Darktrace raises 2022 outlook again on strong cyber demand

A lock icon, signifying an encrypted Internet connection, is seen on an Internet Explorer browser in a photo illustration in Paris, France April 15, 2014. REUTERS/Mal Langsdon/File Photo
  • Lifts full year revenue and margin guidance
  • First half revenue up 52.3%
  • Shares up 15%

LONDON, March 3 (Reuters) - British cybersecurity company Darktrace (DARK.L) on Thursday raised its full-year revenue and margin guidance for the second time in three months, reflecting strong customer growth and retention, sending its shares sharply higher.

The stock was up 15% at 529 pence at 0840 GMT after the firm said it now expected a year-on-year increase in constant currency annual recurring revenue (ARR) in 2022 of between 38.5% and 40%, versus previous guidance of 37% to 38.5%.

Darktrace, which uses artificial intelligence to detect attacks and vulnerabilities inside IT networks rather than building barriers at the perimeter, listed its shares at 250 pence last April.

Register now for FREE unlimited access to Reuters.com

It said its latest forecast implied a year-on-year increase in net constant currency ARR added of between 24% and 29%, versus previous guidance of 19% to 24%.

Revenue growth was forecast at between 44.5% and 46.5%, against 42% to 44% previously - an increase also partly driven by lower than expected foreign exchange headwinds, which accelerates the conversion of constant currency ARR to dollar-denominated revenue.

Darktrace's guidance incorporates the impact of its recent purchase of Cybersprint.

It also raised its guidance for annual adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin to between 10% and 12%, up from 3% to 6% previously.

In the six months to Dec. 31, 2021, the group's adjusted EBITDA more than doubled to $46.7 million on revenue up 52.3% to $192.6 million.

The group saw strong revenue growth across all geographic markets and customer sizes. Its customer base rose 39.6% to 6,531.

($1 = 0.7467 pounds

Register now for FREE unlimited access to Reuters.com
Reporting by James Davey; editing by Paul Sandle and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.