H1 Trading Update & Investor Presentation

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 EBITDA¹ 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 EBITDA¹ 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 EBITDA¹ 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 Ido Erlichman, Chief Executive Officer Oded Baskind, Chief Financial Officer	via Vigo Consulting
Shore Capital (Nominated Adviser & Joint Broker) Toby Gibbs / Mark Percy / James Thomas	[phone]
Stifel Nicolaus Europe Limited (Joint Broker) Alex Price / Brad Topchik / Alain Dobkin / Richard Short	[phone]
Vigo Consulting (Financial Public Relations) Jeremy Garcia / Kendall Hill [e-mail]	[phone]

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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