Avast nudges up full-year outlook after work-from-home boost

Avast

Cybersecurity business Avast has said it expected full-year organic earnings to grow in the top end of its forecast after a solid first half, underpinned by the work-from-home trend.

The company, which is one of the pioneers of the freemium business model of giving away its fundamental software and promoting extra capacities, added some 640,000 paying customers from the period.

Shares in Avast, that combined the FTSE 100 index in June and touched that an all-time large of 604.5 pence last month, were investing 5% lower in early deals at 569 pence.

CEO Ondrej Vlcek stated Avast performed strongly in the half, aided by increased demand for its anti virus, solitude and functionality applications driven by people working from home throughout the global coronavirus pandemic.

NEW CUSTOMERS

“We are especially pleased by the increase in new customers,” he explained.

Vlcek said the company now anticipated its organic earnings to grow in the top end of its previously stated mid-single digit percentage range for the full calendar year.

The power in desktop, which counts for 79% of this team’s billings, was partially offset by the impact of the pandemic on different parts of the business, including reduced demand from mobile operators for its safety software.

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The company said adjusted core earnings for the first half rose 2.1% to $241.4 million, beating analyst expectations of $237.3 million, on revenue up 6.6 percent on a natural basis to $433.1 million, also slightly head of expectancy.

The team at Platform Executive hope you have enjoyed the ‘Avast nudges up full-year outlook after work-from-home boost‘ article. Initial reporting via our content partners at Thomson Reuters. Reporting by Paul Sandle. Editing by Kate Holton and Philippa Fletcher.

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