AVG stung as search revenue from freebie scanners dries up
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Security software firm AVG net income has fallen from $24.7m in Q2 2013 to $13.7mn in Q2 2014, according to financial results out Wednesday.
The profits slide is explained by the slip in revenue from $100.4m in Q2 2013 to $88m in the three months running up to 30 June 2014. AVG responded to the results by revising its outlook for 2014, warning that revenue is likely to peg out towards the lower end of its previously forecast range of between $365m to $405m.
AVG - which is best known for its freebie security scanner software - boasts 182 million active users and 85 million mobile users.
The security software maker has managed to up its success in converting trial users to paid-for products, but this has more than been offset by drops in ad income from freebie users, hence the drop in its overall revenues.
"Total revenue for the second quarter of 2014 was $88.0m. Subscription revenue increased 12 per cent over the same period one year ago to $68.2m. Platform-derived revenue decreased 50 per cent over the same period one year ago to $19.8m as a result of changes to the search business," a statement by AVG explains.
Gary Kovacs, chief exec of AVG, commented: "We remain focused on the roll-out of the AVG Zen platform [PC and mobile security software combo], developing new applications to better serve customers, and building industry leading partnerships across mobile ecosystem players and consumer electronic OEMs." ®
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