Stamp of Trust
ATLANTA, Ga., Aug. 13, 2024 (GLOBE NEWSWIRE) — Trust Stamp (Nasdaq: IDAI), the Privacy First Identity Company™, delivering AI-powered software used across multiple sectors globally, announced financial results and provided a business update for the six months ended June 30, 2024, including 100% year-over-year growth in registered customers and increased net revenue for the quarter and six months ended June 30, 2024.
Gareth N. Jenner, CEO of Trust Stamp, commented: “We are pleased to report our progress for the six months ended June 30, 2024. Our relationships with our long-term customers remain very strong and we expect to see long-term growth in revenue derived from these relationships. At the same time, as we have previously reported, SaaS services through our orchestration layer are becoming an increasingly important part of our product mix. As of June 30, 2024, 62 financial institutions have signed up for our SaaS orchestration layer, compared to 31 as of June 30, 2023, a 100% year-over-year increase. Our focus on FIS channel partnerships in 2023 was reinforced this year by the highly regarded ThinkTech program run by the National Association of Independent Community Bankers, which has resulted in us customizing some of our offerings for the community banking sector, such as the launch of our new Wire Transfer Authorization product, for which we have identified four new banking customers as an initial pilot.”
Gareth Jenner further commented, “One of the most common questions we get asked by investors is how much recurring revenue each orchestration layer user can expect once they are fully operational. This is a difficult question and the range can be quite large as we do not yet have a large enough sample size to make a data-driven estimate. Our first orchestration layer customer is fully operational and consistently generates MRR over $14K, with gross margins of 83.3%. In contrast, our S&P 500 bank customer consistently generates ARR over $1.2M, with variable but lower gross margins. We expect both the long-term average revenue and gross margins from a typical orchestration layer customer to be closer to the former than the latter.”
“Our net revenues increased from $919,000 for the six months ended June 30, 2023 to $1,070,000 for the six months ended June 30, 2024, despite the fact that we committed significant billable resources to outstanding product enhancements to maximize the future revenue potential from our key customer relationships.”
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“One of the benefits of our broad intellectual property portfolio, microservices architecture, and orchestration layer infrastructure is that our technology can be deployed across multiple sectors without significant development work on our side. During the period ending June 30, 2024, we have established new distribution channels for our financial services products using NayaOne Marketplace and AWS Marketplace. In the case of AWS, existing customers can discover, test, contract, and pay for Trust Stamp technology through their AWS account, and receive AWS usage credits for the services we provide. During this period, we also announced deployments with strategic partners serving the auto dealer market and the release of an AI-powered age estimation product, supported by newly filed patent applications.”
“Outside the US, we have signed an agreement with Africa’s largest mobile network provider for a proof of concept to deploy our technology for mobile identity verification for financial transactions, and through a master services agreement with a branded card network, we have plans for usage in banks in at least two African countries by the end of 2024. As an example of new market sectors, we have signed two partnerships with partners in the UK and Denmark for implementations in the IoT market, as well as launched a go-to-market collaboration in healthcare with a focus on the UK, US and Scandinavian markets.”
“We are committed to out-licensing our intellectual property for commercialization in various market sectors, in addition to go-to-market partnerships aimed at expanding our geographic and vertical markets, and expect to record significant license fees under ‘other income’ in the third quarter of 2024 and continue to announce innovative and profitable collaborations for licensing of our intellectual property thereafter.”
“Selling, general and administrative expenses increased $777,000, including a $466,000 impact from the timing of stock-based compensation grants and a one-time impact of $108,000 from the reversal of out-of-period expenses related to holding mobile hardware assets incurred during the six months ended June 30, 2023. These increases, along with other increases in individual SG&A expenses, were offset by notable reductions in SG&A during the six months ended June 30, 2024, including reductions in professional fees, management consulting and training, and office rental expenses totaling $540,000 as a direct result of our ongoing cost reduction initiatives.”
“As of June 30, 2024, the Company had 22 issued patents and 15 provisional or pending patents, compared to 16 issued patents and 15 provisional or pending patents as of the same date in 2023. Related research and development expenses for the six months ended June 30, 2024 decreased by $190,000, or 15.76%, compared to the six months ended June 30, 2023, due to the completion of the in-house transition of all research and development operations.”
“For the six months ended June 30, 2024, our operating loss was $5.47 million, up from $4.96 million for the six months ended June 30, 2023, with our net loss increasing accordingly. This resulted in basic and net loss per share of $0.21 for the three months ended June 30, 2024, a decrease compared to $0.32 per share for the three months ended June 30, 2023. Additionally, basic and net loss per share for the six months ended June 30, 2024 was $0.47, a decrease compared to $0.80 per share for the six months ended June 30, 2023.”
Copies of the Form 10-Q reports for the six months ended June 30, 2024 and 2023 have been filed with the Securities and Exchange Commission and are available on the Company’s website at: https://investors.truststamp.ai/sec-filings/.
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Investor: investors@truststamp.ai
About Trust Stamp
Trust Stamp, The Privacy First Identity Company™, is a global provider of AI-powered software and data transformation services for multiple sectors, including banking and finance, regulatory compliance, government, real estate, communications and humanitarian services. Trust Stamp has offices across North America, Europe, Asia and Africa and is traded on the Nasdaq Capital Market (Nasdaq: IDAI).
Safe Harbor Statement: Cautionary Statement Regarding Forward-Looking Statements
All statements in this release that are not based on historical facts are “forward-looking statements,” including statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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 release may contain forward-looking statements and information relating to, among other things, the Company, its business plans and strategies, and its industry. These statements reflect management’s current views with respect to information currently available about future events and are subject to risks and uncertainties that may 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 they are made. The Company assumes no 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.
