Crossrider Plc (LON:CROS), the consumer security software business, provided today an update on trading for the year ended 31 December 2017.
The Company is pleased to report that trading is in-line with expectations following Crossrider’s successful execution against its growth strategy, evolving into a consumer SaaS-focused cybersecurity provider.
Revenues are expected to be in the region of $65.8 million (2016: $56.5 million), representing growth of c. 16% and Adjusted EBITDA for the year is expected to be c. $8.3 million (2016: $6.4 million), representing growth of c. 29%.
Strong underlying Adjusted EBITDA growth of c.154%, from core activities, excluding the discontinued Web Apps and License division2, highlights the Group’s organic growth and increasingly expansive international customer base for its core software solutions.
The Company’s balance sheet is strong with a cash balance at year-end of $69.4 million after $7.7 million of acquisition related payments (31 December 2016: $72.1 million).
Crossrider continues to execute on its stated strategy to focus on expanding its SaaS operating business model, as evidenced by an increase in deferred income of c. 70% in December 2017 to $3.9 million (June 2017: $2.3 million). This is central to the Group generating high quality recurring revenue streams.
CyberGhost S.A. (“CyberGhost”), Crossrider’s online privacy solution, has performed ahead of management’s expectations both in revenues and profitability following its highly successful integration. This strong performance has accelerated in the second half of 2017, with the continued leveraging of Crossrider’s expertise and technology in user acquisition.
The Company will report its results for the year ended 31 December 2017 in March 2018.
The board is confident in delivering year-on-year growth in 2018, in-line with market expectations.
Ido Erlichman, Chief Executive of Crossrider Plc, commented: “2017 was a pivotal year in the development of Crossrider, having continued to execute on our stated strategy, resulting in strong financial growth across all key financial metrics as well as successful broadening of our operational reach.
“Having delivered strong growth both organically and through acquisition, we expect to deliver further progress in 2018 underpinned by expanding our customer base and increasing cross-selling activities as well as further potential acquisitions.”
1 Adjusted EBITDA is a non GAAP measure and a company specific measure which excludes other operating income and expenses which are considered to be one off and non-recurring in nature.
2 The Adjusted EBITDA attributable to the Web apps and license division for 2017 is $2.1 million, (2016: $4.0 million); this division has been discontinued as of September 2017. Underlying Adjusted EBITDA from core activities, excluding the discontinued Web Apps and License division for 2017 is $6.1 million (2016: $2.4 million).
