Trust Stamp (Nasdaq: IDAI, Euronext Growth: AIID ID), the
Privacy-First Identity Company™ providing AI-powered trust and
identity services used globally across multiple sectors, provides a
business update and commentary on reported financial results for
the three and twelve month periods ended 31 December 2021 (“Q4
2021” and “Full Year 2021”, respectively).
Fourth Quarter and Full Year 2021 Financial
Highlights
- Net Sales were $3.7M in Full Year 2021, a
38.9% increase year-over-year
- Net Sales were $2.1M in Q4 2021, a 69.7%
increase year-over-year
- Gross Profit was $2.5M, a 124.0% increase
year-over-year
- Gross Profit Margin for Full Year 2021 was
68.7% compared to 42.59% for Full Year 2020
- Operating Margin improved in Q4 2021 to
-93.83% compared to -241.74% for Full Year 2021
- Net Profit Margin was -96.55% in Q4 2021
compared to -246.31% in Full Year 2021
- Net Loss decreased by 15.22% year-over-year,
improving Diluted Net Loss per Share to $(0.46) in
2021 from $(0.90) in 2020
- Total Financing closed came to $9.8M from
offerings commenced in 2021
- Total Assets were $8.7M at year end 2021, a
80.0% increase from $3.9M at year end 2020
2021 Operational Highlights
- Initial government contract award of $3.92M
with the U.S. Department of Homeland Security in September 2021,
subsequently increased to $7.17M in March 2022
- Intellectual property portfolio growth with
three new issued patents and 11 new pending patents produced in
Full Year 2021
- Headcount grew to 94 full-time team members at
year end 2021 from 57 at year end 2021
- Wholly-owned subsidiaries established, with
Trust Stamp Rwanda Limited focused on R&D, and Metapresence
Limited focused on crypto-asset services
Gareth Genner, Chief Executive Officer,
comments: “I am pleased to report strong financial performance in
2021, with notable growth in the fourth quarter reflecting the
momentum which has continued into another record period in Q1 of
2022. 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.
Our ongoing investment into building out our internal
capabilities and developing our innovative IP portfolio to address
evolving needs for privacy, security, and accessibility in digital
operations resulted in key strategic achievements in 2021,
including 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.
Trust Stamp provides transformational, privacy-first
technologies that give individuals greater control and protection
of their own data while strengthening organizational security, at a
fraction of the cost of legacy solutions. Our growth in 2021
parallels an increased awareness of the risks associated with
conventional means of authentication including the breach and
exposure of data, along with a rapidly evolving global regulatory
landscape around data privacy and protection, both of which we
anticipate to continue trending upward.
Trust Stamp is committed to delivering solutions that support
robust, accessible, and equitable financial systems with vast
potential to impact the large yet underserved addressable market
made up of an estimated 4B underbanked individuals around the
world. Innovation for global inclusion remained a core strategic
focus in 2021 as 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.
With continued cross-industry successes as we execute on a
mission-driven strategy for global growth, we remain highly
encouraged by the outlook for the business and look forward to
providing further updates in the weeks and months ahead.”
Financial Performance Overview
Revenue
Net Sales for the Full Year increased to $3.7M in 2021 from
$2.6M in 2020 as Trust Stamp expanded on agreements with existing
customers in line with our strategy of seeking long-term revenue
channels that can drive stable growth. We also acquired new
customers, doubling the number of non-affiliated clients generating
significant revenue to six customers. As a result, our flagship
customers comprise a smaller proportion of revenue compared to
prior years despite their own increased engagements with us.
Gross Profit and Profit Margin
Gross Profit increased by a notable 124.0% year-over-year, to
$2.5M in 2021 from $1.1M in 2020, while Gross Profit Margin
improved by 26.1% year-over-year, to 68.7% in 2021 from 42.6% in
2020. The improvements in Gross Profit and Profit Margin result
from a change in the disaggregation of revenue earned through
different sales models, reflecting our ongoing efforts to shift
income streams from custom implementation and development work to
semi-custom implementations, in addition to onboarding contracts
that provide for long-term pay-per-use revenue, with relatively
nominal costs to implementing existing technology.
Operational and Strategic Developments
Growth in Global Team and Presence
Trust Stamp’s headcount grew to 94 team members from 57, with a
focus on accelerating R&D and productization in addition to
expanding our global sales team’s capacity to address increased
interest across geographies and verticals. Trust Stamp hired our
Chief Innovation Officer in September 2021 to lead various R&D
initiatives as well as the monetization of existing technology.
