Artificial intelligence cybersecurity firm Darktrace (LSE: DARK) saw its share price surge by 19% to reach 350.37 pence each in London during Tuesday morning trading.
The company reported a 31% increase in revenue for the fiscal year ending on June 30, with earnings reaching a minimum of $544.3 million compared to $415.5 million in the previous year. Additionally, annual recurring revenue demonstrated a steady upward trend, growing by 29% in constant currency to exceed $514,380 in financial 2022.
Notably, Darktrace’s customer base expanded significantly, boasting an 18% increase from the previous year, with customer numbers now standing at 7,437. With positive growth indicators, Darktrace anticipates adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) margin of at least 22%, surpassing the earlier forecast range of 15% to 18%.
Looking ahead, Darktrace envisions a further increase in its constant currency annual recurring revenue for the financial year 2024, with an expected growth rate between 21% and 23%. Notably, the company anticipates a greater weighting of revenue in the latter half of the year. Moreover, Darktrace projects a year-on-year revenue growth rate ranging from 22% to 24%.
In a bid to enhance transparency and address scrutiny from short-seller Quintessential Capital Management, Darktrace commissioned Ernst & Young to conduct an independent review of its financial processes. The company has announced the completion of this review, assuring investors of the robustness of its financial statements. Darktrace emphasises that neither management nor the board considers the Ernst & Young report to have any impact on previously filed financial statements, reaffirming their confidence in the accuracy of Darktrace’s financial position and results.
