Kape Technologies - H1 Trading Update & Investor Presentation
19/07/2022 07:00
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RNS Number : 8819S Kape Technologies PLC 19 July 2022
This announcement contains inside information
19 July 2022
Kape Technologies plc
("Kape," the "Company" or the "Group")
H1 Trading Update
&
Investor Presentation
Delivering record 216% increase in revenues to c.$301.6 million and
Pro Forma Adjusted EBITDA of c.$88.5 million
Kape (AIM: KAPE), the digital security and privacy software business, is
pleased to provide the following trading update for the six months ended 30
June 2022.
Kape had a strong start to the year with revenues for H1 2022 expected to be
c.$301.6 million (H1 2021: $95.5 million), up 216%, or 19% on a Pro Forma
basis, of which over 88.6% were recurring revenues. Pro Forma Adjusted
EBITDA(1) is expected to be c.$88.5 million (H1 2021: $28.7 million), up 209%,
or 17% on a Pro Forma basis, with Pro Forma Adjusted EBITDA(1) margin of 29.3%
in the period (H1 2021: 30.0%).
Kape experienced strong organic growth across the business, with demand for
privacy and security products on the rise. Kape's privacy segment revenues
grew by 19% in H1 2022 on a Pro Forma basis, and by 12% within the security
segment. Kape's content division delivered significant organic growth of 25%
in revenues on a Pro Forma basis, underpinned by expansion into new verticals.
The continued growth of the Group's recurring revenue base, which now supports
c.7 million paying subscribers with an 82% retention rate2, together with the
expansion of Kape's go-to-market strategy and the successful integration of
ExpressVPN, support the Board's confidence that the Group will deliver
revenues in the range of $610-624 million and Pro Forma Adjusted EBITDA(1) of
between $166-172 million in the year ended 31 December 2022.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"Kape has made a strong start to 2022, delivering on our organic growth
ambitions and, more importantly, servicing c.7 million customers who choose to
use our products.
This has been our strongest H1 to-date, having delivered six consecutive years
of growth and, with the integration of ExpressVPN progressing to plan, we are
ideally placed to further capitalise on this rapidly growing market.
Our teams continue to innovate to ensure Kape continues to redefine best in
class in our category, with our cutting-edge solutions fast becoming the final
line of defence for an increasing number of individuals who are looking to
both protect and secure their online presence."
(1) Pro forma adjusted EBITDA is a non GAAP measure; it's the Company Adjusted
EBITDA after adding back deferred contract costs fair value accounting
adjustment, following the ExpressVPN consolidation.
Adjusted EBITDA is a company-specific measure which is calculated as operating
profit before depreciation (including right-to-use assets amortisation),
amortisation, exceptional or non-recurring costs, other operating
income/(expense) and employee share-based payment charges.
(2) Retention rates, as of 30 June 2022, calculated on a six-monthly basis
Investor Presentation
Management will be hosting a presentation for investors in relation to the
Company's H1 trading update today, Tuesday, 19 July 2022, at 12.00 p.m.
The presentation will be hosted on the Investor Meet Company ("IMC") digital
platform and is open to all existing and potential shareholders. Investors can
sign-up for free and add to meet Kape via:
https://www.investormeetcompany.com/kape-technologies-plc/register-investor
(https://www.investormeetcompany.com/kape-technologies-plc/register-investor)
Investors who already follow Kape on the platform will automatically be
invited.
Enquiries:
Kape Technologies plc via Vigo Consulting
Ido Erlichman, Chief Executive Officer
Oded Baskind, Chief Financial Officer
Shore Capital (Nominated Adviser & Joint Broker) +44 (0)20 7408 4090
Toby Gibbs / Mark Percy / James Thomas
Stifel Nicolaus Europe Limited (Joint Broker) +44 (0) 20 7710 7600
Alex Price / Brad Topchik / Alain Dobkin / Richard Short
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0237
Jeremy Garcia / Kendall Hill
kape@vigoconsulting.com
About Kape
Kape is a leading 'privacy-first' digital security software provider to
consumers. Through its range of privacy and security products, Kape focusses
on protecting consumers and their personal data as they go about their daily
digital lives.
Kape has c.7 million paying subscribers, supported by a team of over 1,000
people across ten locations worldwide. Kape has a proven track record of
revenue and EBITDA growth, underpinned by a strong business model which
leverages our digital marketing expertise.
Through its subscription-based platform, Kape has fast established a highly
scalable SaaS-based operating model, geared towards capitalising on the vast
global consumer digital privacy market.
www.kape.com (http://www.kape.com/)
Twitter (https://twitter.com/Kape_com) LinkedIn
(https://www.linkedin.com/company/kape-technologies/)
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