LAKE MARY, Fla., May 23, 2024 /PRNewswire/ -- VerifyMe, Inc. (NASDAQ: VRME) together with its subsidiaries, Trust Codes Global Limited ("Trust Codes Global") and PeriShip Global LLC ("PeriShip Global"), (together "VerifyMe," "we," "our," or the "Company") provides brand owners time and temperature sensitive logistics, supply chain traceability, authentication, anti-counterfeiting, and data-rich brand enhancement services, announced today 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 our global carrier customer. The change has no impact on Precision Logistics' Proactive services and 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, we expect the gross margin percentage for 2024 will be reduced, but we still anticipate the 2024 gross margin percentage for VerifyMe will still exceed the 2023 gross margin percentage. The Company is currently actively identifying strategies to reduce the impact of the gross margin reduction on adjusted EBITDA.
On February 6, 2024, the Company presented a five-year outlook for the Company. This outlook is primarily based upon the growth initiatives unrelated to Premium services within the Precision Logistics Segment. Adam Stedham, CEO and President of VerifyMe stated, "although the timing of this event is unfortunate for VerifyMe in achieving our 2024 goals, we continue to be making strong progress on our defined strategy, and I continue to focus on fully executing our five-year plan."
About VerifyMe, Inc.
VRME), together with its subsidiaries, PeriShip Global and Trust Codes Global, is a traceability and customer support services provider using specialized software and process technology. The company operates a Precision Logistics Segment and an Authentication Segment to provide specialized logistics for time-and-temperature sensitive products, as well as item level traceability, anti-diversion and anti-counterfeit protection, brand protection and enhancement technology solutions. VerifyMe serves customers worldwide. To learn more, visit https://www.verifyme.com.
Cautionary Note Regarding Forward-Looking Statements
SOURCE VerifyMe, Inc.
