(Alliance News) - Darktrace PLC on Thursday said it expects growth boosted by its multi-year contract structure, but said it could be in loss territory for net annual recurring revenue in the current financial year.
The Cambridge-based cybersecurity company said for the financial year 2024 ending June 30, it expects constant currency annual recurring revenue growth between 21% and 23%. However, it expects net ARR to be between negative 8% and a gain of 1%.
"With the first quarter typically being the smallest sales quarter of Darktrace's financial year, it chose this period to deliver new sales and product training, alter targeting and sales tactics and workflows, revise commissions plans, and introduce other significant changes to its teams and go-to-market approach. As expected, these actions impacted first quarter sales, however, Darktrace believes these are the right steps to best capture what remains a large market opportunity and is seeing the early signs that provide it with confidence in that outlook," Darktrace said.
In financial 2023, the company had reported a 29% increase in cost of sales to USD38.9 million from USD30.3 million, while revenue grew 31% to USD545.4 million from USD415.6 million.
Chief Executive Officer Cathy Graham anticipates the company to drive growth in future years, highlighting growth in partner-generated product trials.
Darktrace shares fell 5.2% to 372.19 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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Darktrace (DARK)