KAPE.L Regulatory News (KAPE)

20 July 2021

Kape Technologies plc

("Kape" or the "Group")

Trading Update

Record 79% Increase in Adjusted EBITDA in H1 2021

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 2021.

Trading has been strong throughout the first half of 2021 and is in line with management's expectations for the full year.

Revenue for H1 2021 is expected to be c. $95.7 million (H1 2020: $59.0 million), up 60%, or 27% on a proforma basis. Adjusted EBITDA1 is expected to be c.$28.7 million (H1 2020: $16.1 million), up 79%, or 20% on a proforma basis, with Adjusted EBITDA margin increasing to 30.1% in the period (H1 2020: 27.8%).

The integration of Webselenese, which was acquired in March 2021, is progressing well, and is primarily focused on knowledge transfer, cross-pollination and product and R&D collaboration. The Group has already seen significant benefits, with a reduction in average customer acquisition cost, and the positive impact of the implementation of Webselenese's expertise and proprietary technologies is expected to grow further in the coming periods.

Momentum across the Group's core privacy division continued in the first half with a 17% growth in revenues. Kape's digital security segment also returned to growth with a 9% increase in revenues compared to H1 2020.

In May 2021, the Group secured a new senior secured debt facility of up to $220 million, comprising a $120 million senior secured term facility, a $10 million revolving credit facility and a $90 million uncommitted acquisition facility from a growing club of top tier global financial institutions, signalling strong support for Kape's current strategy and future expansion.

The continued growth of Kape's customer base, and its increasing breadth of service offering, including Webselenese's contribution for the full period in the second half of the year, supports the Board's confidence that the Group will deliver revenues in the range of $197-202 million and Adjusted EBITDA of between $73-$76 million in the year ended 31 December 2021.

Ido Erlichman, Chief Executive Officer of Kape, commented:

"We are pleased to report a strong start to 2021 with demand for our products continuing to gather further momentum, supported by a growing number of customers choosing to take more than one of Kape's products, as the very real need for individuals to both protect and secure their online presence becoming more acute.

"It is a great testament to our team that the integration of Webselenese is already making a positive impact across the Group and we have only just begun to tap into the potential we believe this acquisition has brought to Kape.

"We continue to deliver on our strategic roadmap, providing better products to a growing customer base in the digital security and privacy space."

1Adjusted 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.

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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 over 2.6 million paying subscribers, supported by a team of over 420 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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