Darktrace ups growth forecast on strong cybersecurity demand

Group found existing serious breach in 77% of new customers’ networks

Darktrace, the British cybersecurity company that listed in April, increased its growth forecast for its 2022 financial year for the second time in as many months on Wednesday, reflecting strong demand for its AI-driven products.

The company, whose shares have increased more than 150 per cent since its initial public offering (IPO), upgraded its outlook after reporting a better-than-expected 41.3 per cent rise in revenue to $281.3 million (€238 million) for the year to the end of June.

Its operating loss, however, increased to $38.5 million from $24.9 million the previous year, mainly on costs associated with the listing.

It said it expected growth of 35 to 37 per cent this year, up from its previous forecast of 29 to 32 per cent, with an adjusted core earnings margin of 2 to 5 per cent, up from its 1 to 4 per cent forecast.

Shares in the Cambridge-based company were trading up 15 per cent at 735.5 pence in mid-afternoon, giving the company a market value of £5.1 billion (€6 billion).

Robust results

Chief executive Poppy Gustafsson said Darktrace had delivered robust results. "In this new era of cyber-threat, Darktrace is helping organisations from every industry sector, including providers of critical national infrastructure, to protect their digital assets, and avoid the serious disruption that cyber-attacks can cause," she said.

Darktrace uses AI, or artificial intelligence, to detect attacks and vulnerabilities inside IT networks rather than building barriers at the perimeter.

Ms Gustafsson said Darktrace found an existing serious breach in 77 per cent of customer networks when its technology was first deployed, and said the threat was ever evolving. – Reuters