REG - T Stamp Inc - Trust Stamp announces record revenue for Q1 2022
13/05/2022 13:15
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RNS Number : 4611L T Stamp Inc 13 May 2022
T STAMP INC
('Trust Stamp' or 'The Company')
Trust Stamp announces record revenue and gross profit for Q1 2022;
revenue increases 430% over the same period last year
May 13 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 months ended March 31,
2022 ("Q1 2022").
First Quarter 2022 Financial Highlights:
● Net Revenue was $2.82M in Q1 2022 compared to $0.53M in Q1 2021, a
430.0% increase year-over-year
● Gross Profit was $2.13M in Q1 2022 compared to $0.27M in Q1 2021,
a 673.8% increase year-over-year
● Gross Profit Margin for Q1 2022 was 75.4% compared to 51.6% for Q1
2021
● Operating Loss decreased to $1.64M in Q1 2022 compared to $1.94M
in Q1 2021
● Net Profit Margin increased to -60.0% in Q1 2022 from -381.7% in
Q1 2021
● Net Loss was $1.69M in Q1 2022 compared to $2.03M in Q1 2021, a
16.7% decrease year-over-year
● Cash and Cash Equivalents were $5.84M in Q1 2022 compared with
$3.48M as of December 31, 2021
Gareth Genner, Chief Executive Officer, comments: "We achieved record revenue
of $2.82 million and gross profit of $2.13 million during Q1 2022,
representing year-over-year increases of 430% and 674%, respectively. Trust
Stamp has reported several significant developments over the past quarter as
we delivered growth across the business, from our targeted suite of solutions
and intellectual property portfolio to our earnings and client base.
This strong financial and operational performance reflects Trust Stamp's
ability to capture diversified market opportunities and grow existing
commercial relationships to generate long-term revenue streams. Notably, we
expanded upon an existing customer relationship within the government sector
while increasing our scope of work with multiple Fortune 500 commercial
clients in the financial services sector. Our technology has garnered interest
across multiple government use cases in the United States and internationally,
addressing pressing concerns around the privacy and security of legacy
biometric implementations. Towards this end, Trust Stamp has made a
significant investment in expanding our government-facing business development
team and are in active discussions with several overseas governments.
We continue to innovate through investment in research and development to
expand and productize our portfolio of solutions, which has led to five patent
issuances and nine new patent application filings in Q1. Trust Stamp's core
technology delivers unparalleled security, utility, and privacy, at a fraction
of the cost of traditional biometric solutions, driving commercial growth as
we address cross-industry needs for fraud prevention, operational efficiency,
and accessibility in digital services.
We are notably pleased with the launch and commercial adoption of our
next-generation Biometric Multi-Factor Authentication (Biometric MFA
(https://partners.truststamp.ai/biometric-mfa) (TM
(https://partners.truststamp.ai/biometric-mfa) ))
(https://www.globenewswire.com/Tracker?data=Qe0OVruydjPG4yFVwO4rvuH-X3Mi0S16u48Kjk7erdD6cu5_cS-C_RLlNbL-ouI9fJ_oRUxfk8Av5BgjABWp4F1ubDVCo2fYdTqa7phcHIw=)
offering and Identity Orchestration Platform, which transforms secure
digital operations across the identity lifecycle with seamless rapid
deployment of custom workflows built on our range of innovative AI-powered
solutions. The low-code identity package addresses key industry and consumer
requirements, including know-your-customer (KYC) and anti-money laundering
(AML) regulations, multi-factor authentication, account recovery, fraud
prevention, data protection, and more.
Following the launch of our end-to-end Identity Orchestration Platform, FIS, a
leading financial services technology provider with over 20,000 clients,
announced a partnership to leverage Trust Stamp's biometric verification and
tokenization capabilities in their global KYC solution. We continue to onboard
new clients and partners, including VIVA Finance, which is integrating our
biometric verification, document validation, and data protection technology to
power and protect robust, accessible, and equitable financial services. Beyond
internal sales initiatives, Trust Stamp is also focused on engaging channel
partners with substantial distribution networks, which we believe will enable
us to rapidly and cost-effectively scale the business.
Trust Stamp's commitment to innovating secure, privacy-first identity and
trust verification solutions, investment in scalable infrastructure, and
strengthened presence across a range of market opportunities position us to
drive continued positive performance as we execute on our long-term growth
strategy with a strong balance sheet, including cash on hand of $5.86 million.
Building upon our work to drive market differentiation and shareholder value
with a resilient and diversified business over previous years, 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 January
31, 2022. On behalf of the Trust Stamp team, I want to thank our shareholders
for your continued support as we execute our mission to accelerate secure
global financial and societal inclusion."
Financial Performance Overview
Revenue
Net revenue increased by $2.29 million or 430.0%, to $2.82 million for Q1
2022, compared to $532 thousand for Q1 2021. This increase was primarily due
to revenue contracts executed by newly acquired and existing customers.
Gross Profit
Gross profit increased by a notable $1.86 million or 673.9% year-over-year in
the first quarter, while gross profit margin improved to 75.4% in Q1 2022,
compared to 51.6% for Q1 2021. The improvement was due in part to the
Company's prior investment in research and development, which enabled the
utilization of existing technologies with relatively nominal implementation
costs for new deployments.
Research and Development
Research and development (R&D) costs decreased by $261 thousand or 34.6%
year-over-year in the first quarter. The decrease in R&D expenses in the
comparison periods was driven by the Company's continued efforts to transition
software development resources towards expanding internal capabilities and
away from external third-party software development.
Selling, General, and Administrative Expenses
Selling, general, and administrative (SG&A) expense increased to $3.12
million for Q1 2022, compared to $1.33 million for Q1 2021. The increase in
SG&A expense during the period ended March 31, 2022 was driven by legal
and professional services fees, other fees related to the listing of the
Company's common stock on the Nasdaq Capital Market, and internal sales
commissions.
Operating Loss
Operating loss decreased by $295 thousand to $1.64 million for Q1 2022,
compared to $1.94 million for Q1 2021. The primary reason for the decrease in
operating loss was the growth in net revenue, which outpaced the growth in
operating costs by a factor of 5.3. Adjusting for additional non-cash and
non-recurring activities results in an even more significant improvement to
the operating margin.
Net Loss
Net loss decreased 16.7% or $0.07 per basic and diluted share for Q1 2022 to
$1.69M from $2.03 million or $0.11 per basic and diluted share for the same
period last year.
Liquidity and Capital Resources
As of March 31, 2022, and December 31, 2021, the Company had approximately
$5.84 million and $3.48 million of cash, respectively. The increase in cash
during the comparative periods was a result of the net positive cash inflow
from the combination of financing and operating activities. In Q1 2022, the
Company received $1.95 million related to a government contract and $3.32
million from a warrant exercise, as well as $365 thousand in units sold and
warrants exercised in connection to the Company's 2022 fundraising efforts in
preparation for its Nasdaq listing.
Total working capital as of March 31, 2022 was $5.63 million, compared to
$3.36 million as of December 31, 2021. As of March 31, 2022 and December 31,
2021, the Company had no long-term debt. Total stockholders' equity was $7.42
million as of March 31, 2022, compared to $5.03 million as of December 31,
2021.
Enquiries
Trust Stamp
Email: Shareholders@truststamp.ai
Gareth Genner, Chief Executive Officer
Josh Allen, Executive VP for Corporate Finance
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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