Darktrace PLC (LSE:DARK) shares headed back into the shade as it said the new financial year would be a “tale of two halves”, with a period of flatter growth followed by expected 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, with annual recurring revenue (ARR) standing at US$628.4 million at the end of June, up 29.6%.
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 a new sales bonus structure, which it said would also have the consequence of squeezing its earnings margin in the current year but “accelerating cash outflows”.
It her outlook, chief executive Poppy Gustafsson said: “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.”
She expects roughly 45% of full-year net ARR to be added in the first half and 55% to be added in the second.
The shares, having recovered from the sub-220p lows after February's short-selling attach to a six-month high of almost 400p in July, fell over 7% in early trade on Wednesday to just under 335p.