Safe-T Group Ltd. Expects Record First Quarter 2022 Revenue of Approximately $4 Million, Representing Growth of ~200% Compared to First Quarter of 2021
Posted on April 18, 2022 · Posted in Safe-T Group
Customer Acquisition Investments Driving Growth in Recurring Consumer Subscriber Future Revenue
HERZLIYA, Israel, April 18, 2022 — Safe-T® Group Ltd. (Nasdaq, TASE: SFET) (“Safe-T” or the “Company”), a global provider of cybersecurity and privacy solutions to consumers and enterprises, today provided preliminary revenue guidance for the three months ended March 31, 2022.
Based upon a preliminary, unaudited review, Safe-T expects to report revenues for the quarter ended March 31, 2022, of approximately $4 million, nearly tripling its revenues compared to the $1.4 million reported for the first quarter of 2021. First quarter results include continued growth in new subscribers for the Company’s consumer products, as well as for its enterprise privacy solutions.
Shachar Daniel, Chief Executive Officer of Safe-T, stated, “In the first quarter, our performance continued to be driven by growth in the consumer market, a direct result of our customer acquisition efforts. We are excited about our robust product pipeline and are looking forward to capitalizing on the clear and pressing need we see in the market for our solutions. We are confident in our ability to further increase the value of our recurring revenue stream and the Lifetime Value of our acquired customers.”
Update Regarding the Company’s Consumer Business Model and Recurring Revenues
The Company’s customer acquisition program is based upon a 5-year business model that employs a user Lifetime Value (“LTV”) metric. LTV is a calculation of the average dollar amount of revenue anticipated to be received from subscribers over their retention period. According to this model, the Company can estimate future recurring revenue based upon the number of users at any given point of time, multiplied by the relevant LTV. Each product produced by the Company has an associated LTV metric. An updated Corporate presentation including a description of the Company’s LTV model can be found on the website here.
“Since we invested into our consumer business in the second half of last year, we successfully generated a growing future revenue stream of subscribers, one which is and will be an important asset and driver of value for Safe-T. After several months of investing into sales and marketing to acquire our current customer base in support of our first consumer product, we are now able to begin modeling our return on investment based upon the LTV of these consumer subscribers. The attractive LTV metrics we have produced to date provide us with confidence in the sales and marketing efficiency of our consumer acquisition program and its ability to attract profitable customers. This capability will be critical as we expand our offerings onto multiple platforms including Windows, Android and Apple iOS mobile devices and desktop computers later this year. Looking ahead, we intend to continue leveraging our successes through further investments into new and innovative products and accelerating customer acquisitions which we believe will translate into sustained, long-term enterprise value, and ultimately, bottom-line profitability,” added Mr. Daniel.
Safe-T expects to release the fully reviewed financial statements on or before May 31, 2022.
