Kape Technologies PLC Trading Update & Notice of Results (0872M)
19 January 2021 - 6:00PM
UK Regulatory
TIDMKAPE
RNS Number : 0872M
Kape Technologies PLC
19 January 2021
19 January 2021
Kape Technologies plc
("Kape," the "Company" or the "Group")
Trading Update
&
Notice of Results
Strong 2020 revenue growth with EBITDA ahead of expectations
drives continued momentum in 2021
Kape (AIM: KAPE), the digital security and privacy software
business, provides a trading update for the year ended 31 December
2020.
The Company traded strongly throughout the year, substantially
growing its customer footprint and building its profile across the
consumer privacy and security markets.
Revenue for the full year is expected to be c.$122.2 million
(2019: $66.1 million), up 85% and at the upper end of management's
forecasted range, with recurring revenue representing c. 89% of
total Group revenue. Adjusted EBITDA (1) is expected to be ahead of
management's expectations at approximately $39.0 million (2019:
$14.6 million), up 168%. In addition, Adjusted EBITDA margin is
expected to increase significantly to 31.9 % (2019: 22.0%).
The Group has also seen significant operational progress,
delivering on its commercial goals, corporate integration
milestones and product development roadmap. Kape is now well
positioned to become a go-to multi-product consumer cybersecurity
vendor serving the growing demand for digital privacy and security,
which has accelerated as a result of remote working and growing
concerns around the safety of consumers' online presence.
During the year, Kape completed the seamless integration of
Private Internet Access ahead of schedule, delivering a 31% saving
in operating expenses and growing privacy segment revenues by 16%
(both on a pro-forma basis). The Company expects increased
marketing activity in Q4 2020 to yield accelerated organic growth
in the current financial year.
Kape has made significant progress on its R&D and product
development roadmap, which is a key growth engine for the Group,
including launching its privacy suite, which offers a range of new
products to existing customers. The Company is planning to increase
its R&D investment and marketing spend in the current financial
year. Kape also completed a cutting-edge infrastructure upgrade
resulting in superior customer service, coupled with a substantial
reduction in costs.
These actions have continued to fuel Kape's customer growth,
with the Group now supporting c. 2.5 million paying subscribers
across its core markets of North America and Europe.
In October 2020, Kape completed its first equity fund raise
since IPO, with an oversubscribed capital raise of $115.5 million.
This expanded the Company's investor base and provides greater
flexibility for Kape to execute on future M&A opportunities,
whilst at the same time supporting organic growth initiatives.
The Group expects to report its results for the year ended 31
December 2020 on Wednesday, 17 March 2021.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"2020 was an extremely productive year for Kape, both in terms
of operational progress and our financial performance. With
COVID-19 causing widespread uncertainty globally, the need for high
quality and secure internet software solutions has been markedly
reinforced.
"In addition to delivering on our growth priorities in 2020, we
were able to launch several significant products and technological
initiatives which will drive our ongoing customer traction.
"With the successful integration of PIA completed, Kape will
continue its organic and in-organic expansion through 2021 and
beyond."
(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 Communications
Ido Erlichman, Chief Executive Officer
Moran Laufer, Chief Financial Officer
Shore Capital (Nominated Adviser & Broker)
Mark Percy / Toby Gibbs / James Thomas / +44 (0)20 7408
Michael McGloin 4090
Stifel Nicolaus Europe Limited (Joint Broker)
Alex Price / Alain Dobkin / Nick Adams / +44 (0) 20 7710
Richard Short 7600
Vigo Communications (Financial Public Relations)
Jeremy Garcia / Antonia Pollock +44 (0)20 7390
kape@vigocomms.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 2.5 million paying subscribers, supported by a
team of over 350 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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