Amid escalating cybercrime threats British-based cybersecurity firm Darktrace have reported a robust quarter with revenues surging by over a 25 per cent, driven by heightened demand from concerned companies.
In the three months ending March, Darktrace witnessed a significant 26.5 per cent increase in revenue, soaring to $176.1 million compared to $139.2 million in the same period last year. This surge has led the company to revise its revenue growth forecast for the year to 25.5 per cent, marking the third upward adjustment this year alone.
Darktrace’s share price responded positively to the buoyant results, gaining 6.3 per cent to close at 462p. Founded in 2013 with backing from technology magnate Mike Lynch, the Cambridge-based firm utilises artificial intelligence and machine learning to identify cyberthreats within business computer systems.
Cathy Graham, Darktrace’s CFO, highlighted the evolving tactics of cybercriminals, who exploit generative AI and automation to enhance the speed and sophistication of their attacks. Despite these challenges, Darktrace remains optimistic about the future, anticipating a surge in revenues from new clients as economic conditions stabilize.
With an 11.9 per cent annual growth in customer numbers, Darktrace added 170 new clients in the last quarter and nearly 1000 over the past year. The company also revised its core profit margin forecast for 2024 upwards, demonstrating confidence in its ability to deliver sustainable growth.
Analysts at Jefferies view Darktrace favourably, citing its strong position in the cybersecurity industry and potential for rapid growth. However, not all cybersecurity firms share the same optimistic outlook, as spending fatigue becomes a concern for some players in the market.
Darktrace’s journey has not been without challenges, facing scrutiny from short-sellers and controversies surrounding its ties to Lynch, who is currently embroiled in legal proceedings in the United States. However, Darktrace recently severed formal ties with Lynch, marking a significant milestone in its journey towards independence and enhancing investor confidence.