Safeture (SFTR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 25% year-over-year to 13,898 KSEK, with 99% recurring revenue and ARR up 17% to 57,001 KSEK.

• EBIT improved to -152 KSEK from -1,597 KSEK last year, with net loss per share at 0.00 SEK (before/after dilution).

• Gross margin reached 80%, up from 76% a year ago, and quarterly churn remained low at 0.8%.

• Cash position increased to 21,154 KSEK as of June 30, 2024, with positive cash flow of 778 KSEK in Q2.

Financial highlights

• Net revenue for the first six months was 27,525 KSEK, up 27% year-over-year.

• EBIT for Q2 improved by 1,437 KSEK year-over-year, with EBIT margin rising from -14% to -1%.

• Annual recurring revenue (ARR) grew 17% year-over-year to 57,001 KSEK, and 5% sequentially from Q1.

• Gross margin held steady at 80%, meeting the company’s financial target.

• Net revenue retention (NRR) was 103% for the year, indicating strong customer retention and upsell.

Outlook and guidance

• Management targets sustainable profitability at ARR of 65 MSEK, with current cash levels deemed sufficient to reach this goal.

• Expectation to balance around profitability in coming quarters due to currency and personnel cost fluctuations.

• Continued investment in platform development and partner network expansion, especially in risk management markets.