$SFET Safe-T Group Reports Record Annual Revenue of $10.3 Million Representing Over 110% Growth
https://www.globenewswire.com/news-release/20...rowth.html
HERZLIYA, Israel, March 29, 2022 (GLOBE NEWSWIRE) -- Safe-T Group Ltd. (Nasdaq, TASE: SFET) (“Safe-T” or the “Company”), a global provider of cyber-security and privacy solutions to consumers and enterprises, today announced record financial results for the three-month period and the year ended December 31, 2021.
Revenues for the three months ended December 31, 2021, reached a quarterly record high of $3,773,000, an increase of 191% compared to the three-month period ended December 31, 2020. Revenues for the full year ended December 31, 2021, reached an annual record $10,281,000, an increase of more than 110% compared to results reported for the full year ended December 31, 2020. Annual and quarterly revenues exceeded the Company’s previously announced preliminary estimated revenues of $10 million and $3.6 million, respectively.
Gross profit for the three-month period ended December 31, 2021, amounted to $2,105,000, an increase of 335% compared to the corresponding period in 2020. Gross profit for the full year ended December 31, 2021, amounted to $5,136,000, an increase of 115% compared to the full year ended December 31, 2020.
Shachar Daniel, Chief Executive Officer of Safe-T, said, “We are proud of our record results in fiscal 2021, lifted by strong organic growth of our privacy business as well as by our penetration into the consumer market, together resulting in record revenues crossing the $10 million annual mark for the first time. Our business is expanding quarter-over-quarter and year-over-year, driven by growing interest in cybersecurity and privacy by consumers, small and midsized businesses, and enterprises, reinforcing the value of having diverse and complementary offerings. Furthermore, due to the current geopolitical situation, the need for effective cybersecurity and privacy tools such as those created by Safe-T, is greater than ever. We intend to capitalize on the momentum we are seeing across our various business lines and continue to expect substantial growth in 2022 and beyond. Key to our plans in the coming year will be expanding the depth, breadth and reach of each of our business segments through the launch of new software solutions for cybersecurity and privacy, supporting additional mobile platforms, as well as the first designed solution for desktop computers.”
2021 Highlights and Recent Business Developments
During 2021, we implemented a focused strategy to provide advanced solutions for critical needs in the cybersecurity and privacy markets.
Accelerating Consumer Business:
Acquisition of CyberKick Ltd. (“CyberKick”): the acquisition significantly contributed to growth of the Company as its consumer privacy and cybersecurity products gained traction in large geographic markets.
Cybersecurity for Consumers: we launched the first generation of iShield™, our most advanced cybersecurity product for consumers, quickly adding a new layer of protection to help consumers and small and mid-sized businesses defend against emerging ransomware attacks.
Privacy for Consumers: at the beginning of 2022, our newest consumer privacy solution is close to the 15,000-subscriber milestone. In addition, we launched a new malvertising protection product for Apple iOS devices, named Ad Blocker Pro.
Expanded Enterprise Business:
Privacy for Organizations: this segment recorded 63% annual growth in 2021. During the year, the enterprise privacy business launched its next generation IP Proxy network product targeting larger businesses and B2B customer markets. We also launched a new enterprise data collection solution, or Data Collection-as-a-Service (“DCaaS”), enabling unlimited collection of online, public, web-based data for business analytics and secured a first DCaaS project with a global data services company. Our enterprise privacy business also gained momentum in the Asia-Pacific region with over 75 new clients, including e-commerce and NFT (Non-Fungible Token) organizations.
Cybersecurity for Enterprises: recent geopolitical events reinforced the growing demand and need for solid tools for overcoming new threats. Safe-T and TerraZone Ltd. (“TerraZone”) collaborated to advance global sales, marketing, and development of our ZoneZero® Zero Trust network access software technology, targeting global enterprises.
“Despite extreme market volatility, we have full confidence in our short- and long-term business plans and in our ability to capitalize on the strong growth, which we believe will continue throughout this year and beyond. Our team has already implemented several strategic cost reduction initiatives, such as our recent development and distribution partnership with TerraZone for our ZoneZero® enterprise security solution, which we expect to lower our total expenses beginning from the third quarter of 2022. We enter fiscal 2022 well positioned with new products and a more effective and efficient operation, and we expect to continue to grow while providing significant value for our stakeholders,” concluded Mr. Daniel.
