Tag Archives: PR

AVG Acquires Privax, a Global Leader in Personal Privacy Solutions

AMSTERDAM – May 6, 2015 – AVG® Technologies N.V. (NYSE: AVG), the online security company™ for more than 200 million monthly active users, today announced the acquisition of Privax, a leading global provider of desktop and mobile privacy services for consumers. With the acquisition, AVG will add Privax’s HMA! Pro VPN to its existing portfolio of security software and services that will be immediately made available to AVG’s global customer base.

Privax has more than 250,000 paying subscribers worldwide using its VPN encryption service, while its popular free web-based browser proxy service regularly attracts a global audience of over eight million unique visitors per month. The acquisition of Privax further strengthens AVG’s expanding mobile security offerings by providing a proven, privacy subscription service that is available immediately and will also be integrated into future AVG products including AVG Zen.

“Privacy is the new currency of the digital era, particularly as the Internet population is expected to double over the next five years,” said Gary Kovacs, Chief Executive Officer, AVG Technologies. “As we connect through more and more devices, our privacy is becoming increasingly violated. At AVG, we fundamentally believe that it is a user’s choice of how and when to share their private information. With this acquisition, we will immediately be able to provide new and innovative privacy and security services to hundreds of millions of users world-wide.”

Privax leading solutions will continue to be made available directly from Privax and additionally with our proven track record we will distribute through AVG’s consumer and SMB channels.

“Our mission at HMA! has always been to be the go-to tool for anyone who wants to surf the web freely, privately and securely. I’m incredibly proud that our service has done just that, and has been used by tens of millions of people all over the world,” said Jack Cator, Founder and Chief Executive Officer, Privax. “We are thrilled to be teaming up with AVG Technologies to help us accelerate our ambition to be the biggest and best privacy company in the world.”

Under the terms of the agreement, AVG paid $40 million and will pay up to an additional $20 million in cash consideration one year after closing based on the achievement of certain performance metrics and milestones. AVG will present additional financial details at the upcoming Analyst day at the NYSE on May 12th.

AVG Announces First Quarter 2015 Financial Results

AMSTERDAM, April 29, 2015 /PRNewswire/ — AVG Technologies N.V. (NYSE: AVG), the provider of Internet and mobile security, privacy and optimization to 202 million active users, today reported results for the first quarter ended March 31, 2015.

 

Key highlights

  • Subscription revenue grew 21 percent to $81.6 million
  • Total monthly active users surpassed 200 million, with mobile users growing 29 percent over last year to 104 million
  • Q1 revenues increased 10 percent over the same period last year; adjusting for foreign exchange movements, Q1 revenues grew over 12 percent

 

First quarter 2015 financial results

Revenue for the first quarter of 2015 was $102.8 million, compared with $93.5 million in the first quarter of 2014.  Non-GAAP net income for the first quarter of 2015 was $23.9 million, or $0.46 per diluted ordinary share.  This compares with non-GAAP net income of $30.0 million, or $0.56 per diluted ordinary share for the same period of the prior year1.

GAAP net income for the first quarter of 2015 was $11.9 million, or $0.22 per diluted ordinary share.  This compares with net income of $17.9 million, or $0.34 per diluted ordinary share in the prior year’s first quarter.

Operating income was $19.8 million, compared with $24.7 million for the first quarter of 2014.  Operating cash flow was $22.2 million for quarter, compared with $32.7 million for the first quarter last year.  Non-GAAP free cash flow was $19.9 million for the quarter, compared with $30.0 million for the same period in the prior year.

“Our results of the quarter reflect the continued execution against the initiatives we laid out for you during the repositioning of the company last year,” said Gary Kovacs, CEO of AVG.  “Subscription based revenue growth accelerated and now represents approximately 80 percent of the total revenues, providing an increasingly predictable, sustainable and recurring revenue base.  Our total active user count has surpassed 200 million, validating our view that the online security industry is undergoing a fundamental shift, with consumers driving much of the change.  As we approach the second half of 2015, we believe we will capitalize on this emerging opportunity with our strong user base and realigned focus, and continue to deliver on our objectives.”

(1) Non-GAAP results for the first quarter of 2015 exclude $3.1 million in share based compensation expense,$6.7 million in acquisition amortization and $0.3 million in charges associated with litigation settlements, $2.0 million in acquisition related charges, $0.8 million in charges related to the unwinding of discounts and changes in fair value and $0.1 million in charges associated with the rationalization of the Company’s global operations, offset against $0.9 million in net reversals of capitalized development charges, as described in the Reconciliation of GAAP measures to non-GAAP measures.

