TIDMKAPE
RNS Number : 7407Y
Kape Technologies PLC
18 January 2022
This announcement contains inside information
18 January 2022
Kape Technologies plc
("Kape," the "Company" or the "Group")
Trading Update, Investor Presentation &
Notice of Results
Revenue ahead of expectations alongside significant organic
subscriber growth
Kape (AIM: KAPE), the digital security and privacy software
business, provides the following trading update for the year ended
31 December 2021.
2021 was a landmark year for Kape during which the Group
achieved significant strategic progress and delivered a record
financial performance. Revenue for the full year is now expected to
be substantially ahead of previous guidance(1) at c. $230 .5
million, representing a c.89% increase on the $122.2 million
recorded in 2020. Adjusted EBITDA (2) is expected to be in line
with guidance at c. $77.0 million (2020: $39.0 million),
representing a 97% increase.
Kape generated strong organic growth during the year with
revenues excluding the ExpressVPN acquisition(3) reaching $212.5
million, which is 5% ahead of the upper range of previous
guidance(1) . This robust performance has enabled Kape to
accelerate investment in product development, future-proofing the
Group's position as a market-leader and underpinning its growth
prospects.
Kape continues to consistently expand, and 2021 proved to be an
outstanding year for the Group, with growth achieved across all
divisions. The Group's subscriber base increased 158% to a total of
6.5 million, of which 0.5 million paid subscribers were added
organically, representing 18% growth. Simultaneously, Kape has been
able to reduce its average customer acquisition costs.
On the operational side, Kape completed two highly strategic
acquisitions, Webselenese (March 2021 ) and ExpressVPN (December
2021). The acquisition of Webselenese was highly strategic and is a
key pillar in Kape's strategic roadmap to become a world leader in
consumer digital privacy and security. It brings Kape closer to the
consumer by providing unrivalled insights and expertise that
support Kape's product development roadmap and ensures that Kape is
ahead of the market in consumer trends, in turn providing a
competitive edge.
In December 2021, Kape completed the acquisition of ExpressVPN,
one of the most recognised brands in the digital privacy space, and
the integration of this acquisition is firmly underway and already
demonstrating positive momentum. As announced at the time of the
transaction, the acquisition of ExpressVPN delivered significant
additional scale for Kape, as well as providing significant cross
sell and revenue opportunities across the platform. The acquisition
is anticipated to be highly earnings accretive, with Group revenues
for the year ending 31 December 2022 expected to be between
$610-624 million and Adjusted EBITDA expected to be between
$166-172 million.
Investor Presentation
Management will be hosting a presentation for investors in
relation to the Company's trading update, today, Tuesday, 18
January 2022 at 1.45 p.m. GMT.
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.
Notice of Results
The Group expects to report its results for the year ended 31
December 2021 on Tuesday, 22 March 2022.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"2021 was an exceptional year for Kape, where we executed on two
transformational transactions in our roadmap to become a world
leader in consumer digital privacy and security. That we managed to
do this in tandem with exceeding our performance targets and
continuing to deliver sustained organic growth speaks volumes to
the quality and dedication of our team.
"We expect to continue on our strong growth trajectory in 2022,
with Kape now serving over 6.5 million paying customers. We believe
this is only the start of our journey to providing a truly secure
and private digital experience."
(1) Previous guidance given was for expectations of revenues
between US$197-202 million and Adjusted EBITDA of between US$73-$76
million for the year ended 31 December 2021
(2) Adjusted EBITDA is a non-GAAP measure that the company uses
to measure its performance. It is defined as earnings before
interest, taxation, depreciation and amortisation together with
other expenses that are considered to be one off and non-recurring
in nature
(3) ExpressVPN contribution to revenue from December 15(th) 2021
amounted to $18 million
Enquiries:
Kape Technologies plc via Vigo Consulting
Ido Erlichman, Chief Executive Officer
Shore Capital (Nominated Adviser & Joint Broker)
Toby Gibbs / Mark Percy / James Thomas / Michael +44 (0)20 7408
McGloin 4090
Stifel (Joint Broker)
Alex Price / Brad Topchik / Alain Dobkin / +44 (0) 20 7710
Richard Short 7600
Vigo Consulting (Financial Public Relations)
Jeremy Garcia / Antonia Pollock / Kendall Hill +44 (0)20 7390
kape@vigoconsulting.com 0237
The person responsible for this announcement is Ido Erlichman,
CEO
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 over 6.5 million paying subscribers, supported by a
team of over 750 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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