Chen Katz, Chairman of the Board of Directors of Safe-T, commented, “Our consumer and enterprise privacy unit has made exceptional progress in terms of its offering and growth, despite ongoing legal proceedings brought by Luminati Networks Ltd. (now, Bright Data). Over the last two years, Bright Data has filed several intellectual property-related complaints against multiple companies in the IP Proxy sector, which we believe are aimed primarily to disrupt competition and hinder innovation. In December 2021, we successfully demonstrated that Bright Data’s first complaint against us was without merit and that case was dismissed without prejudice and without monetary payment or effect on our ongoing business. In June 2021, Bright Data filed another action against us which is still ongoing and as in the first case, we continue to disagree with Bright Data’s claims and are consistently challenging their patentability of Bright Data’s patents with the United States Patent and Trademark Office (“USPTO”). To-date, the USPTO has preliminarily agreed with our positions that Bright Data’s patents are likely unpatentable. Despite Bright Data’s tactics and the expense of patent litigation in the United States, we intend to continue to vigorously defend our consumer and enterprise privacy operations, and our ability to offer our unique technology and solutions to customers.”
Financial Results for the Three Months Ended December 31, 2021:
Revenues in the fourth quarter of 2021 amounted to $3,773,000 (Q4.2020: $1,295,000). 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 the fourth quarter of 2021 totaled $1,668,000 (Q4.2020: $811,000). The increase is mainly a result of growth in revenue in the enterprise privacy business which involves higher costs related to internet service providers, as well as the consolidation of CyberKick’s cost of revenues, mainly in traffic acquisition costs for third party products.
Research and development expenses in the fourth quarter of 2021 totaled $1,900,000 (Q4.2020: $754,000). The increase is attributed to the consolidation of CyberKick’s research and development expenses, the development and support of new products, as well as an increase in the Company’s salary costs and share-based compensation.
Sales and marketing expenses in the fourth quarter of 2021 totaled $2,809,000 (Q4.2020: $1,320,000). The increase is primarily attributed to the consolidation of CyberKick’s sales and marketing expenses, primarily in support of its products’advertising costs,as well as to an increase in the Company’s salary costs and share-based compensation.
General and administrative expenses in the fourth quarter of 2021 totaled $2,599,000 (Q4.2020: $1,289,000). The increase is mainly due to higher professional fees, predominantly legal, in connection with patent-related proceedings brought by and against Bright Data Ltd., as well as an increase in overall salary and share-based compensation costs.
IFRS net loss in the fourth quarter of.2021 totaled $4,520,000, or $0.151 basic loss per ordinary share (Q4.2020: net loss of $5,009,000, or $0.281 basic loss per ordinary share). The increase in IFRS net loss is a result of the items discussed above.
Non-IFRS net loss in the fourth quarter of.2021 totaled $3,029,000, or $0.101 basic loss per ordinary share (Q4.2020: loss of $2,205,000, or $0.131 basic loss per ordinary share).
Financial Results for the Year Ended December 31, 2021:
Revenues in 2021 amounted to $10,281,000 (2020: $4,886,000). 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 2021 totaled $5,145,000 (2020: $2,499,000). The increase is mainly a result of growth in revenue in the enterprise privacy business which involves higher costs related to internet service providers, as well as the consolidation of CyberKick’s cost of revenues, mainly in traffic acquisition costs for third party products.
Research and development expenses in 2021 totaled $4,771,000 (2020: $2,202,000). The increase is attributed to the consolidation of CyberKick’s research and development expenses related to new and existing products, as well as to an increase of Company’s salary costs and share-based compensation.
Sales and marketing expenses in 2021 totaled $8,348,000 (2020: $4,215,000). 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 an increase of Company’s salary costs and share-based compensation.
General and administrative expenses in 2021 totaled $7,013,000 (2020: $4,197,000). The increase is mainly due to higher professional fees, predominantly legal, in connection with patent-related proceedings brought by and against Bright Data Ltd., as well as to an increase of Company’s salary costs and share-based compensation.
IFRS net loss in 2021 totaled $13,125,000, or $0.481 basic loss per ordinary share (2020: net loss of $7,845,000, or $0.711 basic loss per ordinary share). The increase in IFRS net loss is a result of the items discussed above.
Non-IFRS net loss in 2021 totaled $10,301,000, or $0.381 basic loss per ordinary share (2020: loss of $6,153,000, or $0.561 basic loss per ordinary share).
https://www.globenewswire.com/news-release/20...rowth.html
HERZLIYA, Israel, March 29, 2022 (GLOBE NEWSWIRE) -- Safe-T Group Ltd. (Nasdaq, TASE: SFET) (“Safe-T” or the “Company”), a global provider of cyber-security and privacy solutions to consumers and enterprises, today announced record financial results for the three-month period and the year ended December 31, 2021.
Revenues for the three months ended December 31, 2021, reached a quarterly record high of $3,773,000, an increase of 191% compared to the three-month period ended December 31, 2020. Revenues for the full year ended December 31, 2021, reached an annual record $10,281,000, an increase of more than 110% compared to results reported for the full year ended December 31, 2020. Annual and quarterly revenues exceeded the Company’s previously announced preliminary estimated revenues of $10 million and $3.6 million, respectively.
Gross profit for the three-month period ended December 31, 2021, amounted to $2,105,000, an increase of 335% compared to the corresponding period in 2020. Gross profit for the full year ended December 31, 2021, amounted to $5,136,000, an increase of 115% compared to the full year ended December 31, 2020.
Shachar Daniel, Chief Executive Officer of Safe-T, said, “We are proud of our record results in fiscal 2021, lifted by strong organic growth of our privacy business as well as by our penetration into the consumer market, together resulting in record revenues crossing the $10 million annual mark for the first time. Our business is expanding quarter-over-quarter and year-over-year, driven by growing interest in cybersecurity and privacy by consumers, small and midsized businesses, and enterprises, reinforcing the value of having diverse and complementary offerings. Furthermore, due to the current geopolitical situation, the need for effective cybersecurity and privacy tools such as those created by Safe-T, is greater than ever. We intend to capitalize on the momentum we are seeing across our various business lines and continue to expect substantial growth in 2022 and beyond. Key to our plans in the coming year will be expanding the depth, breadth and reach of each of our business segments through the launch of new software solutions for cybersecurity and privacy, supporting additional mobile platforms, as well as the first designed solution for desktop computers.”
2021 Highlights and Recent Business Developments
During 2021, we implemented a focused strategy to provide advanced solutions for critical needs in the cybersecurity and privacy markets.
Accelerating Consumer Business:
Acquisition of CyberKick Ltd. (“CyberKick”): the acquisition significantly contributed to growth of the Company as its consumer privacy and cybersecurity products gained traction in large geographic markets.
Cybersecurity for Consumers: we launched the first generation of iShield™, our most advanced cybersecurity product for consumers, quickly adding a new layer of protection to help consumers and small and mid-sized businesses defend against emerging ransomware attacks.
Privacy for Consumers: at the beginning of 2022, our newest consumer privacy solution is close to the 15,000-subscriber milestone. In addition, we launched a new malvertising protection product for Apple iOS devices, named Ad Blocker Pro.
Expanded Enterprise Business:
Privacy for Organizations: this segment recorded 63% annual growth in 2021. During the year, the enterprise privacy business launched its next generation IP Proxy network product targeting larger businesses and B2B customer markets. We also launched a new enterprise data collection solution, or Data Collection-as-a-Service (“DCaaS”), enabling unlimited collection of online, public, web-based data for business analytics and secured a first DCaaS project with a global data services company. Our enterprise privacy business also gained momentum in the Asia-Pacific region with over 75 new clients, including e-commerce and NFT (Non-Fungible Token) organizations.
Cybersecurity for Enterprises: recent geopolitical events reinforced the growing demand and need for solid tools for overcoming new threats. Safe-T and TerraZone Ltd. (“TerraZone”) collaborated to advance global sales, marketing, and development of our ZoneZero® Zero Trust network access software technology, targeting global enterprises.
“Despite extreme market volatility, we have full confidence in our short- and long-term business plans and in our ability to capitalize on the strong growth, which we believe will continue throughout this year and beyond. Our team has already implemented several strategic cost reduction initiatives, such as our recent development and distribution partnership with TerraZone for our ZoneZero® enterprise security solution, which we expect to lower our total expenses beginning from the third quarter of 2022. We enter fiscal 2022 well positioned with new products and a more effective and efficient operation, and we expect to continue to grow while providing significant value for our stakeholders,” concluded Mr. Daniel.
