Safestate Group (STATE) Q4 2024 earnings summary

Executive summary

• Achieved 203% sales growth year-over-year in Q4 2024, driven by strong B2B and white label partnerships.

• Positive adjusted EBITDA of KSEK 7,246 in Q4 and KSEK 18,037 for the full year, reflecting successful cost-saving initiatives.

• Positive cash flow for the last three quarters of 2024; cash flow in Q4 was KSEK 247.

• Signed major white label and reseller agreements in telecom, banking, and hosting sectors, expanding market reach.

• CEO transition in September 2024, with Fredrik Björklund taking over and further strengthening the management team.

Financial highlights

• Q4 2024 net sales: KSEK 9,616 (KSEK 3,958 in Q4 2023); full year net sales: KSEK 25,198 (KSEK 14,576 in 2023).

• Adjusted EBITDA Q4: KSEK 7,246 (KSEK 61); full year: KSEK 18,037 (KSEK -4,062).

• Result for Q4: KSEK -1,923 (KSEK -3,510); full year: KSEK -5,358 (KSEK -17,521).

• Contracted Annual Recurring Revenue (CARR) at MSEK 33.7 as of Feb 17, up from MSEK 28.3 in October.

• Cash and cash equivalents at year-end: KSEK 6,418; equity: KSEK 60,266.

Outlook and guidance

• Targeting SEK 100 million in revenue for 2025, supported by expanded sales force and new partnerships.

• Plans to complete 2-4 acquisitions in 2025 to accelerate growth.

• Continued focus on product development, operational efficiency, and strategic M&A.