Financial Outlook

Based on information available as of April 29, 2015, AVG is reaffirming the following outlook for fiscal year 2015 as follows:

Revenue is expected to be in the range of $410 million to $430 million.
Non-GAAP adjusted net income is expected to be in the range of $94.2 million to $99.2 million; non-GAAP diluted EPS is expected to be in the range of $1.80 to $1.90.
GAAP net income is expected to be in the range of $48.9 million to $53.9 million; GAAP net income per diluted ordinary share is expected to be in the range of $0.93 to $1.03.
AVG’s expectation of non-GAAP adjusted net income for the fiscal year 2015 excludes share-based compensation expense, acquisition amortization and certain other adjustments, and assumes a normalized tax rate of 12.5%.  For the purpose of calculating GAAP diluted EPS and non-GAAP diluted EPS, the Company assumes approximately 52.6 million weighted-average diluted ordinary shares outstanding for the full year.

The financial information presented in this press release is not audited or reviewed.

Conference Call Information

AVG will hold its quarterly conference call today at 5:00 p.m. ET/2:00 p.m. PT/11 PM CET to discuss its first quarter 2015 financial results, business highlights and outlook.  The conference call may be accessed via webcast at http://investors.avg.com or using the following phone numbers and conference ID: +1 913 312 1499 (USAand Canada); +44 20 8150 0795 (UK); Conference ID: 1551655.

A live version and replay version of the webcast can be accessed via http://investors.avg.com.

Use of Non-GAAP Financial Information

This press release contains supplemental non-GAAP financial measures that are not calculated in accordance with U.S. GAAP.  These non-GAAP measures provide additional information on the performance or liquidity of our business that we believe are useful for investors.

Adjusted net income, free cash flow and their related ratios are non-GAAP measures and should not be considered alternatives to the applicable U.S. GAAP measures.  In particular, adjusted net income and free cash flow, and their related ratios, should not be considered as measurements of our financial performance or liquidity under U.S. GAAP, as alternatives to income, operating income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity.

Adjusted net income and free cash flow are measures of financial performance and liquidity, respectively, and have limitations as analytical tools, and should not be considered in isolation from, or as substitutes for, analysis of our results of operations, including our operating income and cash flows, as reported under U.S. GAAP. We provide these non-GAAP financial measures because we believe that such measures provide important supplemental information to management and investors about the Company’s core operating results and liquidity, primarily because the non-GAAP financial measures exclude certain expenses and other amounts that management does not consider to be indicative of the Company’s core operating results or business outlook or liquidity. Management uses these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, in evaluating the Company’s operating performance, in planning and forecasting future periods, in making decisions regarding business operations and allocation of resources, and in comparing the Company’s performance against its historical performance. Some of the limitations of adjusted net income and free cash flow and their related ratios as measures are:

they do not reflect our cash expenditure or future requirements for capital expenditure or contractual commitments, nor do they reflect the actual cash contributions received from customers;
they do not reflect changes in, or cash requirements for, our working capital needs;
although amortization and share-based compensation are non-cash charges, the assets being amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and
other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures
Because of these limitations, investors should rely on AVG’s consolidated financial statements prepared in accordance with U.S. GAAP and treat the Company’s non-GAAP financial measures as supplemental information only.

For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP, please see “Reconciliation of GAAP to non-GAAP financial measures”.  All non-GAAP financial measures should be read in conjunction with the comparable information presented in accordance with U.S. GAAP.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those relating to an expected range of revenue, net income, EPS, non-GAAP adjusted net income and non-GAAP EPS for the fiscal year ending December 31, 2015 and/or future periods, as well as those relating to the future prospects of AVG.  Words such as “expects,” “expectation,” “intends,” “assumes,” “believes” and “estimates,” variations of such words and similar expressions are also intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein. Factors that could cause or contribute to such differences include but are not limited to:  changes in our growth strategies; changes in our future prospects, business development, results of operations and financial condition; the anticipated costs and benefits of our Location Labs acquisition and other acquisitions; our ability to remediate the material weaknesses and other deficiencies identified in our internal controls or IT systems; our ability to comply with our credit agreements; changes to the online and computer threat environment and the endpoint security industry; competition from local and international companies, new entrants in the market and changes to the competitive landscape; the adoption of new, or changes to existing, laws and regulations; changes in international or national tax regulations and related proposals; the assumptions underlying the calculation of our key metrics, including the number of our active users, revenue per average active user, subscription revenue per subscriber and platform-derived revenue per thousand searches; potential effects of changes in the applicable search guidelines of our search partners; the status of or changes to our relationships with our partners, including Yahoo!, Googleand other third parties; changes in our and our partners’ responses to privacy concerns; our ability to successfully exit the third party search distribution business; our plans to launch new products and online services and monetize our full user base; the performance of our products, including AVG Zen; our ability to attract and retain active and subscription users; our ability to retain key personnel and attract new talent; our ability to adequately protect our intellectual property; our geographic expansion plans; the outcome of ongoing or any future litigation or arbitration, including litigation or arbitration relating to intellectual property rights; our legal and regulatory compliance efforts, including with respect to PCI compliance; and worldwide economic conditions and their impact on demand for our products and services.  Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements.

