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Darktrace PLC (DARK)

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Thursday 15 July, 2021

Darktrace PLC

Pre-Open Trading Update

RNS Number : 2880F
Darktrace PLC
15 July 2021
 

15th July 2021

Darktrace plc Pre-Open Trading Update

Strong FY 2021 performance and increased expectations for FY 2022

 

Darktrace plc (DARK.L) (together with its subsidiaries, "Darktrace" or "the Group") a global leader in cyber security AI, today provides a trading update for its financial year ended 30th June 2021.

Operating and Financial Performance

Darktrace demonstrated the resilience of its business model over the course of a universally challenging year. The Group ended FY 2021 with approximately 5,600 customers, having grown its customer base by 42% year-on-year.

The Group also delivered strong results in its constant currency Annualized Recurring Revenue (ARR).  At its FY 2021 constant currency rates, Darktrace expects ARR at 30th June 2021 of at least $340 million, which represents year-over-year growth in constant currency ARR of at least 44%. Darktrace also reports that its one-year gross ARR churn and net ARR retention rate have remained in the range of recent reported periods.

Darktrace also expects revenue for FY 2021 of at least $278 million, reflecting year-over-year growth of at least 40%. It also expects that gross margin for FY 2021 has remained in the range of recent reported periods.

FY 2022 Outlook

To enable a consistent basis for evaluating its performance, Darktrace reports ARR in constant currency, at rates established at the start of each year(1). Applying FY 2022 rates to the Group's ARR balance for 30 June 2021, and all prior comparison periods, results in a rebased ARR balance of at least $354 million. This will become the new amount against which it will measure constant currency ARR growth for FY 2022.

 

Darktrace is increasing its expectations for FY 2022 from those presented at the time of IPO. The Group is balancing strong sales trends exiting the second half of FY 2021, including particularly strong June performance, with potential temporary sales productivity impacts that may occur as it evolves ways to expand and optimise its salesforce structure. These efforts will begin in the first half of FY 2022 and are intended to support anticipated growth and continued scaling of its business.

 

Darktrace now expects a year-over year increase in its constant currency ARR of between 32% and 34% (previously 26.5% to 29.5%). It also now expects year-over-year revenue growth of between 29% and 32% (previously 27% to 30%), considering normal quarterly seasonality patterns and particularly, typically soft first-quarter sales.

Darktrace reaffirms its prior commentary regarding its expected cost structure for FY 2022 and adds that it now expects an adjusted EBITDA margin for the year of between 1% and 4%.

(1) The Group's primary currency exposures are the British Pound and the Euro converting to its US Dollar reporting currency.  For FY 2022, it is using constant currency rates of 1.3835 and 1.1878 for the Pound and the Euro, respectively. For FY 2021, constant currency rates were 1.2368 and 1.1235 for the Pound and the Euro, respectively.

 

Poppy Gustafsson, CEO of Darktrace said:

"We are pleased to report strong operating and financial performance for FY2021. Demand for our Self-Learning AI solutions is robust, as advanced cyber-attacks continue to outpace the human capability of security teams.

I would like to thank our shareholders for their interest and engagement: we have been delighted by the warm welcome we have received in the London market. I would also like to thank our customers and employees. We have executed well this past year, despite a challenging environment, and continue to invest in our business for the long-term success of all stakeholders."

Reporting Full Year Results

Darktrace intends to report its FY 2021 results the week of 13th September 2021. The reporting date, along with conference call details, will be made available in due course.

 

About Darktrace

Darktrace (DARK:L), a global leader in cyber security AI, delivers world-class technology that protects over 5,000 customers worldwide from advanced threats, including ransomware and cloud and SaaS attacks. The company's fundamentally different approach applies Self-Learning AI to enable machines to understand the business in order to autonomously defend it. Headquartered in Cambridge, UK, the company has 1,500 employees and over 30 offices worldwide. Darktrace was named one of TIME magazine's 'Most Influential Companies' for 2021.

 

Cautionary Statement

This announcement contains certain forward-looking statements, including with respect to the Company's current targets, expectations and projections about future performance, anticipated events or trends and other matters that are not historical facts. These forward looking statements, which sometimes use words such as "aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and words of similar meaning, include all matters that are not historical facts and reflect the directors' beliefs and expectations, made in good faith and based on the information available to them at the time of the announcement. Such statements involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward looking statement and should be treated with caution. Any forward-looking statements made in this announcement by or on behalf of Darktrace speak only as of the date they are made.  Except as required by applicable law or regulation, Darktrace expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

 

Enquiries:

Luk Janssens - Investor Relations Darktrace

Direct: +44 7811 027918

[email protected]

 

Powerscourt (Public Relations adviser to the Company)

Victoria Palmer-Moore/Elly Williamson

Direct: +44 20 7549 0745

 

[email protected]

 

 

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