18 Jan 2022 07:00
This announcement contains inside information
18 January 2022
Kape Technologies plc
("Kape," the "Company" or the "Group")
Trading Update, Investor Presentation &
Notice of Results
Revenue ahead of expectations alongside significant organic subscriber growth
Kape (AIM: KAPE), the digital security and privacy software business, provides the following trading update for the year ended 31 December 2021.
2021 was a landmark year for Kape during which the Group achieved significant strategic progress and delivered a record financial performance. Revenue for the full year is now expected to be substantially ahead of previous guidance1 at c. $230.5 million, representing a c.89% increase on the $122.2 million recorded in 2020. Adjusted EBITDA2 is expected to be in line with guidance at c. $77.0 million (2020: $39.0 million), representing a 97% increase.
Kape generated strong organic growth during the year with revenues excluding the ExpressVPN acquisition3 reaching $212.5 million, which is 5% ahead of the upper range of previous guidance1. This robust performance has enabled Kape to accelerate investment in product development, future-proofing the Group's position as a market-leader and underpinning its growth prospects.
Kape continues to consistently expand, and 2021 proved to be an outstanding year for the Group, with growth achieved across all divisions. The Group's subscriber base increased 158% to a total of 6.5 million, of which 0.5 million paid subscribers were added organically, representing 18% growth. Simultaneously, Kape has been able to reduce its average customer acquisition costs.
On the operational side, Kape completed two highly strategic acquisitions, Webselenese (March 2021) and ExpressVPN (December 2021). The acquisition of Webselenese was highly strategic and is a key pillar in Kape's strategic roadmap to become a world leader in consumer digital privacy and security. It brings Kape closer to the consumer by providing unrivalled insights and expertise that support Kape's product development roadmap and ensures that Kape is ahead of the market in consumer trends, in turn providing a competitive edge.
In December 2021, Kape completed the acquisition of ExpressVPN, one of the most recognised brands in the digital privacy space, and the integration of this acquisition is firmly underway and already demonstrating positive momentum. As announced at the time of the transaction, the acquisition of ExpressVPN delivered significant additional scale for Kape, as well as providing significant cross sell and revenue opportunities across the platform. The acquisition is anticipated to be highly earnings accretive, with Group revenues for the year ending 31 December 2022 expected to be between $610-624 million and Adjusted EBITDA expected to be between $166-172 million.
Investor Presentation
Management will be hosting a presentation for investors in relation to the Company's trading update, today, Tuesday, 18 January 2022 at 1.45 p.m. GMT.
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.
Notice of Results
The Group expects to report its results for the year ended 31 December 2021 on Tuesday, 22 March 2022.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"2021 was an exceptional year for Kape, where we executed on two transformational transactions in our roadmap to become a world leader in consumer digital privacy and security. That we managed to do this in tandem with exceeding our performance targets and continuing to deliver sustained organic growth speaks volumes to the quality and dedication of our team.
"We expect to continue on our strong growth trajectory in 2022, with Kape now serving over 6.5 million paying customers. We believe this is only the start of our journey to providing a truly secure and private digital experience."
1 Previous guidance given was for expectations of revenues between US$197-202 million and Adjusted EBITDA of between US$73-$76 million for the year ended 31 December 2021
2 Adjusted EBITDA is a non-GAAP measure that the company uses to measure its performance. It is defined as earnings before interest, taxation, depreciation and amortisation together with other expenses that are considered to be one off and non-recurring in nature
3 ExpressVPN contribution to revenue from December 15th 2021 amounted to $18 million
Enquiries:
Kape Technologies plc Ido Erlichman, Chief Executive Officer
| via Vigo Consulting |
Shore Capital (Nominated Adviser & Joint Broker) Toby Gibbs / Mark Percy / James Thomas / Michael McGloin
| +44 (0)20 7408 4090 |
Stifel (Joint Broker) Alex Price / Brad Topchik / Alain Dobkin / Richard Short | +44 (0) 20 7710 7600
|
Vigo Consulting (Financial Public Relations) Jeremy Garcia / Antonia Pollock / Kendall Hill kape@vigoconsulting.com | +44 (0)20 7390 0237 |
The person responsible for this announcement is Ido Erlichman, CEO
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 over 6.5 million paying subscribers, supported by a team of over 750 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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