Continuing the momentum seen in the FY 2018 results, Kape’s AGM statement confirms that the Group has enjoyed a strong start to the current financial year with trading in-line with expectations. Subscriber numbers are up 14% since December 2018. Both acquisitions made last year are enjoying the benefits of Kape’s digital marketing expertise which are being realised in new user growth and expanded market reach. The statement also notes the continued strengthening of the Group’s global brand and the growing demand from consumers to protect and control access to their private data. We note the positive trend in user growth which the company expects to translate into profitability in the following periods.
Chairman Don Elgie’s AGM statement says that subscriber number growth has exceeded management expectations in the first part of FY 2019E. The Group now services 945,000 subscribers (up from 830,000 at the end of December 2018) reflecting the ongoing progress in further developing Kape’s SaaS revenue base.
The announcement states that visibility over revenues is now approximately $33.5 million across future periods – up from the figure of ‘over $30m‘ noted in the 2018 Annual Report.
In the first quarter of FY 2019E, Kape has seen ‘substantial growth’ across its VPN subscriber base, with both Zenmate and CyberGhost generating over 65% growth in mobile subscribers. This reflects well on the Group’s performance in the growing personal cybersecurity market.
Although not mentioned in today’s brief announcement, we recall that retention rates in FY 2018 provided a positive indication of how well Kape is maintaining its quality of service and products.
The acquisitions of Intego and ZenMate were concluded during 2018 and both were integrated into the Group during last year. They are expected to contribute to revenue growth and profitability in the current financial year and the AGM statement confirms that the two businesses have been benefitting from access to Kape’s internal business intelligence systems and digital marketing engine.