- Cybersecurity firm ups guidance for sixth time in succession
- Global turmoil highlighting digital risks to buyers
- Shares jump 8% but remain 14% down on the year
Enterprise cybersecurity company Darktrace (DARK) continues to defy stock market Cassandras after raising full-year revenue and profit guidance for the sixth time in succession.
The Cambridge-founded business told investors that it anticipates full-year revenues to be up ‘at least’ 48% to $417 million, beating already upgraded range of between 45.5% to 47%.
But this is not growth at any price, Darktrace is becoming increasingly profitable. Adjusted EBITDA margin (earnings before interest, tax, depreciation and amortisation) expanded from 12.5% to 19.5%, also beating prior expectations. Analysts predict adjusted EBITDA to more than double to $62 million after 2021’s (to 30 June) $29.7 million.
The news went down extremely well with investors following the firm’s fourth-quarter trading update. Darktrace shares jumped more than 8% in morning trading on 19 July, the stock surging past 363p.
ARTIFICIAL INTELLIGENCE
Emerging as one of the world’s most innovative cybersecurity companies, Darktrace uses artificial intelligence and behavioural analysis to detect the early signs of a cyberattack on a network, shut the digital door, and providing technological fixes.
It added 500 new global clients to its roster in the fourth quarter, a 32% jump year-on-year, bolstering annualised recurring revenue at full-year constant currency rates to at least $513 million. That’s 42% up on the 12 months.
‘We are delighted to report strong operating and financial performance for FY2022, where we saw demand for our products continuing to grow as organisations seek to protect themselves from growing cyber threats,’ said Poppy Gustafsson, chief executive.
BUILDING MOMENTUM
Gustafsson also anticipates business momentum to continue into the year to 30 June 2023.
‘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,’ she said.
Darktrace predicted strong revenue growth and an adjusted EBITDA margin for the full year 2023 but did warn that sales trends exiting fiscal 2022 ‘must be balanced against the uncertainties inherent in the current global economic environment.’
