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Kape Technologies (KAPE)

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Tuesday 19 January, 2021

Kape Technologies

Trading Update & Notice of Results

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 EBITDA1 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

Ido Erlichman, Chief Executive Officer

Moran Laufer, Chief Financial Officer

 

via Vigo Communications

Shore Capital (Nominated Adviser & Broker)

Mark Percy / Toby Gibbs / James Thomas / Michael McGloin

 

+44 (0)20 7408 4090

Stifel Nicolaus Europe Limited (Joint Broker)

Alex Price / Alain Dobkin / Nick Adams / Richard Short

 

+44 (0) 20 7710 7600

Vigo Communications (Financial Public Relations)

Jeremy Garcia / Antonia Pollock

[email protected]

+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.

 

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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