Safestate Group (STATE) Q3 2024 earnings summary

Executive summary

• Achieved 145% sales growth in Q3 2024 compared to Q3 2023, with strong momentum in both B2B and B2B2C segments.

• Secured major white label agreements with leading telecom and financial institutions in the Nordics, Poland, and the Netherlands.

• Completed PCI DSS v4.0 certification, enhancing cybersecurity credentials and product offerings.

• CEO transition: Fredrik Björklund appointed as CEO from September 1, 2024.

Financial highlights

• Net sales (adjusted for prepaid revenues) Q3: KSEK 9,377 (KSEK 3,834), up 145% year-over-year.

• EBITDA (adjusted for restructuring/prepaid): KSEK 5,136 (KSEK -750) in Q3; margin ~55%.

• Net result Q3: KSEK 1,343 (KSEK -4,453); YTD: KSEK -3,353 (KSEK -14,011).

• Positive cash flow in Q3: KSEK 609; cash and equivalents at period end: KSEK 6,170.

• Contracted Annual Recurring Revenue (CARR) increased to MSEK 28.3 from MSEK 23.4 sequentially.

Outlook and guidance

• Targeting sales of MSEK 100 for fiscal year 2025, supported by expanded sales force and new reseller agreements.

• Accelerated sales team growth to 33 sellers by end of August, aiming for closed deals of ~TEUR 440/month.