Darktrace, based in the United Kingdom, raised its full-year revenue and profit projections on Tuesday after seeing a nearly 40% increase in customers utilising its cyber security services, lifting its stock after a recent drop.
Darktrace, which employs artificial intelligence to detect threats and weaknesses inside IT networks rather than erecting perimeter barriers, went public in April and has had a rocky ride.
Initially a standout performer, its stock rose more than 300 percent in the first four months before succumbing to a negative analyst note and the termination of a post-flotation lock-up that permitted some investors to sell in November.
On Tuesday, the company’s stock rocketed another 25% when the company raised its revenue and earnings margin forecasts for 2022. At 0820 GMT, the stock was trading at 494 pence, nearly double its initial listing price of 250 pence.
According to Cathy Graham, the company’s CFO, the number of consumers leaving the service has decreased, and its recurring revenue retention rates have improved. The company had 6,531 customers at the end of 2021, up 39.6% from the previous year.
It also gave some customers the first module of its new Prevent product line.
“This is the next logical step in fulfilling our vision of creating a Continuous AI Loop, a virtuous circle that equips customers with a suite of technologies that strengthen and reinforce each other,” she said.
Darktrace said it now expects annual recurring revenue to increase by 37 percent to 38.5 percent in 2022, up from 34 percent to 36 percent previously. It expects its earnings margin to be between 3% and 6%, up from previous forecast of 2% to 5%.
Darktrace said it expects sales of at least $190 million in the first half, with organic growth of at least 50%.
Berenberg analysts, who have a Buy rating on the company, also issued a customer survey that revealed that the majority of firms who have trialled, utilised, or are presently using Darktrace’s products anticipate to spend more with them in the future.