Further information on these factors and other risks that may affect the Company’s business is included in filings AVG makes with the U.S. Securities and Exchange Commission (SEC) from time to time, including its Annual Report on Form 20-F, particularly under the heading “Risk Factors”.

The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto to be included in the Company’s reports on Form 6-K and Form 20-F.  The Company’s results of operations for the first quarter, ended March 31, 2015 are not necessarily indicative of the Company’s operating results for any future periods.

These documents are available online from the SEC or in the Investor Relations section of the Company’s website at http://investors.avg.com.  Information on the AVG website is not part of this release.  All forward-looking statements in this press release are based on information currently available to the Company, and AVG assumes no obligation to update these forward-looking statements in light of new information or future events.

 

About AVG

AVG is the online security company providing simple, integrated software and services to secure devices, data and people. Over 200 million active users and businesses use AVG’s products and services worldwide.

All trademarks are the property of their respective owners.

AVG Business Extends Global Footprint with Latest Release of AVG Business Managed Workplace Platform

AMSTERDAM and SAN FRANCISCO – April 22, 2015 – AVG® Technologies N.V. (NYSE: AVG), the online security company™ for 200 million active users, today announced the immediate availability of the most comprehensive version of AVG Business Managed Workplace, AVG’s fully integrated, open ecosystem remote monitoring and management (RMM) platform.

Featuring Secure Sign-On and Backup and Disaster Recovery extensions and including seamless Microsoft365 and VMware integration, AVG Business Managed Workplace makes it easy for partners to deploy and administer remote IT management services to their business customers. Released in key markets worldwide, including Australia, Canada, New Zealand, the Nordics, the United Kingdom, and the United States, and it is also localized for partners in Austria, Germany and Switzerland through AVG’s new regional offices.

AVG Business Managed Workplace Version 9.1 delivers an enriched social media-style user interface that streamlines workflows to simplify the lives of IT providers, Managed Service Providers and their small-to-medium sized business customers. The integration of remote mobile security through AVG Secure Sign-On and the Backup and Disaster Recovery management capabilities enable new site on-boarding in fifteen minutes or less*. Dedicated, global customer service and technical support is available to all partners, with a value-add two-tier premium Network Operations Center support service offering 24×7 response and remediation available for additional support in English speaking markets.

“We chose AVG Business Managed Workplace as our remote monitoring platform for its simple single screen user interface and the fact that it was very easy to deploy. This allows our staff to proactively respond to our customer needs as well improving productivity. AVG Business is providing us a great service with comprehensive training and local support that we need and ensures that we get real value from their technical support services,” said Roger Lundström, CTO Protelosolutions AB.

Among the key benefits provided to partners by the latest enhancements are:

  • Faster, easier navigation and monitoring – Enhanced, intuitive new user interface** enables fast, simple navigation. The display of important customer systems information at-a-glance, sleek design and optimized workflows deliver an improved user experience allowing partners to not waste any time in training.
  • Simple security deployment for cloud and mobile applications – An intuitive, guided process simplifies deployment and enables actionable information to be delivered directly to the central dashboard for ease of administration.
  • Secure Sign-On – Single sign-on, cloud identity, identity management and multi-factor authentication come together in a system that solves the Bring-Your-Own-Device challenge by tackling small business IT concerns around employees using a ‘real world’ mix of personal and company-issued devices to do business both inside and outside the four walls of the office. Availability with Active Directory and multi-factor authentication makes deployment straightforward and provides extra security measures.
  • Ready available BDR services integration – Full BDR integration lets partners build new recurring revenue streams via premium data protection services for customers, including server backup, endpoint backup, data archive, file sharing and disaster recovery to any on-premise, hosted cloud or in-house datacentre location.
  • Industry-leading Premium Network Operations Center (NOC) services – A new two-tier premium NOC services option enables skilled IT resources to be extended to 24×7 response without hiring additional headcount.
  • Richer connectivity experience with leading industry applications – Open ecosystem approach makes it easier than ever to seamlessly manage popular applications such as Microsoft Office 365 and VMware as well as leading connectivity tools like ScreenConnect, TeamViewer and LogMeIn Pro.

 

“Success for us is making it easy for our partners to move to AVG Business Managed Workplace because we know that success for them is being able to deploy and administer IT services easily and flexibly to their business customers. Our centralized approach through a ‘single pane of glass’ user interface integrates the core AVG functionality with industry-standard solutions including Microsoft365 and VMware for maximum productivity. This lets partners see all the information they need to make the best informed decision for their business,” said Mike Foreman, General Manager, AVG Business. “Being able to deliver the platform in local language to partners in Germany and Switzerland is a significant milestone in the growth of AVG Business and testament to the partner demand we are seeing in new markets.”

