T Stamp Inc (NASDAQ:IDAI, EURONEXT:AIID) dba Trust Stamp said its cost rationalizations have been instrumental in strengthening the company's financial position.
According to its latest quarterly results statement, the privacy company managed to reduce its expenses by $3.11 million for the nine months ended September 30, 2023, compared to the same period in 2022.
During the third quarter, the reduction was $1.23 million (37.42%) compared to 3Q 2022.
Highlights from the quarter included significant growth in its financial institution customer base, primarily through channel partnerships, with 35 financial institutions onboarded as of the 10-Q filing.
The company said it anticipates onboarding 45 to 50 financial institutions by year-end, projecting substantial monthly recurring revenue in 2024 as these institutions integrate and roll out their services.
Furthermore, the company noted that its Orchestration Layer platform is gaining traction. The first enterprise customer is already in full production, generating monthly recurring revenue with impressive gross margins exceeding 84%.
Net revenue for 3Q 2023 increased to $3.07 million, a 127% rise from the comparable year-ago period, with contributions from various customers, including IGS and Mastercard.
The company struck an optimistic tone about future growth in the government sector, supported by a strong patent portfolio and AI-powered technology stack. Trust Stamp maintains its focus on sales and marketing efforts, aiming to achieve substantial ROI from the sales executives onboarded.
“You will see that we have continued to execute effectively across all of our objectives and despite investing in our new salesforce, we have reduced selling, general, and administrative expenses…Not all of our cost rationalizations fully impacted the first three quarters, and we are continuing to implement efficiencies during fiscal 2023,” CEO Gareth Genner said in a statement.
Trust Stamp’s current financial position includes cash reserves of approximately $3.18 million.