Presentation by the management team of Kape Technologies – 12/04/2022

Kape has a growth-focused business model and strong revenue visibility driven by a SaaS-based financial model. The Group is developing its position as a global consumer privacy and security company. In the last two years it has made three transformational, earnings enhancing acquisitions to advance its geographic footprint, grow its customer base and broaden its capabilities. It has transformed its digital business from a VPN provider to one which now boasts a full privacy and security suite.
Kape has market leading privacy and software products which provide a strong offering to consumers on a global basis. The customer proposition and the Group’s proven user acquisition model combine to produce significant growth in customer numbers, revenue and EBITDA. The growing proportion of Software as a Service (SaaS) agreements adds to the excellent revenue visibility of the Group.
Through a combination of organic growth and acquisition, the group reached a level of some 6 million customers by the end of 2021.

Panelists: Ido Erlichman (CEO)

Watch the full presentation below or navigate to the segments and questions that interest you the most.

1. Can the Webselenese acquisition help you improve the performance of ExpressVPN, or do they already use this sort of technology?

2. After pausing for a while to integrate ExpressVPN, when you return to acquisitions, what kind of things are you looking for?

3. Do you plan to continue with the channel partners and sales networks that came with ExpressVPN, and could you use them to sell other parts of the Kape proposition?

4. You explained that there is a market for providing security to remote workers using insecure WiFi or other networks. Do you have any corporate customers who provide their staff with VPN (or other) products? Do you think this could be a growth area for you?

5. Are there any acquisitions which disappointed you, and if so, what did you learn?

6. Can you identify what proportion of your customers work from home, and now that companies are requiring staff to attend the office will this affect new customer prospects?

7. The VPN market has been highly fragmented with relatively low barriers to entry. What are you doing to counteract the current consolidation of the VPN market (as evidenced by the announcement of Nord Security and Surf Shark)?

8. Has your 16% reduction in Customer Acquisition Cost been achieved at the expense of lower long-term value? Can you predict this from early metrics, or is it too early to tell?

9. What are your plans for brands and brand names?

10. Is there a high level of hacking or cyber attacks against ExpressVPN from either competitors or criminals in general?

11. Can you describe the way you calculate retention rate?

12. With Teddy Sagi effectively owning 53.7% of the group are there any plans in place for him to reduce his stake to make Kape a more attractive position for Institutional Investors and drive the share price forward?

13. Is there potential for operational gearing within your long-term gross margins as the business grows?

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