Safeture AB Continue to Increase, +40,6 % Growth
LUND, Sweden, April 21, 2020 /PRNewswire/ -- Safeture employee safety platform continues its momentum in a globalized world with increased insecurity and risk awareness.
"Recent months' concerns about the Corona virus have clearly shown the need to be better prepared when the unexpected occurs. Safeture's platform illustrates how you can quickly locate your staff, communicate with them, and provide information on the necessary actions wherever they are. It will be at least as important when business resumes, and the world slowly opens again", Magnus Hultman CEO Safeture comments.
- On February 27, Safeture announced a world-first Coronavirus exposure tracker for companies that, in real-time, correlates each employee's travel patterns with the latest Covid-19 reported cases.
- Core business revenue for the first quarter grows 41% to 4,8 MSEK of which 99% derives from recurring revenue.
- Annual Recurring Revenue (ARR) for the first quarter grows 46% year-on-year to 19,1 MSEK.
- After the closing of Q1, Safeture signs two global leaders. Siemens signs an order worth 767 TEUR and Americas insurance giant Chubb signs an extension order worth a minimum of 2 000 TUSD.
Summary of Interim Report
First quarter (2020-01-01 to 2020-03-31)
- Net turnover amounted to 4 811 (5 237) TSEK, a decrease of -8,1% compared to the same period last year. Q1 2019 figures for the Group included 1801 TSEK sales in the divested company Travelogix Ltd.
- Loss after financials and minority share amounted to -5 609 (-4 373) TSEK.
- Loss per share* before dilution amounted to -0,24 (-0,19) SEK.
- Loss per share* after dilution amounted to -0,22 (-0,17) SEK.
- The solidity** amounted to 23,3 (62,5) %.
The Parent Company
First quarter (2020-01-01 to 2020-03-31)
- Net turnover amounted to 4 811 (3 421) TSEK, an increase of 40,6% compared to the same period last year.
- Loss after financials amounted to -5 540 (-4 137) TSEK.
- Loss per share* before dilution amounted to -0,24 (-0,18) SEK.
- Loss per share* after dilution amounted to -0,22 (-0,16) SEK.
- The solidity** amounted to 23,5 (66,3) %.
First quarter (2020-01-01 to 2020-03-31)
- Recurring revenue amounted to 4 770 (3 268) TSEK, which represents 99% (96%) of the Parent company quarterly revenue. Recurring revenue increase 10% versus Q4 2019.
- Annual recurring revenue (ARR) at the end of Q1 2020 was 19 082 (13 071) TSEK, an increase of +46% compared to Q1 2019.
- Churn for the quarter was 0,9%.
"Parent company" or "Safeture", comprises of Safeture AB with company number 556776-4674, without subsidiaries. "The Group" comprises the Parent company, including subsidiaries. On March, 2020, the Parent company owned 100% of the shares in GWS Production (Singapore) Pte Ltd, 99,99% of the shares in GWS do Brasil Solucões e Sistemas Tecnológicos em Seguranca Ltda and 35% of the shares in Carefindy AB (minority interest).
Amounts within brackets regard the corresponding period last year.
*Result per share: The result is divided by the average number of shares (after dilution includes average number of share options). The average number of shares for the first quarter 2020: 23 193 737 (23 193 737) shares. Total number of shares in Safeture on March 31, 2020: 23 193 737 (23 193 737) shares. The Company has issued 670 000 share options (2016/2020), of which 670 000 has been signed for, which can be converted into the same number of shares in the Company during April 2020. The Company has furthermore issued 794 000 share options (2018/2021) which can be converted into the same amount of shares from December 13th, 2021 to December 17th, 2021. Finally the company has issued 1 070 880 share options (2019/2022) which can be converted into the same amount of shares from July 18th 2022 to July 29th 2022.
**Solidity: Equity divided by total assets.
Significant events during the first quarter, 2020.
- On February 27, it was announced that Safeture launched a unique service to protect employees and organizations from Corona's global spread. Safeture launched a world-first Coronavirus exposure tracker for companies that, in real-time, correlates each employee's travel patterns with the latest Covid-19 reported cases.
