T Stamp Inc (NASDAQ:IDAI, EURONEXT:AIID) CEO Gareth N Genner told investors that the company's push to hire more sales staff would lead to a positive impact in 2023 on growing revenue from its Software-as-a-Service (SaaS) solutions.
Genner noted that the Atlanta-based company which does business as Trust Stamp now has a “highly scalable SaaS model” which is revenue friendly.
“Last year, we implemented the Orchestration Layer platform, which was built on our innovative IP portfolio and to date we have onboarded 29 users, a number which we anticipate increasing substantially over the course of this year,” Genner said in an earnings statement.
“This implementation accelerates Trust Stamp’s evolution from a custom solutions provider to a modular and highly scalable SaaS model.”
Genner noted that the firm is currently hiring “a dedicated sales team” for Orchestration Layer sales, with the first senior member joining the team this month. He pointed out that the hiring push is likely to spur revenue in the 4Q.
“Our recruitment has focused on accomplished account executives with substantial experience in our industry,” said Genner. “We anticipate meaningful revenue from the new team being booked by 4Q of this year and substantial revenue in 2024 and thereafter.”
During the quarter, Trust Stamp integrated the Driver License Data Verification (DLDV) system into its Orchestration Layer platform, allowing the firm to verify identity information against the records of state motor vehicle agencies in real-time.
“This integration builds our ability to provide identity tools that are easy and cost effective for customers to use and it can be adopted as a standalone solution or to augment our biometric authentication solutions,” said Genner.
For the period ended March 31, 2023, the biometric identity solutions company said its revenue decreased by $2.4 million, or 83.74%, compared to 1Q 2022 due to the termination of the ICE contract.
The firm said “no meaningful revenue” was booked during the quarter from the new Orchestration Layer users as they just conducted their onboarding and integration processes. It added that recognized revenue doesn’t include $750,000 received as advanced revenue under the company’s technical services agreement related to the criminal justice sector.
Trust Stamp reported a net loss of $2.5 million, or $0.51 per basic and diluted share for the quarter, compared to a net loss of $1.7 million, or $0.37 per basic and diluted share for 1Q 2022.
“We continue to carefully manage expenses and we reduced selling, general, and admin expense by $1.15 million, or 36.87% for the 1Q, compared to 1Q 2022,” said Genner. “We are implementing additional expense cuts during fiscal 2023 in all areas other than sales, which will result in additional annualized savings in excess of $1 million, freeing up resources that will be redirected to the new Orchestration Layer sales team.”
Notably, Trust Stamp strengthened its balance sheet by raising $5.2 million in April this year.
“As we move our focus from R&D and software productization to sales, we believe we are well positioned to achieve strong revenue growth and drive value for our shareholders,” concluded Genner.
T Stamp Inc (NASDAQ:IDAI, EURONEXT:AIID) has 17 issued patents, and an additional 16 patent applications either allowed but not yet issued, or pending.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive