Safeture (SFTR) Q4 2024 earnings summary

Executive summary

• Achieved 15% year-over-year recurring revenue growth in Q4 2024, with recurring revenue representing 97% of total operating revenue.

• EBIT improved by +2.2 MSEK year-over-year, reaching +0.3 MSEK and a 2% operating margin, compared to -13% last year.

• Full-year EBIT improved by +6.5 MSEK, with a result after financial items of +507 KSEK, and EPS of 0.01 SEK (before and after dilution).

• Q4 operating revenue declined by 1% year-over-year due to an exceptional prior-year quarter with high one-time revenues.

Financial highlights

• Q4 2024 operating revenue: 14,571 KSEK (-1% YoY); recurring revenue: 14,193 KSEK (+15% YoY).

• Annual Recurring Revenue (ARR) at Q4 end: 58,020 KSEK (+8% YoY), but declined sequentially from Q3 due to high churn.

• Gross margin stable at 79% (vs. 80% last year).

• Q4 EBIT: +278 KSEK (vs. -1,899 KSEK last year); operating margin: +2% (vs. -13%).

• Cash at year-end: 23,786 KSEK, with positive Q4 cash flow of +1,864 KSEK and full-year net cash increase of +4,645 KSEK.

Outlook and guidance

• Mid-term financial targets revised: average annual revenue growth of 15%, gross margins above 80%, and sustainable profitability at 65 MSEK ARR.

• 2025 outlook includes market uncertainty, especially in Europe, but expects growth through partner network expansion and entry into adjacent categories.

• Sustainable profitability expected with modest OPEX adjustments as ARR approaches 65 MSEK.