Published on: March 14, 2017
Results confirm solid foundation for growth
Today’s results are in line with January’s trading update in terms of revenue (reduced, as flagged, after the cessation of investment in the web apps platform) and adjusted EBITDA. The App Distribution segment has performed well and the group as a whole has demonstrated good cash conversion once again. Crossrider has also benefited from action taken to improve efficiency. In October 2016, Crossrider purchased DriverAgent for U$1 million – a product already successfully promoted on Crossrider’s app distribution platform – which is now fully-integrated. This has been followed by today’s acquisition of CyberGhost, a Cyber Security SaaS solution business on a multiple of 6x to 9x historical EBITDA depending on an earn out payment. This represents a continuation of Crossrider’s clearly-defined, well-articulated strategy. We make adjustments to our underlying revenue and margin estimates which, in combination with the CyberGhost deal leave revenue expectations little changed but add 14% and 20% to our respective EBITDA estimates for FY 2017E and FY 2018E.