Kape Technologies reports healthy first-half growth
By Josh White
Date: Tuesday 21 Sep 2021
(Sharecast News) - Digital security and privacy software company Kape Technologies reported a first half of "strong" financial performance on Tuesday, with revenues increasing 61.9% to $95.5m.
The AIM-traded firm said there was strong growth in recurring revenues for the six months ended 30 June to $59.1m, making for an increase of 16.4%.
Adjusted EBITDA was 75% firmer at $28.7m, while its adjusted EBITDA margin improved to 30% from 27.8%.
Operating profit rocketed 299% year-on-year to $13.6 million, while fully-diluted adjusted earnings per share was 70% higher at nine cents.
Cash generation was described as "strong", with adjusted operating cash flow up 66% to $14.6m, and reported operating cash flow 114% higher at $12.6m.
The board noted that in May, the company entered into an agreement for a new senior secured debt facility of up to $220m, comprising a $120m senior secured term facility, a $10m revolving credit facility and a $90m uncommitted acquisition facility.
Looking ahead, Kape said it was expecting to generate revenues of between $197m and $202m and adjusted EBITDA of between $73m and $76m for the full year on a reported basis.
As it announced at the time of the proposed acquisition of ExpressVPN, the enlarged group was expected to generate revenues for the year ending 31 December 2022 of between $610m and $624m, and pro forma adjusted EBITDA of between $166m and $172m.
"2021 is shaping to be a truly exceptional year for Kape," said chief executive officer Ido Erlichman.
"Pleasingly, our underlying business has continued to deliver record financial results alongside the hugely impactful acquisitions of both Webselenese, and more recently, ExpressVPN.
"ExpressVPN accelerates our business growth overnight, delivering significant earnings accretion and scale to the group."
Erlichman said the company was "delighted" with the response from both new and existing investors seen during the accompanying multiple-times oversubscribed fundraise, which provided a "strong endorsement" of its strategy.
"We believe Kape is positioned better than ever before to capitalise on the growth in the digital security and privacy market, which is showing no signs of abating, and we look to the future with confidence in delivering ongoing growth and realising significant value for all our key stakeholders."
At 1056 BST, shares in Kape Technologies were up 1.71% at 417p.
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