Safe-T Group Ltd (NASDAQ:SFET) Q3 2022 Earnings Call Transcript

Brian Kinstlinger: And just to differently, so, do you think consumer can grow 25% plus and enterprise maybe grows a little bit slower since you’re not investing as much in it? How do you think about their revenue growth rates going forward?

Shachar Daniel: You know what, Brian, I cannot point on the number and divide it to percentage. I didn’t say that I think €“ I didn’t say because I don’t think so. The enterprise business is growing organically without any further investments. Meaning, we are using the profits in order to scale the team, to scale the infrastructure, to add more marketing activities. I think that we €“ in the next quarter, we will see around 50/50 between both of them needs to grow. It depends, you know sometimes it’s the season, sometimes it’s the situation around the privacy, sometimes it’s , sometimes the consumer is shining, but I cannot point on a specific business unit that is going to grow more than the other.

Brian Kinstlinger: Okay. Last question. You got the 5 million downloads you announced, what’s the conversion rate to subscribers?

Shachar Daniel: Okay. So, basically Brian, I think as I told you in the last call regarding the internal formulas and conversion rates that we have, we are keeping it quite confidential, not due to the capital markets, but due to the competition. I think that if you look around, you will see that any company in the exposing their conversion rates, etcetera, but I can tell you one thing that our conversion rates, the churn rates, the lifetime value, and the CPA, which is the cost per acquisition according to statistics are in the top. As I mentioned now, we are in the first 10 places in the app store and productivity because of this statistic and this performance of our deal. By the way, this is our sweet spot, right. The ability of our team to have a great marketing and sales performance and the independent statistics.

Brian Kinstlinger: Great. And then I guess I have one follow-up to that without giving me Safe-T’s information, what are industry standard conversion rates? You say you’re at the top, what would be a standard number?

Shachar Daniel: Standard number to what?

Brian Kinstlinger: You said that if you look at the €“ you said the industry standards for the conversion rates, if you look at them, you’re well €“ I think, what I think you were intimating is that you’re well above that. What are you comparing that to? What are the averages in the industry for conversion rates?

Shachar Daniel: Okay. So, it’s a good question, but I don’t €“ to be honest, I don’t have in front of me. And the conversion rate is something that each company choose to present sometimes what it’s good for. What I mean, you know download and the conversion is between the download to paying a customer. Now, over the time, over the last two years, no, you have also churn rate. So, you need to aggregate the number for all the paying customers versus the downloads. And then it’s the win number, but if it’s very interesting for you, I’m willing to jump on a different call with you and to discuss about the market specifics and the market standard.

Brian Kinstlinger: Okay. Sounds good. Thank you.

Shai Avnit: We’re , by the way, if it’s interesting for you.

Shachar Daniel: Okay. Thank you.

Operator: Thank you. The next question is from the line of Jason Kolbert with Dawson James. Please proceed with your question. Mr. Kolbert, please proceed. Your line is open for questions.

Jason Kolbert: Thank you. Just can you go through what the final share count is after the reverse split? I didn’t catch that.

Shachar Daniel: One second. Opening it. Just a minute. Okay. The share count ADS perspective right now is about 3.26 million ADSs outstanding.