Research note


Verisec: Q2’18 preview

Verisec will present their report for the second quarter of 2018 tomorrow (Thursday the 16th of August). We estimate a rise in net sales of 17% YoY (driven by the core business) and an EBIT loss of SEK 9m. As for now, the exact numbers are of minor importance – we will mainly focus on the business update for Freja eID.

We expect to see sales of SEK 14.5m, corresponding to a growth rate of 17% YoY and an EBIT loss of SEK 9m. Our assumptions for gross margin, other OPEX and activated costs is 66%, SEK 18m and SEK 1.2m respectively.

Freja eID

In February Sodertalje municipality joined Freja eID and became the first municipality customer. As we see municipalities and other public sector bodies as some of the most likely customer segments we are interested in the development of this segment. In Q1’18 Verisec communicated that dialogue had been initiated with almost all municipalities in Sweden (in this context it is important that Sodertalje has taken “the first step”).

The launch of new features will be important for attracting new users to the platform, and at the end of June, Verisec launched free ID protection. Even though little time has passed since the launch of the ID protection, comments about the effects on user acquisition would be very interesting. Verisec has made it clear that several new features will be launched in Freja eID – thus sales and marketing activities will intensify further going forward. In this regard, the directed new share issue (which we commented on here) was important.

Since the latest quarterly report, Verisec has entered into some agreements/partnerships (Curity, Signicat, Riksidrottsforbundet, Boplats Sverige). Lastly, regarding revenues, we do not expect Freja eID to contribute to a greater extent until Q4’18 (estimates of SEK 3.5m).

Verisec will present their report tomorrow (Thursday the 16th of August).

Download our latest Research Report from 2018-08-30

Download full report icon-download