Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Cybersecurity AI firm Darktrace (LON: DARK) shares are rallying following its trading update for the first-quarter fiscal year 2022.
Darktrace said it continued to deliver a strong performance during the quarter, growing its customer base to 5,975, up 42.7% year-on-year.
The performance resulted in net Annualised Recurring Revenue (ARR) coming in at $24.1 million, up 63.8% over the same quarter of FY 2021.
However, the high growth in net ARR was put down to a consequence of the Covid-19 pandemic, when sales momentum was materially impacted.
Revenue for the quarter was $93.1 million, a rise of 50.8% over the same quarter the previous year.
Darktrace pointed out that during the latter part of the quarter, the US Dollar strengthened against international currencies, primarily the Pound Sterling and the Euro, creating foreign exchange headwinds. However, the impact on revenue recognised was at the lower end of Darktrace's estimates for the period.
Looking ahead, the company said results were as expected and it reiterated its FY 2022 guidance for ARR, net ARR and EBITDA.
Although, due to the foreign exchange headwinds being less than previously forecast, Darktrace is now expecting year-over-year revenue growth of between 37% and 39% (previously 35% to 37%). In addition, they expect 47% to 48% of annual revenue to be recognised in the first half of the financial year.
Cathy Graham, CFO of Darktrace, said: “We have continued our strong performance into the first quarter of FY 2022, growing our customer base, ARR and revenue. We remain focused on empowering organisations to interrupt cyber threats, before they experience a business disruption, using our leading Self-Learning AI technology.”
Darktrace shares have rallied 4.7% on the news to 879.5p.
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