Safe-T Group (NASDAQ:SFET) Ltd has reported record third-quarter revenues, bolstered by the initial contribution from its recent acquisition of CyberKick Ltd.
The company, a global provider of cybersecurity and privacy solutions, said revenues for the three months ended September 30, 2021, reached a record high of $3,377,000, an increase of 137% from the $1,426,000 reported in the same quarter a year earlier and exceeding preliminary estimates of $3.2 million. It completed the purchase of CyberKick on July 4, 2021.
Gross profit for the three-month period amounted to $1,783,000, an increase of 108% compared to $859,000 reported in the same period in 2020, Safe-T added.
READ: Safe-T Group announces boost to iShield consumer cybersecurity product with advanced ransomware protection capabilities
“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,” CEO Shachar Daniel said in a statement.
“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,” he added.
The company said its 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.
Safe-T noted its Q3 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 the unlimited collection of online, public, web-based data aid in enterprise data analysis and decision making; and
- Safe-T 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.
“Momentum in our business is accelerating and through our continued commitment to advance our cybersecurity and privacy offerings with improvements such as our data collection service and more recently, our anti-ransomware technology, we intend to further capitalize on the large global growth opportunities created by both the Work-from-Home and Work-from-Anywhere paradigms,” Daniel continued.
“As our financial results indicate, we are building a high growth company, with high gross margins. While the company is currently investing in its growth in the short term, over the coming quarters, we believe significant continued growth in revenues will produce higher gross profits needed to support operations.”
Safe-T Group (NASDAQ:SFET) Ltd is a global provider of cyber-security and privacy solutions and operates in three distinct segments - enterprise cyber-security solutions, enterprise privacy solutions, and consumer cyber-security and privacy solutions.
Contact the author at stephen.gunnion@proactiveinvestors.com