- Safeture announced that several new customers have signed up for its cloud-based software to help manage safety and reduce risk for their employees. The increasing awareness of corporate duty-of-care for employees continues to drive demand for Safeture's software globally. The new direct customers who have obtained the company's platform include the Swedish SwedFund, electric racing championship Formula E and U.K. giant Imperial Tobacco. In addition, Kinnevik in Sweden and the Swedish Civil Contingencies Agency signed up via one of the company's partners.
- An extra shareholders' general meeting was held on January 10. In the meeting it was decided to elect two new members of the Board, Christian Lindgren and Pontus Kristiansson. It was also announced that Lars Lidgren, the founder of Safeture AB, is resigning from the Board.
- It was announced that Safeture AB has signed an agreement with Adma Förvaltnings AB, Safeture's largest shareholder, for a credit facility of up to 10 MSEK.The financing will be used to pursue the company's aggressive growth strategy.
Significant events after the first quarter, 2020.
- The German company, Siemens, one of the largest companies in Europe, purchases the Safeture Enterprise platform for its employees with a focus on business travelers. The initial order value is estimated to 767 thousand EUR over the next three years.
- Safeture announced a five-year agreement extension with Chubb, the world's largest publicly traded property and casualty insurance company. The contract value is worth a minimum of 2 million USD over the next five years.
Message from the CEO Magnus Hultman
The Corona virus global outbreak impacted everything in the first quarter. At first it looked like it was business travelers who were most affected, but it quickly spread to the broader corporate market and ultimately to us here in Europe by mid-February. Now, it's an ugly reality that we are all doing our best to battle.
Safeture is in the eye of the storm, working hard to ensure our software is there to support companies when they need it the most. We realized our unique platform with its location and travel data, combined with the wealth of information gathered by our analysis team and our platform's ability to mass-communicate, was the ideal tool to detect the spread of the virus. We launched the world's first Corona Exposure tracker, enabling our customers to follow their employees' locations and trips in combination with reported outbreaks. This gave customers valuable, actionable data to help them restrict travel and quarantine personnel. We quickly made it free for the world to test and since then we have received hundreds of new companies, organizations and authorities wanting to try out the platform.
With our unique data and customizable software platform, we are at the forefront of using technology as a tool to track and fight the corona virus outbreak. We aren't slowing down though. We are continuing to develop the
platform to add new data sets such as global quarantine and restriction maps. Our efforts added value to our customers and helped generate tremendous interest from new prospects and a lot of exposure in global media.
The pandemic has also led to booked trade shows and customer meetings being postponed. This will likely lead to longer sales for the coming months. Still, companies are waking up and corporate resilience and business continuity are high on the agenda.
The first quarter continued to show steady revenue growth of 41% percent. More than 3,000 companies are now using our service, most of them coming from our partners. We see a clear opportunity to accelerate our growth, so we strengthened the sales organization by hiring four new sales professionals to focus on Sweden, the UK and the Netherlands. Sales and marketing now make up a third of our workforce, and we plan to continue to scale in these areas. We have actually outgrown our office at Ideon in Lund and have signed for a new office in downtown Lund that is twice the size and will help use secure continued growth and attract new top talent.
During the quarter, we also launched two very interesting partnerships in the UK and in Southeast Asia called Sphere and Vesta, respectively. They are co-operations between medical assistance providers, security assistance providers with Safeture providing the technology platform. This type of full-service offering is a very attractive package for global customers. After the quarter ended, we received an order from Germany's Siemens and a five-year extension deal with the insurance giant Chubb.
It has been a busy quarter as you can see. We are thrilled to see companies around the world considering new solutions to support their employees. It is an exciting time for Safeture, and we are optimistic about our prospects for the rest of the year. Stay safe.
CEO, Safeture AB
This press release is information that Safeture AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 am CET on 2020-04-21
For additional information, visit www.safeture.com or contact:
Safeture CEO Magnus Hultman: +46 706 00 81 66. Magnus.firstname.lastname@example.org
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Final PR Safeture Q1 2020 20200421