Pivotal Announces KLDiscovery’s Record Second Quarter Results
Pivotal Acquisition Corp (NYSE: PVT) (“Pivotal”), a special purpose acquisition corporation, announced 2019 second quarter results of KLDiscovery (“KLD”), a leading global provider of electronic discovery, information governance and data recovery services.
Highlights for the Second Quarter of 2019
KLD achieved its highest ever quarterly revenues and EBITDA for the quarter ended June 30, 2019. Total revenue of $78.3 million for the quarter produced adjusted EBITDA of $19.1 million, a 22% increase over the prior year period’s adjusted EBITDA of $15.7 million. Net loss for the quarter ended June 30, 2019 was $11.9 million, an improvement of 21% over the prior year period’s net loss of $15.1 million.
Revenues for the first six months of 2019 ended June 30, 2019 totaled $153.4 million while adjusted EBITDA for the first six months of 2019 ended June 30, 2019 was $34.2 million, representing a 22% increase over the prior six month period’s adjusted EBITDA of $28.0 million. Net loss for the first six months of 2019 ended June 30, 2019 was $25.5 million, an improvement of 23% over the prior year period’s net loss of $33.2 million.
“We are pleased with our record second quarter of strong growth and the continued momentum our business is enjoying in the third quarter,” said Chris Weiler, Chief Executive Officer of KLDiscovery. “We are expanding our relationships with existing clients, targeting new clients and expanding into new verticals both organically and through strategic acquisitions,” said Mr. Weiler.
In July, KLD completed two accretive acquisitions, Strategic Legal Solutions and Compiled, which expand KLD’s global customer base and information governance and eDiscovery software offerings.
“The recently completed acquisitions of both Strategic Legal Solutions and Compiled last month have already led to additional clients who now can utilize KLD’s full range of products and services,” said Jonathan Ledecky, Pivotal’s Chairman and Chief Executive Officer. “Pivotal’s management team is already in the marketplace introducing KLD’s senior management team to a broad group of potential new customers who can utilize their services,” said Mr. Ledecky.
2019 Outlook Reaffirmed
Pivotal also reaffirms KLD’s full-year 2019 outlook of revenue of $310 million and Adjusted EBITDA of $75 million.
Further information about the Company is provided in the investor presentation related to the merger with KLD filed on May 21, 2019.
KLDiscovery provides technology-enabled services and software to help law firms, corporations, government agencies and consumers solve complex data challenges. The company, with offices in 40+ locations across 20 countries, is a global leader in delivering best-in-class eDiscovery, information governance and data recovery solutions to support the litigation, regulatory compliance, internal investigation and data recovery and management needs of our clients. Serving clients for over 30 years, KLDiscovery offers data collection and forensic investigation, early case assessment, electronic discovery and data processing, application software and data hosting for web-based document reviews, and managed document review services. In addition, through its global Ontrack Data Recovery business, KLDiscovery delivers world-class data recovery, email extraction and restoration, data destruction and tape management. KLDiscovery has been recognized as one of the fastest growing companies in North America by both Inc. Magazine (Inc. 5000) and Deloitte (Deloitte’s Technology Fast 500) and CEO Chris Weiler was recognized as a 2014 Ernst & Young Entrepreneur of the Year™. Additionally, KLDiscovery is a Relativity Certified Partner and maintains ISO/IEC 27001 Certified data centers around the world. For more information, please email email@example.com or visit www.kldiscovery.com.
About Pivotal Acquisition Corp.
Pivotal Acquisition Corp. (NYSE: PVT), a public investment vehicle, is a blank check company organized for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. Pivotal’s securities are quoted on the New York Stock Exchange under the ticker symbols PVT, PVT WS and PVT.U. For more information, visit www.pivotalac.com.
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