Avast plc Full Year Results For The Year Ended 31 December 2021

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Billings at $948.4m up 2.9% at actual rates, with organic growth¹ of 4.3%

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Revenue at $941.1m up 5.4% at actual rates, with organic growth of 7.5%

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Consumer Direct Revenue at $811.2m, up 11.1% at actual rates, with organic growth of 9.4%

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Adjusted EBITDA up 4.5% to $517.6m; Adjusted EBITDA margin² at 55.0%, down 50bps

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Adjusted fully diluted earnings per share ('EPS') up 7.8% to $0.37 (versus $0.35 at YE 2020)

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Continued strong cash generation with Unlevered Free Cash Flow up 5.8% to $477.4m and Levered Free Cash Flow up 8.6% to $450.1m

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Resilient balance sheet with $469.0m of cash and available liquidity³. Net debt / LTM ('last twelve months') Adjusted EBITDA at 0.8x at year end

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On a statutory basis, Revenue up from $892.9m to $941.1m, Operating profit increased from $335.4m to $394.6m, cash flows from operating activities increased from $456.5m to $469.4m, fully diluted EPS increased from $0.16 to $0.34 mainly due to significant unrealised FX gain arising from Euro denominated loan and lower amortisation of acquisition intangibles

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Consumer Direct operating KPIs tracked positively. Average Revenue Per Customer ('ARPC')⁴ increased 8.4% to $49.44. Average Products Per Customer ('APPC')⁵ increased 1.8% to 1.43. Whilst customer numbers have increased in some geographies, the End of period customers⁶ remained broadly flat versus prior year at 16.36m. This reflects the emphasis on ARPC growth during the period and transition to the new model of customer proposition providing all-in-one functionality under Avast One subscription. This limits the cross-sell opportunity and puts focus on customer retention.

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There was continued successful execution on the global growth strategy, with increases in customer numbers in target underpenetrated countries, showing double-digit growth.

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In September, Avast successfully launched its new innovative integrated solution Avast One, which provides customers with integrated security, privacy and performance solution. It combines (1) security: the company's award-winning antivirus technology; (2) privacy: extensive protection in the form of a Virtual Private Network for regular browsing use, and identity protection through our data breach monitoring service; and (3) performance: firewall and software updater feature to protect people from using outdated software and supply chain attacks.

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Avast's new brand identity and expanded purpose to protect digital freedom for all online citizens was unveiled in September. Avast reinvigorated its commitment to furthering digital rights, especially in the critical area of privacy, with a new digital freedom strategy that includes policymaker engagement, philanthropy, and innovation.

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Following the appointment of a new Senior Vice President and GM of Identity, Charles Walton in H1, the Group announced the acquisition of Evernym in December for the consideration of $50m. The US company was instrumental to the invention of a digital identity technique (self-sovereign identity), which supports a user-controlled wallet of digital credentials such as a digital passport, driver's license, travel, and other credentials. This has enabled the development of innovative products and services based on decentralised digital credentials, leading to a more trustworthy online experience.

($'m)

FY 2021

FY 2020

Change %

Change %
(excluding FX) ⁷

Billings

948.4

922.0

2.9

1.0

Acquisitions

0.1

-

n/a

n/a

Disposal Family Safety mobile business ⁸

-

27.0

n/a

n/a

Discontinued Business⁹ 

2.2

4.2

(47.7)

(48.4)

Billings excl. Acquisitions, Disposal and Discontinued business

946.1

890.8

6.2

4.3

($'m)

FY 2021

FY 2020

Change %

Change %
(excluding FX)

Revenue

941.1

892.9

5.4

3.9

Acquisitions

0.1

-

n/a

n/a

Disposal Family Safety mobile business

-

27.0

n/a

n/a

Discontinued Business

2.2

5.1

(56.9)

(57.4)

Revenue excl. Acquisitions, Disposal and Discontinued business

938.8

860.7

9.1

7.5

($'m)

FY 2021

FY 2020

Change %

Adjusted EBITDA

517.6

495.5

4.5

Adjusted EBITDA Margin %

55.0

55.5

0.5 ppts

Adjusted Net Income

389.4

360.2

8.1

Net Debt

412.5

725.6

(43.1)