Interim Report April1 [st ]– June 30 [th ], 2021: ARR growth of +66% while sharpening the sales team to take on the increased demand from global customers

Interim Report April1 [st ]- June 30 [th ], 2021: ARR growth of +66% while sharpening the sales team to take on the increased demand from global customers Tue, Jul 20, 2021 08:00 CET

Highlights for the quarter are the continued strong growth in ARR and continued low churn.

The annual recurring revenue (ARR) grew to 28,9 MSEK during the second quarter of 2021, which is a rise of 66 % year-on-year.

• Continued strong growth in ARR to 29 MSEK (+66%).
• New sales director employed and will start in August.
• Intensified focus on both partner sales and direct sales.
• Churn in Q2 remained low at 0,3%.

Summary of Interim Report

The Group

First six months (2021-01-01 to 2021-06-30)

• Net turnover amounted to 12 723 (9 555) TSEK, an increase of +33% compared to the same period last year.

• Loss after financials and minority share amounted to -12 817 (-13 537) TSEK.

• Loss per share* before dilution amounted to -0,46 (-0,56) SEK.

• Loss per share* after dilution amounted to -0,43 (-0,51) SEK.

Second quarter (2021-04-01 to 2021-06-30)

• Net turnover amounted to 6 600 (4 746) TSEK, an increase of +39% compared to the same period last year.

• Loss after financials and minority share amounted to -5 648 (-7 928) TSEK.

• Loss per share* before dilution amounted to -0,19 (-0,33) SEK.

• Loss per share* after dilution amounted to -0,17 (-0,30) SEK.

• The solidity** amounted to 67,6 (62,4) %.

Growing SaaS Traction

Second quarter (2021-04-01 to 2021-06-30)

• Annual recurring revenue (ARR) at the end of Q2 2021 was 28 865 (17 352) TSEK, a year-on-year increase of +66%.

• Recurring revenue amounted to 6 521 (4 338) TSEK, which represents 99% (91%) of the quarterly revenue.

• Churn for the quarter was 0,3%.

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).

**Solidity: Equity divided by total assets.

Significant events during the second quarter, 2021.

• At the end of Q2 Safeture together with SPS, an international security and assistance company, signed a deal worth 383 KEUR with an unnamed large German company. The contract implies rolling out the Safeture platform to 60.000 employees worldwide.

• Safeture is creating a new commercial team. The company will more efficiently and purposefully handle both direct and indirect commercial opportunities in the future. In this venture, Nicola Dolovski has been appointed Commercial Director with responsibility for sales and customer development. Dolovski most recently came from Parkster where he was heading up the Marketing & Sales organization. During his time at Parkster, the company grew from SEK 4 million to SEK 750 million in sales.

Message from the CEO Magnus Hultman:

'Sharpening our sales to take on increased demand from global customers'

Despite the extensive roll-out of vaccines, the post-pandemic effects continue to linger. The sales cycle remains longer than expected, and changes in customer behavior highlighted the need to look at and evaluate our sales processes. Still, the second quarter came in strong.

Growth through new customers

Highlights for the quarter are the continued strong growth in ARR and continued low churn.

The annual recurring revenue (ARR) grew to 28,9 MSEK during the second quarter of 2021, which is a rise of 66 % year-on-year. The increase was primarily due to new Safeture customers. The most significant order of the quarter is an unnamed global company from Germany. The success factors behind this new deal are our world-class technology platform and our commitment to data protection and privacy. The Safeture platform will be rolled out to 60 000 employees in the German company. The new account is a top ten account for us, where the top three are Chubb (insurance), Siemens (manufacturing), and a Swedish global furniture company.

Strengthening the commercial organization to focus on commercial outcomes

At the end of the quarter, our Sales Director was replaced with a Commercial Director. We welcome Nicola Dolovski to Safeture, where he will have the commercial responsibility for all sales activities, including direct and partner sales as well as customer development. The primary reason for hiring a commercial director is to have a holistic view of sales since we see an increased need to also address complementary channels such as online sales and partner sales as well as direct sales. Direct sales have suffered during the pandemic since it has been harder to visit prospects or attend trade fairs. Instead, our other channels have grown significantly, and we believe they will continue to do.

Sustainable growth by retaining and growing existing customer base

A part of our growth plan is to enhance 'the customer journey' as part of our customer development. The challenge is to define how we can use our platform to help our customers establish world-class risk management and employee safety organizations. Customer development is a relatively new function at Safeture but is scaling up nicely now, catering to our very large untapped customer base of +3 600 customers globally (direct and in-direct customers).

As we become a more mature SaaS company, it is essential to be able to evaluate the existing customer base with transparent and adequate tools. That is why we are introducing Net Revenue Retention (NRR) as an additional growth indicator. Net Revenue Retention is a core KPI for SaaS companies and measures the percentage of recurring revenue retained from existing customers, including upgrades, downgrades, and cancellations (churn). For the second quarter it was over 100 % which is a sign that the business is healthy and can grow even without acquiring new customers. It also shows that the revenue generated from upgrades and cross-sells exceeded revenue lost due to churn or downgrades.

Commercial opportunities with diversified sales channels

We are continued optimistic for 2021 even though lead times have been longer than expected and that there will be short time effects getting the new commercial organization in place in the third quarter. Continued focus on diverse sales channels will be as important going forward as it was in the first half of 2021.

Magnus Hultman, CEO of Safeture

Lund, July 2021

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 2021-07-20

About Safeture AB

Safeture (founded in 2009) is a Software as a Service (SaaS) company based in Sweden.
The company offers a complete cloud-based platform designed to manage employee safety and risk/crisis management. Through world-leading technology and innovative solutions, Safeture helps companies and organizations to protect what matters most - their employees. Safeture corporations the ability to effectively automate safety and security while seamlessly integrating the software to become a natural part of their internal processes.The Safeture share is listed on NASDAQ First North Growth Market Stockholm (ticker: SFTR). Erik Penser Bank AB is the Certified Adviser. Ph: [phone] E-mail: [e-mail].

For additional information, visit www.safeture.com or contact:

Safeture CEO Magnus Hultman: [phone]. [e-mail]