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.
About Safe-T Group Ltd.
Safe-T Group Ltd. (Nasdaq, TASE: SFET) is a
global provider of cyber-security and privacy solutions to
consumers and enterprises. The Company 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.
Our cybersecurity 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
advanced and basic users, ensuring full personal protection for all
personal and digital information.
Our cybersecurity 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 data access, storage and exchange use cases, from
outside the organization or within, are secured according to the
“validate first, access later” philosophy of Safe-T’s zero trust.
Our ZoneZero® solutions are available by our reseller, TerraZone
Ltd., a global information security provider, as a solution or
cloud service.
Our privacy solutions for enterprises are based
on our world’s fastest and most advanced and secured proxy network,
enabling our customers to collect data anonymously at any scale
from any public sources over the web using a unique hybrid network.
Our network is the only one comprised of both 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.
For more information about Safe-T, visit
www.safetgroup.com
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 and other
Federal securities laws. Words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “estimates” and similar
expressions or variations of such words are intended to identify
forward-looking statements. For example, Safe-T is using
forward-looking statements in this press release when it discusses
preliminary unaudited estimates of revenues for the three month
period ended March 31, 2022 , its outlook for the future, the
Company’s growth potential, pipeline and trends, its ability to use
LTV to estimate recurring revenue, its belief that the expanding
recurring revenue stream in the consumer business will be an
important driver of future value and its ability to continue
leveraging its successes through further investments into new and
innovative products and accelerating customer acquisitions and to
translate that into sustained, long-term enterprise value, and
ultimately, bottom-line profitability. Because such statements deal
with future events and are based on Safe-T’s current expectations,
they are subject to various risks and uncertainties and actual
results, performance or achievements of Safe-T could differ
materially from those described in or implied by the statements in
this press release. The forward-looking statements contained or
implied in this press release are subject to other risks and
uncertainties, including those discussed under the heading “Risk
Factors” in Safe-T’s annual report on Form 20-F filed with the
Securities and Exchange Commission (“SEC”) on March 29, 2022, and
in any subsequent filings with the SEC. Except as otherwise
required by law, Safe-T undertakes no obligation to publicly
release any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
References and links to websites have been
provided as a convenience, and the information contained on such
websites is not incorporated by reference into this press release.
Safe-T is not responsible for the contents of third-party
websites.
The Company is providing revenue estimates in
this press release, rather than final amounts, primarily because
the financial closing process and review are not yet complete and,
as a result, the Company’s final results upon completion of its
closing process and review may vary from these preliminary
estimates.
INVESTOR RELATIONS CONTACTS:
Steve Gersten, Director of Investor Relations Safe-T Group
Ltd.813-334-9745
investors@safe-t.com
Michal EfratyInvestor Relations, Israel+972-(0)52-3044404
michal@efraty.com
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