The figures show the impact of global supply chain issues and a sharp increase at the end of the third quarter of 2021 for Swedish biometrics software developer Precise Biometrics. The company released its Q1-Q3 financial report showing growing profits, along with full customer retention and growth, but amid a tough business year. Developments since the covered trading period suggest better times ahead.
“Precise generated positive EBITDA through cost control and an agile way of working during the continued component shortage that plagued our customers in the third quarter,” wrote outgoing CEO Stefan K. Persson, before a call to present numbers.
“Algo’s profitable business offers the opportunity to continue investing in digital identity. Despite these investments and the decline in royalty income, we report a positive EBITDA result of approximately SEK 1 million (USD 114,000).
However, compared to 2020, sales are down. Q1-3 2020 saw a growth of 31.5%, while the same period for 2021 saw a contraction of 20%. EBITDA for this period in 2020 was 6.15 million SEK (around $ 703,000), down to 206,000 SEK ($ 23,500) in 2021. But the third quarter of 2020 fell to 745,000 SEK ( $ 85,000) while this year the same quarter reached SEK 998,000 ($ 114,000).
Supply chain issues throughout the third quarter affected royalty revenue from biometric algorithms. The CEO noted that, “While June and July have been the months with the lowest orders for our customers so far this year, September has been the best performing month so far in 2021. C ‘is a clear indication that the negative effects resulting from the shortage of components is about to be eliminated and that there will be good opportunities in the future to revert to previous volumes.
The company doubled its annual recurring SaaS revenue to SEK 0.8 million ($ 91,000) compared to the same period last year. The customer churn rate is zero percent, which the company considers a mark of the quality of its YOUNiQ product.
Since this exchange period, Precise has announced the integration of its YOUNiQ product with the Integra security platform for access control, through a partnership with SystemHouse Solutions. Persson says the fourth quarter has started well.
The report says the company is also planning to introduce fingerprint technology in cars for parameter customization.
Precise announced on Twitter that it has registered the “YOU Are the Key” trademark in the EU.
– Precise biometrics (@PBiometrics) November 2, 2021
Stefan K. Persson, CEO of Precise Biometrics, is stepping down and the company is looking for a replacement in time for his notice ending in late March 2022.
biometrics | digital identity | financial results | Precise biometrics | actions | trademark