Kape Technologies Share Discussion Threads

[adamb1978] 15/9/2020 09:12

Hi Volvo

I dont think they've added 400k subscribers. Their trading statement said 'over 2m' rather than '2m' in Q1 and now its 2.38m. They actually added 72k based on their interims between Dec and Jun.

Still, thats 3% growth in 6 months' at a time when they're integrating an acquisition which from my experience massively interrupts commercial activity.

So lets say 8%-12% growth p.a. til 2023 and EBIT margins in the 25%-30% range gives me EPS of 16p-26p in 3 years' time.

Still comfortable therefore that there's at least 2x upside from here, so a solid hold and run for me!

Adam

[adamb1978] 15/9/2020 08:43

Fair enough Volvo. This part was also pleasing to see: "On track to achieve a 40% reduction in PIA's monthly operating costs in Q3 2020 as part of the integration"

Will just help the bottom line growth, and in turn the multiple

[volvo] 15/9/2020 08:33

Adam 250p is my target for the next weeks to few months.

With 400k new customers and $20m...that we know of today, that pushes the EBITDA up from $35m-$38m to $40m-$43m, which will trigger a stockmarket statement.

With PIA sign ups going strong, this too could increase.

[adamb1978] 15/9/2020 08:25

250p?!? I'm looking for more like 400p! I think that they could get to 20p EPS in 3 years, and put that on a 20x PE for 400p share price. Arguably it would warrant a higher multiple than that. I also think that once they've cleared the acquisition debt then you'll see a re-rating

[qs99] 15/9/2020 08:23

agreed, looks like PI selling DYOR

[volvo] 15/9/2020 08:19

L2 building, still recon 210p plus by the end of the day.

Strong results based on any metrics, and high growth, what more do you want at this stage of the financial cycle.

Holding until 250p min. Significant upgrade will be announced in the coming months.

[qs99] 15/9/2020 08:19

Looks like small volume selling on the news, as someone posted above, then the IR team get into action and maybe we then get the buyers push it back above £2,.....let's see DYOR

[nallen1] 15/9/2020 08:17

Looks like selling on the news. Surprising, good results in a good company in a growth sector

[blackfinance] 15/9/2020 08:16

Yes, all very good, but still way under £2. Disappointing reaction so far.

[qs99] 15/9/2020 08:12

Net debt position also very comfortable at less than expected FY EBITDA....DYOR but with that firepower, expect more deals 2021 IMO....

[capitalist] 15/9/2020 08:05

Reassuring information Volvo, thank you.

[qs99] 15/9/2020 07:45

Thanks volvo mate

[volvo] 15/9/2020 07:37

QS99 I'll answer that for you....

TS in July had this accompanying insight into Kape...

To date, Kape has over 2 MILLION paying subscribers, supported by a team of over 350 people across eight locations worldwide. Kape has a proven track record of revenue and EBITDA growth, underpinned by a strong business model that leverages our digital marketing expertise.

In September same accompanying insight....

To date, Kape has 2.4 MILLION paying subscribers, supported by a team of over 350 people across eight locations worldwide. Kape has a proven track record of revenue and EBITDA growth, underpinned by a strong business model which leverages our digital marketing expertise.


400K NEW SUBSCRIBERS

$50 each is $20m...without doubt a revised year end figure will be announced

[qs99] 15/9/2020 07:33

Yes good point MrNumpty. BGO really is motoring and exponential growth is always a nice statement to see in a share I own hehe.....DYOR.....KAPE is motoring nicely, but may have to drive cost out at same time as really driving UA.....

[mrnumpty] 15/9/2020 07:30

Another technology company to announce very positive news today is Bango , which refers today in its half-year report to its " exponential growth " . Both Bango and Kape have long been favoured by Simon Thompson of Investors' Chronicle . I'm in both companies . Good luck all .

[capitalist] 15/9/2020 07:29

Numbers look good to me, but can only wait and see how the market receives them. Sell off on news, followed by strong rise, maybe? Time will tell...

[adamb1978] 15/9/2020 07:29

Looks like a good set of figures, and there has to be a very decent chance that they'll beat their guidance given this H1

[pdwop] 15/9/2020 07:25

Number of new subscribers... Good or bad?

[rivaldo] 15/9/2020 07:22

Looks good to me. The numbers themselves show terrific growth, and KAPE have maintained prior guidance.

Recurring income is large and increasing as a percentage of turnover, which the markets loves to see and is usually attributed a premium rating.

Synergies/savings from PIA are at the upper end of expectations.

The lockdown has given KAPE a tailwind as to its digital security and privacy sectors.

More acquisitions remain on the cards, particularly given the good cash flows and the statement that "Management continues to evaluate select M&A opportunities".

And this sentence perhaps implies further upgrades to come:

"Since period end the Group has experienced strong growth in PIA subscribers, driven by Kape's user-acquisition initiatives"

[volvo] 15/9/2020 07:19

Doing pretty well for a 300m company.

-- Trading towards the upper range of management's expectations

....Since period end the Group has experienced strong growth in PIA subscribers, driven by Kape's user-acquisition initiatives

[qs99] 15/9/2020 07:12

Well lets see how market reacts. Seems to be a v. good update, reaffirms trading, Saas model & retention at c.80% helps cash flows....thoughts?

[ayl30] 15/9/2020 07:12

Good runs today. Liked this bit"-- Enlarged group already benefiting from increased economies of scale and expected to deliver synergies towards the upper end of the previous $3.5-4.5 million guidance"

[volvo] 14/9/2020 17:08

just saying

VOLVO - 14 Sep 2020 - 08:22:57 - 1847 of 1855 KAPE TECHNOLOGIES: cybersecurity for consumers - KAPE


Prediction...finishes 190p plus today having taken out all the stop loss savvy investors at sub 180p on Friday.

Results tomorrow will see 210p plus, then climb to 250p.

Recon we are going see a strong outlook statement.

[rivaldo] 14/9/2020 12:11

Nice bounce pre-results.....