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Darktrace upgrades forecasts on strong demand for cyber security

Cybersecurity firm Darktrace has raised expectations for revenue growth with its first transaction renewal since it was announced in April, despite potential disruptions from sales force restructuring.

Darktrace is one of the most prominent UK tech companies launched this year, with a market share of more than double its original listing price. The Thursday update pushed them up almost 5 percent in London’s early deals.

The Cambridge-based company, which uses artificial intelligence to detect client intrusions into its network, said it expects revenues for the fiscal year to June 2022 to increase by 29-32%. .. ..

Sales for the fiscal year ending June 2021 are expected to increase by at least 40% to $ 278 million, a slight slowdown from 45% last year to 73% in 2019.

“Advanced cyberattacks continue to outweigh the human capabilities of security teams,” CEO Poppy Gustafsson said in a statement.

Annual recurring revenue, an indicator of contract sales that enterprise software investors are watching carefully, is also higher than expected in 2022. The company said it expects growth of 32-34% on a constant currency basis.

However, Darktrace plans to “optimize the structure of its salespeople” within the next few months, so “strong sales trends” are due to “potential temporary impacts on sales productivity.” Warned that it could be offset.

Darktrace shares, priced at 250p on the IPO and soaring 44% on the first day of trading, continue to gain momentum. They rose to 605.98p in early Thursday trading.

“Raising guidance in just a few weeks this fiscal year is a strong indication of management confidence,” said an analyst at Berenberg, one of the banks that advised on the Darktrace IPO.

Darktrace upgrades forecasts on strong demand for cyber security Source link Darktrace upgrades forecasts on strong demand for cyber security

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