Trust Stamp President announces substantial H1-2024 growth including the 69th customer on its low-code Orchestration Layer platform
Trust Stamp (Nasdaq: IDAI) reported substantial growth in H1 2024 by onboarding 21 new customers to its low-code Orchestration Layer platform, totaling 69 customers.
The company expanded its financial services client base in the U.S. and internationally and entered new industries. It added 14 banks to its platform via a main channel partnership, which signifies a slower-than-expected ramp-up but long-term revenue potential.
Trust Stamp's biometric Identity Tokenization technology allows for easier reauthentication processes, and the company is experiencing steady revenue growth from its existing clients.
New distribution channels like NayaOne and AWS Marketplace have been established, and Trust Stamp initiated a proof of concept with Africa’s largest mobile network provider.
The company is diversifying into the social media sector with age estimation technology, automotive dealership partnerships, IoT market collaborations, and a healthcare-focused go-to-market strategy.
Additionally, Trust Stamp has been awarded a multi-year public safety contract by an EU government, and extended a strategic relationship with ManTech for defense sector opportunities.
- Trust Stamp onboarded 21 new customers for its Orchestration Layer platform in H1 2024.
- The company added 14 banks to its platform through a main channel partnership.
- Trust Stamp established new distribution channels with NayaOne and AWS Marketplace.
- Revenue growth achieved from existing clients, with the first customer generating over $14k MRR.
- Diversified into social media with AI-powered age estimation technology.
- Awarded a multi-year public safety contract by an EU government.
- Extended strategic relationship with ManTech for defense sector potential.
- Slower-than-expected ramp-up in bank integrations impacting short-term revenue growth.
- Revenue from initial integration contracts remains nominal, dependent on usage fees.
Insights
Financial growth in the first half of 2024 indicates Trust Stamp's strategic expansion and customer acquisition, particularly in the financial services sector. Adding 21 new customers, increasing the total to 69, reflects their successful outreach and product adoption. However, the revenue from these integrations is currently nominal, with significant revenue potential hinging on usage fees. Investors should note the slower than expected ramp-up in transactional usage, which delays immediate financial returns but promises long-term value as integration progresses.
Trust Stamp's partnerships with well-known platforms like AWS Marketplace and NayaOne Marketplace are strategic moves to broaden their distribution channels without expanding headcount. This approach is efficient, allowing for streamlined integration and potential revenue growth from a diverse client base.
The company’s move beyond financial services into industries like social media and automotive dealerships and expanding geographically to Africa and Europe, illustrates a well-rounded growth strategy. An investor should consider both the short-term challenges in revenue recognition and the long-term prospects of a diversified customer base and strategic partnerships.
Trust Stamp’s focus on AI-powered identity and fraud mitigation technologies addresses an emerging need in the market due to the rise of sophisticated AI-driven attacks. Their patented Quantum-Proof AI-powered technologies and AI-powered presentation attack countermeasures position them as leaders in a niche but growing market. The development of the Identity Tokenization (IT2) solution, which can be used beyond traditional enrollment scenarios, represents a significant technological advancement. This offers a versatile and secure method for reauthentication, potentially increasing the usage and value proposition of their platform.
Establishing innovative solutions like AI-powered Age Estimation for social media also demonstrates Trust Stamp’s ability to pivot and apply their technology to new regulatory-driven markets. Continued innovation and patent filings indicate a robust R&D pipeline, essential for maintaining a competitive edge in the tech landscape.
Trust Stamp’s expansion into international markets and new industries signals a strategic diversification, which could mitigate sector-specific risks. Their collaboration with Africa’s largest mobile network provider and a branded card network shows a proactive approach to capturing emerging market opportunities in mobile identity verification. Additionally, the entry into the automotive, IoT and healthcare markets highlights their commitment to leveraging AI-powered solutions across various sectors.
The Master Services Agreement with a branded card network in Africa and the go-to-market collaboration in healthcare for the UK, US and Scandinavian markets, provide a broader revenue base and potential for substantial growth. The public safety contract awarded by an E.U. government further underpins Trust Stamp’s credibility and potential in the public sector, suggesting a solid foundation for future revenue streams.
Investors should monitor the company’s ability to convert these initial contracts into sustainable revenue while considering the political and regulatory uncertainties that might impact project timelines, especially in the federal government sector.
Trust Stamp’s President provides a holistic overview of business growth in H1 of 2024 including the growth of Trust Stamp’s financial services client base in the United States and internationally, and entry into new industries
Atlanta, GA, July 11, 2024 (GLOBE NEWSWIRE) -- Trust Stamp (Nasdaq: IDAI), announced that in H1 of 2024 it has onboarded 21 new customers to its low-code Orchestration Layer platform, bringing the total number to 69, while growing its overall financial services customer base in the United States and internationally and increasing the industries served.
Trust Stamp President Andrew Gowasack, commented, “We have made tremendous progress building our business in 2024 and I know that it can be frustrating for shareholders who typically see company performance through the short term prism of reported revenue, or the snapshot of individual press releases, therefore I am pleased to provide our shareholders, and the market, with a holistic report on our business achievements for H1 of 2024.”
Andrew Gowasack continued, “I will start by observing that there is an unprecedented need for our AI-powered identity and fraud mitigation products because of the rapid emergence of ever more sophisticated AI-powered attacks including AI-generated “Super Synthetic” identities. I believe that the current and projected growth in our business is and will be fueled by our investments in research and development that have resulted in a substantial portfolio of patented Quantum-Proof AI-powered technologies, a number of which are tailor made to combat AI-powered presentation attacks. Our thesis is that every company that is using legacy technology to defend against AI-enabled fraud will soon be forced to invest in AI-powered technologies, and consequently, in parallel to our own sales initiatives, we are in discussions with other providers of identity authentication solutions with a view to collaborations that can leverage our market-leading technology.”
Gowasack further commented, “I am delighted to announce that in H1 of 2024 we added an additional 14 banks to the Orchestration Layer through our main channel partnership. This partnership has allowed us to quickly expand our contracted customer base in the U.S. financial services sector although the key to meaningful revenue growth will be accelerating and extending the usage of our technology by the contracted financial institutions. The revenue from the initial integration contract is nominal with significant revenue potential resulting from usage fees, and we are at the mercy of the financial institutions in terms of prioritization of their resources and timing of their roll-out. To date a little over half of the financial institutions contracted through the channel partnership have progressed integration to the point that we are seeing initial transactional usage. This is a slower ramp-up than we anticipated, but we are confident that the lifetime value of bank and other large financial institution customers will provide an excellent long-term return on our acquisition and associated costs.”
Gowasack went on to say, “Unlike typical identity verification (IDV) solutions, our Identity Tokenization (“IT2”) allows biometric based data to be safely used for more than just new customer enrollment without saving the underlying biometric data. Once a customer creates an IT2, reauthentication for processes like PIN/password resetting and change of address is as easy as taking a selfie. This means that the potential usage of Trust Stamp technology can be much higher than traditional IDV solutions and the wide range of potential use cases is reflected by our new authentication tool for wire transfers and other large and/or high risk transactions. One of the most commonly asked investor questions is how much recurring revenue we anticipate from each Orchestration Layer user once in full production. This is a challenging question to answer as we do not have a large enough sample size to produce a data driven estimation, and the range is likely to be significant. What I can say is that our first Orchestration Layer customer in full production is consistently generating in excess of
In addition, Trust Stamp has established new distribution channels for its financial services products with NayaOne Marketplace, and AWS Marketplace. Andrew Gowasack commented, “These channels provide accessibility and simplified integration for prospects without requiring us to expand our headcount. In the case of AWS, their existing customers are able to discover, test, contract and pay for Trust Stamp technology through their AWS account and receive AWS usage credit for the services that we provide.”
Outside of the United States, Trust Stamp has contracted with Africa’s largest mobile network provider for a proof of concept deploying Trust Stamp technology for mobile identity verification for financial transactions, and through its Master Services Agreement with a branded card network, is seeing planned usage expanding to banks in at least two African countries in H2 of 2024.
Trust Stamp has also expanded outside financial services adding its first social media customer implementing AI-powered Age Estimation technology. Andrew Gowasack commented, “This is a critical first step in the market as we pursue opportunities arising from new and/or more aggressively enforced legislation in the U.S. and E.U. requiring age verification for access to mature content, and also ensuring that users under 13 do not sign up for online services without adult approval. This first customer is allowing us to prove our technology and further refine our algorithms with a view to creating a market-leading product. Our experience with the customer has led to our developing a novel approach to increasing accuracy in AI age predictions and we have already filed a provisional patent related to that innovation.”
In addition, Trust Stamp has begun implementation with a strategic partner in the U.S. serving automotive dealerships, which are experiencing a
Andrew Gowasack finally commented, “For several years we have invested in developing specialized products focused on the identified needs of the United States federal government. In January of 2024 we entered into a teaming agreement with ManTech for the implementation of our Quantum-Safe technology services, and in H1 of 2024 we extended that strategic relationship to potential uses in the defense sector. While there is a considerable degree of political uncertainty impacting the potential timing of all new federal government projects, we have reason to anticipate that these initiatives will result in significant revenue in 2025."
Enquiries
Trust Stamp Email: Shareholders@truststamp.ai
Andrew Gowasack, President: agowasack@truststamp.ai
About Trust Stamp
Trust Stamp the Privacy-First Identity CompanyTM, 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 across North America, Europe, Asia, and Africa, Trust Stamp trades on the Nasdaq Capital Market (Nasdaq: IDAI). The company was founded in 2016 by Gareth Genner and Andrew Gowasack.
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 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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