- Global Cyber-Security Developer and Provider for Business & Consumers.
- Recently Listed in Gartner “Market Guide for User Authentication" Report.
- Executives Increase Ownership to Approx. 13.5% via Purchases of SFET Shares on Open Market.
- Recent Deployment of ZTNA Solution with 3 New Enterprise Customers.
- 137% Increase in Q3 2021 Revenues 108% Growth in Q3 Gross Profit.
- Q3 Record Revenues of $3.38 Million, Gross Profit Grew to $1.78 Million
SFET Sees 50% Increase in Subscription Revenue Quarter-Over-Quarter as Adoption of its Consumer Privacy Product Accelerates
HERZLIYA, Israel, Jan. 10, 2022, Safe-T® Group Ltd. (NASDAQ, TASE: SFET) a global provider of cybersecurity and privacy solutions to consumers and enterprises, today announced that it has reached a monthly recurring revenue (MRR) milestone for its recently introduced privacy solution for Apple mobile devices via the App Store, which is now serving more than 10,000 subscribers worldwide.
2021 witnessed growing demand from consumers looking for effective solutions to keep their identities private, strengthening their online safety and anonymity. Seeking to provide consumers with an alternative to existing, often slow and unreliable VPN technology, the Company’s new privacy solution was launched in early 2021 through a phased product introduction program. Since its launch, the consumer privacy product has recorded significant subscriber revenue growth, averaging over 50%, quarter-over-quarter. The Company ended 2021 with more than 10,000 paid subscribers, with significant presence in the United States. Recently, the Company has seen strong interest in its solution from users in countries that are invoking more restrictive policies for online activity. To capitalize on the growing interest for enhanced consumer privacy, the Company intends to ramp-up global marketing of the product through the first half of 2022 and launching its availability on Android mobile devices and personal computers.
“It is clear that consumers around the world are increasingly seeking solutions to keep their data and online activities private as the need for privacy is no longer only a priority for large organizations, governments and public institutions. VPN solutions have become a mainstream tool, now helping millions of users around the world protect their privacy, and that adoption is accelerating. That is why Safe-T is committed to advancing its privacy offerings with features and capabilities that we believe will further differentiate us in the market,” said Eitan Bremler, VP of Product strategy at Safe-T.
Shachar Daniel, Chief Executive Officer of Safe-T, added, “Since we acquired our consumer products business this past summer, our team has been successful in introducing a number of exciting new products and capabilities, and we are very pleased with their early performance. The growth in our consumer business is a significant factor behind our expected record 2021 financial performance announced last week, driving our full-year revenue above $10 million, a year-over-year growth of more than 100%. We are confident in the potential of our consumer business and look forward to realizing the untapped value we see as millions of consumers seek new cybersecurity and privacy solutions.”
Safe-T Group Ltd. (Nasdaq, TASE: SFET) is a global provider of cyber-security and privacy solutions to consumers and enterprises. SFET operates in three distinct segments, tailoring solutions according to specific needs. The segments include, enterprise cyber-security solutions, enterprise privacy solutions, and consumer cyber-security and privacy solutions.
SFET cyber-security and privacy solutions for consumers provide a wide security blanket against ransomware, viruses, phishing, and other online threats as well as a powerful, secured and encrypted connection, masking their online activity and keeping them safe from hackers. The solutions are designed for both advanced and basic users, ensuring full protection for all personal and digital information.
SFET ZoneZero® cyber-security solutions for enterprises, designed for cloud, on-premises and hybrid networks, mitigates attacks on enterprises’ business-critical services and sensitive data, while ensuring uninterrupted business continuity. Organizational access use cases, from outside the organization or within, are secured according to the “validate first, access later” philosophy of Safe-T’s zero trust.
SFET privacy solutions for enterprises are based on the company’s advanced and secured proxy network, the world’s fastest, enabling customers to collect data anonymously at any scale from any public sources over the web using a unique hybrid network. The SFET network is the only one of its kind that is comprised of millions of residential exit points and hundreds of servers located at our ISP partners around the world. The infrastructure is optimally designed to guarantee the privacy, quality, stability, and the speed of the service.
- SFET is Listed in Gartner “Market Guide for User Authentication" Report
On December 21st SFET announced that its wholly owned subsidiary, Safe-T Data A.R Ltd., has been recognized as a Representative Vendor in Gartner’s December 2021 report titled, "Market Guide for User Authentication"1.
The report finds that, “Access management (AM) vendors are the preferred authentication providers in cloud-first organizations. Those AM vendors able to meet legacy needs may displace incumbent authentication-specific vendors, but authentication specialists may succeed where they can provide added value.” In addition, the report highlights that, “user authentication is foundational to other identity and access management (IAM) functions that rely on having confidence in a person’s identity (authorization, audit and identity analytics). It is also a cornerstone of identity-first security and zero-trust initiatives.”
