VerifyMe lowers 2024 revenue growth view to mid-single digits from double digits

Consensus for 2024 revenue growth is 8.20%. VerifyMe announced an update on its 2024 outlook. VerifyMe has been notified by its large global carrier customer that it will end subcontracting VerifyMe’s Premium logistics service for one of its customers in June 2024. Discontinuing this contract is not due to any issues relating to the quality of the services provided by VerifyMe’s Precision Logistics segment, but due to a strategic realignment of offerings by the global carrier customer. The change is not expected to have an impact on the remaining Premium services within the Precision Logistics Segment. However, this discontinued contract with one customer represents a meaningful portion of the Premium services revenue. As a result of this change, we are updating our 2024 revenue guidance. We now anticipate the total VerifyMe 2024 revenue growth rate to be mid-single digit, as opposed to double digit growth. In addition, expects gross margin percentage for 2024 to be reduced, but still anticipates 2024 gross margin percentage for VerifyMe to exceed 2023 gross margin percentage. The company is currently identifying strategies to reduce the impact of the gross margin reduction on adjusted EBITDA.