Interim Report – Q1 2022
Solid quarter – Safeture delivers in line with targets
- Annual recurring revenue (ARR) growth of 28% to 34,6 MSEK.
- Recurring revenue amount to 8,1 MSEK compared to 5,9 MSEK last year (+36%).
- Gross Margin in Q1 improves to 72% compared to 66% last year.
- Operative result improves with 2,5 MSEK compared to last year.
Summary of Interim Report
First quarter (2022-01-01 to 2022-03-31)
- Net revenue amounted to 8 152 (6 123) TSEK, an increase of +33,1% compared to the same period last year.
- Loss after financials amounted to –4 665 (-7 169) TSEK.
- Loss per share before dilution amounted to -0,15 (-0,26) SEK.
- Loss per share after dilution amounted to -0,15 (-0,24) SEK.
- The solidity amounted to 51,3 (77,4) %.
Growing SaaS Traction
First quarter (2022-01-01 to 2022-03-31)
- Annual recurring revenue (ARR) at the end of Q1 2022 reached 34 576 (27 061) TSEK, a year-on-year increase of +28%.
- Recurring revenue increased 36% to 8 070 (5 946) TSEK, which represents 99% (97%) of the quarterly revenue.
- Churn for the quarter was 0,5%.
- Net revenue retention was 100,7%.
Significant events during the first quarter, 2022.
- Safeture has entered into a financing agreement for the provision of loans of up to SEK 10 million with Safeture’s largest shareholder Agartha AB holding approximately 38 per cent of the shares in Safeture. With the agreement in place the Board of Safeture ensures sufficient time to secure the best long-term financing for the company.
Message from the CEO Magnus Hultman
“Solid quarter – Safeture delivers in line with targets”
The first quarter of 2022 was characterized by a high level of activities brought on by new opportunities as well as new tragic situations in an ever-changing world. Our extensive global partner network has been occupied and focused on helping our mutual customers with securing operations and employees in Ukraine.
Financial results in line with targets
The quarter gave us proof that our partner strategy is working well, and our partners contributed with 87 % of the increase in ARR. Among our new customers, we can count several universities and institutions in the UK and the FMCG giant Beiersdorf in Germany, the last one together with our new partner InCyTect. With new partners and good traction for our customer success team we increased ARR from our existing customers while at the same time maintaining our low churn at 0,5 %. Sales increased 33% year-on-year and our gross margin continue to improve quarter by quarter, reaching 72% in Q1. At the same time our operating expenses somewhat decrease compared last year. All in all, these improvements lead to an improvement of 2,5 MSEK on the bottom-line.
Additions to our offering
The beginning of the year is the time where we set the product development roadmap for the rest of year. It will be a very intense year since we are set to expand our SaaS offering further. An important part of being a global software provider is to a) be able to scale b) providing an open platform that adjust to customer needs c) integrations and co-operations d) improving lifetime value (LTV). With this in mind, we set the scope for our roadmap, based on data and customer insights.
We will roll out several product launches that will be groundbreaking in our market. The most important addition to our platform is to become “risk intelligence agnostic”. It means that the risk intelligence in the Safeture platform is interchangeable to customer requests. The obvious benefit is that the customers can add different risk intelligence sources to the platform and thereby have a unified view that will benefit the overall risk management. As part of this we will also launch a “marketplace” in the Safeture platform where the user can access additional partner services by their fingertips. These additions emphasize the strength of our dynamic platform and enable us to facilitate our customers’ day to day work and strengthen Safeture relationship with both partners and end-customers at the same time.
On a final note, we see an increased demand in the market and a higher degree of business activity which we aim to convert to business opportunities. Uncertainties related to Covid-19 are decreasing by the day and the Ukraine crisis is emphasizing the importance of having the right technology in place when the unexpected happens. With our extensive network and dynamic platform, we take pride in being able to assist in safeguarding employees even in the most challenging, rapidly changing, and unexpected circumstances.
Magnus Hultman, CEO of Safeture
Lund, April 2022