Demand for Cybersecurity Solutions Soars
Avast recorded revenue of $892.9 million for the full last year, representing an increase of 7.1% on an organic level. The cybersecurity business also reported its core earnings jumped 2.6% to $495.5 million. Both metrics came in higher than what the market analysts expected.
On an adjusted basis, the company reported earnings per share (EPS) of $0.35, higher than $0.32 a year ago.
“In a year when more people and businesses turned to technology to keep their lives and their work enabled, Avast has played a vital role in safeguarding our customers' digital data and privacy. I am proud of the way the Company has met the challenge of the pandemic head on, putting our duty to act as a responsible business at the heart of our approach,” Ondrej Vlcek, Chief Executive of the company, said in a statement.
Higher revenue came after the company’s biggest business unit, “Consumer Direct Desktop,” generated revenues of $699.7 million, representing an increase of 10.6% at actual rates. Avast proposed a final dividend, to be paid to shareholders in June 2021, of $0.112 per share. This way, the total dividend payout for 2020 would be $0.16 a share.
The company witnessed an uptick in demand in Q2 for its cybersecurity solutions as people moved from offices to homes.
“We never expected that surge that happened in Q2 between March and say May to last for too long. It only lasted for one quarter and then it went back to normal, but it helped us to acquire new customers,” Vlcek told Reuters.
As for the guidance, the cybersecurity business projects to record a revenue growth ranging from 6% to 8% for its fiscal 2021. The company reported cash holdings of $215.4 million at the end of the reporting period.
Furthermore, the company is expecting organic billings growth for 2021 to come “at the lower end of this range and heavily weighted toward the second half, due in part to the strong baseline comparison in the second quarter of last year.”
Two weeks ago, Avast Free Antivirus was awarded “Top-Rated Product” status for 2020 by AV-Comparatives.
Avast stock price is trading 3.5% lower in London today.
A cybersecurity business Avast reported soaring revenue and earnings for 2020 amid an accelerated digital transformation.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.