Safello Group (SFL) Q2 2024 earnings summary

Executive summary

• Net turnover rose 39% year-over-year to SEK 189.5 million in Q2 2024, despite an 11% drop in executed orders and a 16% decline in active users.

• Gross profit increased 12% to SEK 8.6 million, with gross margin declining to 4.5% due to higher transaction fees and infrastructure investments.

• Operating loss narrowed to SEK -2.4 million from SEK -2.3 million, and net loss improved to SEK -1.9 million from SEK -2.3 million year-over-year.

• Safello secured a framework agreement with the Swedish Economic Crime Authority and extended its contract with the Swedish Police Authority.

• The company added 13 new cryptocurrencies and launched direct card payouts for crypto sales.

Financial highlights

• Q2 2024 net turnover: SEK 189.5 million (up 39% YoY); gross profit: SEK 8.6 million (up 12% YoY).

• EBITDA: SEK -1.9 million (improved from SEK -2.1 million YoY); operating loss: SEK -2.4 million (vs. -2.3 million YoY).

• Net loss: SEK -1.9 million (vs. -2.3 million YoY); EPS: SEK -0.09 (vs. -0.11 YoY).

• Cash balance at quarter-end: SEK 17.9 million; crypto assets market value: SEK 12.2 million (book value SEK 8.2 million).

• Unrealized crypto asset gain at period end: SEK 4.0 million.

Outlook and guidance

• Focus remains on MiCA regulatory compliance and obtaining CASP authorization in H1 2025.

• Plans to invest in customer acquisition, retention, and product improvements to drive revenue growth.

• Expects continued market and seasonal fluctuations, with Q1 typically strongest and summer months weaker.