Focused on providing security layers for VPN’s and cloud networks, the company’s revenues rose over 444 percent in the third quarter.
Safe-T Group (NASDAQ:SFET), a cloud security company announced a 444 percent increase in revenues compared to the same time last year, reaching US$1.34 million. Following the consolidation of revenues of its subsidiary, NetNut, Safe-T witnessed a spike in revenues, in addition to a key agreement with a Korean internet service provider over the quarter.
As quoted in the press release:
Three months ended September 30, 2019 Financial Results
Total revenues amounted to $1,349,000 (Q3 2018: $248,000). The increase in revenues compared to the corresponding period of last year is mainly due to the first full reported period of consolidation of revenues of Safe-T’s wholly owned subsidiary, NetNut Ltd. (“NetNut”).
Cost of revenues totaled $604,000 (Q3 2018: $178,000). The increase is mainly due to the consolidation of NetNut’s cost of revenues, as well as amortization of NetNut’s intangible assets, partially offset by a decrease of costs resulting from the streamlining of support and post sales teams.
Research and development (R&D) expenses were $563,000 (Q3 2018: $603,000). The decrease is mainly attributed to a reduction in the Secure Data Exchange (SDE) solution development costs, partially offset by consolidation of NetNut’s development costs.
Sales and marketing expenses (S&M) totaled $1,050,000 (Q3 2018: $1,120,000). The decrease is primarily attributed to efficiency measures and cost reductions in overall sales, professional and marketing costs, partially offset by consolidation of NetNut’s sales and marketing costs.
General and administrative expenses (G&A) totaled $828,000 (Q3 2018: $443,000). The increase is a result of higher share-based and professional services costs due to the Company’s Nasdaq dual listing and costs associated with the closing of the acquisition of NetNut, as well as the costs of issuance of the debentures used to finance such acquisition and the consolidation of NetNut’s general and administrative costs.