Darktrace lifts FY profit forecast as customer numbers grow

Cyber security company Darktrace on Tuesday said it expected full-year core earnings margins to be above expectations, as customer numbers increased.

In a trading update, the company said its annual adjusted margin for earnings before interest, tax, depreciation and amortisation should be at least 19.5%, above the high end of its previous guidance range of 15% - 17%.

Annualised recurring revenue was forecast to grow between 31% and 34% for the fiscal year. Darktrace said it expected revenue of at least $417m, reflecting year-over-year growth of approximately 48%.

“Against a turbulent geopolitical background, it’s no surprise that long-term cyber risk is an even higher priority for Chief Information and Security Officers and senior executives," said Darktrace chief executive Poppy Gustavson.

More than 500 net new customers were added during the year, bringing the group's customer base at year-end to beyond 7,400, a year-on-year rise of around 32%.

"Darktrace has benefited from a surge in demand for cybersecurity this year amid the war in Ukraine and increased cyber threats," said Interactive Investor head of investment Victoria Scholar.

"The company has managed to secure a number of major corporate clients including AB inBev, which has boosted the top and bottom lines. Although shares have had a challenging time since the peak in October, the stock remain above its listing price from April 2021 with today’s positive update potentially paving the way for a new more bullish phase for the stock.”

Reporting by Frank Prenesti for Sharecast.com