Work-From-Home Increased Profitability of A Cybersecurity Firm
The London-listed group reported revenue up 7 per cent, and core earnings up 2.6 per cent.
Cyber security company Avast said demand for its products surged in the second quarter of 2020 as people shifted to working from home in the pandemic, helping it to meet expectations for revenue and earnings growth.
The London-listed group reported revenue of $892.9 million for 2020, up 7.1 per cent on an organic level, and core earnings of $495.5 million, up 2.6 per cent, with both numbers coming in slightly ahead of analysts’ average forecasts.
Chief Executive Mr. Ondrej Vlcek said demand for the company’s security, protection and privacy software spiked in the second quarter of 2020 as people moved from offices to homes.
The one-year subscription system more profitable than multi-year contract
We never expected that surge that happened in Q2 between March and say May to last for too long, he said in an interview.
He said Avast added almost 1 million new paying customers last year, a rise of 7.9 per cent to 13.6 million.
The top line, however, was dampened in the second half by a deliberate shift to selling customers one-year licences rather than heavily discounted multi-year deals.