Safestate Group (STATE) Q2 2024 earnings summary

Executive summary

• Achieved 112% sales growth in Q2 2024 compared to Q2 2023, with B2B service sales starting in April and accelerating in June across multiple countries.

• EBITDA adjusted for restructuring costs and prepaid revenues reached approximately 4 MSEK, with an EBITDA margin of about 55% in Q2.

• Added a new B2C revenue stream by acquiring a former reseller's business, now operated under the Protectia brand.

• Signed key reseller agreements and expanded into new markets, including a sales office in Dubai and agreements in Bulgaria and the USA.

Financial highlights

• Q2 net sales adjusted for prepaid revenues: 7,340 KSEK (3,469 KSEK in Q2 2023); reported net sales: 5,522 KSEK.

• Q2 EBITDA adjusted: 4,041 KSEK (–1,697 KSEK); reported EBITDA: 802 KSEK.

• Q2 result for the period: –3,041 KSEK (–5,092 KSEK); EPS: SEK –0.11 (–0.18).

• Positive cash flow of approximately 21 MSEK in Q2; cash and cash equivalents at period end: 5,559 KSEK.

• Contracted Annual Recurring Revenue (CARR) at 23.4 MSEK as of August 15, down from 161 MSEK at Q1 end.

Outlook and guidance

• Plans to expand sales force to 33 sellers by end of August, targeting monthly closed deals of 440 TEUR and annual sales of 100 MSEK for fiscal 2025.

• Ongoing focus on B2B and white-label sales, with expectations for continued CARR growth as new agreements launch.