* Based on AVG internal tests

** Images in English language and German language available here: http://now.avg.com/avg-managed-workplace-9-1-press-kit/

AVG Surpasses 200 Million Users Worldwide

MOBILE WORLD CONGRESS, BARCELONA – March, 4, 2015 – AVG® Technologies N.V. (NYSE: AVG), the online security company™ announced today that it has passed the significant milestone of 200 million active users worldwide including over 100 million on mobile. Over 50 million new customers have joined the AVG family over the last 18 months alone, using one or more of AVG’s consumer and business products for mobile and desktop platforms, including Android, iOS, Windows and Apple Mac.

“This is a very significant milestone for AVG and one that not many companies ever achieve. Not only have we reached the 200 million user mark, but more than half of these users are mobile customers. This highlights the successful evolution our company has made from a PC heritage to a strong mobile future,” said Gary Kovacs, Chief Executive Officer, AVG Technologies. “The last 18 months have been the fastest period of growth in the company’s history and we expect this rate to continue going forward. This also gives us an important and growing base of customers in over 200 countries who trust AVG with their digital safety, and to whom we can offer over time our enhanced services to increase the value and protection we provide.”

AVG announced the all-new version of AVG Zen™ this week during Mobile World Congress, showcasing its wide range of security features including important family safety services, support for industry partner applications and services, and support for the Internet of Things, all from one place.

Kovacs continued, “At AVG, we believe that everyone in the world has the inalienable right to security and privacy online. We are committed to enabling the next three billion people coming on line to explore the Internet with peace of mind and security.”

 

###

 

About AVG Technologies (NYSE: AVG)

AVG is the online security company providing simple, integrated software and services to secure devices, data and people. Over 200 million active users and businesses use AVG’s products and services worldwide.

All trademarks are the property of their respective owners.

www.avg.com

 

Contacts:

US

Katie Han

Waggener Edstrom for AVG

[email protected]

+ 1 (212) 551 4807

UK

Samantha Woodman

Waggener Edstrom for AVG

[email protected]

+ 44 (0)20 7632 3840

AVG Launches Secure Sign-On for Service Providers and Small Businesses

AMSTERDAM and SAN FRANCISCO – March 3, 2015 – AVG Technologies N.V. (NYSE: AVG), the online security company for 197 million active users, today announced the immediate availability of AVG Business Secure Sign-On (SSO). Underpinned by technology from identity management leader, Centrify, AVG Business SSO works to provide AVG partners and business owners with a simple way to control company data on employees’ mobile devices and cloud applications.

“AVG Business SSO allows AVG partners to offer much needed help to those small business customers who are struggling with the issues of bring your own device (BYOD) and password management,” said Lee Frankham, director of Simpology, an AVG Business partner in the UK. “Now, we can roll out services that give our customers simple, secure management of their users’ mobile device data and applications in a matter of a few clicks.”

“Mass ownership of personal mobile devices, the adoption of popular consumer cloud services like Skype and Dropbox for business purposes and the impact of the Internet of Things have been the catalysts for true ‘business without walls’,” said Mike Foreman, General Manager, AVG Business. “Business in a fully connected environment puts smaller firms at risk of data breaches. AVG Business SSO for the first time makes it simple for businesses without big budgets or in-house IT staff to keep company confidential data safe, private and within their control, even while it is shared with employee-owned mobile devices and externally hosted cloud services.”

Key features of AVG Business SSO are:

  • Centralized control of cloud and mobile apps/data for one-click authentication of end-user mobile devices – single secure sign-on with multi-factor authentication (MFA) for any device unifies identity and mobile device management to give simplified control of mobile data
  • Affordable identity policy, verification and mobile device management service – including via Active Directory
  • Efficient password management – eliminates risk from easy-to-remember, reused and/or improperly managed passwords, improves end user productivity by eliminating the need to remember multiple passwords and reduces volume of helpdesk calls resulting from forgotten passwords
  • Large range of business applications – support for more than 2,500 of the most popular Cloud-based business apps including Office 365, Salesforce, Webex, Facebook, LinkedIn and many more helping IT providers monetize mobile and cloud management services.

###

 

About Centrify

Centrify provides unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT. Centrify’s unified identity management software and cloud-based Identity-as-a-Service (IDaaS) solutions leverage an organization’s existing identity infrastructure to enable single sign-on, multi-factor authentication, privileged identity management, auditing for compliance and enterprise mobility management.  Centrify customers can typically reduce their total cost of identity management and compliance by more than 50 percent, while improving business agility and overall security.  Centrify is used by more than 5,000 customers worldwide, including nearly half of the Fortune 50 and more than 60 Federal agencies.  For more information, please visit http://www.centrify.com/.

 

About AVG Technologies

AVG is the online security company providing leading software and services to secure devices, data and people. Over 197 million active users, as of December 31, 2014, use AVG´s products and services. AVG’s Consumer portfolio includes internet security, performance optimization, and personal privacy and identity protection for mobile devices and desktops. The AVG Business portfolio – delivered by managed service providers, VARs and resellers – offers IT administration, control and reporting, integrated security, and mobile device management that simplify and protect businesses.

