TIDMAVST
RNS Number : 4088B
Avast PLC
30 January 2020
30 January 2020
Avast plc - Business and Trading Update
Avast plc ("Avast", together with its subsidiaries, the "Group")
today provides a business and trading update.
Summary
-- Avast has decided to terminate the provision of data to its
data analytics business, Jumpshot, with immediate effect
-- This decision does not impact the Group's FY 2019 results,
which are in line with expectations
-- Guidance of mid-single digit growth in Organic Revenue in FY 2020, excluding Jumpshot
-- The company will be hosting a conference call today at 7.30am
GMT, further details of which are provided below
Ondrej Vlcek, Avast CEO said:
"Today we are announcing the immediate termination of the
provision of data to Jumpshot. People have become increasingly
sensitive to data privacy matters. Avast has always been committed
to doing the right thing for its users and customers, and this is
the overarching principle that has guided our decisions in response
to recent developments. While we have always acted with integrity,
our respect for people's privacy concerns must take precedence over
everything else.
"The core of the Avast business and our fundamental strengths
remain unchanged. Trading in 2019 was in line with our
expectations. We continue to expect healthy growth during 2020 and
remain confident in the long-term prospects for the business."
A letter from Ondrej Vlcek, Group CEO can be viewed at
https://blog.avast.com/a-message-from-ceo-ondrej-vlcek
FY 2019 trading update
As previously announced, Avast expects to release its final
results for the year ended 31 December 2019 on 26 February 2020.
These results(1) are in line with expectations and at a headline
level Avast expects to report:
- Organic(2) Billings up 10.2%(3) to $900.7m
- Organic Revenue up 9.1% to $862.8m
- Adjusted EBITDA up 7.9% to $483.0m; Adjusted EBITDA margin at 55.3%, up 119bps
Recent business developments
Jumpshot
Avast has terminated the provision of data to its data analytics
business 'Jumpshot' with immediate effect. Jumpshot may not use any
existing data provided by Avast and no further data will be
provided by Avast.
The decision to terminate the provision of data to Jumpshot has
been made in the best long-term interest of the Group and its
shareholders. Users put their faith in Avast to keep their data
safe online and to give them control over their privacy. While
Avast believes it has always acted in full accordance with privacy
regulations and strived to implement best practices, this action
seeks to mitigate any perceived conflict of interest with our core
security mission that might exist with our users. Investment
resources budgeted for Jumpshot will be reassigned to other areas
of the Group to support long-term organic growth initiatives.
The decision to terminate the provision of data to Jumpshot does
not affect the Group's FY 2019 results. Jumpshot's past results
have been included as part of the Group's Consumer Indirect
segment. Jumpshot is to be classified as a Discontinued Business in
the Group's reporting going forward.
Jumpshot's FY 2019 Adjusted Revenue was $36m, equating to
approximately 200 basis points of the Group's FY 2019 Adjusted
Revenue growth, while Adjusted EBITDA in FY 2019 was $7m. As noted
above, this compares to Group FY 2019 Organic Revenue of $862.8m
and Group Adjusted EBITDA of $483.0m.
Today's decision has no impact on the operations of any of
Avast's other businesses.
FY 2020 outlook
Fuller guidance for FY 2020 will be provided as part of Avast's
FY 2019 earnings announcement, scheduled for 26 February 2020.
Excluding Jumpshot, the Group expects to deliver healthy growth
during FY 2020 with Organic Revenue growth of mid-single digit
(which reflects the high single digit run-rate adjusted for the
Jumpshot impact noted above). Organic Billings growth for the FY
2020 will be broadly in line with revenue growth, albeit weighted
towards the second half of the financial year because of the
Group's deferral of product releases in the first half of the year.
This is due to the rebuild of the product environment that we
decided to undertake to proactively harden and further secure it
after the attempted attack late last year.
Adjusted Group EBITDA margin is expected to be broadly flat
versus FY 2019 as operating costs released from Jumpshot will be
re-invested into the business to support growth initiatives.
The Group expects to incur a one-time exceptional cash cost of
in the range of $15m-$25m in the current financial year to cover
closure costs, asset write-down and employee restructuring. As part
of the termination arrangements Avast has agreed with Ascential plc
that it will return the investments made by Ascential plc into the
business, along with associated exit costs.
Avast expects to recommend the payment of the final FY 2019
dividend in line with the Group's dividend policy and expects to
continue to observe its dividend policy in FY 2020.
Conference call details
07:30 GMT on Thursday, 30 January 2020
Standard international access: +44 (0)330 336 9126
France: +33 (0)1 70 72 25 50
US: +1 323 794 2597
Code: 9598761
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014.
Enquiries:
Peter Russell, Director of Investor Relations
ir@avast.com
Stephanie Kane, VP PR and Corporate Communications
mediarelations@avast.com
Lulu Bridges / Jos SImson / Heather Armstrong / Tim Pearson
Tavistock
Tel: 020 7920 3150
Notes:
(1) All figures in this announcement are unaudited
(2) Organic numbers exclude FX, Discontinued Business, disposal
of the Managed Workplace business and Acquisitions
(3) Growth rates exclude currency impact, Discontinued Business,
disposal of the Managed Workplace business and Acquisitions
About Avast
Avast (LSE:AVST) is a global leader in digital security
products. With over 400 million users online, Avast offers products
under the Avast and AVG brands that protect people from threats on
the internet and the evolving IoT threat landscape. The company's
threat detection network is among the most advanced in the world,
using machine learning and artificial intelligence technologies to
detect and stop threats in real time. Avast digital security
products for Mobile, PC or Mac are top-ranked and certified by
VB100, AV-Comparatives, AV-Test, West Coast Labs and others. Visit:
www.avast.com.
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of this information may apply. For further information, please
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END
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