IDAI Stock Rose 8%. How Did That Happen?

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Shares of the provider of AI-driven identity solutions for use across multiple sectors, Trust Stamp Inc (OTCQX: IDAI) rose 8.31% to $3.52 at the close of weekend trading. There were 8.07K shares of IDAI stock traded, versus 1.61K average weekly shares. IDAI stock price rose after reporting its quarterly results and offering a financial overview for the quarter.

IDAI has shared what?

In addition to financial and regulatory compliance, Trust Stamp offers AI-based identification services for government, real estate, communications, and humanitarian operations. In addition to providing organizations advanced biometric identity solutions, IDAI’s technology increases their operational efficiency, protects their data privacy, and enables them to reach a larger audience worldwide through its data transformation and comparison capabilities. Its flagship customers include Mastercard International and FIS, and IDAI employs over 80 people.

Last week, Trust Stamp released its audited interim results for the six months ended 30 June 2021 (“H1 2021”). Here’s a brief overview of IDAI’s financial performance:

Overview of IDAI’s financial performance:

  • IDAI’s customer network continued to diversify as it added three significant revenue-producing clients in the first half of 2021 while maintaining and growing its service agreements with its two largest clients.
  • The addition of two new contracts for specialized contracts won by IDAI with a long-standing client will likely result in continued volume-based revenue growth from long-standing client relationships in H2 of 2021 and beyond, as well as substantial revenue growth from new clients.
  • For H1 2021, IDAI will have a 29% increase in Gross Sales (non-GAAP) as compared to H1 2020 as well as a heavy tail-end loading in Q4.
  • As a result of the added revenues from three new revenue-generating clients, the company expects to recoup revenue through pay-per-use and other usage-based engagements in the long run.
  • Due to IDAI’s responsibilities in building the new technology platform, the entire cost of building it was expensed for H1 2021 as compared to H1 2020.
  • In addition, IDAI increased its investment in business development in order to grow and nurture a pipeline of sales prospects for future revenue generating contracts in key markets.
  • IDAI will also expand sales capabilities in order to meet growing demand across multiple verticals.

A contract of considerable importance:

Trust Stamp (IDAI) has entered into a substantial biometric services contract for a fixed price of $3,920,764 with the United States Federal Government, requiring significant investments in productization, business development, and due diligence in previous quarters of this year. Although there is a performance period of six months starting on 27 September 2021, the performance is expected to be completed substantially in the financial year 2021.

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