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(Alliance News) - Darktrace PLC on Wednesday blamed a challenging macroeconomic environment for its failure to secure new customers over the first half, warning of yearly revenue below expectations.
Darktrace shares were trading 14% lower at 252.67 pence each in London on Wednesday morning, among the worst FTSE 250-listed performers.
The Cambridge, England-based cybersecurity business now expects constant currency annual recurring revenue growth of between 29% and 32% for the 2023 financial year. This represents a decrease from the company's previous forecast of 31% to 34%.
For the six months to December 31, 2022, Darktrace said that annual recurring revenue had increased by 37% year-on-year to USD556.3 million.
Darktrace said annual recurring revenue grew in the first half of its financial year. The company said it has added net constant currency ARR of at least USD71.4 million, for year-over-year growth of at least 6.8%.
This continued constant currency ARR growth was supported by the multi-year contract model, Darktrace added, despite a noticeable late second quarter slowdown in new customer additions.
"I am pleased that we have been able to maintain high ARR and revenue growth in the period, as well as preserving profitability and cash generation. Clearly, however, the current macro-economic environment is creating challenges to winning new customers, with prospects more reluctant to run product trials and, in regions with historically higher conversion rates, those rates starting to decline," said Chief Executive Officer Cathy Graham.
"While we continue to be optimistic about PREVENT's ability to contribute in the second half, and remain very positive about the potential of other new product developments in our pipeline, against this backdrop of weaker trends and continuing uncertainty, we are being prudent and revising our FY 2023 guidance."
In other news, Darktrace also announced the appointment of its new chief revenue officer, Denise Walter.
Walter brings over 25 years' experience in technology industries, most recently as vice president of Sales, Enterprise and Globals at VMware.
By Holly Beveridge; Alliance News reporter
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