Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID) Inc posted record revenue for the fourth quarter and full-year 2021 driven by new customers and expanded agreements with existing customers.
In the 12 months ended December 31, 2021, the Atlanta-based privacy-first identity company providing AI-powered trust and identity services, saw net sales of $3.7 million, up 38.9% from $2.6 million in full-year 2020.
The technology company pointed out that it acquired new customers, doubling the number of non-affiliated clients generating significant revenue to six customers. As a result, the firm’s flagship customers comprised a smaller proportion of revenue compared to prior years despite their own increased engagements with the company.
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Meanwhile, Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID)’s net sales soared 69.7% year-over-year to $2.1 million in the 4Q of 2021, compared to the same period a year earlier.
Gross profit jumped 124% year-over-year to $2.5 million, while the gross profit margin for the FY 2021 was 68.7%, compared to 42.59% for FY 2020.
Significantly, net loss decreased by 15.22% year-over-year, allowing Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID) to improve its diluted net loss per share to $0.46 in 2021 from $0.90 in 2020.
In addition, the company said it closed $9.8 million in financing from offerings initiated in 2021.
In a statement accompanying the numbers, Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID) CEO Gareth Genner said: “I am pleased to report strong financial performance in 2021, with notable growth in the 4Q reflecting the momentum which has continued into another record period in Q1 of 2022.”
He added: “Our go-to-market traction, successful financing activities, and investment in intellectual property and scalable infrastructure position us to drive consistent growth and meaningful value for shareholders throughout 2022 and beyond.”
Genner noted that Trust Stamp’s investment into building out its internal capabilities and developing its IP portfolio to address evolving needs for “privacy, security, and accessibility in digital operations” resulted in key strategic achievements in 2021.
“This included entry into the GovTech space with a contract from the United States federal government, growth in our client and prospect base, and expanded commercial relationships with both new and flagship customers,” added Genner.
Trust Stamp highlighted the following achievements:
Initial government contract award of $3.92 million with the US Department of Homeland Security in September 2021, subsequently increased to $7.17 million in March 2022;
Intellectual property portfolio growth with three new issued patents and 11 new pending patents produced in Full Year 2021;
Wholly-owned subsidiaries established, with Trust Stamp Rwanda Limited focused on R&D, and Metapresence Limited focused on crypto-asset services.
“We established a subsidiary in Rwanda, which today represents our second largest R&D hub, and a key base as we continue to develop important governmental and commercial relationships in the region,” said Genner.
Not surprisingly, Trust Stamp’s headcount has grown to 94 full-time team members from 57 members.
In the meantime, the company’s total assets also expanded to $8.7 million at the end of 2021, a 80% increase from $3.9 million at end of 2020.
Rosy outlook for first half of 2022
“We expect significant year-on-year revenue growth for the first two quarters of 2022,” said the company. The growth is expected to come from pre-contracted monthly payments from current clients along with revenue growth from new clients in a maturing sales pipeline.
At the end of December 31, 2021, Trust Stamp’s commercial pipeline included 55 potential revenue contracts and projects.
Trust Stamp said it has made “significant progress” on executing key strategic goals in the first quarter of 2022, by uplisting to the tech-dominated Nasdaq on January 28, 2022.
With a strong balance sheet and cash on hand following closing $5.8 million in funding in January 2022, Trust Stamp believes it has “sufficient liquidity” to execute on its growth plan this year.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive