In its half-year results for the six months to 31 December 2021, Darktrace (DARK ) reported year-on-year revenue growth of 52.3%, prompting the firm to raise its expectations for FY22.
The British information technology company that specialises in cyber-defence said it saw strong year-over-year revenue growth ‘across all geographic markets and customer sizes.’
Over the six months period, the company swung to a net profit of $5.9 million, up from a $48.4 million loss reported a year earlier. While group revenue grew 52% to $192.6 million, adjusted earnings before interest, taxes, depreciation and amortisation more than doubled to $46.7m.
The company highlighted that its recent growth in EBITDA and adjusted EBITDA have been higher than expected because of continuing pandemic-related suppression of key costs.
While these costs are expected to return over the intermediate term, the company outlined that the scale efficiencies will continue to support expected long-term steady state margins.
As a result of its strong performance, Darktrace has raised its revenue growth expectations for FY22 to 44.5%-46.5%, up from 42%-44%, which it said is a reflection of higher annual recurring revenue growth prospects and lower than previously predicted currency headwinds.
The group has forecasted the margin for the year at 10%-12%, up from 3%-6% previously.
Darktrace said that strong growth in constant currency annual recurring revenue (ARR) and net constant currency ARR was driven primarily by the year-over-year addition of 1,854 net new customers, 926 of which were added in the first six months of FY22, the firm explained. It said a 4.2% year-over-year increase in average contract ARR also contributed to this growth.
Shares in Darktrace were trading 13.75% higher to 524p following the release of its results.
Meanwhile, following its recent acquisition of Cybersprint B.V., Darktrace has incorporated the expected impact of this transaction into its guidance; the company has thus concluded that the business combination has no material impact on Darktrace’s FY22 revenue expectations.
In recent days, cybersecurity stocks have seen a sharp rise in value as investors react to pledges made by the EU to boost defence spending and governments; these actions have been prompted by rising warnings of cyber intrusions following Russia’s invasion of Ukraine.
Some of Europe’s largest stocks operating in this market have seen their share prices rise sharply including Britain’s BAE Systems, which is the largest defence contractor in Europe.
‘The current geopolitical situation has heightened the urgency for businesses and governments to improve cyber resilience,’ the company informed investors today.
‘We are laser-focused on our mission to protect organisations around the world from cyber-attacks, and on our ambition to create a continuous AI loop for our customers.’
Darktrace released the first module of its new product line, Prevent, back in December 2021, “a first step” in fulfilling its vision of creating a Continuous AI Loop - “a virtuous circle that equips customers with a suite of technologies that strengthen and reinforce each other.”
Today, Darktrace told investors that this first Prevent’s module, in addition to Cybersprint’s complementary capabilities, is moving the company “even closer” to completing this loop.
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