Leading risk management SaaS company, Safeture AB, has released its Interim Report for Q4 2023, citing strong sales, with annual recurring (ARR) growth of 30% to 53.5 million SEK (€4.76m) , which are “closing in on our mid-term financial targets”, the company said in a statement.
In its Interim report statement, Safeture said that recurring revenue amounts to 12.4 million SEK (€1.1m) compared to 9.5m SEK (€84,000) last year (+30%), with net Profit improvement year-on-year of 3.6m SEK (€31,959), reaching -1.7m SEK. Return on Sales improvement from -55% one year ago to -11% in Q4 2023. Quarterly churn stood at 0.2%, with Yearly NRR at 117%.
Strong Sales in Q4, closing in on mid-term financial targets
In its statement the company said that the fourth quarter marked a significant milestone for Safeture, as this represented its strongest sales quarter ever. In Q4, its total order value reached 14.7 MSEK (€1.3m), driven in part by one-off revenues and startup fees associated with new business sales. When summarising, the company achieved an impressive year-over-year growth of 37%. By the end of the year, it concluded an ARR (Annual Recurring Revenue) of 53.5 MSEK (€4.76m).
Compared to its mid-term financial targets, Safeture said it is making substantial progress. ARR growth after Q4 stands at 30%, and for the first time, the company surpassed one of its 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 (€5.78m), is approaching, the company said.
Ending 2023 in style but still not profitable
Magnus Hultman, CEO at Safeture, commented: “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
Hultman added: “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 organisation’s financial numbers and processes are well-organised and in order.
“As we enter 2024, our management team is once again complete.”
Outlook 2024
Hultman continued: “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 jeopardising 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.”
Results (Classics)
Full year (2023-01-01 to 2023-12-31)
Net revenue amounted to 48, 913 KSEK (35, 825) KSEK (€4.35m) (€3.187m) (+37%)
Loss after financials amounted to -6 329 (-17 127) KSEK. (€562,949.42) (€1.5m)
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%). (€1.3m) (€852,477.95)
Loss after financials amounted to -1 690 (-5 311) KSEK. (- €150,334.92) (- €472,443.07)
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, (€4.76m) (€3.67m) a year-on-year increase of +30%.
Recurring revenue increased +30% to 12, 381 (9,517) KSEK (€1.1m) (€846,404.50)
Churn for the quarter was 0,2%.
Net revenue retention (NRR) was 117%.
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