Atlanta, Georgia, May 13, 2022 (GLOBE NEWSWIRE) — Trust Stamp (Nasdaq: IDAI, Euronext Growth: AIID ID), the Privacy-First Identity CompanyMT providing AI-powered identity and trust services used globally across multiple industries, provides a business update and commentary on the 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, an increase of 430.0% year-over-year
- Gross profit was $2.13M in Q1 2022, compared to $0.27M in Q1 2021, a 673.8% year-over-year increase
- Gross 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
- The 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, down 16.7% year-over-year
- Cash and cash equivalents were $5.84M in Q1 2022 compared to $3.48M as of December 31, 2021
Gareth Genner, Chairman and CEO, comments: “We achieved record revenue of $2.82 million and gross profit of $2.13 million in the first quarter of 2022, representing year-over-year increases of 430% and 674% , respectively. Trust Stamp reported several important developments over the past quarter as we drove growth across the business, from our targeted suite of solutions and intellectual property portfolio to our revenue and customer base.
This strong financial aOperational performance reflects Trust Stamp’s ability to seize diversified market opportunities and develop existing business relationships to generate long-term revenue streams. Notably, we developed an existing client relationship within the government sector while expanding our scope of work with several Fortune 500 commercial clients in the financial services industry. Our technology has generated interest in many government use cases in the United States and around the world, addressing pressing privacy and security concerns of legacy biometric implementations. To this end, Trust Stamp has made a significant investment in expanding our government facing business development team and is in active discussions with several foreign governments.
We continue to innovate by investing in research and development to expand and produce our portfolio of solutions, which led to the issuance of five patents and nine new patent filings in the first quarter. Trust Stamp’s core technology delivers unparalleled security, utility and privacy, at a fraction of the cost of traditional biometric solutions, driving business growth as we address cross-industry needs for fraud prevention, efficiency operational and accessibility in digital services.
We are particularly excited about the launch and commercial adoption of our next-generation multi-factor biometric authentication (Biometric MFAMT) and the Identity Orchestration Platform, which transforms secure digital operations across the identity lifecycle with rapid and seamless deployment of custom workflows based on our suite of innovative, cloud-powered solutions. ‘IA. The low-code identity package meets 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, etc.
Following the launch of our end-to-end identity orchestration platform, FIS, a leading financial services technology provider with over 20,000 customers, announced a partnership to leverage the capabilities of Trust Stamp’s biometric and tokenization verification in its global KYC solution. We continue to onboard new customers and partners, including VIVA Finance, which integrates our biometric verification, document validation and data protection technology to power and protect robust, accessible and fair financial services. Beyond internal sales initiatives, Trust Stamp is also focused on engaging distribution partners with substantial distribution networks, which we believe will allow us to scale the business quickly and affordably.
Trust Stamp’s commitment to innovating secure, privacy-focused identity and trust verification solutions, investment in scalable infrastructure, and a strengthened presence across a range of market opportunities positions us to generate continued positive performance as we execute our long-term growth strategy with a strong balance sheet, including cash of $5.86 million.
Building on our work to drive market differentiation and shareholder value with a resilient and diverse business over the previous years, Trust Stamp has made significant progress in executing key strategic objectives in the first quarter of 2022, including listing on the Nasdaq Capital Market on January 31. 2022. On behalf of the Trust Stamp team, I would like to thank our shareholders for their continued support as we execute our mission to accelerate secure global financial and societal inclusion.
Overview of financial performance
Net revenue increased by $2.29 million or 430.0% to $2.82 million in Q1 2022 from $532,000 in Q1 2021. This increase is primarily due to revenue contracts executed by new and existing customers.
Gross profit increased a notable $1.86 million or 673.9% year over year in the first quarter, while gross profit margin improved to 75.4% in first quarter of 2022, compared to 51.6% in the first quarter of 2021. The improvement is partly due to the prior investment in research and development, which enabled the use of existing technologies with relatively minimal implementation costs for new deployments.
Research and development
Research and development (R&D) expense decreased $261,000 or 34.6% year over year in the first quarter. The decrease in R&D expenditures during the comparative periods is due to the Company’s continued efforts to shift software development resources toward expanding in-house capabilities and away from external third-party software development.
Selling, general and administrative expenses
Selling, general and administrative (SG&A) expenses increased to $3.12 million for the first quarter of 2022 from $1.33 million for the first quarter of 2021. The increase in selling, general and administrative expenses 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 decreased by $295,000 to $1.64 million in Q1 2022 from $1.94 million in Q1 2021. Main reason for lower operating loss is the growth in net income, which exceeded the growth in operating expenses by a factor of 5.3. The adjustment of additional non-cash and non-recurring activities results in an even more significant improvement in the operating margin.
Net loss decreased 16.7% or $0.07 per basic and diluted share for the first quarter of 2022 to $1.69 million, from $2.03 million or $0.11 per basic and diluted share for the same period last year.
Cash and capital resources
As of March 31, 2022 and December 31, 2021, the Company had approximately $5.84 million and $3.48 million in cash, respectively. The increase in cash in the comparative periods is the result of positive net cash inflows from the combination of financing and operating activities. In the first quarter of 2022, the Company received $1.95 million related to a government contract and $3.32 million from the exercise of a warrant, as well as $365,000 from units sold and warrants subscription rights exercised as part of the Company’s fundraising efforts in 2022 in view of its listing on Nasdaq.
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. term. Total equity was $7.42 million as of March 31, 2022, compared to $5.03 million as of December 31, 2021.
Trust stamp email: Shareholders@truststamp.ai
Gareth Genner, Managing Director
Josh Allen, Executive Vice President of Corporate Finance
Nisha Naik, Executive Vice President of Communications
Davy (Euronext Growth Advisor) Tel: +353 1 679 6363
Investor Relations Tel: +1 212-671-1021
Crescendo Communication E-mail: firstname.lastname@example.org
About the trust stamp
Trust Stamp, the privacy-focused identity companyMT, is a global provider of AI-powered identity services for use in many industries, including banking and finance, regulatory compliance, government, real estate, communications and humanitarian services. Its technology provides organizations with advanced biometric identity solutions that reduce fraud, protect the privacy of personal data, increase operational efficiency and reach a wider user base globally through its unique transformation and data comparison.
With operations in seven countries in North America, Europe, Asia and Africa, Trust Stamp trades on the Nasdaq Capital Market (Nasdaq: IDAI) and on Euronext Growth in Dublin (Euronext Growth: AIID ID). Founded in 2016 by Gareth Genner and Andrew Gowasack, the company now employs over 100 people.
Safe Harbor Statement: Caution Regarding Forward-Looking Remarks
All statements in this release that are not based on historical facts 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 relating to, among other things, the company, its business plan and strategy, and its industry. These statements reflect management’s current views regarding 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 they are made. The Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unforeseen events.