Darktrace upgrades revenue forecasts after stunning last year

Cambridge cyber security AI world-leader Darktrace has upped its revenue forecasts by around 44 per cent for the year to June and saw its UK share price rocket 67p to 645.30p and market cap climb to a staggering £4.52 billion.

Both the stock and the market cap are significantly more than double the level at IPO in April.

Despite Covid, Darktrace ended 2021 with around 5,600 customers – up by 42 per cent year-on-year.

At its FY 2021 constant currency rates, Darktrace expects ARR of at least $340 million, which represents year-over-year growth in constant currency ARR of at least 44 per cent. 

Darktrace expects revenue for FY 2021 of at least $278m, reflecting year-over-year growth of at least 40 per cent. It also expects that gross margin for FY 2021 has remained in the range of recent reported periods.

Darktrace is increasing its expectations for FY 2022 from those presented at the time of IPO. The group is balancing strong sales trends exiting the second half of FY 2021, including particularly strong June performance, with potential temporary sales productivity impacts that may occur as it evolves ways to expand and optimise its salesforce structure. 

These efforts will begin in the first half of FY 2022 and are intended to support anticipated growth and continued scaling of its business.

Darktrace now expects a year-over year increase in its constant currency ARR of between 32 per cent and 34 per cent (previously 26.5-29.5 per cent). 

CEO Poppy Gustafsson said: “We are pleased to report strong operating and financial performance for FY2021. Demand for our self-learning AI solutions is robust as advanced cyber-attacks continue to outpace the human capability of security teams.

“I would like to thank our shareholders for their interest and engagement: we have been delighted by the warm welcome we have received in the London market. 

“I would also like to thank our customers and employees. We have executed well this past year, despite a challenging environment, and continue to invest in our business for the long-term success of all stakeholders.”