Chen Katz, Chairman of the Board of Directors of Safe-T, commented, “Our consumer and enterprise privacy unit has made exceptional progress in terms of its offering and growth, despite ongoing legal proceedings brought by Luminati Networks Ltd. (now, Bright Data). Over the last two years, Bright Data has filed several intellectual property-related complaints against multiple companies in the IP Proxy sector, which we believe are aimed primarily to disrupt competition and hinder innovation. In December 2021, we successfully demonstrated that Bright Data’s first complaint against us was without merit and that case was dismissed without prejudice and without monetary payment or effect on our ongoing business. In June 2021, Bright Data filed another action against us which is still ongoing and as in the first case, we continue to disagree with Bright Data’s claims and are consistently challenging their patentability of Bright Data’s patents with the United States Patent and Trademark Office (“USPTO”). To-date, the USPTO has preliminarily agreed with our positions that Bright Data’s patents are likely unpatentable. Despite Bright Data’s tactics and the expense of patent litigation in the United States, we intend to continue to vigorously defend our consumer and enterprise privacy operations, and our ability to offer our unique technology and solutions to customers.”
Financial Results for the Three Months Ended December 31, 2021:
Revenues in the fourth quarter of 2021 amounted to $3,773,000 (Q4.2020: $1,295,000). 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 the fourth quarter of 2021 totaled $1,668,000 (Q4.2020: $811,000). The increase is mainly a result of growth in revenue in the enterprise privacy business which involves higher costs related to internet service providers, as well as the consolidation of CyberKick’s cost of revenues, mainly in traffic acquisition costs for third party products.
Research and development expenses in the fourth quarter of 2021 totaled $1,900,000 (Q4.2020: $754,000). The increase is attributed to the consolidation of CyberKick’s research and development expenses, the development and support of new products, as well as an increase in the Company’s salary costs and share-based compensation.
Sales and marketing expenses in the fourth quarter of 2021 totaled $2,809,000 (Q4.2020: $1,320,000). The increase is primarily attributed to the consolidation of CyberKick’s sales and marketing expenses, primarily in support of its products’advertising costs,as well as to an increase in the Company’s salary costs and share-based compensation.
General and administrative expenses in the fourth quarter of 2021 totaled $2,599,000 (Q4.2020: $1,289,000). The increase is mainly due to higher professional fees, predominantly legal, in connection with patent-related proceedings brought by and against Bright Data Ltd., as well as an increase in overall salary and share-based compensation costs.
IFRS net loss in the fourth quarter of.2021 totaled $4,520,000, or $0.151 basic loss per ordinary share (Q4.2020: net loss of $5,009,000, or $0.281 basic loss per ordinary share). The increase in IFRS net loss is a result of the items discussed above.
Non-IFRS net loss in the fourth quarter of.2021 totaled $3,029,000, or $0.101 basic loss per ordinary share (Q4.2020: loss of $2,205,000, or $0.131 basic loss per ordinary share).
Financial Results for the Year Ended December 31, 2021:
Revenues in 2021 amounted to $10,281,000 (2020: $4,886,000). 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 2021 totaled $5,145,000 (2020: $2,499,000). The increase is mainly a result of growth in revenue in the enterprise privacy business which involves higher costs related to internet service providers, as well as the consolidation of CyberKick’s cost of revenues, mainly in traffic acquisition costs for third party products.
Research and development expenses in 2021 totaled $4,771,000 (2020: $2,202,000). The increase is attributed to the consolidation of CyberKick’s research and development expenses related to new and existing products, as well as to an increase of Company’s salary costs and share-based compensation.
Sales and marketing expenses in 2021 totaled $8,348,000 (2020: $4,215,000). 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 an increase of Company’s salary costs and share-based compensation.
General and administrative expenses in 2021 totaled $7,013,000 (2020: $4,197,000). The increase is mainly due to higher professional fees, predominantly legal, in connection with patent-related proceedings brought by and against Bright Data Ltd., as well as to an increase of Company’s salary costs and share-based compensation.
IFRS net loss in 2021 totaled $13,125,000, or $0.481 basic loss per ordinary share (2020: net loss of $7,845,000, or $0.711 basic loss per ordinary share). The increase in IFRS net loss is a result of the items discussed above.
Non-IFRS net loss in 2021 totaled $10,301,000, or $0.381 basic loss per ordinary share (2020: loss of $6,153,000, or $0.561 basic loss per ordinary share).