According to Gartner, “There is a small but important role for specialist vendors that can provide organizations that have particularly complex legacy application infrastructures with a cohesive user authentication framework. These vendors might have their own user authentication capability or integrate with AM or third-party user authentication tools.”
Safe-T ZoneZero® from SFET is the first Identity-Based Zero Trust Orchestration solution, it provides centralized Identity-based Zero Trust Security and Multi-Factor Authentication, for all users. The SFET ZoneZero® enables organizations to implement identity-based security and add per-application secondary multi-factor authentication (MFA) for all types of users – network users, VPN users, remote access (ZTNA, SDP, PAM) users, etc. MFA can be added to any type of application (legacy applications, proprietary services, RDP, file shares, SSH, SFTP, web applications, databases, etc.) without the need to redesign the network, applications, or remote access solutions.
- Executives Complete Open Market Purchases of SFET Shares; Increase Ownership to Approximately 13.5%
On December 16th SFET announced that subsequent to the filing of its third quarter earnings results, members of its senior management, including its Chief Executive Officer and Chief Financial Officer, as well as its Chairman of the Board, completed open market stock purchases as an expression of their long-term confidence in the Company. In aggregate, SFET executives have purchased over 180,000 shares during the trading window, between December 7 and December 13, 2021.
“Safe-T Group continues to drive record growth as it successfully executes its business plan addressing the tremendous global opportunities of cybersecurity and privacy. The strong performance, combined with our expectations for continued growth, provide us with confidence in the significant inherent value in our shares and that is why we have increased our stakes in the Company,” said Chen Katz, Chairman of the Board.“ Safe-T has accomplished many milestones over the past two years as we build the Company into a global leader in the cybersecurity and privacy market, and we are confident that we have the right team, technology, and capabilities to achieve our long-term goals and create shareholder value.”
- Deployment of ZoneZero® Zero Trust Network Access (ZTNA) Solution with Three New Enterprise Customers
On December 6th SFET announced that it has successfully deployed it’s ZoneZero® ZTNA solution with several customers in India and South-East Asia. The deployments include multi-year service and support contracts. SFET ZoneZero® is an evolution in the way organizations grant secure access to their services, utilizing Safe-T’s Software Defined Perimeter and patented reverse-access technology. Unlike traditional VPN solutions, Safe-T’s ZTNA offers truly secure, transparent and cost-effective access to internal applications and data for all users.
After successfully demonstrating superior product performance and capabilities in a series of competitive evaluation programs, The SFET ZTNA solution was selected by new customers, including:
- Ramco Cements – With sales and integration support provided by iValue InfoSolutions Pvt Ltd. (“iValue”), SFET long-standing channel partner in India, Ramco, one of the leading cement manufacturers in India, deployed SFET ZoneZero® to secure access for its remote users to corporate applications such as file servers, CRM and databases. ZoneZero® was selected over a competing solution developed by an India-based infrastructure security company.
- Panacea Biotec – ZoneZero® from SFET was deployed at Panacea Biotec, a biotechnology company, specializing in research and development, manufacturing, sales, distribution and marketing of pharmaceuticals, vaccines and biosimilars, to secure access for its remote users to the corporate ERP application. Safe-T, in collaboration with iValue, secured this contract following a competitive performance analysis versus several vendors, including a leading ZTNA solution provider.
- A Regional Healthcare Facility Operator – Working with Innexgen International Holdings (Pvt) Ltd., the SFET channel partner in Sri Lanka, ZoneZero® was deployed by a growing regional private healthcare provider with presence in Singapore, Malaysia and Indonesia. The solution was deployed in several hospitals, supporting a large number of medical staff connecting to over 50 hospital applications. ZoneZero®, in conjunction with a biometric multi-factor authentication (MFA) solution, was selected to assure the highest levels of secure remote access for the hospital’s employees.
Mr. Bremler concluded: “The interest in ZTNA has grown significantly in the past two years, primarily due to the surge in remote work in response to COVID-19. Work-from-Home and significant increases in the need for remote access have forced organizations to quickly realize the scaling and security limitations of conventional VPN solutions. With the “never trust, always verify” philosophy, and although it’s in early stages of adoption, ZTNA and access management are positioned as a preferred solution for remote access, providing a safe and straightforward approach to the enterprise. With our ZoneZero® suite, we believe that we have the right solution to provide organizations exactly what they need to adapt quickly and securely to the change in work environment and needs.”
