Safello Group (SFL) Q3 2024 earnings summary

Executive summary

• Net turnover for Q3 2024 rose 25% year-over-year to SEK 143.2 million, driven by higher average order values despite a 9% drop in order volume.

• Gross profit increased 27% to SEK 9.3 million, with gross margin stable at 6.5%.

• Operating loss narrowed to SEK -0.9 million from SEK -3.4 million in Q3 2023; net loss was SEK -0.9 million versus SEK -3.5 million.

• Active users declined 11% to 22,926, but average buy and sell order values rose 9% and 50% respectively.

• New features launched include Auto-Save for recurring crypto investments; regulatory compliance efforts intensified with TRUST and MiCA preparations.

Financial highlights

• Q3 2024 net turnover: SEK 143.2 million (up 25% year-over-year); gross profit: SEK 9.3 million (up 27%).

• EBITDA improved to SEK -0.4 million from SEK -1.5 million; operating loss reduced to SEK -0.9 million.

• Earnings per share: SEK -0.05 (SEK -0.17 in Q3 2023); after dilution: SEK -0.04 (SEK -0.16).

• Cash balance at quarter-end: SEK 16.0 million; crypto assets market value: SEK 11.3 million, with SEK 3.1 million unrealized gain.

• For Jan–Sep 2024, net turnover grew 35% to SEK 525.7 million; net profit SEK 1.9 million (loss of SEK -2.7 million prior year).

Outlook and guidance

• Focus on becoming the first MiCA-licensed crypto platform in Sweden, enabling EU-wide expansion.

• Product improvements and regulatory compliance expected to drive user growth and market expansion in 2025.

• Management anticipates increased demand and is preparing for international competitiveness.