Kape Technologies pleased with first half performance

Digital security and privacy software company Kape Technologies reported a “strong” first-half performance on Monday, underpinned by profitable growth and integration synergies.

The AIM-traded firm said revenues increased 216.6% year-on-year for the six months ended 30 June to $302.4m, which was a 19% increase on a proforma organic basis.

It reported “strong growth” in recurring revenues to $268m, making for an increase of 353.5%.

Proforma adjusted EBITDA was up 209.7% to $88.9m, or ahead 17% on a proforma basis, with the proforma adjusted EBITDA margin slipping slightly to 29.4% from 30%.

The company’s operating profit was 333.8% higher at $59m, while diluted adjusted earnings per share increased 278.9% to 34.1 cents.

Adjusted cash flow from operations increased 517% to $90.1m, while reported cash flow from operations expanded 596.8% to $87.8m.

Looking ahead, Kape said it expected to generate revenues for the year ended 31 December of between $610m and $624m, and proforma adjusted EBITDA of between $166m and $172m.

“Our excellent operational and financial progress across the first half has underpinned a period of record profitable growth for Kape, reinforcing our widely-recognised status as a leading player in the global digital privacy and security arena,” said chief executive officer Ido Erlichman.

“We are experiencing growing demand across our full range of product suite, reinforced by our premium service offering.”

Erlichman said that was “testament to the efforts” of the Kape team, which had worked “tirelessly” to deliver “cutting-edge products” to market and drive innovation.

“From the successful integration of ExpressVPN to expanding our burgeoning product stack, we believe we are now ideally placed to capture the global demand from individuals who want to grow their control over their digital lives.”

At 1201 BST, shares in Kape Technologies were up 9.62% at 285.02p.

Reporting by Josh White at Sharecast.com.