Avast shares were down 1.3% to 556.6p in early morning trading on Tuesday, following a 0.5% drop in revenue to $234.6 million from $237.1 million in the company’s Q1 2022 trading update.
The cybersecurity group noted an adjusted EBITDA loss of 4.3% to $127.9 million compared to $133.7 million, alongside an adjusted EBITDA margin of 54.5%.
Avast also reported a revenue excluding acquisitions, disposals and discontinued business rise of 3.6% to $230.8 from $223.9.
The company commented that its revenue fall was linked to the sale of its Family Safety Business in 2021, but said its billings enjoyed organic growth of 5.9%.
The group added that its newly released Avast One integrated solution gained traction over Q1, with the product release expanding into France and Germany, following a series of positive reviews.
Avast further highlighted its investment in its Digital Trust Services, which is set to provide the foundation for its future consumer products, including the acquisitions of US-based decentralised digital identity company Evernym in December 2021.
The group also listed the purchase of Canadian federated digital identity and bank-centric identity services firm SecureKey in March 2022, which completed on 1 April 2022.
Avast confirmed an expected low single-digit organic revenue growth and mid-single-digit billings growth across 2022, along with an adjusted EBITDA margin estimated slightly below 50%.
The firm added that its profit forecast excluded any transaction costs related to its impending merger with NortonLifelock.
The company also said it had suspended its operations in Russia and Belarus in solidarity with Ukraine after the country’s invasion in late February this year.
