21st Oct 2020 09:20
(Alliance News) - Avast PLC on Wednesday reaffirmed its annual adjusted revenue projections after posting a rise in quarterly earnings.
The cybersecurity company said user and customer trends normalised in the third quarter of 2020 with the easing of lockdowns. Therefore adjusted revenue percentage growth overtook adjusted billings percentage growth in the third quarter of 2020.
For the three months to September 30, the company's adjusted revenue increased 2.6% year-on-year to USD226.0 million and adjusted earnings before interest, tax, depreciation and amortisation was up 3.3% to USD126.0 million.
Year-to-date adjusted revenue was up 1.9% at USD659.1 million. Adjusted Ebitda increased 2.5% to USD367.3 million, resulting in an adjusted Ebitda margin year-to-date of 55.7%.
"The Consumer Desktop business continued to perform well and in-line with pre-pandemic levels," Avast explained. It added that the company continues to "optimise customer engagement strategies, including an increased focus on 1-year subscriptions to drive customer lifetime value".
Avast expects revenue growth to continue to outpace billings growth in the second half of the year as a result of strong demand. It has retained its 2020 adjusted revenue estimates at the upper end of mid-single digit growth and a broadly flat adjusted Ebitda margin percentage.
The company is scheduled to report its 2020 results on March 3, 2021.
Shares in the FTSE 100-listed company were down 1.3% at 506.50 pence each in London on Wednesday morning.
By Tapan Panchal; [email protected]
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