REG - T Stamp Inc - Earnings Release | Full Year 2021 Results
13/04/2022 08:15
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RNS Number : 1949I T Stamp Inc 13 April 2022
T STAMP INC
('Trust Stamp' or 'The Company')
Trust Stamp announces record revenue for both Q4 and full-year 2021, with
momentum continuing into 2022
13 April 2022: Trust Stamp (Nasdaq: IDAI, Euronext Growth: AIID ID), the
Privacy-First Identity Company(TM) providing AI-powered trust and identity
services used globally across multiple sectors, provides a business update and
commentary on reported financial results for the three and twelve month
periods ended 31 December 2021 ("Q4 2021" and "Full Year 2021", respectively).
Fourth Quarter and Full Year 2021 Financial Highlights
● Net Sales were $3.7M in Full Year 2021, a 38.9% increase
year-over-year
● Net Sales were $2.1M in Q4 2021, a 69.7% increase year-over-year
● Gross Profit was $2.5M, a 124.0% increase year-over-year
● Gross Profit Margin for Full Year 2021 was 68.7% compared to
42.59% for Full Year 2020
● Operating Margin improved in Q4 2021 to -93.83% compared to
-241.74% for Full Year 2021
● Net Profit Margin was -96.55% in Q4 2021 compared to -246.31% in
Full Year 2021
● Net Loss decreased by 15.22% year-over-year, improving Diluted Net
Loss per Share to $(0.46) in 2021 from $(0.90) in 2020
● Total Financing closed came to $9.8M from offerings commenced in
2021
● Total Assets were $8.7M at year end 2021, a 80.0% increase from
$3.9M at year end 2020
2021 Operational Highlights
● Initial government contract award of $3.92M with the U.S.
Department of Homeland Security in September 2021, subsequently increased to
$7.17M through in March 2022
● Intellectual property portfolio growth with three new issued
patents and 11 new pending patents produced in Full Year 2021
● Headcount grew to 94 full-time team members at year end 2021 from
57 at year end 2021
● Wholly-owned subsidiaries established, with Trust Stamp Rwanda
Limited focused on R&D, and Metapresence Limited focused on crypto-asset
services
Gareth Genner, Chief Executive Officer, comments: "I am pleased to report
strong financial performance in 2021, with notable growth in the fourth
quarter reflecting the momentum which has continued into another record period
in Q1 of 2022. Our go-to-market traction, successful financing activities, and
investment in intellectual property and scalable infrastructure position us to
drive consistent growth and meaningful value for shareholders throughout 2022
and beyond.
Our ongoing investment into building out our internal capabilities and
developing our innovative IP portfolio to address evolving needs for privacy,
security, and accessibility in digital operations resulted in key strategic
achievements in 2021, including entry into the GovTech space with a contract
from the United States federal government, growth in our client and prospect
base, and expanded commercial relationships with both new and flagship
customers.
Trust Stamp provides transformational, privacy-first technologies that give
individuals greater control and protection of their own data while
strengthening organizational security, at a fraction of the cost of legacy
solutions. Our growth in 2021 parallels an increased awareness of the risks
associated with conventional means of authentication including the breach and
exposure of data, along with a rapidly evolving global regulatory landscape
around data privacy and protection, both of which we anticipate to continue
trending upward.
Trust Stamp is committed to delivering solutions that support robust,
accessible, and equitable financial systems with vast potential to impact the
large yet underserved addressable market made up of an estimated 4B
underbanked individuals around the world. Innovation for global inclusion
remained a core strategic focus in 2021 as we established a subsidiary in
Rwanda, which today represents our second largest R&D hub, and a key base
as we continue to develop important governmental and commercial relationships
in the region.
With continued cross-industry successes as we execute on a mission-driven
strategy for global growth, we remain highly encouraged by the outlook for the
business and look forward to providing further updates in the weeks and months
ahead."
Financial Performance Overview
Revenue
Net Sales for the Full Year increased to $3.7M in 2021 from $2.6M in 2020 as
Trust Stamp expanded on agreements with existing customers in line with our
strategy of seeking long-term revenue channels that can drive stable growth.
We also acquired new customers, doubling the number of non-affiliated clients
generating significant revenue to six customers. As a result, our flagship
customers comprise a smaller proportion of revenue compared to prior years
despite their own increased engagements with us.
Gross Profit and Profit Margin
Gross Profit increased by a notable 124.0% year-over-year, to $2.5M in 2021
from $1.1M in 2020, while Gross Profit Margin improved by 26.1%
year-over-year, to 68.7% in 2021 from 42.6% in 2020. The improvements in Gross
Profit and Margin result from a change in the disaggregation of revenue earned
through different sales models, reflecting our ongoing efforts to shift income
streams from custom implementation and development work to semi-custom
implementations, in addition to onboarding contracts that provide for
long-term pay-per-use revenue, with relatively nominal costs to implementing
existing technology.
Operational and Strategic Developments
Growth in Global Team and Presence
Trust Stamp's headcount grew to 94 team members from 57, with a focus on
accelerating R&D and productization in addition to expanding our global
sales team's capacity to address increased interest across geographies and
verticals. Trust Stamp hired our Chief Innovation Officer in September 2021 to
lead various R&D initiatives as well as the monetization of existing
technology.
Trust Stamp Rwanda Limited was formed in May 2021 as part of our commitment to
delivering equitable, accessible, and secure identity technologies that power
inclusion in all regions of the world. Our African R&D center had 12
employees by 31 December 2021. Trust Stamp Malta Limited also experienced
significant expansion during 2021, growing from 23 to 40 staff members as
Trust Stamp's largest R&D center and our hub for E.U. operations.
