the comment in I think you said leads were up 6x and you're commenting a little bit on the pipeline. Just to be clear, was that the quantity of leads or the overall value the leads and then just maybe a little more while you're on pipeline, talk about exactly sort of how the makeup of that pipeline is morphing here?
Time Yes. So that was overall leads coming in, so SQLs. And to be clear, just like it wasn't, The majority of them are coming from age restricted product sales, which we have dramatically increased the pricing of and you find that very, very profitable business because Transaction costs are pretty high. So and I like it because it's quick business, turned over, cost of sale isn't that expensive. We did also and what I'm happy to see is we're seeing a lot more potential resellers and large clients finding us and in the past it couldn't.
So there's some very interesting prospects we're talking to right now To talk to put our product in their stuff, right, or age verification or annual KYC stuff for loan origination and those types of things. So predominantly lower revenue, but quick Sales and then some really good large ones. So the marketing is working.
Yes, great. And then on the leadership front, obviously, you added Garrett and Bruce and you've been broadening things out. But specifically with Bruce, Since his arrival, maybe spend a minute on the sales front. Just where are you in terms of head I think you referenced 1 additional in the quarter, but just goals for the end of the year and maybe a little more color about what's changing in the sales org sales structure?
Yes. So we're up to 10 people in the sales organization. I think that there are a number of things that have changed. We've got Proper CRM in, I think Bruce is doing a great job of training the people. He brought a lot of identity knowledge to the table.
One of the other things about the pandemic is it's easy for us to now hire anywhere. Long Island is a great spot, but where we're at made it difficult to hire people, now we're getting talent from anywhere. And I think the big change is Probably Bruce's management and training style, got a super motivated team. They can the compensation plan, if They bring in the revenue we expect them to, given the margins that we have, they can be very well compensated for it. So we got
trade. And one last for me if I
could then on the distribution front. I think you talked about partnership and some new avenues that you're going down, are there any explicit goals you've established in terms of what you want in these partnerships or new partnerships to Represent as a percent of revenue or just give us a sense of the magnitude of what you're working on there.
Well, I think that it could represent a significant portion of revenue. You look at a lot of our OCR competition, a lot of them are basically Intel Inside. And we can and should be doing the same thing. I think it's a wonderful way to expand the sales force, because there are a lot of products out there That have authentication tools built into them. We never spent a lot of time talking to those folks because nobody has ever heard of us.
Now that we're being mentioned more in trade and research journals and some of the papers put out by The likes of Itay and Gartner and Javelin and other things, we're getting to be known. And as soon as we get talking to somebody and we talk about Certainty, and we talk about the fact that we're way better than a coin flip. They begin to get why we're different and know they need to take a look at us. So given how accurate we are and how much easier we are for the end consumer, because you don't have to take a photo of the shiny license to make it work, These resellers seem rather interested in it. So, Louise's team is they've got they all have hard targets on particular retailer as we want them going after and they're going to be monitored very carefully on how well we're reaching those goals.
But I do think it to become a significant portion of revenue. Because if you think about it in a fact, the banks are resellers. So because they're the ones who are selling the retailers. We know the model works. We just need to expand the resellers that we're talking to.
Yes, yes, definitely worked. Bill, one last one on the model. Just on expense growth, I think you had talked about 25% to 30%. Just any updates there on how to think about expense growth?
Yes, I think it was 25 to 35. And obviously, we're outpacing that. I think If we're modeling out through the end of the year, taking a $4,000,000 to $4,500,000 a quarter OpEx is probably more accurate.
Okay, fair enough. Thanks so much guys.
Thank you.
Time, your next question is from Scott Buck with B. Riley. Please state your question.
Good afternoon, guys. On the gross margin on the SaaS at 93.3 Brian, how much of that is maybe some of those pricing changes that you guys had implemented versus just higher volumes in the quarter, obviously, versus a year ago?
I think the majority right now would be the volumes.
Volumes. Okay, that's helpful. And then I'm curious, With some of the new hires you've made on the sales side, what's kind of the typical ramp up period for those folks Really get their feet under them and start to make a meaningful contribution.
I think A good salesperson is going to get a little bit of luck and a little bit of skill over time. We've had some of our new people have already closed Smaller deals, the bigger deals take a little bit more time and to really fully understand it, I would say 3 to 4 months, If you're not seeing productivity out of a salesperson, then maybe they're not right for the fit for in that particular type of sale. So I think that's pretty much what we're kind of looking at. But so far, I would say that they are all coming up to speed call, a lot quicker than I anticipated. They really spent a lot of time working with each other, bringing each other up to speed.
