Darktrace ups guidance as cybersecurity demand surges

The cybersecurity company said it expected annualised recurring revenue (ARR) of at least $340m (£246m) for the year to the end of June 2021 - up 44% from a year earlier. Revenue for the year to the end of June will be at last $278m, reflecting growth of at least 40% with the gross margin stable.

Darktrace upgraded expectations for the current year from those it published at the time of its flotation in May. It said sales were particularly strong in June but that sales could be affected as it reorganises its salesforce.

ARR will increase by 32-34% and revenue will rise by 29-32%, the company said. It had previously predicted ARR rising by 26.5-29.5% and revenue up 27-30%. The company reiterated cost guidance and said it expected an earnings before interest, tax, depreciation and amortisation margin of 1-4%.

Darktrace's technology uses artificial intelligence to combat cyber attacks. Business is booming as organisations seek to strengthen defences with many people working from home and with nation states increasingly using cyber warfare to disrupt other countries.

Poppy Gustafsson, Darktrace's chief executive, said: "We are pleased to report strong operating and financial performance for FY2021. Demand for our self-learning AI solutions is robust, as advanced cyberattacks continue to outpace the human capability of security teams."

Darktrace shares, up almost 90% since its IPO, rose 8.4% to 626p at 09:16 BST.