Thanks. Hey folks, thank you for attending. You know, got a couple slides. I hate PowerPoint more than anything on the planet. So, I don't even know how many of these go through, but here's the obligatory one that the lawyers make me show, right? So, forward-looking statements, all that good fun stuff. But anyway, so, you know, who are we and what we do, right? Um, you know, what I will say is generally I bum people out when I talk because what we do is stop identity theft and it is so easy to steal your identity anymore, right? The amount of information that is out about us out there is unbelievable. For about $20, I can buy your name, address, birth date, phone number, um, you know, email, all that stuff, right? And then, I travel with less because I got stopped by the TSA too many times. I used to travel with a ton of fakes. Now I only travel with two, but the most expensive part about stealing your identity is getting this fake ID that people really can't tell apart, right? So, what I'll say is about half the adult population in the US and Canada goes through our system every year. So, I'm going to bet that a good chunk of y'all have been through our process and you just don't know. We are white-labeled. Or all you're seeing is somebody using a scanning gun to check out who you are.
Okay, so and we're really good at what we do because we do it very differently than anybody else, right? There's a lot of people in the ID validation space, but they all do it by what I would call templating. What they're going to do, they need a photo of the license and they're going to compare it to a template and then give a probability on how real they think it is. Now, we do it very differently because since the '90s, we've been helping the DMVs create their barcodes. When they were going off magnetic stripe, they didn't know how to do it. They came to us. The reason was we were doing it for the Department of State and the military. So, we knew how to do this. Now, a lot of people think that just because an ID scans, it's real. It's not, right? I literally have four or five hundred fakes on my desk that we get from our customers and law enforcement customers. Every single one of them scans. Does not mean that it's real, right? Every single state, territory, province all have their own unique formats, right? So, I live in South Carolina.
Last fall, South Carolina changed their barcode format. We are something called DL ID card verification program. What that means is so when the states change their format, they come to us and we work with them to make sure that a couple of things are going right. One, they program their machines to print the barcode based on the computer code, which means we get the computer code, which means we know all the hidden security features in that barcode. And in the case of South Carolina, they put in a digital signature, right? AI proof, right? Can't be cracked, quantum computing proof. Two people know that digital signature. South Carolina's DMV and Intellicheck. So, that's how we know with certainty is that a real license or not. Now, sometimes states screw up. Earlier in the year, Alaska came out with a new barcode and two of their DMVs did not program it, right? So, we helped them fix it, right? So, that is what gets us, you know, where we are and what we do, right? Um, very, very simple business, but, you know, important and complex, right? And where do we play, right? So, you know, I always have Adam in the room because he can go explain this stuff better than I can because I truly, truly, as he knows, I hate accounting. But, you know, record revenue, finally profitable, operationally profitable, which is what Adam will make me say because in 2020, we were, but it was only because PPE loan got forgiven, but we are operationally profitable. We will stay that way. We're 47 people.
You know, gross profit margin of around 91%. We don't see that changing at all. Our biggest customers and where we do the most business is straight-up banking. Places where there's real pain, right? If the bank screws up and your identity gets stolen, they need to make you whole, right? So, they want to make sure it's really you. Where we're used in banking is everything from online or in-branch account openings, call centers, loan departments, all those things. When they need to make sure it's you, they're going to use us. And one of the reasons that they like to use us, which I think is a very big competitive moat, is we work with the existing hardware they have in branch. So, the thing that can read a check can read the barcode and give us the data that we need to make sure that we can authenticate it. If you're getting a credit card in a store, the thing that rings up merchandise, or if you're like me and I don't carry my credit cards, but I do like my points, they can do an account lookup. All they got to do is scan your driver's license with the device used to ring up merchandise. Really simple, no cost. Right? If somebody wanted to go in and put in one of our competitors who needs a photo, that's $700 if you're buying them in bulk, right? And think about, you know, a big box store, how many locations they have, how many point of sale workstations they have, the numbers add up dramatically and they just don't want to spend the money. If it is remote, we just turn your phone into a scanner, right? And then we let our customers decide how much friction they want to put into the process. So, most of our customers just do the barcode. Some will then also want a photo of the front to do OCR. And then some might actually want to go all the way to facial recognition. So, we can handle all that, you know, if people want that.
