Published on: July 30, 2019
Strong trading reflects drive and investment
Kape Technologies has enjoyed another strong half year of trading driven by growth in sales of its suite of digital privacy products. The update for the six months ended 30 June 2019 states that revenue is expected to be around $29.6 million for the first half with Adjusted EBITDA of around $5.8 million. EBITDA growth is running ahead of that of revenue and it is also ahead of our full year expected growth rate as the Group continues to benefit from its customer acquisition strategy and new product initiatives. The update notes Kape’s continuing commitment to investment in its people and products. Recent notable successes of Intego in exposing two Mac security threats have brought enhanced appreciation of the Group’s brand and capabilities. Kape recently updated the market on this and on ZenMate’s new products. We note the strong H1 performance and respective growth rates for revenue and EBITDA in relation to our exacting full year expectations. Assuming higher EBITDA margins, we leave Adjusted EBITDA estimates unchanged while reducing revenues by 7% and 6% for FY 2019E and FY 2020E respectively.