All trademarks are the property of their respective owners.

www.avg.com

 

Media Contacts:

US

Holly Luka

Waggener Edstrom for AVG

[email protected]

+ 1 (415) 547 7054

 

UK

Paul Shlackman

PR Manager, SMB & Channel

[email protected]

+44 (0)7792 121510

 

Note to Editors:

AVG Business sells and markets a comprehensive, integrated set of cloud security and remote monitoring and management (RMM) software applications that are  designed from the ground up to simplify the lives of IT providers, Managed Service Providers (MSPs) and their small-to-medium sized business customers.

The portfolio comprises AVG Business CloudCare, a cloud-based administration platform offering resellers a simple way to implement and manage services such as antivirus, content filtering, online backup and email security services for their customers; AVG Business Managed Workplace, an open eco-system Remote Monitoring & Management tool; and AVG Business Secure Sign-On, a cloud-based identity policy, verification and mobile device management service.

Supported by a worldwide network of more than 10,000 partners, AVG’s strong IT security heritage complements its proven strength as an RMM provider and partner to help smaller IT companies and MSPs transition and flourish as fully-fledged managed services businesses.

AVG Puts People First for Mobile Security

AMSTERDAM and SAN FRANCISCO – March, 2, 2015 – AVG® Technologies N.V. (NYSE: AVG), the online security company™ for 197 million active users, today previewed the next version of the AVG Zen™ platform to mobile operators and original equipment manufacturers (OEM). With the consumer launch currently planned for later this year, AVG Zen delivers a new family-first approach to security, including support for industry partner apps and wearables on customers’ devices, all in one place.

With digital lives becoming more complex in an Internet of Things world, security is now about protecting people as well as their devices and personal data. The next version of AVG Zen delivers three core pillars:

  • A subscription security service for families that includes AVG AntiVirus and AVG Cleaner across their devices to give them confidence in their digital lifestyle. AVG AntiVirus for Android™ was the first mobile security product to enter the 100-500 million downloads category on the Google® Play™ store.
  • A dedicated set of family products from Location Labs by AVG including phone controls and location services. Already offered by the top four US mobile operators, extending the availability of these products through AVG Zen makes it even easier for families to communicate and share location. Phone controls gives parents peace of mind when giving their children their first mobile device, allowing them to monitor and set limits.
  • A platform for mobile operators to deliver context-aware solutions for core services. This could be, for example, notifying a user if they are running low on storage or approaching their data limit. AVG Zen is open to partners looking to expand their offerings directly to AVG’s 197 million end users.

 

With global smartphone subscribers reaching 3.5 billion by 2019, industry figures calculate suppliers of Internet of Things product and service providers will generate incremental revenue exceeding $300 billion by 2020. Research into data management and security services estimates these alone will drive revenues in excess of $1.8 billion in the same timeframe.

AVG Zen enables mobile operators to provide context-aware alerts, updates and information direct to the customer to give them control and transparency of their security across their family, data, and devices.

“People not only want their online rights to be recognized, they want more control and responsibility over their online actions and those of family members. But today, their online experience is still disconnected. In the 2015 consumer trust survey we carried out with MEF, 72 percent were not happy sharing personal data with apps, 40 percent named privacy and security as important when choosing a mobile device, and another 34 percent relied on dedicated security apps to protect them,” said Yuval Ben-Itzhak, Chief Technology Officer, AVG Technologies. “Mobile operators and online security companies hold a trusted position in consumers’ lives and we have the opportunity to transform their connected experience by bringing everything together all in one central place.”

 

 

About AVG Technologies

AVG is the online security company providing leading software and services to secure devices, data and people. Over 197 million active users, as of December 31, 2014, use AVG´s products and services. AVG’s Consumer portfolio includes internet security, performance optimization, and personal privacy and identity protection for mobile devices and desktops. The AVG Business portfolio – delivered by managed service providers, VARs and resellers – offers IT administration, control and reporting, integrated security, and mobile device management that simplify and protect businesses.

All trademarks are the property of their respective owners.

www.avg.com

 

Contacts:

US

Katie Han

Waggener Edstrom for AVG

[email protected]

+ 1 (212) 551 4807

UK

Samantha Woodman

Waggener Edstrom for AVG

[email protected]

+ 44 (0)20 7632 3840

 

 

Games, Music and Shopping Apps Hit Smartphones Hardest

AMSTERDAM and SAN FRANCISCO – February 24, 2015 – Music lovers, smartphone shoppers and mobile gamers around the world could find their favorite apps are the ones eating up most of their battery life, data plan and phone storage. The results of the latest app performance research from AVG Technologies, N.V. (NYSE: AVG), the online security company™ for 197 million active users, rank the popular music streaming service Spotify, new games like Deer Hunter 2014, and even the Amazon shopping app as among the most resource hungry apps globally.

The quarterly AVG Android App Performance Report analyzes aggregated, anonymous data from over one million AVG Android app users to discover the top performance-affecting apps worldwide. Installed on over 600,000 devices across AVG’s user base, popular Spotify has moved up two places from where AVG had ranked it in Q3 to take second position behind the social networking app from Facebook, whose constant background notification checks still have the greatest impact on overall Android device performance, consistent with last quarter’s findings.

