Interim Report Safeture AB Q3 2024: Black numbers, Safeture profitable for the first time
- Annual recurring revenue (ARR) growth of +16% to 58,3 MSEK.
- Sales growth of +15% to 14,3 MSEK, whereof 99% recurring revenue.
- EBIT improvement year-on-year of 0,8 MSEK, reaching +0,1 MSEK and an operating margin at +1% (-6%).
- Gross margin at 79% (78%).
- Quarterly churn at 0,8%.
- Yearly NRR at 104%.
Classics
First nine months (2024-01-01 to 2024-09-30)
- Net revenue amounted to 41 832 (34 182) KSEK (+22%).
- EBIT amounted to -446 (-4 786) KSEK.
- Loss per share before dilution amounted to -0,01 (-0,12) SEK.
- Loss per share after dilution amounted to -0,01 (-0,11) SEK.
Third quarter (2024-07-01 to 2024-09-30)
- Net revenue amounted to 14 308 (12 438) KSEK (+15%).
- EBIT amounted to +125 (-700) KSEK.
- Loss per share before dilution amounted to 0,00 (-0,01) SEK.
- Loss per share after dilution amounted to 0,00 (-0,01) SEK.
SaaS traction
Third quarter (2024-07-01 to 2024-09-30)
- Annual recurring revenue (ARR) at the end of Q3 2024 reached 58 300 (50 332) KSEK, a year-on-year increase of +16%.
- Recurring revenue increased by +15% to 14 159 (12 262) KSEK, which represents 99% (99%) of the quarterly revenue.
- Churn for the quarter was 0,8%.
- Yearly Net revenue retention (NRR) was 104%.
Message from the CEO
“Black numbers, Safeture profitable for the first time”
For the first time, Safeture could show black numbers with a profitability of +125 KSEK (1 %), measured as EBIT. Revenue growth (+15%), a healthy gross margin (79%) but also seasonal effects due to summer period and vacations were the main drivers. Safeture still holds that sustainable profitability will occur at 65 MSEK ARR, which means that we will most likely continue to balance around the profit line for yet some time.
Busy autumn
While the fiscal year applies to bookkeeping, the operational business cycle typically gains momentum starting after summer. September is the month when the management team and the board hold our annual strategy workshop, when the big trade fairs occur, and when the revenue team is back from vacation. The third quarter was an overall ok quarter, with a growth rate below our financial targets, given the continued uncertainties in the market as we have indicated in previous reports. Revenue amounted to 14 308 KSEK. The recurring revenue was a high 99 % of total revenue, and churn was a low 0,8 %.
Safeture added four new partners to our tally, and our partner network brought in ten new end clients. Our focus is to acquire new revenue through our partner network. So far during 2024, 88% of our order intake is derived from the partner channel.
However, we also add direct clients. Three new direct clients were added during Q3, whereof Bank of International Settlements (BIS), was a nice contribution to our strong position in the financial industry.
Industry dynamics
The industry has experienced significant changes in recent months, marked by several major acquisitions involving security firms, technology companies, private equity firms, and insurance providers. While this consolidation has introduced changes in the competitive landscape, Safeture views these developments positively and continuously keeps track of what’s happening in the market development.
These acquisitions underscore the sector's growing importance, particularly in relation to Environmental, Social, and Governance (ESG) and Environmental, Health, and Safety (EHS) considerations. Safeture is well-positioned to capitalize on this increased focus on keeping people safe and managing travel risks.
In summary, the third quarter marked a turning point for Safeture, with profitability and key partnerships driving growth. Looking ahead, Safeture remains focused on sustaining profitability and capitalizing on its position as a leader in the people risk management sector.
Magnus Hultman, CEO at Safeture.
Lund – October 18th 2024
For the full report: https://investor.safeture.com/financial-reports-presentations/
For additional information, visit safeture.com or contact:
Safeture CEO Magnus Hultman: +46 706 00 81 66. Magnus.hultman@safeture.com
This information is such information as 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, on October 18th 2024 at 08:00 CEST.
About Safeture AB
Safeture (founded in 2009) is a Software as a Service (SaaS) company based in Sweden. The company offers a complete platform designed to handle safety and risks for employees, wherever they are. Through world-leading technology and innovative solutions, Safeture helps risk management- and assistance providers secure their clients, global companies, and organizations to protect what matters most – their people. The Safeture share is listed on the NASDAQ First North Growth Market Stockholm (ticker: SFTR). Redeye is the Certified Adviser.
