Darktrace hikes profit margin forecast on bumper customer growth
Cybersecurity giant Darktrace hiked its full-year profit margin forecast to 19.5 per cent today as it said it expected a surge in revenues to $417m in its full year results.
Darktrace, which uses artificial intelligence to detect attacks and vulnerabilities inside IT networks, said it predicted year-over-year revenue growth of around 48 per cent on the back of a boom in customer numbers. In the fourth quarter, bosses said it added more than 500 new customers, bringing its year-end customer base to more than 7,400
The firm had earlier forecast adjusted earnings before interest, taxes, depreciation, and amortization margins between 15 per cent and 17 per cent for the full-year ended June 30.
Darktrace has been buoyed by a shift to remote working during the pandemic as well as the Russia-Ukraine conflict, which has fuelled a spike in cyber attacks and bolstered demand for security software. Boss Poppy Gustaffson said today it had been a “strong” performance for the year as firms looked to safeguard against “growing cyber threats”.
“We expect this business momentum to continue into FY 2023 as 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.
Shares in the firm jumped 1.4 per cent in early trading today, but the firm has has been looking to arrest a slide in share price after shares have plunged 46.75 per cent over the past 12 months.
The trading update comes as Darktrace announced a refresh of its senior team with David Walden joining as Chief People Officer and Carolyn Esser takes on the role of Chief Corporate Affairs Officer.
Emily Orton stepped down from her Chief Marketing Officer (CMO) role in early July, Darktrace said, while Dave Palmer, Chief Product Officer (CPO), will be leaving Darktrace at the end of August to join a long-standing Darktrace investor, 1011 Venture Capital, as a General Partner.