Kape Technologies reports record results for 2022

Digital security and privacy software company Kape Technologies reported a record financial performance in its final results on Tuesday, driven by significant organic growth in digital privacy, security, and content divisions, along with robust market tailwinds.

The AIM-traded firm said revenue reached $623.5m in 2022, making for a 170.3% increase year-on-year.

Recurring revenue contributed 86.8% of total revenue, while pro forma adjusted EBITDA rose 125.6% to $176 million, surpassing management expectations.

Fully diluted adjusted earnings per share increased 140.7% to 55.6 US cents, while adjusted operating cash flow saw a 275.1% boost to $165.5m.

Operating profit rose 161.6% to $100.1m, and profit after tax increased 203.2% to $70.9m.

In September, Kape Technologies completed a significantly oversubscribed capital raise, totalling £190.1m.

The company also secured modified debt facilities of $425m in November, including participation from existing lenders and two new banks.

As a result, adjusted leverage at the end of the year was now below 1x, generating around $20m in net debt reduction and around $8m in savings on financing costs.

“Kape delivered an outstanding performance in 2022, delivering our strongest year to date,” said chief executive officer Ido Erlichman.

“Over 7.4 million paying subscribers globally now consider Kape their company of choice in the digital privacy and security space, up 12% from the previous year.

“The need for greater digital privacy and security has been key, as more and more individuals are recognising Kape's brands as household names in the digital privacy arena.”

Erlichman said Kape had delivered consistent profitable growth, executing on its strategic objectives year-over-year for six years in a row.

“We believe we are in a perfect position to capitalise on the growing demand in the markets in which we operate, through organic growth and strategic merger and acquisition activity.”

At 1442 GMT, shares in Kape Technologies were flat at 287p.

Reporting by Josh White for Sharecast.com.