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Avast reports solid growth in third-quarter revenue, remains confident for in-line full year performance

The global cybersecurity provider said adjusted revenue rose by 8.6% to US$206.3min in the three months to 30 September 2018, excluding forex and discontinued business
Cyber security
Vince Steckler, Avast’s chief executive said “expectations for the full year remain unchanged"

Avast PLC (LON:AVST) has reported solid growth in third-quarter revenue and said it remains confident of delivering a full year performance in line with expectations. 

The FTSE 250-listed global cybersecurity provider said adjusted revenue rose by 8.6% to US$206.3min in the three months to 30 September 2018, excluding forex and discontinued business, and was up 10.0% in actual rates.

READ: Avast's first half boosted by high profile hack attempts

For the year to date, the firm added, adjusted revenue was up by 8.5%, and 9.8% at actual rates, to US$600.6mln.

The company – which was only floated on the stock market in May this year – said its adjusted underlying earnings (EBITDA) for the third quarter increased by 5.5% to US$113.5mln, and for the year to date was up 8.8% to US$335.6mln, with an adjusted EBITDA margin year to date of 54.7%.

Vince Steckler, Avast’s chief executive commented: "The Group's cost-effective user acquisition model and large, the global user base of more than 435mln users remain key competitive strengths for the business. We continue to execute our strategy with confidence, and our expectations for the full year remain unchanged."

The firm reiterated its full-year guidance for high single-digit adjusted revenue growth and also reaffirmed the upgrade provided at its half-year to adjusted EBITDA margin percentage, which due to operational improvements it expects to be flat to slightly increasing year-on-year inclusive of annualised PLC costs of US$7mln.

Avast expects to issue its full-year results on Wednesday 13 March 2019.

Shares gain; UBS repeats 'buy'

In late morning trading, Avast shares were 1.8% higher at 290.20p, having floated at an offer price of 250p each.

UBS reiterated a ‘buy’ rating and peer group-derived 320p price target on Avast shares.

In a note to clients, the Swiss bank’s analysts said: “With revenues up 8.5% at the nine-month stage, we see the unchanged target for "high-single-digit" growth underpinned.

“While no operational detail was given, it seems inevitable the core Consumer Direct business (82% of sales) performed well and management noted that ‘we continue to execute our strategy with confidence’.”

 -- Adds share price, analysts comment --

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