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Verisec: Q3'18 preview

Verisec will present their report for the third quarter of 2018 tomorrow the 8th of November. We estimate a rise in net sales of 10% y/y (driven by the core business) and an EBIT loss of SEK 3.4m. Just as the last quarter, the exact numbers are of minor importance right now – we will mainly focus on the business update for Freja eID.

We expect to see sales of SEK 20.3m, corresponding to a growth rate of 10% y/y and an EBIT loss of SEK 3.4m. Our assumptions for gross margin, opex (excl. cogs) and activated costs is 63%, SEK 15.7m and SEK 1.3m respectively.

Freja eID

Verisec has continued to enter agreements/partnerships at a high rate. Moreover, at the end of June, Verisec launched free ID protection, the launch of new features will be important for attracting new users to the platform. At this stage, there is still much work to be done, but there is no doubt that Verisec is executing in line with its strategy. The potential for Freja eID is based on a long-term view, the exact numbers (and monetization) the coming year are of minor concern according to us. The most important factor to consider is the number of users – thus, to better grasp the development of the platform, insight into this metric would be highly desirable. We expect Verisec to continue investing in future growth for Freja eID in the form of continued development and intensified sales and marketing activities.

Lastly, regarding revenues, we do not expect Freja eID to contribute to any greater extent the coming quarters (estimates of SEK 1.0m/2.0m for Q3’18/Q4’18).

Verisec will present their report for the third quarter of 2018 tomorrow the 8th of November.

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