Avast plc Third Quarter Trade Update

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Posted: October 20, 2021 at 1:10 a.m. CDT|Update: 2 hours ago

LONDON, 20 October 2021 / PRNewswire / – Avast plc, together with its subsidiaries (“Avast” or “the Group”), one of the world’s leading cybersecurity providers, Releases the following trading update for the third quarter of its current fiscal year , including the period from July 1, 2021 To September 30, 2021.

The new Avast logo will not be used strictly until September 16, 2021 (PRNewsfoto / Avast Software, Inc.)

Financial summary

($ ‘m)

Q3 2021

Q3 2020

Switch
%

Switch %
(excluding
FX)2

Returned

232.7

226.0

3.0

1.0

Revenue excluding Acquisitions, Disposals and
Discontinued activity
3

232.2

215.5

7.7

5.6

($ ‘m)

9M 2021

9M 2020

Switch
%

Switch %
(excluding
FX)

Returned

704.0

659.1

6.8

5.4

Revenue excluding Acquisitions, Disposals and
Discontinued activity
3

702.2

637.1

7.2

8.8

For the third quarter, sales of $ 232.7 million is up 5.6% organically1, and 3.0% at actual rates. For the year to date, the income of $ 704.0 million was up 8.8% on an organic basis and 6.8% at actual rates. Billing growth accelerated throughout the quarter and we expect second half billing growth at mid to high numbers. Consumer Direct’s core business performed broadly in line with expectations, with our other segments experiencing more moderate billing growth. As we continue to see competitive pressures on customer acquisition, as previously noted, a number of initiatives are underway to drive customer engagement, acquisition and retention, including the rollout of our flagship platform Avast One, which started in the quarter.

For the third quarter, adjusted EBITDA increased by 0.8% to reach $ 127.0 million. For the year to date, Adjusted EBITDA increased by 8.1% to reach $ 397.1 million, resulting in an adjusted EBITDA margin to date of 56.4%4. TO September 30, 2021, net debt / LTM (“last twelve months”) EBITDA adjusted according to the banking covenant was 0.8x.

Outlook

Avast reaffirms its revenue outlook for fiscal 2021 at the high end of 6-8% growth and a broadly stable Adjusted EBITDA margin percentage.

INVESTIGATIONS

Investors and analysts:
Pierre Russel, director of IR
[email protected]

Media contact:
Stephanie Kane, vice-president of public relations and corporate communications
[email protected]

Remarks:
1 The organic growth rate excludes the impact of currencies, acquisitions, divestitures and discontinued operations. It excludes billings for the current period and income from acquisitions up to the first anniversary of their consolidation.
2 Growth rate excluding currency effect calculated by adjusting actual exchange rates from 2021 to 2020. Deferred revenues are converted to USD on the invoice date and are therefore excluded from the calculation of the impact of currencies on revenues.
3 Growth figures exclude discontinued operations. The Company is withdrawing from its toolbar-related search distribution business, which was previously a significant contributor to AVG’s revenue. Separately, on January 30, 2020, the Group decided to end the operation of its subsidiary Jumpshot Inc. Together, including the Group’s browser cleaning activity, referred to above as “Discontinued Activity”.
4 Adjusted EBITDA margin percentage is defined as Adjusted EBITDA divided by revenue.

ANNEX

AVAST PROFIT FORECAST

The following statement in this announcement constitutes an ordinary profit forecast for the purposes of Rule 28.1 (a) and Note 2 (b) to Rule 28.1 of the City Code on Acquisitions and Mergers (the “Coded‘) (together, the’Avast Profit Forecast‘):

Below is the basis for preparing Avast’s profit forecast, along with the assumptions on which it is based.

“Avast reaffirms that its revenue outlook for fiscal 2021 is within the upper bound of 6-8% growth, and an adjusted EBITDA margin percentage that is broadly stable.”

Preparation basis

Avast’s profit forecasts have been prepared on a basis consistent with the Group’s accounting policies which comply with IFRS. These policies are consistent with those applied in the preparation of the Group’s annual results for the financial year ended. December 31, 2020. Avast’s earnings forecast excludes all transaction costs applicable to the announced merger with NortonLifelock, Inc. (‘NortonLifeLock‘)(the ‘Merger‘) or any other associated accounting impact resulting directly from the Merger.

Hypotheses

Avast’s profit forecast is based on the assumptions listed below.

Factors Outside the Influence or Control of Avast Administrators

  • There will be no material change in the macroeconomic or political conditions existing in the markets and regions in which Avast operates.
  • There will be no material change in the conditions of the markets and regions in which Avast operates or in relation to customer demand or the behavior of competitors in those markets and regions.
  • Interest, inflation and tax rates in the markets and regions in which Avast operates will remain substantially unchanged from the prevailing rates.
  • There will be no material adverse event that will have a material impact on Avast’s financial performance.
  • There will be no material adverse events that will materially impact the timing and market acceptance of new product releases and upgrades by Avast.
  • There will be no disruption to activities that significantly affect Avast or its major customers, including natural disasters, acts of terrorism, cyber attacks and / or technology issues or supply chain disruptions.
  • There will be no material change in exchange rates that will significantly impact Avast’s revenue or cost base.
  • There will be no material change in laws or regulatory requirements affecting Avast’s operations or its accounting policies.
  • There will be no material litigation relating to Avast’s operations.
  • The announcement of the Merger will not have a significant impact on Avast’s ability to negotiate new business.

Factors Under the Influence and Control of Avast Administrators

  • There will be no significant change in the current direction of Avast.
  • There will be no material change in Avast’s operational strategy.
  • There will be no material adverse change in Avast’s ability to maintain relationships with its customers and partners.
  • There will be no significant acquisitions or divestitures.
  • There will be no significant strategic investments beyond those currently planned.
  • There will be no material change in Avast’s dividend or capital policies.
  • There will be no unexpected technical or network issues with products or processes.

Confirmation of Avast administrators

With NortonLifeLock’s consent, the Panel on Takeovers and Mergers (the “Panel”) has waived the Code’s requirement for Avast accountants and financial advisers to prepare reports regarding profit forecasts. of Avast.

The Directors of Avast have reviewed Avast’s profit forecasts and confirm that they remain valid as of the date of this announcement, and that they have been properly compiled based on the assumptions stated and that the basis of accounting used is consistent with Avast’s accounting policies. .

AVAST PROFIT ESTIMATE

The following statement in this announcement constitutes an estimate of normal course earnings for Code purposes (the “Avast Profit Estimation‘).

“For the third quarter, adjusted EBITDA increased by 0.8% to reach $ 127.0 million. For the year to date, Adjusted EBITDA increased by 8.1% to reach $ 397.1 million, resulting in an Adjusted EBITDA margin to date of 56.4%. “

With NortonLifeLock’s consent, the Panel granted a waiver of the Code’s requirement that Avast’s accountants and financial advisers prepare reports regarding Avast’s profit estimate.

The directors of Avast have reviewed Avast’s profit estimate and confirm that it remains valid as of the date of this announcement, that it has been properly compiled and that the basis of accounting used is in accordance with the accounting policies of Avast. ‘Avast.

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SOURCE Avast Software, Inc.

The above press release has been provided courtesy of PRNewswire. The views, opinions and statements contained in the press release are not endorsed by Gray Media Group and do not necessarily state or reflect those of Gray Media Group, Inc.

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