3rd May 2022 09:23
(Alliance News) - Avast PLC on Tuesday posted lower revenue for the quarter that ended March 31, due to the sale of its Family Safety buinsess a year ago and ahead of its proposed takeover by US peer NortonLifeLock Inc.
Revenue shrank by 1.1% to USD234.6 million from USD237.1 million in 2020's first quarter, mostly due to the sale of its Family Safety Mobile for USD66 million to Smith Micro Software Inc in March 2021.
Adjusted earnings before interest, tax, depreciation and amortisation fell by 4.3% to USD127.9 million from USD133.7 million. The adjusted Ebitda margin was 54.5%, Avast said.
For 2022, the Prague-based cybersecurity said it expects low single-digit organic revenue growth and mid single-digit billings growth. "The rollout of our new integrated solution, Avast One, continues to gain good traction, with the product release expanding into France and Germany. Avast One has received positive reviews since last year's launch," the company added.
Avast guided that its adjusted Ebitda margin for the full year will narrow to slightly below 50%. "This reflects 10 months with zero sales in Russia," the firm explained.
In March, the firm stopped all its operations in Russia and Belarus. Meanwhile, it extended licenses of users in Ukraine for free. The three countries generated around 1.5% of Avast's revenue in 2021, the firm said in March.
Avast said its profit forecast excludes any transaction costs related to its merger with NortonLifeLock. In late March, the UK Competition & Markets Authority said it will refer Avast's takeover by its US peer to a phase two investigation. The cash-and-shares deal, announced back in August, was worth USD8.6 billion at the time.
Avast shares were 2.09% lower at 552.80 pence each in London on Tuesday morning.
By Tom Budszus; [email protected]
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