ZignSec Q2 2024 Business Update

As the CEO of ZignSec Group, I am pleased to share our Q2 2024 financial results and provide an update on our strategic progress. This quarter highlights our unwavering commitment to operational efficiency, which has led to 3% growth in net revenue, improved EBITDA, market expansion, and strengthening of our core business segments. These improvements and strategies position ZignSec to navigate through opportunities and challenges effectively, indicating that the company is moving in the right direction.

Financial Highlights

For Q2 2024, our net revenue reached SEK 21.8 million, marking 3% growth compared to the corresponding period last year. This modest growth underscores the stability of our core business amidst a dynamic market environment, reflecting the effectiveness of our ongoing strategic initiatives. The quarter’s EBITDA improved significantly, reducing losses to SEK -1.9 million from SEK -7.1 million in Q2 2023, a step towards aligning with our short-term goal of reaching a positive operative cash flow.

Strong Performance in Core Segments

One of our key segments, Know Your Business (KYB), continues to drive our growth, largely driven by the success of our flagship products, InvestiGate and Monitor. These two products have seen significant adoption, particularly in Eastern Europe where we have seen an increase in demand for our Merchant Onboarding and Monitoring solutions. This reflects the strength of our offerings and the trust our customers place in ZignSec for their regulatory and verification needs.

Our second key segment, Know Your Customer (KYC), is showing continued growth led by Identity Data Verification and ID Verification. The growth is supported by market expansion and increased volumes from key customers. Meanwhile, ID Verification showed remarkable growth compared to last year, highlighting the growing demand for seamless and reliable identity verification solutions.

Navigating Challenges and Transitioning Products

While our core products performed strong, we also managed transitional challenges as we upgraded parts of our portfolio. We are phasing out our Legal Library service and upgrading this service with the more advanced Compliance Pass module. This strategic change has led to a temporary drop in revenue. We work closely with customers to transition them to this upgraded offering—a more future-proof solution.  

Similarly, we see controlled revenue declines in Customized Platforms as we strategically reallocate resources towards higher-growth segments. These decisions are part of our broader focus on sustainable growth and shareholder value.

Future Perspectives

As we move forward, ZignSec is well-positioned to sustain its growth path. Our priorities for the latter half of 2024 include expanding our presence in key markets, enhancing our product offerings, and further driving operational efficiencies. We closely monitor the evolving regulatory landscape to stay ahead of compliance needs and capitalize on emerging opportunities.

We are optimistic about our growth trajectory as we prioritize innovation and customer-centric solutions. Our commitment to delivering consistent value to our shareholders, coupled with our focus on maintaining progress, will guide ZignSec toward sustained success in the future.

Outcome

In summary, Q2 2024 has been a quarter of strategic progress and resilience. While the market environment remains dynamic, our commitment to delivering value to our shareholders is unwavering. Together, we will continue to build on this progress and steer ZignSec toward a future of sustained growth and success.

Thank you for your continued trust and investment in ZignSec Group.

Glenn Mac Donald  

CEO, ZignSec Group‍