Safeture AB scale-up continues, +38,9% growth

Safeture employee safety platform continues its momentum in a globalized world with increased insecurity and risk awareness among companies and employees. A new all-time high with more than 2.500 companies and with users in 190 countries benefits from the Safeture range of products and services.

Conclusions

• Increasing awareness of corporate duty-of-care for employees drives growing demand globally.

• Transition to SaaS business model starting to yield significant recurring revenue streams.

A very low churn along with having no individual direct customer accounting for more than 10 % of the Safeture recurring revenue decreases the risk of customer dependencies.

The growth of the customer base has also increased our revenue by 103,6 % from Q4 2018 to Q4 2019 and beating our own projections.  Our high-level of recurring revenue, which distinguishes a Software as a Service (SaaS) company was lower in Q4 than our trailing average of 84% in 2019 due to one-off revenue but this still means we will carry +80% of our revenue into 2020.

Priorities in Q1 2020 is to work more actively with account management. The average number of users among these 2500 companies is too low and the potential is hugely based on the current ARPU and the platform development Safeture is investing in to make it even more relevant for all of a company´s employees.

On an average week, 70% of a company’s employees work from another place than their office and it is a corporate duty of care responsibility to cater to the safety of all of the employees, wherever they are.

”In a world of great mismatch between perceived risk and actual risk Safeture should be the must-have platform for any organization where the safety of the employees and the resilience of the company are top priorities. There will always be turbulence, like the Coronavirus outbreak clearly shows, and to make informed and  appropriate actions is more important than ever when information moves fast and fake news risk to poison its accuracy” Magnus Hultman CEO Safeture comments.

Safeture AB: Summary of Interim Report

The Group

Twelve months (2019-01-01 to 2019-12-31)

• Net turnover amounted to 22 878 (18 947) TSEK, an increase of 20,7% compared to the same period last year.
• Loss after financials and minority share amounted to -14 787 (-10 467) TSEK.
• Loss per share* before dilution amounted to -0,64 (-0,59) SEK.
• Loss per share* after dilution amounted to -0,58 (-0,55) SEK.

Fourth quarter (2019-10-01 to 2019-12-31)

• Net turnover amounted to 6 746 (5 502) TSEK, an increase of 22,6 % compared to the same period last year.
• Loss after financials and minority share amounted to - 3 566 (-3 501) TSEK.
• Loss per share* before dilution amounted to -0,15 (-0,16) SEK.
• Loss per share* after dilution amounted to -0,14 (-0,15) SEK.
• The solidity** amounted to 47,8 (68,8) %.

The Parent Company

Twelve months (2019-01-01 to 2019-12-31)

• Net turnover amounted to 17 877 (12 870) TSEK, an increase of 38,9% compared to the same period last year
• Loss after financials amounted to -16 082 (-11 092) TSEK.
• Loss per share* before dilution amounted to -0,69 (-0,63) SEK.
• Loss per share* after dilution amounted to -0,63 (-0,58) SEK.

Fourth quarter (2019-10-01 to 2019-12-31)

• Net turnover amounted to 6 746 (3 313) TSEK, an increase of 103,6% compared to the same period last year.
• Loss after financials amounted to -3 525 (-4 303) TSEK.
• Loss per share* before dilution amounted to -0,15 (-0,20) SEK.
• Loss per share* after dilution amounted to -0,14 (-0,18) SEK.
• The solidity** amounted to 48,0 (72,9) %.

SaaS Metrics

Twelve months (2019-01-01 to 2019-12-31)

• Recurring revenue  amounted to 14 959 TSEK, which represents 84% of the Parent company revenue.
• Churn for the year closed at 1%.

Fourth quarter (2019-10-01 to 2019-12-31)

• Recurring revenue  amounted to  4 347 TSEK, which represents 64% of the Parent company quarterly revenue.
• There was no churn in the quarter.

Significant events during the fourth quarter, 2019.

• On October 8, Adma Förvaltnings AB acquired an additional 1,2 million shares in Safeture AB, leading to Adma Förvalnings AB controlling 35,1% of the shares. A take-over offer of 10 SEK/share to the remaining shareholders was announced on October 25. On November 25, the expiry of the deadline for accepting the offer, a total of 5 254 745 shares had been acquired, and Adma Förvaltnings AB was holding 63,2% of the shares in Safeture AB. 

Significant events after the fourth quarter, 2019.

• On January 10, an extra shareholders’ general meeting was held. In the meeting, it was decided to elect two new members of the Board, Christian Lindgren, and Pontus Kristiansson. It was also announced that Lars Lidgren, the founder of Safeture AB, is resigning from the Board.
• On February 27, it was announced that Safeture launched a unique service to protect employees and organizations from Corona's global spread. Safeture launched a world-first Coronavirus exposure tracker for companies that, in real-time, correlates each employee’s travel patterns with the latest Covid-19 reported cases.

• On February 28, it was announced that Safeture AB has signed an agreement with Adma Förvaltnings AB, Safeture’s largest shareholder, for a credit facility of up to 10 MSEK.The financing will be used to pursue Safeture’s aggressive growth strategy.

