new-recommended-broker-banner new-recommended-broker-banner
Practice Stock Trading Your Capital Is At Risk

Darktrace Share Price Rallies After Strong Sales Performance 

Updated: 13 Oct 2021

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. 

new-recommended-broker-banner

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.

Should You Invest in Darktrace Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .