Biometrics stocks: Trust Stamp revenues up, Zwipe focused on pilots, Mitek receives notice
Trust Stamp reports $3.53 million in net revenues in the first half of 2022, an impressive 182 percent increase over it’s 1H 2021 result, with higher gross profits but also net loss for its biometrics and digital identity services.
Research and development costs for Trust Stamp have been increasing, but the company expects them to level off, and efficiencies to bring them lower by the fourth quarter of 2022. Selling, general, and administrative costs are also expected to decline on improved operational efficiency.
Operating loss increased to $2.92 million for the second quarter and $4.61 million for the first half of the year, or $0.13 and $0.20 per basic and diluted share, respectively.
Trust Stamp CEO Gareth Genner says an increase of nearly $570 million in funding for the U.S. Government’s Alternatives to Detection program validates the company’s decision to invest in developing solutions for this market.
The company has two more bank pilots planned, with more coming later in the year.
“These pilots all utilize our next-generation identity package, offering rapid deployment across devices and platforms with custom workflows for a consistent user experience,” he says.
Genner also refers to the revenue potential of ongoing projects with Mastercard on financial inclusion and with IdRamp on biometric multi-factor authentication applications, and to a recent notice of allowance for a patent on the company’s biometric tokenization technology from the USPTO.
Zwipe plans faster pilot execution
Zwipe‘s first-half revenues dropped to NOK 800,000 in the first half of 2022, compared to NOK 1.4 million in the first half of last year.
Operating expenses increased due to higher personnel costs, as headcount increased by 13 to meet strong demand for the company’s biometric solutions, according to the announcement. Zwipe says its cash position remains strong.
Highlights during the first half for Zwipe included signing up seven new biometric card issuer customers to the Zwipe Pay platform. Preparation for the expected pilots is taking longer than expected, however. The company received Visa approval for the platform in March.
While the biometric payment cards market is developing slower than expected, operating and personnel expenses are expected to level out in the second half, and a key focus over the rest of Zwipe’s fiscal 2022 is the development of a dedicated customer project management capability and a standardized blueprint for pilots.
The company says its Zwipe Access will contribute more of its revenue than it previously estimated, with the data center and airport verticals leading demand for the biometric access control solution.
Mitek receives Nasdaq compliance notice
Mitek has received notice from the Nasdaq exchange that it is not in compliance with its continued listing requirements until the company files its quarterly report for the period ending June 30, 2022.
Listed entities have 60 days from the receipt of the notice to submit a plan for a return to compliance with the reporting rule, and then could be granted up to 180 days to file its Form 10-Q. The company says it plans to file its results with the Nasdaq as soon as possible, and if not to meet the October 10, 2022 deadline for a plan to regain compliance.
Mitek reported a successful third quarter of its fiscal 2022 year at the end of July, so it is unclear why those results have not been filed with the Nasdaq.