Safe-T Reiterates Record Q1 and April, Expects Minimum 50% Annual Growth Through 2025

Safe-T Group Ltd SFET, in its letter to shareholders, reiterated another record first quarter 2022 revenues of $4 million, representing growth of ~200%, primarily driven by its shift into the consumer business and its customer acquisition programs, which have attracted new subscribers. 

What Happened? Safe-T's confidence is based on its proven ability to produce triple-digit growth over the past two years with a business model that has the potential to continue delivering impressive results month-over-month and quarter-over-quarter. 

Safe-T believes in its ability to produce at least 50% revenue growth on an annual basis and efficiently manage operating costs, assisting in reaching profitability while driving towards a $50 million revenue target for 2025.  

Why Does It Matter? The impact of this strategic shift has been dramatic, driving triple-digit, high-margin top-line growth.

Safe-T saw the trend continue into the second quarter as revenue in April reached a new monthly record. 

Safe-T initiated a strategic pivot in the Enterprise business, expanding from selling unique cybersecurity products to enterprise and government customers into the vast consumer market, which accelerated last year with the successful acquisition of CyberKick. 

The company said it has begun its strategic transition into the consumer cybersecurity and privacy arena expanding beyond its existing Enterprise business and will continue to focus on strong consumer business.

Safe-T captures monthly subscription revenue from its customers like traditional antivirus or VPN/privacy providers. 

In the consumer market, companies have several metrics they use to evaluate the value of their customers, including Lifetime Value ("LTV").

The other important element of the subscription model is a customer acquisition program. It acquired 15,000 subscribers to date.

The average customer can become profitable in as little as five months, with their ongoing monthly subscriptions can generate margins above 90% as per its current LTV model. 

The investments into consumer acquisition will likely generate at least a 3x return, and its acquired subscribers to date will likely produce millions of dollars in recurring revenues over the following years. 

The LTV metrics will be critical as it expands offerings onto multiple platforms, including Windows, Android, and Apple iOS mobile devices and desktop computers, which will quickly grow the subscriber base, driving significant increases in recurring revenue. 

Safe-T also executed new partnerships with established organizations like TerraZone and DreamVPS to drive marketing and sales of its enterprise cybersecurity products. 

Price Action: SFET shares traded lower by 8.03% at $0.56 in the premarket on the last check Monday.

Editor's Note: The headline of this article is amended to avoid confusion.