Strong growth and technical development make Safeture ready when the world restarts
Safeture is reporting a good outlook on the near future. 2021 got to a good start, and them company sees more and more signs that the markets are picking up speed after 2020, the year that will always be remembered due to Covid-19. Highlights for the quarter are the continued strong growth in ARR (Annual Recurring Revenue), new great clients, continued low churn but also our product development.
Many great new clients in Q1 lead to an increase in Annual Recurring Revenue (ARR) to 27,1 MSEK, +42% growth year-on-year. The core platform development intensified during Q1 where the delivery of “Enhanced privacy filtering” became the most appreciated new feature. Safeture clients remain to be loyal. The percentage of clients cancelling their business with Safeture (churn) in Q1 of 20201 remained low at 1%.
Some highlights for the first quarter of 2021 were:
- On January 25th, Safeture carried out a directed share issue of 38,6 MSEK. 4,6 million shares were issued at a price of 8,40 SEK/share. The subscribers were the US-based institutional investor Topline Capital Partners LP, Dragfast AB and Ninalpha AB.
- Safeture entered into an agreement with the U.S./EU corporation Insured Nomads, the first insurtech company focused on remote workers, digital nomads, expats, and travelers. Initially, the agreement runs for three years and gives Safeture 500+ KUSD plus additional revenue with membership growth.
- Safeture started partnering with Dallas based corporate travel data leader Traxo. Safeture customers now can leverage Traxo travel data intelligence to quickly locate more traveling employees.
Safeture CEO Magnus Hultman elaborates on the current company performance:
“The annual recurring revenue (ARR) grew to 27,1 MSEK during the first quarter of 2021, which is a rise of 42%. The increase was primarily due to new Safeture customers, where the biggest order of the quarter came from Insured Nomads in the US. Safeture continues its strong track record in the insurance space, and we are the clear leader in this industry. Insured Nomads is extra interesting since they are specifically targeting the “new normal” of working, where the workspace will be less fixed and more flexible post-covid. Tending the needs of the “digital nomads” with their specific characteristics will grow going forward. Another trend here is also that insurance and assistance offerings need to be more flexible to cater to emerging needs.”
“Safeture is very proud to be a leading tech company. At the core of all things we do is our own platform. This platform is highly adaptable to customer needs and requirements.”
“At Safeture, we track all development based on a) core development b) customization c) maintenance and second-line support. After the roll-out of Siemens in Q4, we see the core development ratio steadily going back to normal. We aim to deliver ever more out-of-box products and fewer customizations, which is a sign of our dynamic platform’s strength.”
“Safeture takes pride in safeguarding the privacy of our customers and end-users. Now we also introduce “Enhanced privacy filtering”, extra levels of privacy filters, both on subregional- and city levels, to balance the need for accurate positioning while also maintaining end-user privacy. This is especially important in larger countries like the US and China. We also developed Online tutorials, which increases the usability of the platform and decreases the number of support tickets, along with an updated API documentation for third-party integrations. For the coming quarter, we are initializing several major projects that will expand our platform offering, which will be launched throughout the year.”
“We see very clear signs that the US was first out of the recession, but Europe is catching up, and we also signed multiple new accounts in Germany and Scandinavia. We are extra proud to get renewed confidence from the Finnish state and the Prime Minister’s office together with our partner Falck Global Assistance.”
“As we have highlighted previously, we are very optimistic for 2021, even though the pandemic is far from over. Spirits at Safeture and the industry, in general, remain high and bullish.”