Darktrace, based in UK, raises annual forecasts as AI demand grows

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Darktrace, based in UK, raises annual forecasts as AI demand grows
Darktrace, based in UK, raises annual forecasts as AI demand grows

Darktrace, located in the UK, raised its annual revenue and core profit margin estimates on Thursday, citing strong demand for its artificial intelligence-powered solutions.

Darktrace, based in the United Kingdom, boosted its annual revenue and core profit margin forecasts on Thursday, citing high demand for its artificial intelligence-powered solutions.

At 0849 GMT, shares in the FTSE midcap firm were up 7% to 359.1 pence, making it one of the top gainers among all London equities.

While IT investment has decreased in the last year, cybersecurity spending has stayed consistent as businesses and governments seek to protect their systems from hackers.

The business anticipates revenue growth of 23% to 24.5% in fiscal year 2024, up from 22%–23.5% before, and an adjusted core profit margin of 18%–20%, up from 17%–19% previously. 

However, Darktrace reported an increase in annualized recurring revenue (ARR), a key indicator of growth, from its existing client base. 

In the midst of macroeconomic headwinds, the possibility for new business ARR “appears to have stabilized but has not yet materially improved,” according to Darktrace. 

Darktrace finance head Cathy Graham stated, “We expect to remain well-positioned to capitalize on our AI-powered cyber security products as attackers capitalize on the availability of increasingly sophisticated tools and tactics, including generative AI.” 

Darktrace anticipates revenue of at least $329.6 million for the first half of the year, reflecting a 27.1% increase year over year.

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