Safeture (SFTR) Q4 2018 earnings summary

Executive summary

• FY18 revenue rose 33.7% YoY to SEK 18.947m; operating loss narrowed to SEK 10.692m from SEK 13.005m.

• Growth strategy centered on global expansion, sales and marketing, and continued Safeture platform development; new contracts are expected to support 2019 revenue.

Financial highlights

• Group revenue was SEK 18.947m vs SEK 14.171m; operating loss was SEK 10.692m vs SEK 13.005m.

• Loss attributable to parent shareholders was SEK 10.467m vs SEK 12.209m; parent-company loss was SEK 11.092m vs SEK 11.467m.

• Year-end cash was SEK 19.948m vs SEK 14.058m; FY cash flow was positive SEK 5.890m vs negative SEK 4.476m.

• FY18 revenue growth was 33.7% for the group and 45.2% for the parent company.

Outlook and guidance

• FY19 priorities include increasing marketing and sales investment, continued product development, and strengthening position in mobile personal security services.

• Expansion is prioritized; higher user volumes are expected to create operating leverage because platform development costs are largely volume-independent and per-user operating costs are low.

• Management assessed liquidity as sufficient for at least 12 months, supported by approximately SEK 15m of funding raised in autumn 2018.