Kape maintains guidance as it integrates ExpressVPN

16th Jun 2022 11:33

(Sharecast News) - Security and privacy software company Kape Technologies said in an update on Thursday that it has traded "strongly" in the year to date, with a "record" first quarter performance fuelled by organic growth.

The AIM-traded firm, which was holding its annual general meeting, said it remained well-positioned to deliver on its guidance for full-year revenues between $610m and $624m, and pro forma adjusted EBITDA of $166m to $172m.

Chairman Don Elgie said the integration of ExpressVPN, acquired in December, was "well underway", adding that alongside bolstering its go-to market and research and development capabilities, the company had already started realising "significant" operational benefits.

Those included cost-savings on back-office consolidation and the leveraging of economies of scale, as well as ongoing synergies in infrastructure and marketing.

"Following a transformational 2021, we have continued our positive momentum with the launch of several highly innovative new products, a key strategic priority," Elgie said.

"The ongoing expansion of our product ecosystem is now generating additional cross-sell opportunities.

"Our digital security division has experienced accelerated growth as we strengthen our positioning in the consumer security space."

The firm's digital content division, meanwhile, had continued to deliver growth in its independent content activities, including growth into additional content segments.

"Kape is a leader in the consumer security and privacy space, servicing seven million paying subscribers worldwide and growing.

"We expect our strong customer growth to accelerate further as the privacy and security markets become more mainstream, with consumers increasingly viewing our products as critical components for their daily digital lives."

Looking ahead, Don Elgie said Kape was also focused on further leveraging its merger and acquisition experience and extended product pipeline, to accelerate its market, product, and software-as-a-service customer reach.

"Kape is now in prime position to lead the market given our current growth trajectory, and we look forward to expanding our footprint through organic growth and strategic acquisitions, as we have done consistently over recent years."

At 1117 BST, shares in Kape Technologies were down 4.06% at 331p.

Reporting by Josh White at Sharecast.com.