VerifyMe, Inc. (NASDAQ:VRME) Q3 2024 Earnings Conference Call November 12, 2024 11:00 AM ET

Company Participants

Nancy Meyers - CFO
Adam Stedham - CEO

Conference Call Participants

Michael Petusky - Barrington Research
Jack Vander Aarde - Maxim Group

Operator

Hello, and welcome to the VerifyMe Third Quarter 2024 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to hand the call over to Nancy Meyers. Please go ahead.

Nancy Meyers

Good morning everyone and thank you for joining us today for our earnings call presentation. On the call today, I'm joined by Adam Stedham, CEO and President, who will give an operations and strategic update. Following our management presentation, we will have a Q&A session.

I would like to bring your attention to the note on forward-looking statements on Slide 3. Today's presentation and the answers to questions include forward-looking statements. It should be understood that actual results could differ materially from those projected due to a number of factors, including those described under the forward-looking statements caption and on the risk factors of the company's annual report on Form 10-K and quarterly reports on Form 10-Q.

I will now turn the call over to Adam Stedham for some opening remarks.

Adam Stedham

Thank you, Nancy. I'm pleased with our gross margin, gross profit, and adjusted EBITDA improvement in 2024 versus 2023. These gains have been the result of diligent efforts by the leadership team, and I'm pleased with their results.

In particular, I'm pleased to report in our Precision Logistics segment that we have seen revenue growth during the third quarter in our proactive services that has come very close to offsetting the loss of the premium customer previously disclosed. Our total year-to-date net cash is slightly down at the end of Q3, but we anticipate there will be net cash flow neutral for 2024.

Looking at 2024 as a whole, we anticipate our 2024 revenue will be slightly below 2023 revenue. And I'm disappointed by the lack of revenue growth. A meaningful contributing factor is the FedEx insourcing of services provided to one of PeriShip's premium customers. As just mentioned, we're seeing the results of our expanded sales effort, but the loss of that contract will still drag on the full year results.