Darktrace share price soars on fresh surge in revenues and innovation
Cambridge cyber security world leader Darktrace saw its UK share price rise 70p (17.65 per cent) within an hour of the markets opening on Tuesday after reporting a strong first half performance to December 31, leading to increased full year expectations for 2022.
Darktrace recorded a 39.6 per cent rise in its customer base and at least a 50 per cent increase in revenue. The group ended the first half with 6,531 customers and expects first-half revenue of at least $190 million.
It also delivered strong results in its constant currency Annualised Recurring Revenue (ARR). At its FY 2022 constant currency rates, Darktrace expects ARR at December 31, 2021 of at least $426 million, which represents year-on-year growth of at least 45 per cent.
It says that its Q2 FY 2022 sales performance was better than expected, both because of strong new customer acquisition and improvements in ARR churn and net ARR retention rates.
For FY 2022, Darktrace now expects a year-on-year increase in its constant currency ARR of between 37 per cent and 38.5 per cent.
Foreign exchange headwinds have continued to be less than previously forecast, accelerating the conversion of constant currency ARR to US dollar denominated revenue.
Based on this, and higher than expected ARR growth in 1H FY 2022, Darktrace is now expecting year-over-year revenue growth of between 42 per cent and 44 per cent (previously 37-39 per cent).
Darktrace is also increasing the guidance for its FY 2022 adjusted EBITDA margin to between three and six per cent (previously 2-5 per cent), applied to a now higher expected revenue range.
Darktrace also strengthened its product line in the first half and expects to reap the rewards of its innovation as 2022 unfolds.
CFO Cathy Graham said: “I am very pleased that we have continued to deliver strong growth across our customer base, ARR and revenue in 1H FY 2022.
“We also achieved our aim of driving improvement in churn and net ARR retention rates over the past six months by leveraging our customer success team and focusing on upsell programmes.
“In December we delivered the first module of our new Prevent product line to early adopters. This is the next logical step in fulfilling our vision of creating a Continuous AI Loop, a virtuous circle that equips customers with a suite of technologies that strengthen and reinforce each other.
“The power of our innovative underlying technology, Self-Learning AI, enables us to expand our ability to protect organisations from the cyber threats of today and tomorrow.”
Darktrace delivers technology that protects over 6,500 customers worldwide from advanced threats, including ransomware and cloud and SaaS attacks. It has over 1,700 employees and more than 30 offices worldwide.
• Darktrace was named one of TIME magazine’s ‘Most Influential Companies’ for 2021.