LONDON, Oct. 20, 2021 /PRNewswire/ -- Avast plc,
together with its subsidiaries ('Avast' or 'the Group'), a leading
global cybersecurity provider, issues the following scheduled
trading update for the third quarter of its current financial year,
comprising the period from 1 July
2021 to 30 September 2021.
Financial Summary
($'m)
|
Q3 2021
|
Q3 2020
|
Change
%
|
Change %
(excluding
FX)2
|
Revenue
|
232.7
|
226.0
|
3.0
|
1.0
|
Revenue excl.
Acquisitions, Disposals and
Discontinued Business3
|
232.2
|
215.5
|
7.7
|
5.6
|
($'m)
|
9M 2021
|
9M 2020
|
Change
%
|
Change %
(excluding
FX)
|
Revenue
|
704.0
|
659.1
|
6.8
|
5.4
|
Revenue excl.
Acquisitions, Disposals and
Discontinued Business3
|
702.2
|
637.1
|
7.2
|
8.8
|
For the third quarter, Revenue of $232.7m was up by 5.6% on an organic
basis1, and 3.0% at actual rates. For the year to date,
Revenue of $704.0m was up by 8.8% on
an organic basis, and 6.8% at actual rates. Billings growth
accelerated through the quarter and we expect H2 billings growth of
mid to high single digits. The core Consumer Direct business
performed broadly in line with expectations as our other segments
saw more muted billings growth. While we continue to see
competitive pressures on customer acquisition, as previously
indicated a number of initiatives are underway to drive customer
engagement, acquisition and retention, including the rollout of our
flagship Avast One platform, which commenced during the quarter.
For the third quarter, Adjusted EBITDA increased 0.8% to
$127.0m. For the year to date,
Adjusted EBITDA increased 8.1% to $397.1m, resulting in an Adjusted EBITDA margin
year to date of 56.4%4. At 30
September 2021, net debt / LTM ("last twelve months")
Adjusted EBITDA per the banking covenant was 0.8x.
Outlook
Avast reaffirms its FY 2021 outlook for Revenue to be at the
upper end of 6 – 8 percent growth, and a broadly flat Adjusted
EBITDA margin percentage.
ENQUIRIES
Investors and Analysts:
Peter Russell, Director of IR
IR@avast.com
Media Contact:
Stephanie Kane, VP PR and Corporate
Communications
mediarelations@avast.com
Notes:
1 Organic growth rate excludes the impact of FX,
acquisitions, business disposals, and discontinued business. It
excludes current period billings and revenue of acquisitions until
the first anniversary of their consolidation.
2 Growth rate excluding currency impact calculated by
restating 2021 actual to 2020 FX rates. Deferred revenue is
translated to USD at date of invoice and is therefore excluded when
calculating the impact of FX on revenue.
3 Growth figures exclude Discontinued Business. The
Company is exiting its toolbar-related search distribution
business, which had previously been an important contributor to
AVG's revenues. Separately, on 30 January 2020, the Group
decided to wind down the operation of its subsidiary Jumpshot
Inc. Together, including the Group's browser clean-up
business, referred to above as "Discontinued Business".
4 Adjusted EBITDA margin percentage is defined as
Adjusted EBITDA divided by Revenue.
APPENDIX
AVAST PROFIT FORECAST
The following statement of this announcement constitutes an
ordinary course profit forecast for the purposes of Rule 28.1(a)
and Note 2(b) on Rule 28.1 of the City Code on Takeovers and
Mergers (the 'Code') (together, the 'Avast Profit
Forecast'):
Set out below is the basis of preparation in respect of the
Avast Profit Forecast, together with the assumptions on which it is
based.
"Avast reaffirms its FY 2021 outlook for Revenue to be at the
upper end of 6 – 8 percent growth, and a broadly flat Adjusted
EBITDA margin percentage."
Basis of preparation
The Avast Profit Forecast has been prepared on a basis
consistent with the Group's accounting policies which are in
accordance with IFRS. These policies are consistent with those
applied in the preparation of the Group's annual results for the
year ended 31 December 2020. The
Avast Profit Forecast excludes any transaction costs applicable to
the announced merger with NortonLifelock, Inc.
('NortonLifeLock')(the 'Merger') or any other
associated accounting impacts as a direct result of the Merger.
Assumptions
The Avast Profit Forecast is based on the assumptions listed
below.
Factors outside the influence or control of the Avast
Directors
- There will be no material changes to existing prevailing
macroeconomic or political conditions in the markets and regions in
which Avast operates.
- There will be no material changes to the conditions of the
markets and regions in which Avast operates or in relation to
customer demand or the behaviour of competitors in those markets
and regions.
- The interest, inflation and tax rates in the markets and
regions in which Avast operates will remain materially unchanged
from the prevailing rates.
- There will be no material adverse events that will have a
significant impact on Avast's financial performance.
- There will be no material adverse events that will have a
significant impact on the timing and market acceptance of new
product releases and upgrades by Avast.
- There will be no business disruptions that materially affect
Avast or its key customers, including natural disasters, acts of
terrorism, cyberattack and/or technological issues or supply chain
disruptions.
- There will be no material changes to the foreign exchange rates
that will have a significant impact on Avast's revenue or cost
base.
- There will be no material changes in legislation or regulatory
requirements impacting on Avast's operations or on its accounting
policies.
- There will be no material litigation in relation to any of
Avast's operations.
- The announcement of the Merger will not have any material
impact on Avast's ability to negotiate new business.
Factors within the influence and control of the Avast
Directors
- There will be no material change to the present management of
Avast.
- There will be no material change in the operational strategy of
Avast.
- There will be no material adverse change in Avast's ability to
maintain customer and partner relationships.
- There will be no material acquisitions or disposals.
- There will be no material strategic investments over and above
those currently planned.
- There will be no material change in the dividend or capital
policies of Avast.
- There will be no unexpected technical or network issues with
products or processes.
Avast Directors' confirmation
With the consent of NortonLifeLock, the Panel on Takeovers and
Mergers (the 'Panel') has granted a dispensation from the Code
requirement for Avast's reporting accountants and financial
advisers to prepare reports in respect of the Avast Profit
Forecast.
The Avast Directors have considered the Avast Profit Forecast
and confirm that it remains valid as at the date of this
announcement, and has been properly compiled on the basis of the
assumptions set out and that the basis of the accounting used is
consistent with Avast's accounting policies.
AVAST PROFIT ESTIMATE
The following statement of this announcement constitutes an
ordinary course profit estimate for the purposes of the Code (the
'Avast Profit Estimate').
"For the third quarter, Adjusted EBITDA increased 0.8% to
$127.0m. For the year to date,
Adjusted EBITDA increased 8.1% to $397.1m, resulting in an Adjusted EBITDA margin
year to date of 56.4%."
With the consent of NortonLifeLock, the Panel has granted a
dispensation from the Code requirement for Avast's reporting
accountants and financial advisers to prepare reports in respect of
the Avast Profit Estimate.
The Avast Directors have considered the Avast Profit Estimate
and confirm that it remains valid as at the date of this
announcement, and has been properly compiled and that the basis of
the accounting used is consistent with Avast's accounting
policies.
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SOURCE Avast Software, Inc.