Cybersecurity vulnerabilities remain a key threat to consumers, businesses, and governments around the world. Despite our world rapidly digitalizing around us, many individuals continue to lack proper safeguards to protect their online information, identity, activities, and more. Digital intrusions are not only increasing, but they are also gaining sophistication.
According to a 2021 report from Aite Group, 47% of Americans faced financial identity theft in some form during 2020. The group found that the financial losses associated with identity theft have grown over time. Aite Group’s report determined total identity theft losses have increased from $502.5 billion in 2019 to $712.4 billion in 2020, representing year-over-year growth of 42%.
As digital threats continue to increase, demand for more sophisticated cybersecurity and privacy software has seen growth. One company that is currently experiencing high growth and positioned for future gains in the industry is Safe-T Group, Ltd. (NASDAQ: SFET).
Safe-T’s Consumer Privacy & Cybersecurity Division Seen As Key Growth Driver
Safe-T Group is seeing a growth breakout so far this year, as the company continues to execute its vision. On a year-over-year basis, Safe-T reported revenue growth of 24% during the first quarter of 2021 and 66% for the second quarter. The company’s Q1 2021 revenues were reported at $1,347,000 and the Q2 sales number was $1,784,000. On a quarter-over-quarter basis, the company’s Q2 revenues grew over 32% compared to the first three months of the year.
Then CyberKick enters the scene at the very beginning of Q3. Its impact was immediate.
In July 2021, Safe-T completed its acquisition of Cyberkick, a revenue-generating cybersecurity and privacy solutions provider geared towards the consumer market. Since the integration of CyberKick, Safe-T’s growth has soared.
In a letter to shareholders from early August 2021, Safe-T Group CEO Shachar Daniel announced that the CyberKick acquisition had pushed overall July monthly revenue to more than $1 million.
“I am pleased to say that upon the integration of CyberKick, in addition to our organic growth, we finished the month of July 2021 with more than $1 million monthly, representing a run rate, on an annual basis, which may lead to a significant annual growth compared to 2020 revenues,” notes Mr. Daniel in the shareholder letter.
In October 2021, the company released preliminary third-quarter estimates, which showed revenue growth of 125% or around $3.2 million. Official Q3 results are slated for release “on or before November 30, 2021,” according to the company.
On a quarterly basis, the estimates show that Q3 2021 revenues are projected to be over 79% greater than Q2. While organic growth certainly played a role in the gains, CyberKick no doubt was the driving force behind the forecasted growth for the period ended September 30, 2021.
CyberKick: New Developments & Features Could Help Drive Continued Growth
Despite owning the consumer cybersecurity and privacy business for a little over three months, Safe-T Group has done a great job at jumping right to work on the continued development and improvements to keep CykerKick on the cutting edge.
The company just recently announced the completion of iShield, which is CyberKick’s advanced cybersecurity solution for consumers. iShield is designed to help consumers detect and defend against malware and data breaches while browsing online. Unlike traditional out-of-the-box antivirus software, iShield was developed to provide a robust defense against evolving digital threats by acting as an additional protective layer for users.
iShield is scheduled for commercial launch sometime in early 2022 and will be available via a monthly or yearly subscription model. While the product is geared towards consumers, the iShield product can also be used by enterprises.
Summary
Overall, Safe-T’s growth is likely still in the early innings. The company’s development and focus on elevating innovative technologies for consumer cybersecurity and privacy comes at a very pivotal moment in time as rising digital threats are becoming more costly, disruptive, and dangerous to everyone.
The official Q3 2021 financial results will be a key confirmation of CyberKick’s growth prowess. After pushing Safe-T’s monthly revenue above $1 million in July, the first full month of integration, the Q3 estimates suggest that the new acquisition could become a very important growth driver for Safe-T over the long term. The iShield launch in early 2022 will only further CyberKick’s capabilities and hopefully help drive market share in the consumer markets.
In the end, Safe-T is laying the foundation in 2021 for sustained growth in the years to come. Management’s decisions are already yielding strong results thus far. After looking at this year’s progress, the potential growth capability, and a supportive underlying industry environment, Safe-T Group looks like a “diamond in the rough.”
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