T Stamp Inc (NASDAQ:IDAI, EURONEXT:AIID), doing business as Trust Stamp, has revealed its quarterly financial results showing that its revenue and profits surged in the three months ended September 30, 2022.
The company, which provides AI-powered trust and identity services, said net revenue increased by $1.02 million or 308.5% to $1.35 million for Q3 2022, compared to $330 0000 for 3Q 2021. This increase was primarily due to revenue contracts executed by new and existing customers.
Gross profit increased by $739,000 or 914.8% for Q3 2022 compared to the same period last year, and gross profit margin improved to 60.8% for Q3 2022, compared to 24.5% for Q3 2021. The improvement was due in part to the company’s prior investment in research and development, which enabled the utilization of existing technologies with relatively nominal implementation costs for new deployments.
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“We continue to deliver growth across our business platforms, which span enterprise, government, and peer-to-peer markets,” CEO Gareth Genner said in a statement.
“Our technology has garnered interest across multiple government use cases in the United States and internationally, as governments look to update their security infrastructure and implement the latest solutions in privacy and biometrics. Towards this end, we recently unveiled our new government-focused, privacy-first identity technology, Privtech™, and received registered trademark status for the Privtech solution from the US Patent and Trademark Office.”
The company said operating loss during the quarter was $3.44 million compared to $2.94 million for 3Q 2021.
Net loss was $3.44 million or $0.15 per basic and diluted share for 3Q 2022, compared to $3.04 million or $0.16 per basic and diluted share for 3Q 2021.
As of September 30, 2022, the company had around $2.93 million of cash while working capital was $1.65 million. As of September 30, 2022, the company had no long-term debt while total stockholders’ equity was at $3.76 million.
Growth opportunities
“Looking ahead, we anticipate a number of meaningful growth opportunities for our software products in the Alternative to Detention Program and other in-community case management services for federal and state agencies,” said CEO Gareth Genner.
“We have a ten-year technology services agreement with Mastercard International, whereby Trust Stamp is paid to develop and host software solutions utilizing the IT2, support Mastercard’s implementations, and is paid on a “per use” basis for all transactions utilizing its technology. Under this agreement, Trust Stamp has received guaranteed minimum annual payments on account of usage, but we anticipate significant use-based revenue starting in late 2023 and growing year-on-year thereafter.”
“Our R&D team continues to develop products and work with partners and industry organizations in other sectors that offer significant market opportunities, in particular, the travel, healthcare, Metaverse platform, and cryptographic key and account credential safekeeping sectors. We believe we have built a highly scalable business that is committed to innovating secure, privacy-first identity, and trust verification solutions,” he further added.
Atlanta, Georgia-based Trust Stamp 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.
Contact the author at jon.hopkins@proactiveinvestors.com