Trust Stamp Provides a Business Report and Financial Results for the Three Months Ended March 31, 2024
Trust Stamp (Nasdaq: IDAI), a global provider of AI-powered identity services, announced its financial results for Q1 2024. The company reported a net revenue increase from $459K in Q1 2023 to $574K in Q1 2024, driven by significant integrations with financial institutions. However, operating loss increased to $2.85M from $2.58M in the same period. The company highlighted new partnerships, including the ThinkTech program, and the launch of its age-estimation product. Additionally, expenses rose by 26.49% due to increased salaries and stock-based compensation. Despite current losses, Trust Stamp anticipates future recurring revenue and growth in new sectors.
- Net revenue increased from $459K in Q1 2023 to $574K in Q1 2024.
- Total number of integrated financial institutions increased fivefold to 51.
- New age-estimation product launched and first engagement contracted.
- Participation in ThinkTech program expected to drive new revenue streams.
- Entered two joint ventures and a teaming agreement for Federal contracts.
- Additional $115K revenue from S&P 500 bank customer adopting Orchestration Layer.
- Operating loss increased from $2.58M in Q1 2023 to $2.85M in Q1 2024.
- Selling, general, and administrative expenses increased by 26.49%, or $522K.
- Increase in salaries and compensation by $604K due to higher sales staff and in-house roles.
- Basic and net loss per share was $0.26, compared to $0.50 per share in Q1 2023.
Insights
The financial results reflect a year-over-year increase in net revenue from
This increase in expenditures may concern some investors in the short term, but it's important to consider that part of this increase is attributed to strategic investments in sales staff and in-house development, which could potentially yield long-term benefits. Additionally, the basic and net loss per share has decreased from
Investors should closely monitor whether the anticipated recurring revenue from new customer integrations starting in Q3 2024 materializes, as this could significantly alter the financial outlook. Overall, while the short-term financials indicate challenges, the long-term potential could be promising if the company's strategic investments pay off.
The fivefold increase in their financial institution customer base is noteworthy, reflecting the effectiveness of Trust Stamp's Orchestration Layer and partnerships. The integration of 51 financial institutions suggests a strong market acceptance of their technology. The expected recurring revenue starting in Q3 2024 from these integrations could bolster future earnings stability.
The entry into the community banking sector through the ThinkTech program is strategic, as it diversifies their customer base and potentially reduces dependency on larger banks. Additionally, the AI-powered age-estimation product taps into a growing market driven by legislation, providing a new revenue stream with significant potential.
However, the effectiveness of these new initiatives and products in generating substantial revenue remains to be seen. Investors should watch for concrete results from these strategies in subsequent quarters. The success in these areas could drive significant long-term value.
Trust Stamp's focus on leveraging their microservice architecture and Orchestration Layer allows them to penetrate multiple sectors with minimal additional development work, showcasing the flexibility and scalability of their technology. This is particularly important in the dynamic tech industry, where the ability to quickly adapt and serve various markets can be a competitive advantage.
The launch of their AI-powered age-estimation product is a significant technological achievement. It addresses growing regulatory demands and opens up new market opportunities, especially since there is often no legacy vendor to displace. This can position Trust Stamp as a leader in this niche market, potentially driving significant revenue in the future.
From a technical standpoint, the company's strategy to utilize their existing AI-powered innovations through joint ventures and licensing opportunities is sound. This can lead to further growth without substantial additional development costs. Investors should monitor how these technologies are adopted across new sectors and their contribution to revenue growth.
ATLANTA, May 14, 2024 (GLOBE NEWSWIRE) -- Trust Stamp (Nasdaq: IDAI), the Privacy-First Identity Company™ providing AI-powered trust and identity services used globally across multiple sectors, announced financial results and provided a business update for the three months ended March 31, 2024.
Trust Stamp Chief Executive Officer, Gareth N. Genner, commented: “I am pleased to report our progress for the three months ended March 31, 2024.
“The relationship with our long-term customers remains very strong and we anticipate continued long-term growth in the revenue derived from those relationships.
“In respect of new customers, a significant number of additional financial institutions integrated with our Orchestration Layer both via our channel partnership and directly, bringing the total number of integrated institutions as of the date of this press release to 51 financial institutions representing a fivefold increase in our financial institution customer base since the start of 2023. We had reported nominal revenue from those new customers in 2023 as the financial institutions integrate and eventually roll-out with their end-users, and we currently anticipate recurring revenue from new integrations starting in Q3 2024. We believe that the lengthy lead period from first engagement to significant revenue for integrating financial institutions will be rewarded by the consistency and longevity of the resulting revenue streams.
“Our 2023 focus on US-based banks via our channel partnership with FIS has now been augmented by our participation in the acclaimed ThinkTech program operated by The Independent Community Bankers of America. This engagement has resulted in tailoring some of our product offerings for the community banking sector, including the launch of a new wire/transfer authentication product which is expected to go live in Q3 of 2024 with new bank customers already identified for the initial pilot.
“The market for age estimation products is growing exponentially, fuelled by national and state legislation in the United States and overseas. For many potential customers, this is a new and time-sensitive requirement, and there is often no legacy vendor to be displaced. As a result of research and development that started in 2023 and extended into 2024, we have recently launched our AI-powered age-estimation product and have contracted for our first engagement. We believe that this sector will be an important complement to our mainstream identity products.
“One of the benefits of our microservice architecture and Orchestration Layer infrastructure is the ability for our technology to be utilized in multiple sectors without significant development work on our part. While the identity market is an important concentration for our business, our 22 issued and 13 provisional or pending patents include numerous AI-powered innovations that can be used in other industries. As a consequence, in late 2023, we entered into two joint ventures to expand the market for our products into completely new sectors, as well as a teaming agreement with a major government contractor focused on their using our technology for substantial Federal contracting opportunities. As we move ahead we anticipate additional licensing opportunities as well as collaborations for the use of our technology in new vertical and geographic markets.
“Billable revenue was impacted by our applying resources to unpaid product enhancements for a major client which were undertaken to maximize future revenue potential from that relationship, but our net revenue still increased from
Our operating loss for the three months ended March 31, 2024 was
A copy of the Company’s report on Form 10-Q for the three months ended March 31, 2024 and 2023, has been filed with the Securities and Exchange Commission and posted on the Company’s website at https://investors.truststamp.ai/sec-filings/.
Inquiries
Investors: shareholders@truststamp.ai
About Trust Stamp
Trust Stamp, the Privacy-First Identity Company™, 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). 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.
FAQ
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