Darktrace Sees 37 Percent Jump In Q1 Revenue

Darktrace plc (DARK.L), a global business in cyber security Artificial Intelligence, on Wednesday said revenue for the first quarter was $126.3 million, up 37.0 percent over the same quarter of fiscal 2022. Recent exchange rate movements had a limited impact on the revenue.

Darktrace attributed its performance in the first quarter ended 30th September 2022 to the continuing sales momentum. During the period, the customer base was increased by 320 to 7,757, a 29.1 percent year-over-year increase.

Net Annual Recurring Revenue (ARR) added for the first quarter was in $26.6 million, an increase of 13.4 percent over the same quarter of previous fiscal and in line with the company’s expectations. ARR at 30th September 2022 was $511.5 million, reflecting a year-over-year growth of 40.5 percent.

Considering the recent trends in the foreign exchange rate environment, Darktrace has started reporting USD ARR to provide context for its revenue reporting and expectations, which are provided in U.S Dollars. Darktrace’s USD ARR at 30th September 2022 was $494.4 million. The company also reported that exchange rate movements during the first quarter created a $17.1 million headwind that could impact the conversion of constant currency ARR to USD revenue for the rest of fiscal 2023.

The company reiterated the fiscal 2023 guidance for ARR, net ARR added, revenue, adjusted EBITDA, and free cash flow margin.

Darktrace is maintaining its expectation for fiscal 2023 year-over-year revenue growth of between 30 percent and 33 percent. Darktrace now expects 46 percent to 47 percent of its revenue to be recognized in the first half of fiscal 2023, versus 45 percent to 46 percent previously expected.

Shares of Darktrace closed Tuesday’s trading at 298.20 pence, down 5.50 pence or 1.81 percent from the previous close.

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