Safe-T Group Ltd SFET, a global provider of cyber-security and privacy solutions to consumers and enterprises, reported financial results for the quarter that ended June 30, 2022.
Revenue grew 168% year-on-year to $4.8 million, driven by higher enterprise privacy business revenues and the consolidation of CyberKick.
The gross profit expanded 225% Y/Y to $2.6 million as costs rose 120.7% Y/Y. The margin expanded by 964 bps to 54.8%.
Operating expenses rose 75% Y/Y to $5.5 million, excluding goodwill impairment. The operating loss increased 24% Y/Y to $(2.9) million.
Non-IFRS EPS loss was $(0.08). SFET held $4.04 million in cash and equivalents.
Recent funding initiatives will likely add over $5 million to current capital resources to support continued growth.
"During May and August, we secured a $2 million non-dilutive credit line facility from a leading Israeli bank and a strategic financing of up to $4 million, which may lead to potential future funding at premium valuations for the Company," CEO Shachar Daniel said.
"Supporting our current level of growth requires investment into our consumer products and into acquiring new customers, and we are extremely proud to have secured additional funding through creative financing initiatives that support the Company's growth without impacting our shareholders at current market valuations. We believe these achievements are a strong validation of our business model and the long-term potential of Safe-T," Daniel added.
Price Action: SFET shares closed higher by 3.71% at $0.55 on Tuesday.
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