Darktrace reports strong revenue growth as investment in customer service pays off
Cyber security company Darktrace has today reported a 24.3 per cent increase in annualised recurring revenue for the six months to 31 December 2023 as it pointed to a “change in trajectory” for revenue growth from recurring contracts.
Overall revenue is expected to come in at £258.22m ($329.6m) for the fiscal first half, with year-on-year growth of 27.1 per cent.
The group also said its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin will come in at the top-end of its previously guided 17 per cent to 19 per cent range for the full year.
Darktrace attributed its growth in the period to the roll-out of its Go-to-Market strategy and teams, designed to drive customer growth and recurring revenue.
Following its report, Darktrace’s share price moved by more than seven per cent to 358.20p.
It ended the first half of its fiscal year with 9,232 customers, and year-over-year growth in Darktrace’s customer base was 12.9 per cent . Annual recurring revenue from existing customer contracts was up 12 per cent year-on-year for contracts aged over one year.
Cathy Graham, finance chief of Darktrace, said: “Following the roll-out of significant Go-to-Market changes that impacted performance in our first quarter, we were very pleased to see the resulting benefits play out in our strong second quarter financial performance.
“Looking forward, we expect to emerge from a period of relative market uncertainty in an even stronger position, and well-placed to capitalise on the large market opportunity for our AI-powered cyber security products as attackers capitalise on the availability of increasingly sophisticated tools and tactics, including generative AI,” Graham added.
The figures come as the group’s boss, Poppy Gustafsson, looks set to face some awkward questions about the deals she was involved in while working at Autonomy as part of the US criminal trial of Mike Lynch.
Lynch has been accused of manipulating Autonomy’s books to drive a higher price for the business he sold to Hewlett-Packard in 2012 for $11bn.
Gustafsson worked in Autonomy’s finance department between 2009 to 2011, where she reported to Stephen Chamberlain, Lynch’s co-defendant. Chamberlain has called Gustafsson as a witness in the trial, although she has refused to fly to San Francisco to attend the trial in person. Instead, the boss of Darktrace will be questioned by American defence and prosecution lawyers in London and her evidence could then be played to the jury.