So it's a really, really tight team that knows they all succeed and they each succeed. So the health is amazing. They've given each other.
Okay. That's good color. And last one for me. You guys talked a little bit about increasing investment on the R and D side. Is there anything that you could be doing inorganically, makes sense to go out and acquire the technology rather than try
to build it yourself? Well, for a lot of things we do, right? I'm not a fan of reinventing the wheel. But part of what we're doing is For us to plug and play with maybe other providers of services that people want us to bundle in. And then on the other side, make it easier for our clients plug and play into us and pick which one of their service providers they want so that they can build their own, in their mind, best of breed Authentication service.
So it's really a lot of retooling, where it looks like something that it's going to be just a project with a beginning, a middle and an end. We're certainly using outsource for that, so that when that project is done, we don't have a headcount that was better used one off. So we're being pretty smart about how we do it. And again, if it's something we can get or buy, we do It's the same way that I've said this for a long time. In the whole facial recognition world, I first thought, okay, then you need to build that.
I mean, there's so many of them selling it, why bother? It's better to do that through partnerships. And that's how we look at everything in the whole development stock and in the queue.
Time, your next question comes from Rudy Kessinger with D. A. Davidson. Please state your question.
Hey, guys. Great. Thanks for taking my questions. I want to sort of back to the pricing. I know I think
you had said with the age restricted stuff, I
think the new pricing model, I think you said it was a 5 fold increase, correct me if I'm wrong there. But with respect to Financial Services customers 34, I think you said 3, one of them is coming up I think this quarter, the other one end of the year. Just can you help us put any bounds around the kind of expected price increase you see with those
2, we haven't begun really on 4, so I can't tell you that. I mean and I will say that everything is going up. And with number 3, we're down now to just some minor legal mix is the way I would look at it. But They're prepared to sign a multiyear deal, 3 year deal guaranteeing a significant amount of transactions a year and prepaying for that full year. So and then they also are anticipating that probably their volumes will go up.
So that's that whole model of prepay, commit, and we're still getting price increases. So and they're going to vary across the board given Where they started. And again, the older the contract, in my opinion, the less value we were getting for it. And so some of these much older contracts, were at rates I wouldn't even thought of signing deals and over time we've been increasing it. So the later the contract was signed, the more close to what I'd say real market pricing it is.
So it's a much older contract where we're going to see probably significant increases in pricing. Got it.
And then last quarter, you had talked about the 25 NDAs you had signed through the end of April. I'm curious if that's Are
you able to share how many NDAs
you signed this quarter? And then, on those 25 to sign, what's the typical duration from NBA signing to contract signing and obviously they aren't all going to go through. But and then maybe is there anything you can share of many of those have actually turned into signed contracts to date?
I'd say that a lot of the ones that were for Some of the like the resellers that I talked about, those were examples. There are some that we're contract negotiation now, I don't know the single one that has not that has said, no, it's not working out. Some of them might be timing issues of when we can get around to maybe doing some development, we need to connect to them. All of them, I think, are still active or closed or in contract negotiation. And Bill, you probably have an idea of how many we signed this quarter because I know you're busy, busy doing them.
Yes, well, actually, we signed 22 in July alone, Brian. Yes.
Wow, Got it. And then just lastly, certainly the partners resellers, it sounds like they're making decent early progress there. Call I'm curious with some of these companies who people would traditionally think of as competitors, Have you seen any awareness from them or maybe any changes in behavior? I guess maybe 1 of 2 aspects, either And then being more open to potentially partnering with you guys in the awareness front or maybe them seeing you as more of a competitor than they have in past, maybe changing their stance or trying to change how they're doing things? I'd say at
this point in time, it's more how do we partner. They understand we do something very, very different that could be beneficial to their clients. So we haven't seen anything that's become more competitive. Because again, it's To consider them competitors, we do something so different. And at the end, we're all just trying to figure out, is the person really real?
The leads go about it in such a completely different manner that it's hard to say that there's competition.
Your next question comes from Roger Liddell with Clear Harbor Asset Management. Please state your question.
Thank you, operator. And Brian and Bill, good afternoon. Great report. Thank you. I wanted to get a little texture on the age restricted products.
Is the acceleration you're seeing here a function of cannabis and if so, hold our hands a little bit on the sustainability of that or maybe it's ready to blow right through the ceiling? Or are we really speaking of the tobacco And alcohol, the conventional stuff.
