- Continued growth in ARR to 30 MSEK (+33%)
- Churn remained low at 1,7%
- Net sales for Q3 amount to 6,6 MSEK (+18%)
Summary of Interim Report
First nine months (2021-01-01 to 2021-09-30)
- Net turnover amounted to 19 344 (15 163) TSEK, an increase of +27,6% compared to the same period last year.
- Loss after financials and minority share amounted to –18 162 (-16 844) TSEK.
- Loss per share before dilution amounted to -0,65 (-0,69) SEK.
- Loss per share after dilution amounted to -0,60 (-0,63) SEK.
Third quarter (2021-07-01 to 2021-09-30)
- Net turnover amounted to 6 621 (5 607) TSEK, an increase of +18,1% compared to the same period last year.
- Loss after financials and minority share amounted to –5 345 (-3 308) TSEK.
- Loss per share before dilution amounted to -0,18 (-0,13) SEK.
- Loss per share after dilution amounted to -0,16 (-0,12) SEK.
- The solidity amounted to 70,7 (52,3) %.
Growing SaaS Traction
Third quarter (2021-07-01 to 2021-09-30)
- Annual recurring revenue (ARR) at the end of Q3 2021 was 29 942 (22 517) TSEK, a year-on-year increase of +33%.
- Recurring revenue amounted to 6 616 (4 802) TSEK, which represents 100% (85%) of the quarterly revenue.
- Churn for the quarter was 1,7%.
- Net revenue retention was 99,2%.
Significant events during the third quarter, 2021.
- At the end of Q3 Safeture together with Aon, a leading global consulting and service company, launched a free review tool for new ISO 31030 that quickly and easily checks how well companies meet the new guidance document. ISO 31030 is likely to become the benchmark for travel risk management standards.
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)
Solidity: Equity divided by total assets
Recurring revenue: the portion of revenue that is expected to continue in the future
Annual Recurring Revenue (ARR): the contracted recurring revenue for the coming 12 months
Churn: percentage of recurring revenue related to cancellation/downgrading within the quarter
Net Revenue Retention (NRR): percentage of recurring revenue retained from existing customers, including upgrades, downgrades and cancellations (churn).
Message from the CEO Magnus Hultman:
“Sharpening our positioning to improve our strategic focus”
The third quarter of the year was primarily focused on key development projects and new customer onboarding. The contracted revenue was close to expectations but different in shape. The agreement lengths for the period increased but the revenue effect was limited due to this and came in at 30 MSEK in ARR, up 33 % from Q3 2020. Among the new customers signed are the Swedish Ministry of Foreign Affairs, CFA Institute, Finnish Medicines Agency and a larger non-disclosed US based customer.
For me, the autumn and the end of the third quarter has always marked the beginning of the financial year after the summer holidays, when there was time to reflect. This year, even more so, as we are entering a post-pandemic world. Not back to normal but a new normal.
With our roots in travel risk management, Safeture made a well-timed strategy shift in the autumn of 2019 with a focus on being a technology supplier with a product offering, implementing a Software as a Service (SaaS) organizational model and changing our position from individual users to business relevance. At the same time, we set new financial goals. Halfway through our strategic plan for the period 2019-2022 it is time to reflect, adjust and set new targets based on the learnings we have made along the way:
- Increased focus on our partners
Safeture is a world-leading provider of technology to some of the finest and most demanding companies in the world. Almost all incoming tenders have involved the participation of one or more service providers. Our employee safety platform is being used by more than 3 900 companies with users in 180 countries. Risk prevention and emergency response is a core functionality. A key learning is that technology is critical but also the people managing it. Basically, you can say that no matter how good the tech is, it will be no better than the user. Going forward we will focus more on our key users and supporters, the risk and crisis management responders, primarily our partners. Developing and adding more tools for them to better administer their customers’ medical assistance and security requests, is just one example of how we are moving forward.
- Differentiating our offering
Software as a Service (SaaS) means focusing on the product, improving processes and increasing efficiency while implementing a data driven approach so we target the right actionable initiatives. SaaS is a global trend also from a buyer’s perspective, but some industries and target groups are slower to adapt. Safeture will differentiate the offering based on the potential buyer. Some customers need more support in the buying process and others want a do it yourself (DIY) approach. The largest new customers come through partners while average deal size for direct deals is smaller. This will be reflected in our roadmap going forward.
- Highlighting the customer challenges
Never has employee safety and risk- and crisis management been more discussed than throughout the pandemic and it is here to stay. The surge in interest for Safeture’s technology is amazing but it calls for important prioritization decisions and it all boils down to our positioning. By having a crisper statement of offering we are making it easier for our core buyers to understand our platform. With a new commercial director onboard, this will make his work finding the key buyers easier, shorten the lead times and identify the customer success journey.
With an aligned board and management behind a clear strategy, long-term committed investors and a business model that is delivering results and shareholder value, we are also reviewing our financial targets to reflect the journey ahead.
- Average annual growth in revenue shall be at least 30%
- Gross margin shall continue to grow over time and reach above 80%
- Safeture will be profitable when achieving an ARR of 65 MSEK
Looking forward, Safeture has a large and diverse pipe, increase in incoming tender requests and launches of several new product features that will generate new partnerships and deals. The European market, accounting for 80 % of revenue is still sluggish with long lead times but the US market, accounting for 15 % of ARR, has already picked up speed and will hopefully increase its share coming year.
Magnus Hultman, CEO of Safeture Lund, October 2021
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 helps more than 3 600 companies and organizations to protect what matters most – their employees. Safeture gives 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: email@example.com
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 08:00 am CET on 2021-10-20