TIDMKAPE
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
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
Toby Gibbs / Mark Percy / James Thomas 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 / Kendall Hill +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 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
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END
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