Q1 FY 2023 Trading Update
12th October 2022
Darktrace plc Q1 FY 2023 Trading Update
Continuing sales momentum drives Q1 performance, confirmation of FY 2023 expectations
Darktrace plc (DARK.L) (together with its subsidiaries, "Darktrace" or the "Group") a global leader in cyber security AI, today provides a trading update for its first quarter FY 2023 ended 30th September 2022.
Operating and Financial Performance
For Q1 FY 2023, Darktrace demonstrated continuing strength and resilience in its sales performance, growing its customer base by 320 net new customers to 7,757, a 29.1% year-over-year increase.
With new customer additions continuing to be the primary driver of constant currency Annual Recurring Revenue (ARR) measures, this resulted in net ARR added for Q1 FY 2023 of
Considering the recent foreign exchange ("FX") rate environment, Darktrace is now also reporting USD ARR to provide context for its revenue reporting and expectations, which are provided in
Revenue for Q1 FY 2023 was
Gross margin, as well as one-year gross ARR churn and net ARR retention rates, remained in the ranges reported in our most recent period.
FY 2023 Outlook
Darktrace last communicated its expectations for the current financial year on 8th September 2022, with its FY 2022 earnings release. In the intervening period, September results were as expected, so it is pleased to reiterate the FY 2023 guidance and related commentary it previously provided for ARR, net ARR added, revenue, adjusted EBITDA, and free cash flow margin. Darktrace is also reconfirming its expectations for the seasonality of net ARR added for the financial year but is updating its seasonality expectation for revenue to reflect recent developments in the FX rate markets.
Cathy Graham, CFO of Darktrace, said:
"Using our market-leading Self-Learning AI technology, Darktrace empowers organisations to interrupt cyber threats before they experience a business disruption. This focus, and the value it provides to users of our technology, allowed us to maintain strong sales activity through the first quarter of FY 2023, again expanding our customer base, ARR and revenue.
We expect this momentum to be further supported across the rest of this financial year as we complete the phased roll-out of our new PREVENT product family. These products started to be made available to existing and new customers in mid-first quarter, and in September drove a significant increase in upsell proof of value ("POV") deployments within our customer base. We believe that PREVENT product sales should start making positive contributions to our ARR growth and net retention measures in the second half of FY 2023."
Darktrace (DARK:L), a global leader in cyber security artificial intelligence is on a mission to free the world of cyber disruption. Breakthrough innovations in the Darktrace Cyber AI Research Centre in
This announcement contains certain forward-looking statements, including with respect to the Group's current targets, expectations and projections about future performance, anticipated events or trends and other matters that are not historical facts. These forward-looking statements, which sometimes use words such as "aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and words of similar meaning, include all matters that are not historical facts and reflect the directors' beliefs and expectations, made in good faith and based on the information available to them at the time of the announcement. Such statements involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement and should be treated with caution. Any forward-looking statements made in this announcement by or on behalf of Darktrace speak only as of the date they are made. Except as required by applicable law or regulation, Darktrace expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.
Luk Janssens - Head of Investor Relations, Darktrace
Direct: +44 7811 027918
Powerscourt (Public Relations adviser to Darktrace)
Victoria Palmer-Moore/Elly Williamson
Direct +44 (0) 20 3328 9386