Proactive Investors - Darktrace PLC (LON:DARK) reported strong profit growth for the past year and said the new financial year would be a “tale of two halves”, with stabilisation followed by re-acceleration.
For the past year to June, the cyber security AI company revealed revenue rose 31.3% to US$545.4 million, just ahead of the guidance given in its last update.
Annual recurring revenue (ARR) at the end of June was up 29.6% to US$628.4 million.
At the bottom line, net profit rocketed almost 4,000% higher to US$58.96 million from US$1.46 million last time.
Underlying earnings (adjusted EBIT) rose 66% to US$82.5 million, or 52% to US$139.2 million if depreciation and amortisation are also ignored.
Free cash flow of US$93.8 million was down 4.4% due to net settlement of vesting equity grants for executive directors.
For the new year, the FTSE 250-listed company reiterated its guidance for year-over-year constant currency ARR growth of between 21% and 23%, implying net ARR additions of US$133.8-146.6 million.
Furthermore, Darktrace updated its adjusted EBITDA margin guidance range to 17.0-19.0% to take into account new sales bonus structures, which it said would also have the consequence of “accelerating cash outflows” but are not expected to have any material impact on its long-term financial profile.
“In balancing ongoing macro-economic uncertainty with early signs of recovery, and reflecting the time expected to see a benefit from recent investments in its GTM strategy and teams, Darktrace is framing FY 2024 in terms of first half stabilisation and second half re-acceleration,” it said.
Directors expect roughly 45% of full-year net ARR to be added in the first half and 55% to be added in the second.