Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
On the contrary. If it is Charles, we should be very impressed.
https://www.linkedin.com/in/charles-rixon-b8a9855/?originalSubdomain=hk
The advertising by Darktrace in the FT is very poor.
When you advertise your product, you tell people how they will really benefit by buying it. That's basic. Darktrace competitors sell their products by saying you could go bust if you don't use us - hackers can cost you millions of pounds in either ransom money or severely disrupted work operations.
What do Darktrace do? They just have a weird picture of a snake. Rubbish.
Might be due in part to this favourable report from Motley Fool.
https://uk.finance.yahoo.com/news/darktrace-share-price-rise-2022-122445300.html
Dunno what this means, but it sounds good.
"Another significant message from the trading update is a line of sight to significantly higher levels of profitability. If we look at the size of upgrades to revenue and EBITDA, then incremental revenue has a drop through margin of 21.4%. We believe this is evidence of operational leverage in the business and this has been delivered at a time when Darktrace is still investing heavily for growth. We think this provides support for the view that Darktrace can easily become a 20%+ margin business."
I was watching CNBC TV. There was a discussion about IPOs. It said that you should not buy on the IPO but wait for six months until the insiders are able to sell out and the share price crashes.
As we have found.
‘Shares in Darktrace enjoyed a double whammy of raised earnings guidance and a small recovery in the broader technology sector following a big sell-off in recent days,’ says Russ Mould, investment director at AJ Bell.
‘It has been focused on cross-selling services to existing clients, thus making them more reliant on Darktrace’s ecosystem which in turn could be a key reason why churn rates are easing. It has also been successful at signing up lots of new customers,’ Mould said.
‘In the past six months we have become increasingly bullish on Darktrace as it not only continues to deliver strong customer growth (something the firm has done for many years) but also an increasing ARR per customer, driven by pricing uplifts and greater upsell,’ wrote analysts at investment bank Berenberg in a note to clients.
A survey of Darktrace customers organised by Berenberg recently found that prices are rising too, supporting a ‘credible scenario of Darktrace achieving an ARR of $0.85 billion to $1 billion, and today's results only support this thesis.’
That would imply a 30% to 50% increase on Berenberg’s base case forecasts for the year to June 2024.
‘If we arithmetically take the mid-points of raised guidance ranges, the new targets imply a 5% upgrade to management guidance on revenues and a 36% upgrade to management guidance on EBITDA from $13 million to $18 million,’ calculate analysts at Jefferies.
Peel Hunt took a more cautious tone, pointing out that churn of 6.9% may not stay that low. ‘We note that churn rates will appear lower during periods of higher growth due to customer contract lock-in dynamics, typically on three-year contracts.’
Will this help?
https://www.fool.co.uk/2022/01/11/is-the-oxford-nanopore-share-price-a-bargain-at-600p/
City firm Peel Hunt, whose bearish note spooked market sentiment just as the fast-growing company made its entry into the FTSE 100 index in September, removed its “sell” recommendation but still has a target price of 473p.
Analysts at Berenberg, however, said today's update justified a return to the 1,000p briefly seen in the autumn, while counterparts at Jefferies have a 800p target after naming Darktrace as the best play on the growth opportunity in cybersecurity.
I got this:
"Piper Sandler cuts target price to 600p from 900p"
from today's news from Stockopedia. That's all it said.
This is what they have said today. Their TP is now £6.
Darktrace Plc DARK.L : Piper Sandler cuts target price to 600p from 900p
Darktrace Plc DARK.L : Piper Sandler raises to overweight from neutral
Darktrace, SentinelOne and Crowdstrike are all down in tandem, about 6% today, although there's no news to explain why. I think all the reasons for this can be found in this article of two days ago:
https://www.nasdaq.com/articles/crowdstrike-holdings%3A-eight-reasons-to-be-bearish
It seems these shares, because of their big losses, are regarded as high risk. The two American companies are also very highly valued, much more than DT, and their share price falls appear unfairly to be pulling Darktrace's price down with them.
I think a great deal will depend on Darktrace's trading update in 11 days - especially if the update suggests that losses are going up and not down.
These attacks just don't stop coming.
https://www.bbc.co.uk/news/technology-59612917
When Berenberg went to visit Darktrace on November 8th, among the points they raised was:
"They see Darktrace's new product Prevent -- which finds vulnerabilities in companies’ systems similar to a
penetration testing -- to benefit from growing regulation mandating the regular use of penetration testing"
Of some interest.
https://www.intelligentcio.com/eu/2021/12/08/darktrace-ai-stops-4000-threats-a-week-at-fashion-brand-ted-baker/
Sorry - not much. Anybody got all the article?
https://www.thetimes.co.uk/article/the-times-and-sunday-times-tech-summit-markets-have-misunderstood-darktrace-says-poppy-gustafsson-0q290m0m5
I don't understand what I'm talking about.
Crowdstrike is worth $47billion and has an ARR of $1.5billion, so that's a price to sales ratio of 33
Sentinelone is worth $13.5billion and has an ARR of $237million, so that's a price to sales ratio of 57
(which suggests it's overvalued). It has just over 6000 customers
Darktrace is worth $2.86billion and has an ARR of $353million, so that's a price to sales ratio of 8
(which suggests it's undervalued). It has nearly 5900 customers, almost the same.
Can somebody check my figures please. What I'm struggling with is Sentinel's ARR of 237 million, which amazingly is less than Darktrace at 353 million, and yet it is valued at nearly five times more. Where have I gone wrong?
The increase in sales was great - up 128% on the same period last year.
Trouble is, the increase in the loss was very much greater - up 223%, to $67 million compared to $30 million in the previous year.
Darktrace shares will drop tomorrow.
Darktrace shares are down 9% today. However, Alphaville shares are down even more, at 9.8% My guess - guess - is that the fall is nothing to do with these companies, which are both fine, but is in response to Crowdstrike's results yesterday.
Crowdstrike is in the same field of cybersecurity. It is much bigger than DT and Alphaville. Its share price has fallen from a high of $298 to $209, a 30% fall. SentinelOne has fallen from a high of $78 to $40, a fall of 49% and DT has fallen from £1003 to £435, a fall of 56%.
Crowdstrike's sales for the last quarter released yesterday soared by 63% over the equivalent quarter last year. However it made a loss of $50 million. In the previous comparable period, the loss was $24 million. Share prices ultimately depend on profits. I think this doubling of the loss for such a big company has spooked the markets and this is the main reason for DT and Alphaville share prices both dropping so much today. The fear is that both UK companies also will take much longer to go into profit.
In six weeks' time we will get the next trading update. However, I think this will just tell us about how the sales are doing (no doubt up a lot) and not what really matters - how much the loss has fallen or increased.
When I was younger I would panic if a share price dropped and I went into loss. I would sell the shares and lose money. With Darktrace the potential for the company is enormous, so I am a long term holder. This is a share you keep for five years.
This is better
https://www.channelweb.co.uk/news/4041320/accenture-create-tech-jobs-uk