Trust Stamp Rwanda Limited was formed in May 2021 as part of our
commitment to delivering equitable, accessible, and secure identity
technologies that power inclusion in all regions of the world. Our
African R&D center had 12 employees by 31 December 2021. Trust
Stamp Malta Limited also experienced significant expansion during
2021, growing from 23 to 40 staff members as Trust Stamp’s largest
R&D center and our hub for E.U. operations.
This growth in headcount and resulting overhead requirements led
to a $1.9M increase in year-over-year Selling, General, and
Administrative expenses, totalling $8.3 million for the year ended
31 December 2021, and contributing to a 13.8% or $1.5M increase in
Total Operating Expenses. Both increases were outpaced by the
growth rate of Net Sales.
Intellectual Property
Trust Stamp continued developing a robust intellectual property
portfolio, adding three new patent issuances and 11 new pending
patents, including multiple that serve to secure protection and
validate our innovation behind the liveness verification and
presentation attack detection technologies central to our
fraud-resistant biometric services. Most notably, we received
allowance of the patent for Trust Stamp’s core market
differentiator, our privacy-first data tokenization technology.
Digital Asset and Cryptocurrency Services
To further develop a competitive position in the digital asset
space, Trust Stamp established the Metapresence Limited subsidiary
as a participant in The Digital Isle of Man Accelerator Program,
which provides access to a regulatory sandbox where flexible
licensing conditions enable agile development of digital asset
services. The subsidiary operates Trust Stamp’s currently
beta-stage Crypto Key Vault solution designed to provide
cryptocurrency and NFT investors with the security and convenience
of traditional financial services, using our proven facial
biometric authentication technology.
Financing
These operational developments were supported in part by the
Trust Stamp’s financing activities throughout 2021, carrying into
early 2022. Building on the success of a private $4.0M round of
funding in the first half of 2021 and driven by investor interest,
Trust Stamp launched a public round of funding in Q3 2021 with the
primary goal of driving our January 2022 uplisting to the Nasdaq
Capital Market. Financing and operating activities, combined with
the monetization of internal-use software, resulted in an 80.0%
increase in Total Assets to $8.7M at year-end 2021 from $3.9M at
year-end 2020.
H1 2022 Outlook
We expect significant year-on-year revenue growth for the first
two quarters of 2022. This 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. As of
31 December 2021, our commercial pipeline included 55 potential
revenue contracts and projects.
In addition to generating revenue in 2021, our investment in
business development led to significant client engagements for
proof-of-concept and new product development, which we expect to
result in future recurring revenue. The 64.9% headcount increase in
2021 enabled the transition of most of Trust Stamp’s software
development activities from outsourcing to in-house, which we
expect to further reduce costs, improve margins, and accelerate
service delivery.
We will continue pursuing new commercial opportunities to expand
our client base, along with the scope and range of services
provided both to and through our clients as we also focus efforts
on engaging channel partners with substantial distribution networks
and the potential for high revenue impact at relatively low costs.
Following substantial investment into developing our core
technology services in prior years and its targeted
commercialization through development of cost-effective,
streamlined routes of service delivery in 2021, two financial
service providers utilizing our “low-code” implementation platform
publicly announced partnership with Trust Stamp in Q1 2022,
including S&P 500 company and global leader in financial
services technology, FIS.
Trust Stamp has made significant progress on executing key
strategic goals in the first quarter of 2022, including uplisting
to the Nasdaq Capital Market on 28 January 2022. With a strong
balance sheet and cash on hand following closing $5.8M in funding
in January 2022, we anticipate having sufficient liquidity to
support our working capital needs to execute on our growth plan
through 2022.
Enquiries |
|
Trust Stamp |
Email: Shareholders@truststamp.ai |
Gareth Genner, Chief Executive Officer |
|
Nisha Naik, Executive VP of Communications |
|
Davy (Euronext Growth Advisor) |
Tel: +353 1 679 6363 |
Barry Murphy |
|
Investor Relations |
Tel: +1 212-671-1021 |
Crescendo Communications |
Email: idai@crescendo-ir.com |
About Trust StampTrust Stamp, the Privacy-First
Identity Company™, 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. Its technology empowers organizations with
advanced biometric identity solutions that reduce fraud, protect
personal data privacy, increase operational efficiency, and reach a
broader base of users worldwide through its unique data
transformation and comparison capabilities.
Located in seven countries across North America, Europe, Asia,
and Africa, Trust Stamp trades on the Nasdaq Capital Market
(Nasdaq: IDAI) and 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 Concerning
Forward-Looking Remarks All statements in this
release that are not based on historical fact 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 related to, among other things, the company, its
business plan and strategy, and its industry. These statements
reflect management’s current views with respect to 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
on which they are made. The company does not undertake any
obligation to revise or update these forward-looking statements to
reflect events or circumstances after such date or to reflect the
occurrence of unanticipated events.
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