Cmcmarkets3 Jan 2023 08:24
From 30th December
Darktrace Q2 results
Back in August, Darktrace’s share price jumped sharply on reports that it was in talks with private equity fund Thoma Bravo, although no figure was attributed to the discussions. In September, it was confirmed that these talks had ended with no prospect of an offer being made in the near future, although the option was left open for this to be revisited after six months. Since then, the shares have slipped to record lows, with the investment community split as to the sustainability of its business model.
Last year, full-year revenue came in at $415.5m, a rise of 45.7% from the previous year’s restated $285.1m, and slightly below expectations. This shortfall appears to be down to $3.8m of revenue which had been reported in this fiscal year being re-allocated to the 2021 results.
Darktrace went on to reiterate its previous guidance set out in July, that it expects to see recurring revenue rise between 31% and 34% for the upcoming financial year. This is down from the 42.6% rise last year, which took the sum to $514.4m. The company posted an operating profit of $7.6m, compared with a loss of $34.7m. After tax and other expenses, this number fell to a net profit of $1.5m, compared with a loss of $145.8m.
In December the shares came under further pressure when management warned that FX effects had created a $17.1m headwind in the Q1 numbers, which are likely to impact annual recurring revenue for the rest of 2023. Other than that, the overall numbers look good, after Q1 revenue rose 37% to $126.3m, while the company reiterated its target for year-on-year revenue growth of between 30% to 33%.
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