Stonking Growth & Performance AGAIN13 Apr 2022 08:08
Operating and Financial Performance
For Q3 FY 2022, Darktrace continued to deliver strong sales performance, adding 359 net new customers, and bringing the Group's customer base at quarter-end to 6,890. This reflected year-over-year growth of 37.3%, approximately 0.8 percentage points of which came from the net addition of customers gained through the 1st March 2022 acquisition of Cybersprint B.V. ("Cybersprint").
With new customer additions continuing to be the primary driver of constant currency Annualised Recurring Revenue (ARR) measures, net ARR added, including net ARR added from the Cybersprint acquisition, was $35.4 million for the third quarter and $105.3 million for the nine months year-to-date ended 31st March 2022. This represented 56.8% and 51.3% growth over the comparable prior year periods, respectively. Without the impact of Cybersprint, third quarter net ARR added increased by 37.0% year-over year, compared to a prior year period where longer sales cycles, resulting from early pandemic spending freezes, drove unusually high sales relative to seasonal norms. For the nine months year-to date, organic net ARR added increased by 44.9%.
The net ARR added during the third quarter, on top of strong performance in recent periods, resulted in constant currency ARR at 31st March 2022 of $462.6 million. This reflected growth of 46.3% year-over-year, approximately 1.4 percentage points of which was related to the Cybersprint acquisition.
Revenue for Q3 FY 2022 was $109.8 million, bringing revenue for the nine months year-to-date to $302.4 million. This reflected year-over-year growth of 50.1% and 51.5% over the same quarter and nine-months of FY 2021, respectively. Relative to earlier FY 2022 periods, third quarter revenue saw additional impact from foreign exchange headwinds, as geopolitical factors strengthened the U.S. Dollar against relevant key international currencies, primarily Pound Sterling and the Euro.
Gross margin, as well as one-year gross ARR churn and net ARR retention rates (both organically and giving retrospective effect to the pre-acquisition customer activity of Cybersprint), remained in the ranges reported in our most recent period.
FY 2022 Outlook
Given continued positive sales momentum and trends in customer metrics, Darktrace is increasing its FY 2022 guidance for constant currency ARR. It now expects year-over-year ARR growth of between 40.0% and 41.5% (previously 38.5% to 40.0%), which implies year-over-year growth in net ARR added of between 29.0% and 34.0% (previously 24.0% to 29.0%).
As for the expected conversion of constant currency ARR to U.S. Dollar revenue, Darktrace notes that at this late stage in its financial year, increases in net ARR added make a limited contribution to revenue in the current year. Additionally, geopolitically driven foreign exchange headwinds have increased and the potential for additional volatility remains heightened. In this context, Darktrace is slightl
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