Intellicheck (IDN), a leading provider of identity verification solutions, just reported a strong Q1 2024, exceeding revenue expectations and reiterating their commitment to end the year with positive net income and adjusted EBITDA. While the company has historically relied on retail transaction volumes, a closer look at recent earnings call transcripts reveals a strategic shift towards more stable and higher-value use cases. This reorientation of the business suggests Intellicheck is positioning itself for a future where identity verification is seamlessly integrated into a vast array of essential services, ranging from banking and finance to global media and even cryptocurrency.

Reference: Intellicheck on Seeking Alpha

Shifting Away from Retail Reliance

Intellicheck's Q4 2023 and Q1 2024 earnings calls both hinted at a deliberate move away from its historical reliance on retail transaction volumes. This strategic move is not merely a response to temporary headwinds in the retail sector but a proactive approach to tap into more resilient and lucrative markets.

""As we have been discussing with you, an important part of our effort to build awareness of our technology solutions is our growing slate of marketing initiatives. Our new VP of Marketing, Christine Elson, is moving forward in collaboration with our SVP of Sales, Chris Meyer, to develop new tools to support our sales team." - Intellicheck Q1 2024 Earnings Call Transcript"

This shift is evidenced by Intellicheck's expansion into various sectors, including:

- **Banking and Finance:** Securing partnerships with regional and top-tier banks for digital and in-branch use cases.

- **Global Media:** Expanding internationally, providing identity verification services for a renowned global media company in the U.K.

- **Cryptocurrency:** Signing agreements with crypto wallet companies for user validation during account opening.

The Mystery of the "Large Customer"

Intriguingly, Intellicheck's Q1 2024 earnings call mentioned a "large customer" operating in a "non-financial vertical" whose delayed launch impacted the company's guidance. This customer, bound by a strict NDA, has stringent security requirements and a critical need for authentication. CEO Bryan Lewis stated that this customer "will prove to be one of our largest customers" and a "substantial revenue generator," sparking speculation about a potentially game-changing partnership.

""As we approach the midway point of 2024, we believe there is opportunity for growth on multiple fronts, including existing customers, new customers and with additional use cases. What we anticipate will prove to be one of our largest customers who had expected to go live in April has pushed back on their timing. The delay is for good reason. They have made the decision to integrate Intellicheck’s technology into other internal systems as well before going live with us. We anticipate having additional color on this large opportunity over the next few months." - Intellicheck Q1 2024 Earnings Call Transcript"

Analyzing Clues and Potential Partners

Based on the clues provided in the earnings calls, here's an analysis of potential partners:

Clue | Potential Partner | Rationale

------- | -------- | --------

Massive Scale (millions of transactions) | Government Agency | Large-scale identity verification programs for benefits, healthcare, or security clearances.

Essential Service with mandatory authentication | Social Media Giant | Verifying millions of user accounts to combat bot accounts and misinformation.

Global Reach | Healthcare Provider | Implementing secure access to patient records and telemedicine platforms for millions of patients.

Tracking Key Metrics

To understand Intellicheck's evolving business model, it's crucial to track key metrics revealed in the earnings calls:

Trailing 12-Month SaaS Revenue Growth

**Note:** Hypothetical data used. Actual data not available in transcripts.

Average Price Per Scan

Intellicheck has consistently reported an increasing average price per scan, indicating the growing value its customers place on its solutions. This trend is driven by right-sizing legacy account pricing, implementing CPI increases, and securing new customers at higher rates.

""Continuing to cast a critical eye to the metrics of our SaaS revenue, it’s encouraging to see an 18% increase in our average price per scan versus the prior year as we have largely completed right-sizing the pricing of our legacy accounts, enforced internal disciplines on CPI increases and signed new customers at higher rates than we have traditionally executed." - Intellicheck Q1 2024 Earnings Call Transcript"

Looking Ahead: A Potential Period of Explosive Growth

Intellicheck's strategic moves and the mystery surrounding its "large customer" suggest the company is on the verge of a significant transformation. As more details about this partnership are revealed, investors should closely monitor its impact on revenue growth and Intellicheck's positioning within the broader identity verification market.

"**Fun Fact:** The global identity verification market size is expected to reach USD 26.8 billion by 2027, growing at a CAGR of 14.8% from 2020 to 2027. Source"