Darktrace posts positive forecast as revenues rise 28%

Cybersecurity company Darktrace has boosted revenues by 28% and offered positive full-year guidance after fending off fraud accusations from short-sellers.

The London-listed cybersecurity company revealed its most recent revenue for the three months ending 30 September rose to £131.3m, more than a quarter higher than the same period last year.

In a trading update in April, Darktrace warned of an expected slowdown in sales and new customers as part of ongoing macroeconomic challenges.

Despite this, the company secured 126 new customers last quarter, who have been credited with causing the revenue surge.

The company forecasts revenue growth of between 21% and 23% for 2024.

Darktrace CFO, Cathy Graham, described the results as “early, but clear, indicators of gaining traction” and that recent “positive trajectories” have contributed to “confidence that we are on the right path, both to deliver FY 2024 results and to drive growth in future years”.

Earlier this year, shares in Darktrace plummeted to a record low after a report from the US-based asset manager Quintessential Capital Management (QCM) claimed the company had inflated its value through questionable accounting leading up to its 2021 IPO.

QCM, which shorted Darktrace stock, wrote at the time: “After a careful analysis, we are deeply sceptical about the validity of Darktrace’s financial statements and fear that sales, margins and growth rates may be overstated and close to a sharp correction”.

The cybersecurity firm denied the allegations and EY was brought on to review Darktrace’s accounts.

In EY’s audit, the accounting firm found no evidence of fraud, though it noted there are areas in which “systems, processes or controls could be improved”.