Message from the CEO Magnus Hultman

2019 was an incredible year for Safeture. We truly evolved our product and offering and are in prime position to scale thanks to our SaaS (Software as a Service) platform, which is increasingly recognized as critical for ensuring employee safety and security around the world for an increasingly mobile workforce. With Safeture currently being used by more than 2,500 companies and active users in 190 countries, we know we have a great product with a bright future

I joined the company halfway through last year and spent my time since then traveling, meeting with our teams around the world, learning more about our customers’ needs, and homing in on how we best position Safeture to expand our reach and make sure we are ready to scale.

Companies have a major responsibility in taking care of their biggest assets – their employees. Three major trends are impacting companies worldwide.

1. Mobility – Increased mobility among employees, whether it is meeting customers off-site or working from home. On an average week, 80 percent of white-collar employees work at least one day a week out of office.

2. Digitalization – Technology has a dramatic effect in facilitating companies to provide support for employees in all kinds of areas.

3. Globalization – Sourcing, suppliers, customers, and operations are now all over the world.  An increasing number of firms understand their responsibility for protecting their employees wherever they are, and the employees are demanding that they do.

Safeture is the perfect flexible platform embracing these trends, giving both the employees and responsible managers the tools necessary to work safely.

During the year we strengthened our sales organization by moving towards a SaaS-based organization, strengthening it with marketing, technical sales, sales and account management to broaden the impact of our sales, enabling us to onboard the most demanding customers.

We signed new contracts, both directly and through partners, and we see how our recurring revenue is steadily increasing while churn remains very low. We divested our majority stake in the U.K.-based travel software company Travelogix to focus on our Enterprise offering. It was also great to see the Chubb Travel Smart travel safety solution, completely developed by Safeture for the insurance giant Chubb, be recognized in the prestigious competition Stevie Awards.

We took the needed step of changing our name from GWS Production to Safeture and launched our Enterprise offering, a complete cloud-based SaaS platform with a range of functions aimed at giving larger corporations the ability to effectively automate safety and security, while seamlessly integrating the software to become a natural part of their internal processes, used by employees, security, HR and safety managers. 

The board of directors brought on Lisa Berg Rydsbo, Adam Schatz and Sofia Kinberg as new board members. This past January, we were also pleased to see Pontus Kristiansson and Christian Lindgren join the board, both of whom have extensive experience. We also hired Linda Canivé as our new CFO. The Safeture team is evolving and is ready to help drive our ambitious growth strategy.

Late in the year, our largest owner, the entrepreneur Greg Dingizian, through his investment firm Adma Förvaltnings AB, increased his ownership and made a bid of 10 kronor in cash per share for the rest of Safeture. Greg ultimately increased his holding in Safeture to about 64 percent. It’s fantastic that Greg is confident in Safeture and our path forward.

I have learned a lot during my months as CEO of Safeture. I clearly see the opportunity we have in the market and know our software is a perfect fit for this rising demand. We have a lot planned for this year, so I hope you continue to follow us.

“Parent company” or “Safeture”, comprises of Safeture AB with company number 556776-4674, without subsidiaries. “The Group” comprises the Parent company, including subsidiaries. On December 31, 2019, the Parent company owned 100% of the shares in GWS Production (Singapore) Pte Ltd, 99,99% of the shares in GWS do Brasil Solucões e Sistemas Tecnológicos em Seguranca Ltda and 35% of the shares in Carefindy AB (minority interest).

Amounts within brackets regard the corresponding period last year.

*Result per share: The result is divided by the average number of shares (after dilution includes average number of share options). The average number of shares for twelve months 2019: 23 193 737 (17 601 951) shares. Average number of shares for the fourth quarter 2019: 23 193 737 (21 940 050). Total number of shares in Safeture on December 31, 2019: 23 193 737 (23 193 737) shares. The Company has issued 670 000 share options (2016/2020), of which 670 000 has been signed for, which can be converted into the same number of shares in the Company during April 2020. The Company has furthermore issued 794 000 share options (2018/2021) which can be converted into the same amount of shares from December 13, 2021 to December 17, 2021. Finally the company has issued 1 070 880 share options (2019/2022) which can be converted into the same amount of shares from July 18 2022 to July 29 2022.

**Solidity: Equity divided by total assets.

For additional information, visit www.safeture.com or contact:

Safeture CEO Magnus Hultman: +46 706 00 81 66.  Magnus.hultman@safeture.com

About Safeture AB

Safeture (founded in 2009) is a Software as a Service (SaaS) company based in Sweden.

The company offers a complete cloud-based platform designed to manage employee safety and risk/crisis management. Through world-leading technology and innovative solutions, Safeture help companies and organizations to protect what matters most – their employees.
Safeture Enterprise gives larger corporations the ability to effectively automate safety and security while seamlessly integrating the software to become a natural part of their internal processes.

The Safeture share is listed on NASDAQ First North Growth Market Stockholm (ticker: SFTR). Erik Penser Bank AB is the Certified Adviser. Ph: +46 8-463 83 00 E-mail: certifiedadviser@penser.se.

This press release is information that Safeture AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:15 am CET on 2020-02-28.

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