Leading risk management SaaS company, Safeture has announced its latest financial interim results, up to Q3 of this year, with performance and progress toward profitability. This has been driven by improved sales, (up 35% compared with 2022), which reached 12.4m SEK (€1.06m). Annual Recurring Revenue (ARR) was up to 50.3m SEK (€4.32m), an increase of +26% year-on-year.
Safeture CEO Magnus Hultman described the third quarter as a typical “summer quarter”. He noted that the number of opportunities were promising but didn’t materialize to the extent the company wanted, however he also noted more positive developments including the improved sales and Net Revenue Retention (NRR), which stood at 113%. Quarterly churn was “a mere 0.5 %”, Hultman said. “A very healthy number.”
He added that continuous improvement in the gross margin combined with strict expense control helped the firm to get close to its short-term target of reaching profitability, so that Safeture is now on the verge of reaching profitability.
He added: “The partner base brought in 100 % of new ARR. The importance of continuing to work on our partner positioning is evident and will help us to continue to grow while maintaining our current cost structure.”
Scaling for Success: Navigating Complexity in Onboarding Projects
From spring up until now, Safeture has been engaged in several large onboarding projects with big partner clients. “We know the drill, but the bigger they get, the more complex it becomes. Not only the sheer number of users but also the integrations requested, ranging from travel booking integrations, HR databases and single sign-on setups.” Hultman continued.
“It’s easy to believe that “just add more resources” is the answer, but we firmly believe that this is not the only solution. Instead, we focus on how we can scale our existing organization. We aim to have proper processes, clear documentation, the right tools and cross-functional knowledge sharing. It’s not a quick fix, and the most important thing is to have the mindset to continually improve how we do things.”
Management team transitions
Last quarter, two key members of Safeture’s management team, the CRO and the CFO, successfully transitioned to exciting opportunities in other tech companies. Hultman said “we commend their achievements in securing new, demanding roles in the industry”.
He added: “Having two members of the management team leaving could stress any CEO out, but with a great team effort, we pulled through. A new CRO, Andreas Granath is in place. Andreas has previously held senior sales positions at Qlik, NodeGraph, Readsoft and HP.
In addition, Safeture announced the appointment of its new CFO, Jessica Eberhagen.
“We’re excited to welcome Jessica, who joins Safeture with extensive financial expertise acquired from her diverse background in business controller and leadership roles within multinational companies spanning various industries.”
“Now it’s time for the last sprint of the year, where the objectives are crystal clear. Focus on costs, reach profitability, successfully onboard the new team members, and close deals.”
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