(Alliance News) - Digital security software provider Kape Technologies PLC on Tuesday said organic growth and contribution from acquisition of Private Internet Access led to a strong growth in annual revenue and adjusted earnings.
For 2019, the company's revenue increased 27% to USD66.1 million from USD52.1 million a year ago. Pretax profit, however, fell to USD2.8 million from USD3.3 million.
Adjusted earnings before interest, tax, depreciation and amortisation - the company's preferred profit measure - jumped 40% to USD14.6 million from USD10.4 million.
The company said the adjusted Ebitda growth due to the strong performance of Kape's Digital Privacy activity, which had a 98% revenue increase.
Organically, excluding the contribution of Private Internet Access, the Digital Privacy segment's revenue increased by 82% to USD27.6 million.
Kape bought US-based security software company Private Internet Access for an enterprise value of USD162.3 million in December 2019.
On the Covid-19 pandemic, the company said it has not seen any effects on demand for its products and remains on track to generate proforma revenue of between USD120 and USD123 million and adjusted Ebitda of between USD35 million and USD38 million.
Ido Erlichman, chief executive of Kape, said: "There is no question that 2019 has been a landmark period of growth, and I think it is very important to thank all of our staff that helped deliver this excellent set of results and the progress achieved during the year.
"We are now on the fast track to making our vision a reality by creating one of the most prominent privacy companies globally. We have positioned Kape to become a leading digital privacy company, empowering consumers to manage their own data and digital security. We also expect to enter an exciting period of product innovation as we further realise our vision of making the internet a safe and accessible place for everyone."
Shares in Kape were down 6.6% at 105.08 pence each in London on Tuesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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