DKI stock pick, AuthID, announces 1Q revenue almost as high as all of 2023. Guidance indicates they expect quarterly revenue to double this year. They still need to announce new contracts, but the year is off to an excellent start. Lyn Alden @LynAldenContact makes a brilliant point explaining fiscal dominance. DKI illustrated the Fed’s dilemma in a 20-page eBook. Lyn makes the entire situation clear in one post on X. (That’s the definition of great writing.) The PPI is high and some say the Fed should raise rates. The CPI is also high, but below expectations and some say the Fed should lower rates. DKI predicted the dollar would lose share as the world’s reserve currency yet foreigners are buying more Treasury bonds. Were we wrong?
This week, we’ll address the following topics:
AuthID (NASDAQ: AUID) reports 1Q revenue almost as high as full year 2023 revenue. What else did they say?
Lyn Alden @LynAldenContact makes an important point about fiscal dominance. Are we now Japan?
The PPI comes in hot. Should the Fed raise rates?
The CPI comes in light. Should the Fed lower rates?
DKI has said the dollar is losing share as the world’s reserve currency. Is there data proving us wrong?
Ready for a new week of rigorous analysis? Let’s dive in:
AuthID $AUID Reports 1Q:
I’ve been writing about the importance of biometric authentication to secure your sensitive accounts, and we’ve been publicly positive about the investment opportunity in AuthID $AUID. 1Q revenue was almost as high as full year 2023 revenue, and the company gave guidance for the first time. At the low end of guidance, $AUID would average quarterly revenue for the rest of the year that’s double the 1Q number. The company is almost a year ahead of the model I published in DKI’s report. In addition, CFO, Ed Sellitto, did an outstanding job clarifying AuthID’s previously confusing bARR metric by breaking it up into its discrete components.
Presentation clearly shows what part of bARR is a contractual obligation and what is estimated usage above that commitment.
DKI Takeaway: DKI listed three near-term catalysts for $AUID stock. Clarification of financial metrics is now complete. On the call, management expressed confidence in being able to both sign new customers and complete a necessary financing round later this year. Those two things combined with the successful onboarding of multiple new customers this quarter will go a long way towards reducing/eliminating significant downside in the stock. Follow DKI for more information on a coming webinar with company management. You’ll have the opportunity to evaluate management quality and the use cases for biometric security.
Lyn Alden Summarizes an Entire eBook in One Post:
DKI wrote an eBook called Counterintuitive Inflation where we describe how Federal Reserve rate hikes can lead to more inflation. I’ve also written extensively on the quiet war between the Fed, which has been raising rates to try to control inflation, and Congress and the Treasury Department which are spending and monetizing at a level that is creating more inflation. With her typical incisiveness, Lyn Alden @LynAldenContact, manages to summarize all of that work in under 280 characters.
Explaining how fiscal policy trapped the Fed ...Full story available on Benzinga.com
Benzinga
