Trust Stamp Provides a Business Report and Financial Results for the Three Months Ended March 31, 2024
May 14 2024 - 10:00AM
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 $459
thousand for the three months ended March 31, 2023 to $574 thousand
for the three months ended March 31, 2024. The increase in net
revenue included an additional $115 thousand revenue from our
S&P 500 bank customer adopting the Orchestration Layer.
Selling, general, and administrative expenses increased by $522
thousand, or 26.49%, including a $604 thousand increase in salaries
and compensation due to increasing our sales staff, bringing
in-house development operation roles that were previously
outsourced, and a $257 thousand impact from the timing of
stock-based compensation awards.
Our operating loss for the three months ended
March 31, 2024 was $2.85 million, increasing from $2.58 million for
the three months ended March 31, 2023, with a corresponding
increase in our net loss. This resulted in a basic and net loss per
share of $0.26 for the three months ended March 31, 2024 compared
to $0.50 per share for the three months ended March 31, 2023.”
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.
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