Kape Technologies Share Discussion Threads

[igoe104] 26/11/2018 07:13

26 November 2018
Kape Technologies plc
("Kape" or the "Group")

Integration Update

Kape (AIM: KAPE), the consumer security software business, is pleased to provide an update on the integration of its recently acquired businesses, Intego and ZenMate.

In July 2018, the Group announced the acquisition of Intego, a leading Mac and iOS cybersecurity and malware protection SaaS business, the integration of which is progressing ahead of management expectations.

Management is also pleased to report that initial results from the implementation of Kape's user acquisition technology with Intego has been extremely encouraging and will have a positive impact from Q1 2019.

In addition, Kape has recently launched cross-promotion campaigns between CyberGhost's Virtual Private Network ("VPN") and Intego's Malware protection software, and there are early signs of strong traction across these products with management anticipating seeing benefits to the business in the current year.

In October 2018, Kape acquired ZenMate, a multi-platform security software business with a focus on the provision of VPN solutions, the restructuring of which is now complete. Since acquisition, ZenMate has performed ahead of management's expectations and is expected to be EBITDA enhancing from Q1 2019.

Ido Erlichman, Chief Executive Officer of Kape, commented:

"The strong performance of these businesses since their acquisition further demonstrates our ability to both source and integrate acquisitions that provide synergistic benefits to the Group. We look forward to delivering further improvements as we continue to leverage our customer acquisition methodologies and further broaden our unique user base to generate additional cross-selling opportuniti

[basem1] 21/11/2018 14:27

One thing we do know though is that the stock is cheap whichever metric you use.

[basem1] 21/11/2018 14:19

They may be finished but just looked like normal market action on a poor day for the markets. I could be wrong though. Look at the 12 month chart for support.

[starpukka] 21/11/2018 14:12

basem, but isn't there a seller on the loose ? Yesterday, I noticed a fair number of similar sized trades.

[basem1] 21/11/2018 13:51

Chart support at last nights close. Expect an unchanged/ blue finish. Bought 10,000 today

[aishah] 05/11/2018 14:56

ZenMate's product offering is highly complementary to CyberGhost says Techinvest. "Continue to buy" is their stance.

"Keep on buy list" says SCSW

[rivaldo] 18/10/2018 16:11

Cheers wynmck, good to hear. 180p would be nice, let alone any further upside :o))

[wynmck] 18/10/2018 13:48

ST updates...BUY....continues to see upside potential to 180p target price

[igoe104] 18/10/2018 08:06

Progressive equity research note.

[igoe104] 17/10/2018 13:57

EDISON NOTE, LATEST UPDATE.


Impact on financials: 4% increase to FY19 adj EPS We estimate ZenMate could add c $0.5m in revenues in FY18e and c $2.5m in FY19e. Restructuring (incurring $0.3m of costs) should ensure profitability within a year and we pencil in a $0.5m uplift to Kape’s FY19e EBITDA and a 4% increase in adjusted EPS (from 7.0c to 7.3c). The €4.8m consideration (100% cash) implies $111 per subscriber, similar to the Intego deal ($107), and 10x our estimate of ZenMate’s FY19e EBITDA contributio





Kape has announced the acquisition of ZenMate, a digital privacy company based in Germany focusing on virtual private network (VPN) provision. With 50,000 software-as-a-service (SaaS) customers, the move strengthens Kape’s position in VPN, a standout growth area for the company currently. By utilising its digital marketing experience, Kape is confident it can accelerate ZenMate’s growth. We raise our FY19e EBITDA forecasts by $0.5m and adjusted EPS by 4%

[igoe104] 16/10/2018 08:37

Good stuff, this is definitely a share to hold for several years. I can smell a big return in air.

[aishah] 16/10/2018 07:56

It's 4.8m EUR rivaldo, so £4.25m. Looks a good fit - 50k premium plan subscribers paying £60 per year.

[rivaldo] 16/10/2018 07:19

Another cyber-security acquisition - this one Berlin-based for £4.8m cash. I also note the final throwaway comment that KAPE "continues to trade strongly":



It sounds an excellent deal, although the plan to "transition ZenMate from a loss of €1.1 million in the year to 31 December 2017 to profitability in the next quarter" looks a little ambitious.....but they do say it will be earnings-enhancing in the first full year:

"ZenMate is a digital privacy company, headquartered in Berlin, focused on encrypting and securing internet connections and protecting individuals' privacy and digital data.

The Acquisition is highly complementary to CyberGhost, Kape's existing VPN solution, and will deepen the Company's presence in Europe and Germany in particular. ZenMate currently has 50,000 premium customers on a SaaS-basis with a strong retention rate, which will further broaden cross-selling and up-selling opportunities across the Company's product portfolio."

[ayl30] 16/10/2018 07:16

Zenmate looks a good fit, seems a logical acquisition. Prospect of a fast turn round to profitability I see.

[rivaldo] 08/10/2018 10:37

Nice feature in this weekend's SCSW, talking about "ballooning recurring revenues", and which concludes "Keep on buy list ahead of further acquisitions".

[ali47fish] 03/10/2018 08:43

sorry please explain acronims tomstone!

[tomstone12] 01/10/2018 12:36

been looking at this for a while, seems like the team have some investor perception to change from the old ad-tect nonsense to real cyber security. They are (rumor has it) very aggressive with user acquisition so hope eCPA will not go up too much, compared to ARPU.

[petersinthemarket] 25/9/2018 12:08

buy on the rumour, sell on the news - imo just a short term fall and the share price will continue its steady rise once the II's have had time to digest the results. In the meantime, a nice opportunity to take in a few more. GL all, pete

[igoe104] 24/9/2018 17:37

Kape crusading cyber security

Simon Thompson


Chief executive Ido Erlichman of Aim-traded Kape Technologies (KAPE:130p), a provider of cyber security software, was in bullish mood during our interim results call this morning. He has every reason to be.
His company has just lifted organic revenue by 14 per cent to $24.1m (£18.5m) from its app businesses to boost cash profit by 45 per cent to $4.3m with margins rising by more than half to 15 per cent. Customer retention rates improved by 5 percentage points to 74 per cent, and premium subscribers account for over 70 per cent of its 1m user base.
Kape added 350,000 new users to its paying customer base of which 270,000 subscribed to either Reimage, a patented Microsoft-based product tool that enables users to clean up their computers, and DriverAgent, a PC maintenance software products company offering a device driver search and update service, which scans computers for outdated drivers. Product upgrades are playing their part – Reimage now provides users of both Macs and PCs with its service – and so too is cross selling. In fact, Mr Erlichman pointed out that 150,000 products were cross sold in the six month trading period.
He also highlighted that Cyberghost, a provider of secure virtual private networks (VPNs) that securely pass data traffic over public networks, is gaining further traction having launched a product for iOS and Mac systems. Moreover, he sees significant cross selling opportunities with the post period end acquisition Seattle-based Intego, a leading Mac and iOS cybersecurity and malware protection software-as-a-service (SaaS) business. Intego provides Kape with a foothold in the malware protection market and boosts its product portfolio with the addition of complementary malware protection and security solutions. Intego’s purchase price of $16m equates to 11 times its $1.4m pre-tax profit in 2017. That’s a sensible price, but if Kape’s management work their magic as they have at Cyberghost then there could be significant potential to grow Intego’s profits by leveraging off Kape’s larger customer base. And that’s not in the price.
The £186m market cap is rated on 25 times Shore Capital’s 2019 EPS estimates of 6.4p, but with $46.7m (£33m) of cash available for further bolt-on deals, management actively looking to do so, and the business performing strongly, then I am happy with a target price of 180p based on an enterprise value to cash profit multiple of 20 times. Please note that I first rated the shares a buy, at 47.9p, in my 2017 Bargain Shares Portfolio. Buy.

[investordave] 24/9/2018 16:27

And the buy of 50,000 shares tells you all you need to know about the future here. Ignore all the small sells. Just noise in the grand scheme of things.

[mfhmfh] 24/9/2018 13:59

ST has a 180p target price. GLA.

[podgyted] 24/9/2018 12:10

You will if ST has anything to do with it. Buy recommendation.

[investordave] 24/9/2018 09:45

Nice to see the share price stabilising and some common sense prevailing. Hopefully we'll end blue today.

[investordave] 24/9/2018 08:25

I have thanks.

[davr0s] 24/9/2018 08:23

Well if they are all idiots you should be buying more fast