There were also four major new trends among AVG users, as identified in the latest report:

  • Game On: demonstrating the ever-changing gaming landscape, last quarter’s gaming chart toppers, FarmVille and Puzzle & Dragons, showed major declines in their installed user base, contributing to the reason they dropped out of the AVG Q4 performance rankings. They are replaced by new entrants, Boom Beach for overall impact and Deer Hunter 2014 for storage consumption.
  • Seasonal Shopping Fever: over the holiday shopping and sales period, the official Amazon for Android app entered the charts this quarter, ranked number five in the top 10 list of most all-round resource-consuming apps.
  • Home Cinema Gets Smart: previously listed in the top three battery draining apps, Netflix this quarter no longer appears in the tables at all following a November update that has resulted in significantly less battery drain. Good news for film fans!
  • Helping Hands that Hinder: tools like Clean Master or background apps like Samsung’s Security Policies designed to help keep smartphones secure and smooth, actually rank among the highest drainers of battery, storage and data plan.

“In this quarter’s app report we saw some expected seasonal changes in the app landscape, such as uplift in usage of social, purchasing and GPS-based location apps,” said Yuval Ben-Itzhak, Chief Technology Officer, AVG Technologies. “What surprised us, however, was that some of those tools and security updates aimed at improving your phone experience, were in fact impacting it quite heavily. This is not something most people would expect so we hope our report will encourage people to understand how to manage their apps to prevent them impacting negatively on their favorite mobile past-times.”

The full report, which breaks down the performance impact further according to battery drain, storage consumption and data traffic, can be downloaded from AVG Now.

Overall Performance Impact Rank App Name Category Developer
1 Facebook Social Facebook
2 Spotify Music & Audio Spotify Ltd.
3 Instagram Social Instagram
4 Path Social Path Inc.
5 Amazon Shopping Retail Amazon

 

###

About AVG Technologies (NYSE: AVG)

AVG is the online security company providing leading software and services to secure devices, data and people. Over 197 million active users, as of December 31, 2014, use AVG´s products and services. AVG’s Consumer portfolio includes internet security, performance optimization, and personal privacy and identity protection for mobile devices and desktops. The AVG Business portfolio – delivered by managed service providers, VARs and resellers – offers IT administration, control and reporting, integrated security, and mobile device management that simplify and protect businesses.

All trademarks are the property of their respective owners.

www.avg.com

 

Yuval Ben-Itzhak

Yuval Ben-Itzhak, CTO, AVG Technologies

 

Contacts:

US

Katie Han

Waggener Edstrom for AVG

[email protected]

+ 1 (212) 551 4807

 

UK

Samantha Woodman

Waggener Edstrom for AVG

[email protected]

+ 44 (0)20 7632 3840

AVG Reports Fourth Quarter and Fiscal Year 2014 Financial Results

AMSTERDAM, February 18, 2015 – AVG Technologies N.V. (NYSE: AVG), the online security company for 197 million active users and 101 million mobile users, today reported results for the fourth quarter and fiscal year ended December 31, 2014.

 

Key highlights

  • Total revenue for the quarter at $100.2 million
  • Subscription revenue showed double digit growth both for the quarter and full year
  • Total revenue for the year at $374.1 million
  • Total user count increased to 197 million
  • Achieved 100 million mobile user milestone, growing 50% year over year
  • Successful launch and continued acceleration of AVG Zen roll out
  • Completed acquisitions of Locations Labs, Norman Safeground and Winco to support core elements of our strategy including mobile, channel and geographic expansion
  • Non-GAAP diluted EPS was $1.91 and GAAP net income per diluted ordinary share was $ 1.02 for the full year

 

Our fourth quarter confirmed another good year for AVG. Our pivot of the business and focus on predictable, sustainable subscription revenue already had strong traction which we accelerated with our fourth quarter execution. The acquisitions we completed are a key complement to our development activities.” commented Gary Kovacs, CEO of AVG. “In 2014 we repositioned AVG as the online security company and made great progress in delivering an easy to use, integrated set of security offerings to protect devices, data and people. We believe that our strong user base and growing mobile success, underpinned by our AVG Zen product and increasing SMB presence, means we are well-positioned to deliver in 2015 and beyond.”

 

Fourth quarter 2014

Subscription revenue increased 15% over the same period one year ago to $77.4 million.  The increase in subscription revenue was the result of growth in both the consumer and SMB segments of the business.  Platform-derived revenue was $22.7 million, impacted by the Google policy changes and our continued exit from the third party search distribution business.  Total revenue for the fourth quarter of 2014 was $100.2 million, which we estimate would have been $102.5 million on a constant currency basis.  This compares to $101.9 million in the fourth quarter of 2013.

