Safello delivered a second quarter marked by lower trading volume, fewer active customers and declining top line. Net sales fell by a whopping 31 per cent to SEK 130.8 million, while the number of orders decreased by 8 per cent.
Pictured: Emelie Moritz, CEO of Safello.
The company reported a total customer count of 410,000, while the number of active customers was 37,700, down from 49,400 in the same period the previous year. Swedish analytics company Redeye is adjusting down its estimates and value estimates for Safello in a recent analysis.
Toward the end of last week, Safello disclosed its quarterly figures. Despite the weakened top line, gross margin increased by 49 per cent to NOK 12.8 million. This was largely due to the sale of part of the company's long-term crypto holdings, which contributed 3.6 million. However, these one-off effects do not necessarily reflect an improvement in underlying operations.
According to analytics company Redeye, Safello needs to successfully launch its Atoma and ETP offering in order to return to profitability in the near term, as operating costs are still heavily burdened by MICA-related expenses. However, the objectives surrounding these initiatives are described as unclear. Improved engagement targets and the award of MICA license are highlighted as key catalysts. As a consequence, Redeye adjusts down its estimates and value range.
Emelie Moritz, CEO of Safello, points to the company's strategic initiatives:
“During the second quarter, we have taken important steps towards our vision of becoming the first crypto bank in the Nordics — with the submission of a MICA application, an agreement with Marginalen Bank and improved crypto trading with a real-time order book. We have also launched Atoma Studio, a new venture in crypto compliance software that will be deployed globally by Talos Trading. Furthermore, we have communicated our conviction in decentralized AI by allocating the majority of our crypto reserve to TAO and launched Safello Labs, a new subsidiary that drives innovation and research within the BitTensor ecosystem.”
