Interim Report Safeture AB Q4 2023: Strong Sales in Q4, closing in on our mid-term financial targets

Classics

Full year (2023-01-01 to 2023-12-31)

• Net revenue amounted to 48 913 (35 825) KSEK (+37%).
• Loss after financials amounted to -6 329 (-17 127) KSEK.
• Loss per share before dilution amounted to -0,16 (-0,49) SEK.
• Loss per share after dilution amounted to -0,16 (-0,48) SEK.

Fourth quarter (2023-10-01 to 2023-12-31)

• Net revenue amounted to 14 731 (9 583) KSEK (+54%).
• Loss after financials amounted to -1 690 (-5 311) KSEK.
• Loss per share before dilution amounted to -0,04 (-0,15) SEK.
• Loss per share after dilution amounted to -0,04 (-0,15) SEK.

SaaS Traction

Fourth quarter (2023-10-01 to 2023-12-31)

• Annual recurring revenue (ARR) at the end of Q4 2023 reached 53 527 (41 325) KSEK, a year-on-year increase of +30%.
• Recurring revenue increased +30% to 12 381 (9 517) KSEK
• Churn for the quarter was 0,2%.
• Net revenue retention (NRR) was 117%.

Message from the CEO

Strong Sales in Q4, closing in on our mid-term financial targets

The fourth quarter marked a significant milestone for Safeture, as it was the strongest sales quarter ever. In Q4, our total order value reached 14,7 MSEK, driven in part by one-off revenues and startup fees associated with new business sales. When summarizing, we achieved an impressive year-over-year growth of 37%. By the end of the year, we concluded an ARR (Annual Recurring Revenue) of 53.5 MSEK.

Compared to our mid-term financial targets, we are making substantial progress. Our ARR growth after Q4 stands at 30%, and for the first time, we surpassed one of our three mid-term financial targets, 80 % gross margin, however, boosted by a few one-off revenue numbers. As for the third target, achieving profitability with an ARR of 65 MSEK, is approaching.

Ending 2023 in style but still not profitable

The main reason for the strong ending in 2023, was signing one of the world's largest insurance and medical assistance companies, based in France. We are in the process of rolling out the Safeture platform during the first quarter of 2024. We consider this customer being an addition to our growing partner network due to their worldwide assistance capabilities, adding both ARR and future potential expansion to our partnership. Our definition of a partner is when they are operating an Emergency Response Center (ERC) or Security Operations Center (SOC) on behalf of the end clients.

Seasonality effects, along with staff vacancies, got us very close to profitability in Q3, but it is still in the red for Q4. Q4 is usually a heavier quarter in terms of operating expenses. In this particular Q4, three primary factors contributed to this: filling staff vacancies, currency fluctuations, and a prudent decision to write down a direct client's value.

Management team complete

In Q4, we welcomed our new CRO, Andreas Granath. I am very happy to have him on board, as he brings tons of experience to our sales and customer development team. Andreas has spent the majority of his career in various international roles.

In Q4 we also initiated the onboarding of our new CFO, Jessica Eberhagen, who officially joined the company in January. Jessica is already making a positive impression, taking on several key projects to ensure the organization's financial numbers and processes are well-organized and in order.

As we enter 2024, our management team is once again complete.

Outlook 2024

As we step into 2024, we still find ourselves in an unstable macroeconomic environment, mirrored by conflicts in Ukraine and the Middle-East, along with decreased economic activity. While conflicts are usually something that drives demand for risk mitigation and thereby benefit our business and the need for Safeture in the world, the economic uncertainty is quite the opposite. Economic uncertainty might bring longer lead times for sales and pressure on the financial stability of our customers. 

Despite the challenges in the macroeconomic environment, we are optimistic about 2024. We have a growing partner network, a best-in-class platform, a great team and it's worth mentioning that risk management has become a topic of discussion in most boardrooms across the globe. 

During 2024, our main focus for investments will be towards Customer Development and the Platform, aiming to capture as much value as possible and sustaining our ability to onboard new partners and clients. The sales forecast, in combination with strong Gross Margin and SaaS metrics, will ensure a solid business case without jeopardizing either cash reserves or the profitability target.

We are proud to lead the way in people risk management, protecting companies' most valuable assets - their employees.

Magnus Hultman, CEO at Safeture.

Lund - February 14[th] 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 February  14[th] 2024 at 08:00 CET.

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.