NASDAQ$BKYI

Bio-key International Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

BIO-key's Q3 2022 revenues rose to $1.4M, reflecting a 6% increase compared to Q3 2021, driven by growing software and services revenue, although partially offset by lower hardware revenue.

BIO-key International, Inc. reported a 6% increase in Q3 2022 revenues, reaching $1.4 million, driven by growth in software licenses and service fees, which was partially offset by lower hardware revenue. The company experienced a net loss of $2.4 million, or $0.29 per share, compared to a net loss of $1.0 million, or $0.13 per share in Q3 2021.

  • Q3 2022 revenues increased by 6% to $1.4 million compared to Q3 2021.
  • Year-to-date revenues grew by 26% to $5.3 million, driven by increased software license and service fees.
  • BIO-key expanded its global footprint with new enterprise customers and broadened its partner network.
  • The company launched Mobile Authenticator App (MobileAuth) featuring both server-secured and on-device multi-biometrics.

Headline financials

Total Revenue

$1.37M

Previous: $1.3M+5.8%
EPS (adj)

-$5.22

Previous: -$2.34-123.1%
Capital Expenditures

-$31.1K

Previous: -$37.9K+18.0%
Free Cash Flow

-$4.36M

Previous: -$7.15M+39.0%
Net Income

-$2.4M

Previous: -$1.02M-134.7%
Operating Income

-$2.36M

Previous: -$994K-137.5%
Gross Profit

$980K

Previous: $1M-2.4%
Cash & Equivalents

$2.77M

Previous: $9.59M-71.1%
Total Assets

$15M

Previous: $20.7M-27.5%

Revenue & EPS history

Bio-key · Revenue · Quarterly

$1.37M

Q3 2022+5.8%vs Q3 2021
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Forward guidance

BIO-key expects a strong close to the year but has updated its full-year revenue outlook to $7M to $9M, representing growth of 37% to 76% over 2021 revenue. The updated outlook anticipates growth in recurring software license revenue to roughly 70% of total revenue, supported by hardware and services revenue contributions.

Tailwinds

  • Technology leadership
  • Talented global sales, marketing and management teams
  • Growing productivity of channel partner program
  • Acquisition of Swivel Secure Europe has added critical mass in EMEA.
  • Expect significant EMEA growth moving into 2023 now that our team has been fully trained on the value and capabilities of our extended line of solutions and services

Headwinds

  • Slower than expected sales so far this year.
  • Delays in African business.
  • Slippage from Q3 to Q4 in domestic business.
  • Seasonal slowness in Europe in the late summer.
  • Some customer and project opportunities have progressed more slowly than anticipated over the past several months, or slipped to Q4.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-3.5%

Avg return

Earnings day

-5.3%

Avg return

5 days after

-8.9%

Avg return

30 days after

25%

16 / 63 earnings

Positive

+15.9%

Q1 2017

Best reaction

-25.9%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%
Q3 2025-2.2%-4.1%-27.8%
Q1 2025-6.0%-2.5%-2.5%
Q2 2025-1.3%-3.7%-4.9%
Q4 2024-23.6%+2.4%-6.0%
Q3 2024-8.7%-16.5%-5.8%
Q2 2024-12.0%-12.0%+8.5%
Q1 2024-11.8%-10.0%+5.9%
Q4 2025-4.1%-9.5%-15.0%
Q4 2023-4.8%-13.8%-19.0%
Q3 2023-10.6%-15.8%-10.5%
Q2 2023-10.0%-10.0%-27.1%
Q1 2023+5.3%+21.5%+13.8%
Q4 2022-3.0%+8.2%-9.6%
Q3 2022-17.4%-27.1%-45.1%
Q2 2022-17.0%-22.6%-27.6%
Q1 2022-2.0%-6.0%-17.9%
Q4 2021-3.2%-6.0%-14.0%
Q3 2021-8.2%-10.8%-27.5%
Q2 2021-7.4%-5.5%+3.5%
Q1 2021+6.1%+8.4%+32.3%
Q4 2020+2.9%-0.9%-2.6%
Q3 2020-8.7%-4.4%-3.3%
Q2 2020+1.1%-1.4%-36.5%
Q4 2019-24.2%-20.7%-9.8%
Q3 2019-9.2%-12.1%+0.0%
Q2 2019+1.8%-6.8%-29.5%
Q1 2019-6.2%-16.9%-13.1%
Q4 2018-6.8%-4.8%-9.5%
Q3 2018+11.1%+9.3%+13.9%
Q2 2018-2.2%-2.2%-10.4%
Q1 2018-11.0%-1.3%-0.9%
Q4 2017-6.5%+2.0%+7.6%
Q3 2017-10.8%-6.1%-29.1%
Q2 2017-3.1%-4.3%-10.6%
Q1 2017+15.9%+22.0%+17.5%
Q4 2016-7.8%-5.1%-14.1%
Q3 2016-25.9%-7.4%-18.5%
Q2 2016+0.0%-4.2%+8.3%
Q1 2016-5.9%
Q4 2015+0.0%
Q3 2015+0.0%
Q2 2015+5.6%
Q1 2015+0.0%
Q4 2014+0.0%
Q3 2014+0.0%
Q2 2014+0.0%
Q1 2014-3.7%
Q4 2013+7.7%
Q3 2013-10.5%
Q2 2013+3.0%
Q1 2013+9.1%
Q4 2012+0.0%
Q3 2012+14.3%
Q1 2012+14.3%
Q4 2011-9.1%
Q3 2010-15.4%
Q3 2011-15.4%
Q2 2010+9.1%
Q2 2011+9.1%
Q1 2011-6.7%
Q4 2010+0.0%
Q1 2010+0.0%

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