Okay? So, number one, straight-up banking. Number two, credit card and account lookup. Number three, age restricted. Mostly stadiums, where people want to make sure kids aren't getting alcohol. Behind that would be automotive. Behind that would be title insurance. That's generally how the revenue falls. But then, um, very big and growing part of what we're doing is background checks and employment verification. Okay? So, you know, where we've gone, like I said, from loss to profit. Um, we're doing, you know, I'd say pretty well on that. Um, I don't know, Adam, anything you'd want to add to these numbers? I can hand you the mic if there's some interesting accounting things you'd like to say.
So, yeah. And, you know, hopefully that continues, right? I think we've got a really good sales team. We've got a really good marketing team. And the thing that I really like is we really don't lose customers. Our net retention rate is 111%. The only customers that we ever lose is we do have some small bars and restaurants. They go out of business. Right? You can't really help that. Okay? Um, and this is a problem, you know, what we're solving is not a problem that's going down. Right? It has gone up every single year. Because it is getting, again, so easy to steal your identity. Right? You know, it's cheap. It's easy. You know, up 20%, and I think these numbers are really interesting. Right? The fact that almost 80% of all auto dealerships have had somebody come in and buy a car using somebody else's identity. Right? That's why we're growing so much in automotive. And that's an area that we're growing in through partnerships. Channel sales are a big part of what we do.
So, bottom line, fraud's not going away. So, you know, I think I look at our market that we service as a large and unfortunately growing market. Because if you think also other things, you know, we've got a pretty big email customer, right? If I can get control of your email, I can control your whole life. So, if you need to change your password, they're going to use us to make sure that it's really you, right? So, different things like that, businesses that have come to us that I would not have thought of. I wouldn't have thought of trucking, right? But the amount of loss due to people pretending to be a driver, most long-haul truckers are hired remotely. And they come in, they hook up to that trailer, and that trailer disappears, and the average loss is $300,000. So, what we do is we look for spaces where there is real pain, and we can solve it, and we can do it a number of different ways. We've got a lot of different ways for our customers to interact with us, APIs, mobile device, SDKs if you want to build their own mobile app using us. We also have multiple no-integration ways to have customers connect to us, which I'm very excited about because we released the thing we call Desktop as the way that you can get it delivered.
We signed three banks in about six weeks with that. Because a lot of banks, you know, smaller banks, which there are tons of out there, are beholden to other companies like Jack Henry or Alloy for their core banking. And they can take forever to do any kind of integration. Now, they can get around that and put us in and stop their pain immediately, right? So, couple of cool things, like I said, you know, about 100 million, that's about half the adult population. Again, we've been partners with AAMVA, which is the American Association of Motor Vehicle Administrators, since the mid-90s, which gives us access to that data that I was talking about, and we're exceptionally fast. We do what we do in 44 milliseconds. All right? So, that's why it works so well in a retail setting or any of those things. So, the last thing they want is a line building up, but they also want to get more credit card customers and other things like that. You know, if you look at the financials on a bunch of retailers, they make as much or more on their credit card programs than they do in selling merchandise. So, the ability to get more customers very quickly is a big part of their business.
Okay? All right. So, again, just what we're talking about, no two states, territories, provinces, any of that use the same format. Okay? Now, AAMVA prints a standard format. That's what the bad guys use. That's why every one of those fakes that I have will scan and appear to be real. Okay? The other thing I'll say is AI is making it very easy to template an ID and make it look like it is the real thing, right? The machine learning is pretty smart. Most of these fakes come from China, right? Which is also where we tend to buy the plastic. If you go on the websites for where they are selling these fakes, they will talk about they have the exact same plastic as the states are using, right? And they are unbelievably detailed and correct. It's one of the reasons that we have about half the states at the state level, there's a law enforcement agency using us to authenticate IDs, right? The cops can't tell, right? And I don't know about you all, but I lived in New Jersey for 34 years and I worked in Manhattan for 34 years. I had no idea what a New York State driver's license looked like. Okay? How's the clerk in a store going to know? All right? I could barely tell you what a New Jersey license looked like, all right? And most states they all have multiple versions because they're good for at least 10 years. Arizona has licenses that are good for 50 years. How am I going to know, right? So, without having a system that can prove very deterministically, is this piece of plastic real? You're going to get hit, right? And it is, you know, a massive and big problem. Okay?
So, the other thing that we do. So, what most of the folks do, they're going to parse the data out and then match it to what's printed on the front. Again, every one of the fakes I have, it all matches. But, the other thing that we do and why our customers love what we're doing in 44 milliseconds is not only are we giving them a result back that says this license is good, this license is bad, or this license is good but expired, we take all the data out and send it back. So, whatever downstream system you need, we're going to populate it, right? So, you know, applications, all that kind of stuff. One of our bank clients who started off using us in the digital world, they were hoping for a 2% uplift in completed applications. They got a 23% uplift by using us and the speed, and the thing that really made them happy, over 60% of it was Gen Z, you know, like the coveted market everybody wants. So, real simple to get customers, really easy to keep the bad guys out. You know, I sort of say that we are a customer acquisition company that as a byproduct of that, we're going to stop fraud. Okay?
