Darktrace PLC (LSE:DARK) held guidance after reporting a strong start to the financial year amid signs of a pick-up in new business.
The cyber security specialist confirmed it expects year-over-year constant currency annualised recurring revenue (ARR) growth of between 21% and 23%, implying net ARR additions of between US$133.8 million and US$146.6 million.
Darktrace said it continues to frame the coming financial year in terms of first-half stabilisation and second-half re-acceleration, but now expects around 44% of net ARR added to be in the first half and around 56% to be added in the second half (previously 45% first half, 55% second half).
It also confirmed its expectations for year-over-year revenue growth of between 22.0% and 23.5%, an adjusted EBITDA margin range of 17.0% to 19.0%, and free cash flow in the range of 50% to 60% of adjusted EBITDA.
Revenue for the financial first quarter ended 30 September was US$161.6 million, up 28% on the year before, with gross margin and one-year gross ARR churn as expected.
The firm said there were “indicators of gaining traction” and signs the “transformations we have been targeting are starting to take hold”.
Darktrace CFO Cathy Graham said: “In the first quarter, meetings held with prospects having over US$1 billion in revenue for priority sectors and US$5 billion for others, increased 65% from Q4 FY 2023 and 173% from the first quarter of the prior year.”
She added partner-generated product trials increased 13% from the fourth quarter and 45% from the year prior.