Avast (AVST.L, FTSE 250, Market Capitalisation: ¬£3631m, 369p, 4.5% of JIC Portfolio and 0.0% of JIC Top 10)
Q3 trading update.
Conclusion:¬†¬†Another decent quarter of growth as it builds its installed base of customers and the number ‚Äútrading up‚ÄĚ from free or basic offerings. I am up 18% on my average purchase price in May and August this year. I rank it as Medium Risk/High Return which I remain happy with. That suggests a 5.0% target weighting for me. I am currently at 4.5%. I could add, to take the¬†position to 5.0% at some stage but given that it has had a good run into this update, probably not today given. Happy Holder!
Adjusted revenue excluding discontinued business, the sale of Managed Workspace and at constant currency was up 9.0%y-o-y. On the same basis, revenue for the first nine months was up 9.1%.
For the third quarter adjusted EBITDA increased by 8.7% to $121.9m with an adjusted EBITDA margin year to date of 55.4%.
Ondrej Vlcek, Chief Executive of Avast, said:
“I’m pleased to report that Avast has delivered good growth in the third quarter, consistent with our expectations at the time of the Half Year Results in August. We continue to successfully execute our growth strategy, underpinned by our platform distribution model and our global installed base of more than 435m users.”
On the outlook, it says that it reaffirms its expectations that adjusted revenue will be at the upper end of high single-digit growth, with a broadly flat EBITDA margin.