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Absolute Reports Fiscal 2020 Fourth Quarter and Annual Financial Results - Q4 Revenue up 7% to $27.2 million
Monday, August 17, 2020Company Profile | Follow Company
The Company delivers record Annual Revenue, double digit growth in ARR, and 26 percent EBITDA margin in Fiscal 2020
Vancouver, BC, August 17, 2020--(T-Net)--Absolute (TSX: ABT), a leader in Endpoint Resilience™ solutions, today announced its financial results for the three months and year ended June 30, 2020. All dollar figures are stated in U.S. dollars, unless otherwise indicated.
"The recent structural changes to enterprise and education organizations brought on by remote work and distance learning have further highlighted our market opportunity," said Christy Wyatt, President and CEO of Absolute.
"We saw a strong fourth quarter and record fiscal year, thanks to our relentless execution and focus on helping our customers. Going into fiscal 2021, as the market continues to shift and the future of work and learning remains very fluid, a new era in endpoint security is emerging. IT and Security teams cannot solely rely on traditional network-based security products to protect vulnerable devices, data and users. Rather, they need to shift their focus to endpoint strategies with an undeletable defense platform that delivers complete visibility and control over all devices, no matter where they connect from, and enables the ability to self-heal critical security controls and productivity tools dynamically."
Key Financial Metrics
Notes:
Q4 Fiscal 2020 Business Highlights
Fiscal 2020 Business Highlights
Overall in F2020 Absolute continued delivering innovative and resilient capabilities and research to support our customers, including:
Summary of Key Financial Metrics
Notes:
F2021 Financial Outlook
The Company's financial outlook for its 2021 fiscal year (July 1, 2020 - June 30, 2021) is as follows:
The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the "Forward-Looking Statements" cautionary statement below.
About Absolute
Absolute serves as the industry benchmark for Endpoint Resilience, visibility and control. Embedded in over a half-billion devices, the company enables more than 12,000 customers with Self-Healing Endpoint® security, always-connected visibility into their devices, data, users, and applications - whether endpoints are on or off the corporate network - and the ultimate level of control and confidence required to support the modern enterprise. For the latest information, visit www.absolute.com and follow us on LinkedIn or Twitter.
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Financial Position
June 30, 2020 and 2019
(Expressed in United States dollars) (Unaudited)
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Operations and Comprehensive Income
Three months and year ended June 30, 2020 and 2019
(Expressed in United States dollars) (Unaudited)
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Changes in Shareholders' Deficiency
(Expressed in United States dollars) (Unaudited)
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Cash Flow
Three months and year ended June 30, 2020 and 2019
(Expressed in United States dollars) (Unaudited)
Quarterly Filings
Management's Discussion and Analysis ("MD&A") for the fiscal quarter ended June 30, 2020 and Consolidated Financial Statements and the notes thereto for the fiscal year ended June 30, 2020 can be obtained today from Absolute's corporate website at www.absolute.com. These documents are also available under Absolute's profile at www.sedar.com.
Non-IFRS Measures and Definitions
Throughout this press release, the Company refers to a number of measures that the Company believes are meaningful in the assessment of the Company's performance. All these metrics are nonstandard measures under International Financial Reporting Standards ("IFRS"), and are unlikely to be comparable to similarly titled measures reported by other companies. Readers are cautioned that the disclosure of these items is meant to add to, and not replace, the discussion of financial results or cash flows from operations as determined in accordance with IFRS. For a discussion of the purpose of these non-IFRS measures, please refer to the Company's Q4-F2020 MD&A.
These measures, as well as their method of calculation or reconciliation to IFRS measures, are as follows:
©2020 Absolute Software Corporation. All rights reserved. ABSOLUTE, the ABSOLUTE logo, SELF-HEALING ENDPOINT, and PERSISTENCE are registered trademarks of Absolute Software Corporation. Other names or logos mentioned herein may be the trademarks of Absolute or their respective owners.