I'd say right now the majority of it is alcohol. So alcohol delivery, we certainly see cannabis business. We've got a pretty good business already. I think the better way for us to get into cannabis is some of the resellers and partners that we're talking to are providers of the inventory and point of sale systems for Canada stores. But what we're seeing, There's certainly some interesting laws about advertising to cannabis people and you got to be careful how you go about that on social media.
So it's much easier for us target, the traditional alcohol and tobacco and tobacco is by far been the largest amounts of need in the age regulated space.
Is vaping significant in any way?
It was for a while in a way pre COVID when there was so much in the press about it, but it Really has died down so much. I'm not quite sure that there's a lot of enforcement happening in that area, but there certainly is a lot of enforcement In the alcohol space and one of our things is certainly having so many law enforcement agencies that We use our product to go out and through enforcement. They're probably some of our best sales people because the First thing the borrower owner asked is like, what are you using? And we know in some places, if they'll give them a warning, Some of our law enforcement clients tell us they give them a warning if they put in our product because they may know that they're going to be actively checking and keeping is out. So it's almost like an incentive for them to do it.
So it's I think a combination of a lot of factors there, but certainly Alcohol gets more enforcement, I think, than anything else. Okay.
Just a little clarification from Bill. You mentioned the, was it 22 Yes, 22 implementations you signed in July alone. Is that a spike? Or could this be a run rate indicator?
Those were NDAs, Roger. Fully executed NDAs. I think it burns a lot.
Yes. Time
Okay. Okay. Conversion rates from NVA, I think it's NDA, it's almost a one for one, but tell me.
I'd say that yes, sorry, go ahead, Bill.
Oh, I was just going to say we had a high conversion rate, Roger. I don't know that we've ever said publicly what the percentage of conversion rate is. Brian, have we? No. I mean, it's
a good thing. We can start tracking it and talking about it. But like I said, any of the NDAs so far that we've signed this year, I can't off the top of my head, Maybe there's a couple where we just decided they're not going to fit. But off the top of my head, I can't recall any where they said, no, this doesn't work for us. Some are signed and some are in technical discussions.
It's okay. How do we now connect to you? Those types of things. So I'm pleased with it for sure.
Final question And I hope you can give some texture because I think it's important for us to understand better. It's on the policies and practices of Sharing the fraud losses or one side or the other being the bag holder fraud losses, Are the old practices of banks and financial service institutions continuing In this fraud challenged era and what about incentives like if you install IDNs suite, then we will eat a proportionally the financial service, E of proportionately larger amount of the fraud losses and working the other way also.
Yes, I'd say, it is for the most part still staying that kind of traditional model where the bank is the one that eats the frog. But there's oftentimes a split maybe on account lookups or other things like that. So the retailer always has incentive To want to help with the fraud. And then the other thing too is even the retailers that eat none of it, a A lot of them are very happy to do it because they know they're going to get more credit cards because it speeds the process up, it's seamless To the end user and again, they've told us multiple times that you shop about 4 times more often in the store where you've got a card with reward points and all that other stuff. So in talking to some of the retailers, they tell us that they have targets every year for the number of Credit cards, they want it onboard.
So they like the speed and simplicity of our process for it. Now again, the smaller retailers, they're more at commercial. And that's why number 1, they'll let them get instant credit in the store, But it's a branded number one card and the retailer beats all the loss. Now they started slowly introducing us to some of those clients and they Snap us up because you leave a couple of rollouts of the year, a couple of things are going to happen. 1, Oftentimes, the bank will stop working with them because it's just they don't want to be part of all that kind of fraud.
And 2, It adds up for that retailer. So they're happy to pay for our solution. It's not high volume, But there's a lot of them to sell to. So I think you could add up very quickly. So then I'll also say a third point on that in terms of color.
Even though the banks seek the loss, we certainly know the number 4, they've taken credit card programs away from other retail, I mean, other banks because they give them an incentive, they'll give them a better program rate Because number 4 knows that this is going to be a much more profitable account because the fraud goes away. So we've been on sales calls Talking about how easy it is to implement and what they're going to do, so that number 4 gets the client. So I think some of the smarter guys are realizing that they can use fraud prevention as a sales tool to gain more programs.
Ladies and gentlemen, we have reached the end of the question and answer session. And I would now like to turn the call back to Mr. Brian Roos for closing remarks.
Hi. So I just want to thank everybody for attending the call. Call, I'm excited to talk about the quarter. As I said, I'm very excited about the future. And I look forward to the Q3 earnings call, I am speaking to you all again.
So thank you and have a good evening.
Time, that does conclude our conference. Thank you for your participation. You may now disconnect.