Cybersecurity and privacy software company Kape Technologies described a “strong” financial performance in its full-year results on Tuesday, driven by positive market dynamics coupled with its product stack, and organic user acquisition.
The AIM-traded firm said revenues topped management expectations, increasing 89% to $230.7m (£174.19m), or 20.7% on a proforma basis.
It reported “significant” growth in its recurring revenue contribution, to 92% of total revenue on a proforma basis, compared to 87% in 2020.
Proforma adjusted EBITDA surged 100% to $78m, with Kape’s adjusted EBITDA margin expanding to 33.8% for the 12 months ended 31 December, from 31.9% in the prior year.
Fully-diluted adjusted earnings per share increased 71.1% to 23.1 US cents, while the board said cash generation was “strong”, as adjusted operating cash flow increased 116% to $44.1m.
Kape noted the raising of $351m before costs in additional growth capital through an oversubscribed placing and retail offer in October, to finance the acquisition of ExpressVPN.
It also entered into a new senior secured debt facility agreement in December of up to $290m, consisting of a $120m senior secured term facility, an $80m revolving credit facility, and a $90m uncommitted acquisition facility.
Since the end of the year, the company announced the appointment of Oded Baskind as its new chief financial officer in January, who also joined the board on Tuesday.
Kape said it had “extremely limited exposure” to Russia and Ukraine operationally, with less than 1% of revenue generated in the countries.
It said ongoing global uncertainty was resulting in an “increasing awareness” from individuals of the requirement to protect their digital profiles.
The group said it had traded strongly in the new year to-date, with the board “confident” in revenues of between $610m and $624m, and adjusted EBITDA of between $166m and $172m for 2022 – the forecasts it outlined at the time of the ExpressVPN acquisition.
Operationally, Kape said its focus for 2022 would be on the ongoing integration of ExpressVPN, including fully realising the potential cost-savings initiatives, as well as executing on a number of material opportunities.
“We are immensely proud of our progress in 2021, having delivered both a record financial performance and completed the most ambitious acquisition programme in our history,” said chief executive officer Ido Erlichman.
“The culmination of these collective efforts has been the creation of a truly market-leading global digital security and privacy enterprise that is now a trailblazer in how consumers protect their digital lives.
“In 2021, we achieved record customer growth, providing further evidence that our products remain both compelling and highly innovative, and, more importantly, our customers continue to utilise our services for many years.”
Erlichman said the company had carried that positive momentum into 2022, with the board “extremely positive” about the company’s prospects.
“Whilst we remain ever vigilant of the broader macro-economic outlook, we firmly believe our products fit at the heart of the broader cybersecurity arena, which has increased importance to the global community.”
At 1211 GMT, shares in Kape Technologies were down 6.85% at 400.55p.
