T Stamp (IDAI) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 increased 8.6% year-over-year to $500K, and for H1 2024 rose to $1.07M, driven by SaaS Orchestration Layer adoption and a doubling of enrolled customers to 62 financial institutions as of June 30, 2024.

• The company remains unprofitable, reporting a net loss of $2.60M for Q2 2024 and $5.28M for H1 2024, with negative operating cash flows and an accumulated deficit of $56.13M as of June 30, 2024.

• Expanded product offerings and partnerships, including new distribution channels and market verticals in financial services, automotive, IOT, and healthcare, and international expansion with contracts in Africa, the UK, Denmark, and Scandinavia.

• A significant non-cash licensing deal was executed in August 2024, granting a $5M Boumarang warrant in exchange for a patent license, and a $2M equity financing was closed in July 2024 to bolster liquidity.

Financial highlights

• Q2 2024 net revenue: $500K (up 8.6% YoY); H1 2024 net revenue: $1.07M (up 16.8% YoY).

• Q2 2024 operating loss: $2.63M (up 10.2% YoY); H1 2024 operating loss: $5.47M (up 10.3% YoY).

• Q2 2024 net loss: $2.60M (vs. $2.17M Q2 2023); H1 2024 net loss: $5.28M (vs. $4.72M H1 2023).

• Net loss per share: $(0.21) for Q2 2024; $(0.47) for H1 2024 (vs. $0.80 for H1 2023).

• Gross margin for flagship SaaS customer exceeded 83% in Q2 2024; S&P500 bank customer generated over $1.2M ARR with lower margins.

• Cash and equivalents at June 30, 2024: $660K; pro forma $1.16M after July financing.

Outlook and guidance

• Management expects continued revenue growth from SaaS Orchestration Layer and key customer relationships, with user-based revenue from Mastercard anticipated to start in 2024 and grow annually.

• Expects significant license fees as "other income" in Q3 2024 from intellectual property licensing.

• The company anticipates the need to raise additional capital within six months to fund operations, as current cash is insufficient for the next 12 months.

• Negotiations for significant new revenue are advanced but not yet finalized.