- 137% Increase in Third Quarter 2021 Revenues and 108% Growth in Third Quarter 2021 Gross Profit
Revenues Reached a Record High of $3.38 Million, Gross Profit Grew to $1.78 Million
On November 30th SFET announced record financial results for the three and nine-month periods ended September 30, 2021.
- Revenues for the three-months ended September 30, 2021 reached a record high of $3,377,000, an increase of 137% compared to $1,426,000 reported in the three-month period ended September 30, 2020. Third quarter revenues exceeded the SFET preliminary estimated revenues of $3.2 million.
- Gross profit for the three-month period ended September 30, 2021 amounted to $1,783,000, an increase of 108% compared to $859,000 reported in the same period in 2020.
- SFET cash and cash equivalents and short-term investments balances at the end of the quarter were $12,947,000, down from $19,304,000 reported at the end of the second quarter primarily due to a one-time cash payment of $3,700,000 related to the acquisition of CyberKick Ltd. (“CyberKick”).
Shachar Daniel, Chief Executive Officer of Safe-T, said, “We believe that the impressive financial results achieved in the third quarter of 2021 and through the first nine months of the year, reflect the successful execution of our aggressive growth strategy focused on bringing world-class cybersecurity and privacy technology to consumers and enterprises around the world. We are especially pleased by the performance of our consumer and enterprise privacy businesses which have significantly contributed to our growth as it gains sales traction in large geographic markets including the United States and Western Europe.”
Third Quarter of 2021 and Recent Business Developments:
- Completed the acquisition of CyberKick, a provider of Software-as-a-Service (SaaS) security and privacy tools for consumers designed to reduce their vulnerability while they are online and prevent and defend against a wide spectrum of cyber threats;
- The completion of the development of iShield™, an advanced cybersecurity product designed to help consumers as well as small and mid-sized businesses in detecting and defending against dangerous and malicious threats during online browsing activities;
- The launch of a new enterprise data collection solution, enabling unlimited collection of online, public, web-based data aid in enterprise data analysis and decision making; and
- SFET was named by Quadrant Knowledge Solutions as a 2021 emerging leader as part of its SPARK Matrix™ analysis of the global Zero Trust Network Security (ZTNS) market.
Financial Results for the Three Months Ended September 30, 2021:
- SFET Revenues in Q3.2021 amounted to $3,377,000 (Q3.2020: $1,426,000). The growth is attributed to the increase in enterprise privacy business revenues and the consolidation of CyberKick’s revenues following the completion of its acquisition on July 4, 2021.
- Cost of revenues in Q3.2021 totaled $1,594,000 (Q3.2020: $567,000). The increase is mainly a result of growth in revenue in the enterprise privacy business which involves higher costs related to internet services providers, as well as the consolidation of CyberKick’s cost of revenues, mainly in traffic acquisition costs for 3rd parties’ products.
- Research and development expenses in Q3.2021 totaled $1,388,000 (Q3.2020: $655,000). The increase is attributed to the consolidation of CyberKick’s research and development expenses, as well as to the Company’s salary costs and share-based compensation.
- Sales and marketing expenses in Q3.2021 totaled $3,109,000 (Q3.2020: $1,114,000). The increase is primarily attributed to the consolidation of CyberKick’s sales and marketing expenses, primarily in its products advertising costs,as well as to the Company’s salary costs and share-based compensation.
- General and administrative expenses in Q3.2021 totaled $1,827,000 (Q3.2020: $1,413,000). The increase is mainly due to higher professional fees, predominantly legal, in connection with intellectual property protection activities.
- IFRS net loss in Q3.2021 totaled $3,723,000, or $0.121 basic loss per ordinary share (Q3.2020: net loss of $1,292,000, or $0.081 basic loss per ordinary share). The increase in IFRS net loss is a result of the items discussed above.
- Non-IFRS net loss in Q3.2021 totaled $3,225,000, or $0.101 basic loss per ordinary share (Q3.2020: loss of $1,638,000, or $0.101 basic loss per ordinary share).
1 Adjusted retrospectively to reflect a 40:1 reverse share split of the Company’s ordinary shares, which became effective on October 15, 2021.
For more information on Safe-T Group Ltd. (Nasdaq, TASE: SFET) visit: http://www.safe-t.com
DISCLAIMER: CAP/FrontPageStocks/CorporateAds.com (CA) is a third-party publisher and news dissemination service provider. CAP/FPS/CA is NOT affiliated in any manner with any company mentioned herein. CAP/FPS/CA is a news dissemination solutions provider and is NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. CAP/FPS/CA’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release or opinion of the writer. CAP/FPS/ CA is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. CAP/FPS/CA has been compensated $500 by a third party for dissemination of this article.
These news releases and postings may contain forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies’ contracts, the companies’ liquidity position, the companies’ ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.