Darktrace shares gained 3.2% to 353.1p in early morning trading on Tuesday after the AI cybersecurity firm reported a 48% growth in revenue in FY 2022 against FY 2021 in its latest trading update.
The company announced a 32% rise in customer numbers of 500, resulting in 7,400 total customers across its base.
Darktrace confirmed a 42% increase in constant currency ARR, with a maintained year-on-year improvement in one-year ARR gross churn and net ARR retention.
The firm said it expected an annual constant currency ARR climb of 31% to 34%.
The group mentioned a free cash flow generated of approximately 95% of its adjusted EBITDA, along with an adjusted EBITDA margin of at least 19.5%.
“We are delighted to report strong operating and financial performance for FY2022, where we saw demand for our products continuing to grow as organisations seek to protect themselves from growing cyber threats,” said Darktrace CEO Poppy Gustafsson.
“We expect this business momentum to continue into FY 2023 as against a turbulent geopolitical background, it’s no surprise that long-term cyber risk is an even higher priority for Chief Information and Security Officers and senior executives.”
Darktrace PREVENT
Darktrace also announced the launch of its PREVENT product family, expanding its product offerings and building on its targeted Cyber AI Loop.
The PREVENT launch is the third out of four product areas in the group’s delivery of its Cyber AI Loop, and has been designed to deliver a proactive system to help organisations pre-empt future cyber attacks.
“In addition to our strong performance announced today, I am thrilled to announce the launch of Darktrace PREVENT, the third product area in our delivery of a Cyber AI Loop, which will provide continuous feedback and a deep interconnected understanding of the enterprise to strengthen an organization’s state of security,” said Gustafsson.
“We’re excited about the value PREVENT will bring to our customers as we continue to pursue our mission of freeing the world from cyber disruption.”
FY 2023 outlook
Darktrace confirmed an expected revenue guidance downgraded by 4% to 5% in FY 2023, alongside a 6% to 7% lower revenue growth.
The cybersecurity group further noted a projected adjusted EBITDA margin between 15% to 18%, and a free cash flow as a percentage of adjusted EBITDA in the range of 10% to 15% below its normal level as a result of one-time tax payments.