Forward-Looking Statements
This press release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") which relate to future events or Absolute's future business, operations, and financial performance and condition. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms and, within this press release, include, without limitation, the information under the heading "F2021 Financial Outlook" and any statements (express or implied) respecting: Absolute's future plans, strategies, and objectives, including plans, strategies, and objectives arising out of the COVID-19 pandemic; the impacts of the COVID-19 pandemic (including, without limitation, greater/continued remote working and/or distance learning) on Absolute's business, operations, prospects, and financial results; projected growth, revenues, margins, Adjusted EBITDA, profitability, expenses, cash from operating activities, capital expenditures, and earnings; existing and new product functionality and suitability; PC OEM and other partner activities and initiatives; and expectations for the size of the IT security industry, including as a result of COVID-19. Forward-looking statements, including the F2021 Financial Outlook, are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of our anticipated financial position, results of operations, and operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. The material expectations, assumptions, and other factors used in developing the forward-looking statements set out herein include or relate to the following, without limitation: Absolute will be able to successfully execute its plans, strategies, and objectives; Absolute will be able to successfully manage cash flow, operating expenses, interest expenses, capital expenditures, and working capital and credit, liquidity, and market risks; Absolute will be able to leverage its past, current, and planned investments to support growth and increase profitability; there will continue to be a trend toward greater/continued remote working and/or distance learning, in the short, medium, and/or long-term, and a resulting market shift in the demand for endpoint security and Absolute's solutions; Absolute will be able to grow revenue by selling to new customers and increasing subscriptions with existing customers at or above the rates currently anticipated; Absolute will be able to renew customers' subscriptions more efficiently and cost effectively, including through its ServiceSource partnership; the size of the IT security industry will be in line with industry experts' and Absolute's expectations; Absolute will maintain and enhance its competitive advantages within its industry and certain markets; Absolute will keep pace with or outpace the growth, direction, and technological advancement in its industry; industry data and projections are accurate and reliable; Absolute will be able to adapt its technology to be compatible with changes to existing, and new, operating systems such as Microsoft Windows; Absolute will be able to maintain and develop its PC OEM and other partner networks; Absolute's current and future (if any) PC OEM partners will continue to provide embedded firmware and distribution and resale support; Absolute's existing and new products will function as intended and will be suitable for the intended end users; Absolute will be able to design, develop, and release new products, features, and services and enhance its existing products and services; Absolute will be able to protect against the improper disclosure of data it may process, store, and/or manage; Absolute's revenues will not become subject to increased seasonality; future financing will be available to Absolute on favourable terms if and when required; Absolute will be in a financial position to buy back some of its shares and/or issue dividends in the future; fluctuations in applicable tax rates, foreign exchange rates, and interest rates will not have a material impact on Absolute; certain tax credits will remain or become available to Absolute; Absolute will be able to attract and retain key personnel; Absolute will be successful in its brand awareness and other marketing initiatives; Absolute will be able to successfully integrate businesses, intellectual property, products, personnel, and/or technologies that it may acquire (if any); Absolute will be able to maintain and enhance its intellectual property portfolio; Absolute's protection of its intellectual property will be sufficient and its technology does not and will not materially infringe third party intellectual property rights; Absolute will be able to obtain any necessary third party licenses on favourable terms; Absolute will not become involved in material litigation; Absolute will not face any material unexpected costs related to product liability or warranties; foreign jurisdictions will not impose unexpected risks; Absolute will maintain or enhance its accounting policies and standards and internal controls over financial reporting; and economic and market conditions (including, without limitation, as affected by the COVID-19 pandemic) will not impose unexpected risks or challenges.
Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Absolute's business, as more particularly described in the "Risk and Uncertainties" section of Absolute's most recently filed Management's Discussion and Analysis, which is available at www.absolute.com and under Absolute's profile on www.sedar.com. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. Many of these factors are beyond the control of Absolute.
All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof and Absolute undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws.
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