Kape Technologies PLC Trading Update (7418F)
July 20 2021 - 2:00AM
UK Regulatory
TIDMKAPE
RNS Number : 7418F
Kape Technologies PLC
20 July 2021
20 July 2021
Kape Technologies plc
("Kape" or the "Group")
Trading Update
Record 79% Increase in Adjusted EBITDA in H1 2021
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 2021.
Trading has been strong throughout the first half of 2021 and is
in line with management's expectations for the full year.
Revenue for H1 2021 is expected to be c. $95.7 million (H1 2020:
$59.0 million), up 60%, or 27% on a proforma basis. Adjusted
EBITDA(1) is expected to be c.$28.7 million (H1 2020: $16.1
million), up 79%, or 20% on a proforma basis, with Adjusted EBITDA
margin increasing to 30.1% in the period (H1 2020: 27.8%).
The integration of Webselenese, which was acquired in March
2021, is progressing well, and is primarily focused on knowledge
transfer, cross-pollination and product and R&D collaboration.
The Group has already seen significant benefits, with a reduction
in average customer acquisition cost, and the positive impact of
the implementation of Webselenese's expertise and proprietary
technologies is expected to grow further in the coming periods.
Momentum across the Group's core privacy division continued in
the first half with a 17% growth in revenues. Kape's digital
security segment also returned to growth with a 9% increase in
revenues compared to H1 2020.
In May 2021, the Group secured a new senior secured debt
facility of up to $220 million, comprising a $120 million senior
secured term facility, a $10 million revolving credit facility and
a $90 million uncommitted acquisition facility from a growing club
of top tier global financial institutions, signalling strong
support for Kape's current strategy and future expansion.
The continued growth of Kape's customer base, and its increasing
breadth of service offering, including Webselenese's contribution
for the full period in the second half of the year, supports the
Board's confidence that the Group will deliver revenues in the
range of $197-202 million and Adjusted EBITDA of between $73-$76
million in the year ended 31 December 2021.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"We are pleased to report a strong start to 2021 with demand for
our products continuing to gather further momentum, supported by a
growing number of customers choosing to take more than one of
Kape's products, as the very real need for individuals to both
protect and secure their online presence becoming more acute.
"It is a great testament to our team that the integration of
Webselenese is already making a positive impact across the Group
and we have only just begun to tap into the potential we believe
this acquisition has brought to Kape.
"We continue to deliver on our strategic roadmap, providing
better products to a growing customer base in the digital security
and privacy space."
(1) Adjusted EBITDA is a non-GAAP measure and a company specific
measure which excludes other operating income and expenses which
are considered to be one off and non-recurring in nature.
Enquiries:
Kape Technologies plc via Vigo Consulting
Ido Erlichman, Chief Executive Officer
Moran Laufer, Chief Financial Officer
Shore Capital (Nominated Adviser & Broker)
Mark Percy / Toby Gibbs / James Thomas / Michael +44 (0)20 7408
McGloin 4090
Stifel Nicolaus Europe Limited (Joint Broker)
Alex Price / Brad Topchik / Alain Dobkin / +44 (0) 20 7710
Richard Short 7600
Vigo Consulting (Financial Public Relations)
Jeremy Garcia / Antonia Pollock +44 (0)20 7390
kape@vigoconsulting.com 0237
About Kape
Kape is a leading 'privacy-first' digital security software
provider to consumers. Through its range of privacy and security
products, Kape focuses on protecting consumers and their personal
data as they go about their daily digital lives.
To date, Kape has over 2.6 million paying subscribers, supported
by a team of over 420 people across eight locations worldwide.
Through its subscription-based platform, Kape has fast
established a highly scalable SaaS-based operating model, geared
towards serving the vast global consumer digital privacy
market.
www.kape.com
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END
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