AVG IPO watch: AVG Technologies was founded in 1991. The company has offices throughout the U.S., the U.K. and the other European countries. AVG is headquartered in Amsterdam, the Netherlands and is the world’s fourth largest supplier of antivirus software. It has 500 employees around the world and more than 110 million users worldwide. AVG mainly provides the personal, business computer users as well as the mobile users with the most comprehensive and proactive network protection, it also protects the network computers and mobile devices from viruses and security threats.
AVG’s product composition:
Individual users
a. Internet security products
b. anti-virus software
Business users
a. commercial version of Internet security products
b. commercial version of antivirus software
c. Email security
d. File Server Security
e. Linux server anti-virus software
AVG anti-virus technology:
We are not sure about this. In the view of the third party evaluation agency’s report, the AVG’s products are around the industry average level. Investors can see the following report of the test comparison of the main anti-virus providers. http://www.av-comparatives.org/images/stories/test/summary/summary2011.pdf
You also can click this link to learn more about the AVG products. http://www.avg.com/us-en/home-small-office-security
AVG Competitors
In addition to the direct competitors—those traditional anti-virus vendors. Dropbox, Facebook, QIHU and Tencent are listed as competitors by AVG unexpectedly.
LiveKive is the AVG’s cloud storage service. We still do not know whether this business can bring some surprises or maybe it is just a herd behavior.
AVG Earings
AVG adopts a “freemium” business model, the revenue is divided into two sectors: Software Subscription and “Platform-derived”. Read more about the AVG revenues.
The following data sheet shows the recent years revenue composition of AVG.
Gross profit margin maintains at an amazing level of nearly 90%, benefiting from the control of the research and development costs as well as the orders of the long-term users.
Over the first nine months of 2011, the AVG’s revenue increased by 24% to $198 million, while the gross profit advanced by 26% to $174 million to 87.98% (the AVG’s gross profit margins are all higher than 80% in the recent years with an upward trend); compared to the same period of the previous year, the company’s operating profit climbed up by 12.75% to $59,92 million with the operating margin of 30.24%. The following data sheet shows the recent years revenues and earnings of AVG.