This growth in headcount and resulting overhead requirements led to a $1.9M
increase in year-over-year Selling, General, and Administrative expenses,
totalling $8.3 million for the year ended 31 December 2021, and contributing
to a 13.8% or $1.5M increase in Total Operating Expenses. Both increases were
outpaced by the growth rate of Net Sales.
Intellectual Property
Trust Stamp continued developing a robust intellectual property portfolio,
adding three new patent issuances and 11 new pending patents, including
multiple that serve to secure protection and validate our innovation behind
the liveness verification and presentation attack detection technologies
central to our fraud-resistant biometric services. Most notably, we received
allowance of the patent for Trust Stamp's core market differentiator, our
privacy-first data tokenization technology.
Digital Asset and Cryptocurrency Services
To further develop a competitive position in the digital asset space, Trust
Stamp established the Metapresence Limited subsidiary as a participant in The
Digital Isle of Man Accelerator Program, which provides access to a regulatory
sandbox where flexible licensing conditions enable agile development of
digital asset services. The subsidiary operates Trust Stamp's currently
beta-stage Crypto Key Vault solution designed to provide cryptocurrency and
NFT investors with the security and convenience of traditional financial
services, using our proven facial biometric authentication technology.
Financing
These operational developments were supported in part by the Trust Stamp's
financing activities throughout 2021, carrying into early 2022. Building on
the success of a private $4.0M round of funding in the first half of 2021 and
driven by investor interest, Trust Stamp launched a public round of funding in
Q3 2021 with the primary goal of driving our January 2022 uplisting to the
Nasdaq Capital Market. Financing and operating activities, combined with the
monetization of internal-use software, resulted in an 80.0% increase in Total
Assets to $8.7M at year-end 2021 from $3.9M at year-end 2020.
H1 2022 Outlook
We expect significant year-on-year revenue growth for the first two quarters
of 2022. This growth is expected to come from pre-contracted monthly payments
from current clients along with revenue growth from new clients in a maturing
sales pipeline. As of 31 December 2021, our commercial pipeline included 55
potential revenue contracts and projects.
In addition to generating revenue in 2021, our investment in business
development led to significant client engagements for proof-of-concept and new
product development, which we expect to result in future recurring revenue.
The 64.9% headcount increase in 2021 enabled the transition of most of Trust
Stamp's software development activities from outsourcing to in-house, which we
expect to further reduce costs, improve margins, and accelerate service
delivery.
We will continue pursuing new commercial opportunities to expand our client
base, along with the scope and range of services provided both to and through
our clients as we also focus efforts on engaging channel partners with
substantial distribution networks and the potential for high revenue impact at
relatively low costs. Following substantial investment into developing our
core technology services in prior years and its targeted commercialization
through development of cost-effective, streamlined routes of service delivery
in 2021, two financial service providers utilizing our "low-code"
implementation platform publicly announced partnership with Trust Stamp in Q1
2022, including S&P 500 company and global leader in financial services
technology, FIS.
Trust Stamp has made significant progress on executing key strategic goals in
the first quarter of 2022, including uplisting to the Nasdaq Capital Market on
28 January 2022. With a strong balance sheet and cash on hand following
closing $5.8M in funding in January 2022, we anticipate having sufficient
liquidity to support our working capital needs to execute on our growth plan
through 2022.
Enquiries
Trust Stamp
Email: Shareholders@truststamp.ai
Gareth Genner, Chief Executive
Officer
Nisha Naik, Executive VP of Communications
Davy (Euronext Growth
Advisor)
Tel: +353 1 679 6363
Barry Murphy
Investor
Relations
Tel: +1 212-671-1021
Crescendo
Communications
Email: idai@crescendo-ir.com
About Trust Stamp
Trust Stamp (https://truststamp.ai/) , the Privacy-First Identity Company(TM),
is a global provider of AI-powered identity services for use in multiple
sectors including banking and finance, regulatory compliance, government, real
estate, communications, and humanitarian services. Its technology empowers
organizations with advanced biometric identity solutions that reduce fraud,
protect personal data privacy, increase operational efficiency, and reach a
broader base of users worldwide through its unique data transformation and
comparison capabilities.
Located in seven countries across North America, Europe, Asia, and Africa,
Trust Stamp trades on the Nasdaq Capital Market (Nasdaq: IDAI
(https://www.nasdaq.com/market-activity/stocks/idai) ) and Euronext Growth in
Dublin (Euronext Growth: AIID ID
(https://live.euronext.com/en/product/equities/US8730483000-XESM) ). Founded
in 2016 by Gareth Genner and Andrew Gowasack, the company now employs over 100
people.
Safe Harbor Statement: Caution Concerning Forward-Looking Remarks
All statements in this release that are not based on historical fact are
"forward-looking statements" including within the meaning of the Private
Securities Litigation Reform Act of 1995 and the provisions of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The information in this announcement may
contain forward-looking statements and information related to, among other
things, the company, its business plan and strategy, and its industry. These
statements reflect management's current views with respect to future events
based on information currently available and are subject to risks and
uncertainties that could cause the company's actual results to differ
materially from those contained in the forward-looking statements. Investors
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date on which they are made. The company does not
undertake any obligation to revise or update these forward-looking statements
to reflect events or circumstances after such date or to reflect the
occurrence of unanticipated events.
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