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In April, Cambridge-based Darktrace drastically reduced its initial public offering price to attract skeptical investors. done. What has been taken over by a cybersecurity company is making a lot of money.Stock prices more than doubled, better than expected Year-round performance Darktrace has taken another 15% leap.
The low price of an IPO aimed at avoiding the repeated disastrous UK debut of Deliveroo.Reputation risk associated with founding shareholder Mike Lynch Finding The US delivery of fraud charges also weighed heavily on the initial assessment.
But shareholders also needed something convincing about the basic questions. Does Darktrace technology really work? It relies on learning the “normal” state of the business, like the digital immune system. There was also concern about how the group would compete in a highly competitive, well-funded and fast-growing US rival-dominated market.
These latest results were encouraging. Revenue growth of 41% year-on-year slowed slightly from 45% last year, but is still expanding rapidly. Next year’s top-line growth expectations have risen to at least 35%, 3 percentage points higher than before. With a corporate value of 15 times the 2022 sales using Berenberg’s quote, this is less than half the multiple of the fastest growing US peers.
Importantly, customer attrition is starting to move in the right direction, down 0.4 points from December to 7.7%. The jump in the first half of 1.2 percentage points was blamed on the pandemic. On the other hand, by selling premium services to existing customers, we were able to fully offset our previous loss of revenue. As a result, the annual net retention rate was 103%.
Dissatisfaction with the low R & D budget was partially answered by halving the number of R & D personnel. This shows that Darktrace is interested in new areas, especially in assessing and remediating vulnerabilities. There are no signs of running out of existing markets. We believe that 150,000 companies, 27 times the current customer base, will benefit from “immune system” technology.
Ensuring competitiveness in a rapidly evolving market is a challenge. However, Darktrace has an aggressive growth strategy. If successful, it can double in size. The days of underestimating that possibility are over.
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Darktrace: cyber crime fighter seeks to dispel shadows of doubt Source link Darktrace: cyber crime fighter seeks to dispel shadows of doubt