Um, you know, like I said, point-of-sale scanners, mobile devices, branch check scanners, you name it, we hook up with it. I'll say that we've never met a scanner we didn't like, and anything that our customers have, we have been able to integrate with, right? So, again, no cost, right? Which really makes them happy. Um, a couple of call-outs, so, our customers grow with us, right? So, big bank out there, 33% increase in what they spent with us year over year, right? They just keep adding customers, keep adding new use cases. Alloy, like I said, one of the banking software companies that does the core banking, we've integrated with them. We've got a huge regional bank in the Southeast, three-year high seven-figure deal. They're going to double their spend with us this year. We're now getting much more into the buy now, pay later space. First American Title, I love the fact that they have integrated us into their system they call AgentNet. You cannot go through getting title insurance without going through us with them. And then, we're, I think we have two of the top three lease-to-own companies. So, a whole bunch of different markets that we're in, and it seems to me, like I said, pretty much every day there's a new market coming to us.
Okay? So, again, where we're growing, right? Title insurance, cargo freight, banking, channel partner being Alloy, background checks. It's funny that started off in the automotive space. I never would have thought about it, but we have two major automotive companies based in Georgia that are using us because one of them, you could read about them, they were trying to build a battery plant and they had 475 Koreans who knew how to build a battery plant, nobody else did, but weren't here legally. They got shut down for six months. What their partner told us was, which I didn't know, but most auto manufacturers they're like, 'We don't make anything, we just screw it together.' Other companies make the things, ship it to us, and what they got worried about was if one of their suppliers gets shut down, they're going to be out of business and they lose $49,000 a minute that some assembly line isn't running. So, they're requiring all of their suppliers to use us to prove who people are. So, like, you know, to me very interesting new space that we're going to be focusing on.
Like I said, very sticky customer base, 111% NRR. You know, 90% gross profit margins. Do not see that changing. I could certainly have probably three or four times the number of customers I would need and I always say that I probably only need to add a couple of customer success people and then Adam will remind me that he wants a staff accountant if we get to that size. And a really solid balance sheet. No debt, no warrants, and you know, 10 million or so of cash on the books.
So, 22.6, 22.4 in SaaS revenue. The difference there really is just implementation fees and other things like that. Like I said, zero debt, which I love. And no intentions to raise money. We don't need it. We're adding to our balance sheet. You know, I get bankers asking me all the time, 'Hey, you should just go raise some money.' I'm like, 'What am I going to do with it?' Right? It doesn't make any sense. Otherwise, I'd be diluting people. Not what I want to do. You know, if somebody brought us a really, really good company to look at, then maybe we want to buy it, but I thought it was funny. I was in the room for the end of the last presentation. I was talking about valuations. And Adam and I laugh at some of the things, you know, people with $200,000 in revenue, and they want $100 million for their company. We're not going to do that. We're not going to be stupid. I think we've been very smart with how we spent money and what we've done and the ability to grow while being smart and prudent.
So, adjusted EBITDA 2.5. Like I said, first year the company was operationally profitable from the day it started. So, 1.2 million in net income.
So, this I like that people put together, six compelling reasons to invest in Intellicheck, right? Record revenue. Diversification is working. A lot of people used to think that we were just nothing but a credit card company, right? And there's a lot of seasonality in that business, a lot of consumer angst as part of it. But the other areas we made a big focus on getting out into different market verticals. And that, I think, has worked out very, very well, and why we're profitable, right? Very significant competitive moat, right? 250 different barcode formats out there. Our competitors have all gone to the DMVs and said, 'Can we do what Intellicheck is doing for you?' And they've all said, 'No.' Right? And there's 250 different versions out there. You got to do them all or don't do one, right? So, and they're not going to be able to figure it out. Gross margins very, very scalable. And you know, I really do like too is we got recognized by IDC as a leader in the identity space. You know, and they are not like some of the other folks that are pay to play and you buy enough of their services and you'll get a great rating. Like we don't buy any of their services. Okay?
So, there's the folks that follow us. I don't know if you guys do any business with them, but five minutes left. Anybody have any questions about who we are and what we do?
