Safe-T Group (NASDAQ: SFET) may not be a household name yet, but its cybersecurity technology is desperately needed by corporations, governments, and consumers alike. Over the past several years, major hacking events have not only increased in frequency, but also in sophistication.
Despite these high-level cybersecurity failures, governments and corporations have largely continued to ignore the problem, as badly-needed security upgrades continue to fall by the wayside. However, organizations are increasingly beginning to admit that their current cyber safeguards are outdated and inadequate.
Safe-T Group’s recent financial results for fourth quarter and full-year 2020 show the cybersecurity company had a record year in 2020. Given the trajectory of the cybersecurity industry and the recent next-gen developments in Safe-T’s technology, the company appears to be in the early innings of growth.
SFET Financial Results: FY2020 Revenue Grew 49% to Record $4.9 Million
On March 22, 2021, Safe-T Group released financial results showing record revenues and profits during full-year 2020. Revenues for the year totaled a record $4.9 million, which represents a 49% increase year-over-year from 2019. Furthermore, full year gross profits surged 71% year-over-year to a record of $2.4 million. The cybersecurity company’s Q4 2020 results showed year-over-year growth of 16%.
Safe-T remains very well capitalized, after offerings earlier this year helped the company increase its cash balance to $22 million. Management notes that its significant cash assets will give the company the ability to continue its mergers & acquisitions efforts, as well as continuing to expand current businesses.
“2020 proved to be a milestone year as we achieved our aggressive internal roadmap and witnessed a worldwide paradigm shift for Zero Trust and Remote Access,” said Shachar Daniel, Chief Executive Officer CEO of Safe-T Group. “At the outset of the year, we identified several key objectives to scale our business: further develop our technologies of IP proxy products and Zero Trust Network Access (“ZTNA”), grow our distribution and partnership network worldwide for our technology portfolio, and identify accretive acquisitions.”
Mr. Daniel notes that the company has an ambitious agenda for the year ahead. This agenda includes continuing to expand Safe-T’s proprietary IP proxy solutions across a wider range of customers, as well continuing to expand its Zero Trust Network Access (ZTNA) solutions.
2020 Ushered In a New Era For $10 Billion Global Cybersecurity Market
To say 2020 was a disruptive year for the global economy would be an understatement. The pandemic has completely up-ended every industry, changes consumer habits, and even the location of working. The work-from-home shift was necessary to combat the spread of coronavirus, but it has given way to a rise in a different type of virus…hacking.
With millions of workers operating and accessing company platforms from their under-secured home networks, major vulnerabilities have caused headaches for corporations and organizations.
The major security breaches at SolarWinds and Microsoft further highlight that existing servers and networks continue to lack the sophistication to combat the modern hacker. To put into context just how bad the current situation is, F-Secure researchers have noted that “thousands of cyberattacks targeting zero-day security vulnerabilities in Microsoft Exchange Server” are occurring every single day. As of this writing, Microsoft has yet to release security patches to help mitigate the cyber threats.
Safe-T’s ZoneZero 5.0 Helps Control User Access, Critical in Current Environment
One of Safe-T’s most compelling technologies is its ZoneZero technology, which is a Zero Trust Network Access solution for corporations. The company recently released a next-gen version of the technology called ZoneZero 5.0, which is the most advanced ZTNA solution available on the market today.
While Safe-T Group develops and provides a stout IP proxy business, for the purposes of this article, we will primarily cover the company’s ZTNA business. Given the current environment and vulnerabilities in cybersecurity today, Safe-T Group’s ZoneZero ZTNA requires immediate attention to help organizations mitigate cyber risks.
ZoneZero 5.0 is the only ZTNA solution that completely unifies all access scenarios for internal and external users. Safe-T’s ZoneZero is not only the most advanced program of its kind currently, but it is also the only secure access platform that can either replace or complement existing VPN infrastructure in-place.
Here are some highlights how ZoneZero can help organizations secure access to users that may be internal employees (in office), external employees with VPN (work from home), and even external non-VPN contractors:
• ZoneZero™ Quick Access – Unique, Fast and Password-Less Access to Corporate Resources
o Protection against brute force, injections, and distributed denial-of-service (DDoS) attacks;
o Quick Access with Telegram and WhatsApp applications, utilized as a strong and simple path to use multi-factor authentication (MFA);
o Quick Access with biometric based MFA solutions; and
o Quick Access with Quick Response (QR) code-based MFA.
• Identity-Based Segmentation Capabilities for Enhanced Security
o Network segmentation isolation, separating assets based on identities within the organization infrastructure;
o Support for per-user and per-service MFA;
o Manager approval MFA; and
o Re-authentication MFA for sensitive services.
• Improved Management and Deployment – Dramatically Reducing Solution Deployment Time to Just a Few Hours
o Redesign of management interface for simpler configuration;
o Configuration unification across all deployment options; and
o New docker-based container to simplify on-premises or hybrid deployment.
• Monitoring and Reporting
o Introduction of new user-based reports, tracking entire user-access flow; and
o Introduction of new system level reports, allowing to monitor and plan ZoneZero™ capacity, and aligning it to purchased license and capacity.
Morgan Stanley Strong Backer of Safe-T Group
In another bullish signal for Safe-T Group’s future can be derived from Morgan Stanley’s position in the company. According to SEC filings, Morgan Stanley increased its ownership of Safe-T Group by ~2,644.4% during the third quarter 2020. As of Q3 2020, Morgan Stanley now owns 41,240,840 shares of SFET, which was 5.7% of the entire company at the date of the reporting. Since then, as mentioned above, the Safe-T completed successful offering and increased its equity base.
A basic search shows that Morgan Stanley has been a vocal supporter of the cybersecurity industry over the past several years. From webinars to research reports and blog posts, Morgan Stanley has issued a comprehensive view of why cybersecurity is likely to be a high-growth industry in the years and decades ahead.
Overall, there is a lot to be excited about with Safe-T Group. After a record year in 2020, the company is only increasing its ambitions and growth plans further. Its ZoneZero platform is by far the most sophisticated ZTNA available currently on the market and its IP proxy business continues to make impressive gains in the consumer market. Management’s exciting tone and position on future growth is palpable in its recent financial release and subsequent earnings call. Get ready for the new age of cybersecurity!
More information on Safe-T Group:
SFET Investor Presentation: https://www.safe-t.com/investor-relations/#CORPORATE-PRESENTATION
Q4/FY2020 Earnings Call Transcript: https://seekingalpha.com/article/4415401-safe-t-group-ltd-sfet-ceo-shachar-daniel-on-q4-2020-results-earnings-call-transcript
SFET CEO Shachar Daniel’s Benzinga Interview: https://www.youtube.com/watch?v=T2MnX4xYcNs
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