Darktrace holds guidance but warns on FX headwinds

UK cybersecurity firm Darktrace maintained annual guidance but warned that foreign exchange headwinds could weigh on it during the period.

The company on Wednesday said first quarter revenue rose 37% to $126.3 million and net annual recurring revenue rose 40.5% to $511.5m on a constant currency basis. Net new customers rose by a third to 7,757.

Darktrace forecast 30 – 33% revenue growth for 2023, adding that it would continue to monitor foreign exchange rates and their potential impact.

“Though the US dollar continues to be unusually strong relative to Darktrace's other operating currencies, its key FX rates have recovered somewhat from the lows experienced in late September,” the company said on Wednesday.

“To reflect that future FY 2023 revenues are likely to experience increasing drag from FX rate impacts, however, Darktrace now expects that 46% to 47% of its revenue will be recognised in the first half of FY 2023 - previously 45% to 46%.”

Reporting by Frank Prenesti for Sharecast.com