Kape Technologies PLC Trading Update & Notice of Results (2403A)
January 20 2020 - 1:00AM
UK Regulatory
TIDMKAPE
RNS Number : 2403A
Kape Technologies PLC
20 January 2020
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014
20 January 2020
Kape Technologies plc
("Kape" or the "Group")
Trading Update
&
Notice of Results
Kape (AIM: KAPE), the digital security and privacy software
business is pleased to provide an update on trading for the year
ended 31 December 2019.
2019 was a pivotal year for Kape, during which the Group
achieved both strong organic and inorganic growth. Delivering on
its vision to create a dominant player in the privacy and security
space, Kape acquired Private Internet Access ("PIA") in December
2019, bringing one of the most respected product suites and well
recognised brands in the market into the Group.
The acquisition of PIA will be significantly earnings enhancing
for Kape, and further bolsters the Group's SaaS operating model.
Kape's user base grew to 2.35 million subscribers at year-end (30
June 2019: 1 million), comprising 74.3% organic growth within the
privacy vertical not including PIA. Reflecting the growth in our
customer base, Kape expects to deliver $98.8 million(1) in revenues
from existing customers in future financial years, up 260% (30 June
2019: $38.0 million).
Kape traded strongly throughout 2019 with a focus on profitable
growth. Adjusted EBITDA(2) is expected to be slightly above market
expectations at c.$14.5 million (2018: $10.4 million), representing
an increase of 40%, with revenues up 26% to c.$66.0 million,
reflecting the Group's focus on customer acquisition investment
towards the higher margin digital privacy segment. At the time of
the PIA acquisition, the Group issued guidance for the year ending
31 December 2020, with revenues expected to be in the range of $120
million to $123 million and Adjusted EBITDA(2) between $35 million
and $38 million.
The integration of PIA is now underway with management focused
on enhancing the enlarged Group's growth, developing the product
suite and leveraging synergy opportunities. The initial focus has
been on consolidating operations, coordinating sales and marketing
capabilities and exploiting the Group's expanded 'privacy first'
suite of software solutions.
The Group expects to report its results for the year ended 31
December 2019 on 17 March 2020.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"In 2019 we transformed Kape into one of the most prominent
global digital privacy companies, combining rapid organic growth
with further expansion of our portfolio through development and the
PIA acquisition.
"The enlarged group boasts an enviable product suite of
privacy-based software solutions focused on browsing, encryption
and connectivity, in addition to a strong global brand within the
fast-growing digital privacy arena.
"We have entered 2020 in a very strong position, focused on
driving earnings growth and maintaining our historic levels of
strong cash generation, alongside maximising the positive impact of
our acquisitions."
(1) Calculated as expected revenues from first renewal of the
existing user base in addition to the deferred revenue balance
(2) 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 4090
N+1 Singer (Joint Broker)
Harry Gooden / George Tzimas +44 (0)20 7496 3000
Vigo Communications (Financial Public Relations)
Jeremy Garcia / Antonia Pollock / Fiona Norman
kape@vigocomms.com +44 (0)20 7390 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.
To date, Kape has over 1 million paying subscribers, supported
by a team of over 300 people across eight 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 our 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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