We completed a number of acquisitions in the fourth quarter, out of which Location Labs was the largest yet undertaken by AVG and accelerates our mobile monetization.  During the fourth quarter AVG entered into a $280 million credit facility consisting of a $230 million term loan and a $50 million revolver facility. The term loan was fully drawn down and the revolver facility was left undrawn as of December 31st, 2014.

We delivered non-GAAP adjusted net income for the fourth quarter of 2014 of $16.2 million, or $0.31 per diluted ordinary share.  This compares with non-GAAP adjusted net income of $28.2 million, or $0.52 per diluted ordinary share for the same period of the prior year[1] with the difference being attributable to expenses during the fourth quarter associated with newly incurred debt and acquisitions.

GAAP net income for the fourth quarter of 2014 was $4.6 million, or $0.08 per diluted ordinary share.  This compares with GAAP net income of $12.8 million, or $0.23 per diluted ordinary share in the prior year’s fourth quarter.

GAAP net cash provided by operating activities was $35.2 million for the quarter, compared with $32.9 million for the same period in the prior year. Non-GAAP free cash flow was $27.7 million for the quarter, compared with $28.7 million for the same period in the prior year.

 

Fiscal Year 2014

Subscription revenue increased 12% to $281.6 million from $250.8 million year over year. Our consumer subscription business grew 11% to $223.1 million and our small business segment by 18.7% to $58.5 million. For the fiscal year 2014, total revenue was $374.1 million.

Non-GAAP adjusted net income for 2014 was $100.4 million, or $1.91 per diluted ordinary share. This compares to non-GAAP adjusted net income of $118.2 million, or $2.16 per diluted ordinary share, for the prior year. The year over year difference was largely driven by expenses in 2014 associated with newly incurred debt and acquisitions.

GAAP net income for fiscal year 2014 was $54.4 million, or $1.02 per diluted ordinary share, based on 52.6 million weighted-average diluted ordinary shares outstanding, compared with net income of $63.7 million, or $1.16 per diluted ordinary share, based on 54.7 million weighted-average diluted ordinary shares outstanding, for fiscal year 2013.

AVG generated $108.8 million in cash from operating activities in fiscal year 2014, compared to $145.2 million for the prior year. Non-GAAP free cash flow was $93.2 million for fiscal year 2014, compared with $128.5 million for fiscal year 2013.

During 2014, we repurchased 1.9 million shares at a total cost of $35.3 million under our share repurchase program, which was approved in 2013.

 

Financial Outlook

Based on information available as of February 18, 2015, AVG is confirming the following outlook for fiscal year 2015:

  • Revenue is expected to be in the range of $410 million to $430 million.
  • Non-GAAP adjusted net income is expected to be in the range of $94.2 million to $99.2 million; non-GAAP diluted EPS is expected to be in the range of $1.80 to $1.90.
  • GAAP net income is expected to be in the range of $48.9 million to $53.9 million; GAAP net income per diluted ordinary share is expected to be in the range of $0.93 to $1.03.

AVG’s expectation of non-GAAP adjusted net income and non-GAAP diluted EPS for the fiscal year 2015 excludes share-based compensation expense, acquisition amortization and certain other adjustments, and assumes a normalized tax rate of 12.5%.  For the purpose of calculating GAAP net income per diluted ordinary share and non-GAAP diluted EPS, the Company assumes approximately 52.6 million weighted-average diluted ordinary shares outstanding for the full year.

 

Conference Call Information

AVG will hold its quarterly conference call today at 23:00 CET/5:00 p.m. ET/2:00 p.m. PT to discuss its fourth quarter 2014 and full fiscal year 2014 financial results, business highlights and outlook.  The conference call may be accessed via webcast at http://investors.avg.com or using the following phone numbers and conference ID: +1 646 254 3363 (USA); +1 416 216 4141 (Canada); +44 (0)20 3427 1909 (UK); Conference ID: 5098060.

A live version and replay version of the webcast can be accessed via http://investors.avg.com.

 

Use of Non-GAAP Financial Information

This press release contains supplemental non-GAAP financial measures that are not calculated in accordance with U.S. GAAP.  These non-GAAP measures provide additional information on the performance or liquidity of our business and so we believe are useful for investors.

Adjusted net income, free cash flow and their related ratios are non-GAAP measures and should not be considered alternatives to the applicable U.S. GAAP measures.  In particular, adjusted net income, free cash flow and their related ratios should not be considered as measurements of our financial performance or liquidity under U.S. GAAP, as alternatives to income, operating income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity.

