Darktrace raises forecasts as it posts maiden loss

Darktrace update

Due to the costs floating in the London market, cybersecurity group Darktrace plunged its first year performance, despite bright growth forecasts for next year.

A darktrace backed by British entrepreneur Mike Lynch came to light in April. With its first results as a publicly traded company, Darktrace has increased next year’s guidance on both revenue growth and profit margins. There was a “strong sales trend” in the second half of 2021, and next year it was sold “toward the upper limit of expectations”.

According to Darktrace, the customer base grew 45% to 5,605. Annual Recurring Revenue (ARR) increased 46% to $ 343 million, driven by new customers in artificial intelligence-based technology to increase revenue by approximately 41% to $ 281 million.

Group shares rose 10% to 712p on Wednesday morning, more than doubling the value of the business in the months since the IPO.

Darktrace posted an operating loss of $ 3850 in 2021 from $ 24.9 million in the previous year due to the transfer of share-based payments and associated employee tax fees and stock-based compensation plans caused by the initial public offering to listed companies. It has increased to 10,000 dollars. structure.

The group also unveiled $ 107 million in non-cash funding costs for convertible bonds issued to some investors in July 2020 as part of a restructuring of ownership prior to the IPO. ..

These costs, not including payments to Lynch, led to a pre-tax loss of $ 147.6 million, up from $ 26.9 million in the previous year. The company reported an annual cash inflow of £ 35m before financial activity.

The company also reported £ 15.3 million for other IPO costs such as advisors, but sales and marketing and R & D costs also increased this year.

Poppy Gustafsson, CEO of Darktrace, noted “strong financial and financial performance and strong growth during this period.”

Darktrace provides AI-based cybersecurity that claims to protect against advanced threats such as ransomware, cloud, and software as a service (SaaS) attacks.

Berenberg analysts said Darktrace “provided a very powerful update.” Key KPIs such as churn, upsell, and net retention have all improved. “

Berenberg has raised its earnings forecast by 4-6% and its price target to 850p over the next few years. “15x sales are too cheap, especially compared to the closest US cyber pierre with c37x sales,” Darktrace said.

Darktrace raises forecasts as it posts maiden loss Source link Darktrace raises forecasts as it posts maiden loss

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