07 March 2024
If you are covering Darktrace’s latest results, please see the following comment from Ben Barringer, technology analyst at Quilter Cheviot:
"Darktrace, a company which combines artificial intelligence with cybersecurity to combat cyber threats, is taking advantage of being in a highly relevant sector but also excelling in it.
"It’s reported 27% growth in revenues is robust, complemented by impressive customer metrics. However, what stands out is its exceptionally strong margin performance, which appears to be a result of both improving scale and stringent cost control measures. This could be one of the company’s that would sit well within the new UK ISA announced yesterday for investors seeking growth and value in the field of AI and cybersecurity as well as sitting at more than a 50% discount to US peers.
"The appointment of a new Chief Revenue Officer seems to be yielding good results, as evidenced by the early signs of improvement in revenue generation. This is particularly important as Darktrace looks to expand its market, including efforts to increase sales to the U.S. federal sector. The company's focus on enhancing its annualised recurring revenue is commendable and contributes to maintaining a high level of revenue consistency.
"Significantly, there has been another uptick in revenue guidance, now expected to grow by 24-25%, with margins improving by an impressive 200 basis points. This revised guidance demonstrates Darktrace's strong growth trajectory but also underscores its improving operational efficiency. Leading to earnings upgrades today."