Adjusted net income and free cash flow are measures of financial performance and liquidity, respectively, and have limitations as analytical tools, and should not be considered in isolation from, or as substitutes for, analysis of our results of operations, including our operating income and cash flows, as reported under U.S. GAAP.  We provide these non-GAAP financial measures because we believe that such measures provide important supplemental information to management and investors about the Company’s core operating results and liquidity, primarily because the non-GAAP financial measures exclude certain expenses and other amounts that management does not consider to be indicative of the Company’s core operating results or business outlook or liquidity.  Management uses these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, in evaluating the Company’s operating performance, in planning and forecasting future periods, in making decisions regarding business operations and allocation of resources, and in comparing the Company’s performance against its historical performance.  Some of the limitations of adjusted net income and free cash flow and their related ratios as measures are:

  • they do not reflect our cash expenditure or future requirements for capital expenditure or contractual commitments, nor do they reflect the actual cash contributions received from customers;
  • they do not reflect changes in, or cash requirements for, our working capital needs;
  • although amortization and share-based compensation are non-cash charges, the assets being amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and
  • other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.

Because of these limitations, investors should rely on AVG’s consolidated financial statements prepared in accordance with U.S. GAAP and treat the Company’s non-GAAP financial measures as supplemental information only.

For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP, please see “Reconciliation of GAAP measures to non-GAAP measures”.  All non-GAAP financial measures should be read in conjunction with the comparable information presented in accordance with U.S. GAAP.

 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those relating to an expected range of revenue, net income, net income per diluted ordinary share, non-GAAP adjusted net income and non-GAAP EPS for the fiscal year ending December 31, 2015 and/or future periods, as well as those relating to the future prospects of AVG.  Words such as “expects,” “expectation,” “intends,” “assumes,” “believes” and “estimates,” variations of such words and similar expressions are also intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein. Factors that could cause or contribute to such differences include but are not limited to: changes in international and national tax regulations and related proposals; changes in the Company’s growth strategies; changes in the Company’s future prospects, business development, results of operations and financial condition; the anticipated costs and benefits of the Location Labs and other acquisitions; the Company’s ability to comply with its credit agreements; changes to the online and computer threat environment and the endpoint security industry; competition from local and international companies, new entrants in the market and changes to the competitive landscape; the adoption of new, or changes to existing, laws and regulations; flaws in the assumptions underlying the calculation of the Company’s key metrics, including  the number of the Company’s active users, revenue per average active user, subscription revenue per subscriber and platform revenue per thousand searches; the potential effects of changes in the applicable search guidelines of our search partners, including the Company’s and its competitors’ responses to these changes; the termination of or changes to the Company’s relationships with its partners, including Google, Yahoo! and other third parties; changes in the Company’s and its partners’ responses to privacy concerns; the ability for the Company to successfully diversify its portfolio of search partners; the Company’s plans to launch new products and online services and monetize its full user base; the performance of the Company’s products, including AVG Zen; the Company’s ability to attract and retain active and subscription users; the Company’s ability to retain key personnel and attract new talent; the Company’s ability to adequately protect its intellectual property; flaws in the Company’s internal controls or IT systems; the Company’s geographic expansion plans; the outcome of ongoing or any future litigation or arbitration, including litigation or arbitration relating to intellectual property rights; the Company’s legal and regulatory compliance efforts; and worldwide economic conditions and their impact on demand for the Company’s products and services.  Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements.

Further information on these factors and other risks that may affect the Company’s business is included in filings AVG makes with the U.S. Securities and Exchange Commission (SEC) from time to time, including its Annual Report on Form 20-F, particularly under the heading “Risk Factors”.

The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto to be included in the Company’s reports on Form 6-K and Form 20-F.  The Company’s results of operations for the fourth quarter and the full year ended December 31, 2014 are not necessarily indicative of the Company’s operating results for any future periods.

These documents are available online from the SEC or in the Investor Relations section of the Company’s website at http://investors.avg.com.  Information on the AVG website is not part of this release.  All forward-looking statements in this press release are based on information currently available to the Company, and AVG assumes no obligation to update these forward-looking statements in light of new information or future events.

 

About AVG

AVG is the online security company providing leading software and services to secure devices, data and people. Over 197 million active users, as of December 31, 2014, use AVG´s products and services. AVG’s Consumer portfolio includes internet security, performance optimization, and personal privacy and identity protection for mobile devices and desktops. The AVG Business portfolio – delivered by managed service providers, VARs and resellers – offers IT administration, control and reporting, integrated security, and mobile device management that simplify and protect businesses.

All trademarks are the property of their respective owners.

 

Investor relations contacts:

 

Europe: Camelia Isaic        

Tel. +420 702 205 848

Email: [email protected]

 

US: Scott McMullin

Tel: +1 415 741 9860

Email: [email protected]

 

IR team email: [email protected]

IR website: http://investors.avg.com

 

[1] Non-GAAP adjusted net income for the fourth quarter of 2014 excludes $2.7 million in share based compensation expense, $6.7 million in acquisition amortization, $1.2 million in acquisition-related costs, $1.5 million in restructuring, legal and other charges, $0.6 million in unwinding of discounts and changes in fair value, adjusted for $1.4 million in net reversal of capitalized development charges, together with a $0.3 million adjustment to normalize to a tax rate of 12.5%, as described in the Reconciliation of GAAP measures to non-GAAP measures.