TIDMKAPE

RNS Number : 9052M

Kape Technologies PLC

17 January 2023

17 January 2023

Kape Technologies plc

("Kape," the "Company" or the "Group")

Trading Update

&

Notice of Results

Pro forma Adjusted EBITDA above guidance and revenue at the upper end of guidance

Kape now servicing c. 7.4 million paying subscribers

Kape (AIM: KAPE), the digital security and privacy software business, provides the following trading update for the year ended 31 December 2022 ("FY 2022").

The Company is pleased to report that 2022 has been Kape's strongest year to date, with Pro forma Adjusted EBITDA for the full year now expected to exceed guidance. For FY 2022, revenues are expected to be at the upper end of guidance at c. $623 million (FY 2021: $230.7 million) and the Pro forma Adjusted EBITDA is expected to be slightly above guidance at c. $ 173 million (FY 2021: $78.0 million). As of 31 December 2022, Kape served c. 7.4 million paying customers globally, a 12% increase from the previous year.

The integration of ExpressVPN has exceeded expectations; in less than a year Kape has successfully created one unified team across management, product, R&D, marketing and customer support. The Company realised $9 million of synergies in FY 2022 and expects to realise the full planned operational synergies of $30 million in FY 2023.

In September 2022, the Company completed a significantly oversubscribed capital raise of $222.5 million (GBP190.14 million), evidencing strong support from investors for Kape's ambitious organic and inorganic growth strategy.

In addition, the Company secured new committed debt facilities of $425.0 million in November 2022 with its existing syndicate of lenders and two new banks, adjusted leverage at the end of the period is below 1x. This new banking facility replaced all existing debt facilities, and has generated approximately $20 million in net debt reduction, approximately $8 million in savings on financing costs, and provides long term financing to support Kape's continued growth.

Notice of Results

The Group expects to report its results for the year ended 31 December 2022 on 21 March 2023.

Ido Erlichman, Chief Executive Officer of Kape, commented:

"2022 was Kape's most successful year to-date. We not only delivered substantial profitable growth and executed on our largest integration exercise to date; we have also been able to further strengthen our balance sheet.

Our overperformance, delivered against a turbulent financial backdrop, further reinforces the growing demand for superior privacy and security products. Kape's achievements are a testament to the quality of our products and the determination of the teams who are delivering them. Kape is now in an enhanced position to accelerate our ambitious strategy. "

Enquiries:

 
 Kape Technologies plc                            via Vigo Consulting 
  Ido Erlichman, Chief Executive Officer 
  Oded Baskind, Chief Financial Officer 
 Shore Capital (Nominated Adviser & Joint 
  Broker) 
  Toby Gibbs / Mark Percy / James Thomas / 
  Iain Sexton                                     +44 (0)20 7408 4090 
 Stifel Nicolaus Europe Limited (Joint Broker) 
  Alex Price / Brad Topchik / Alain Dobkin 
  / Richard Short                                 +44 (0) 20 7710 7600 
 Vigo Consulting (Financial Public Relations) 
  Jeremy Garcia / Kendall Hill 
  kape@vigoconsulting.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 focuses on protecting consumers and their personal data as they go about their daily digital lives.

Kape has c. 7.4 million paying subscribers, supported by a team of over 1,400 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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January 17, 2023 02:00 ET (07:00 GMT)

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