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.
Kape expects to report revenue for H1 2019E of around $29.6 million compared to $24.1 million on a continuing business basis in H1 2018 - an increase of 23.9%. H1 2019E Adjusted EBITDA is expected to show an increase of over 40% to around $5.8 million compared to $4.1 million in H1 2018 (again from continuing businesses).
The Intego development team was the first to expose two new highprofile macOS malware security threats, both of which Kape users are now fully protected against. Its macOS security analyst team recently discovered two important malware families for Apple users. The first was the OSX/CrescentCore malware that installs malicious Safari extension software while the second was a new Mac malware, OSX/Linker, which could be used by hackers to gain entry into private and supposedly secure operating systems.
In line with its strategy, Kape has invested in ZenMate to add impetus to its organic growth opportunities through the launch of two products which are set to increase Kape's addressable market in the privacy-led cybersecurity space. The ZenMate Ultimate app is the most comprehensive update of ZenMate's VPN platform to-date. The app is available across multiple platforms and can be used on up to five devices at a time.
In addition, Kape has launched ZenMate Pulse, a comprehensive web firewall extension which protects against pop up ads, trackers, phishing schemes, malware and malvertising. It also provides users with an explanation of the types of threats that they face on each website so that they can understand the specific threat encountered.