Darktrace records growth amid increased hacktivism and AI threats
Shares in the business nudged higher after it reported better-than-expected figures on Wednesday.
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Your support makes all the difference.Cybersecurity group Darktrace has announced improved sales in the face of pressure from short-sellers, highlighting that “hacktivism” and AI could support further growth.
Shares in the business nudged higher after it reported better-than-expected figures on Wednesday.
It comes weeks after the London-listed firm told investors it has commissioned an independent review of its financial processes and controls after being accused of accounting irregularities by a US hedge fund.
New York-based short-seller Quintessential Capital Management (QCM) said that its update has still failed to address concerns.
However, Darktrace was positive as it said that revenues grew by 35.8% to 259.2 million US dollars (£218.9 million) over the last six months of 2022, compared with the same period last year.
Our business continues to deliver against a challenging macro-economic backdrop, with continued strong year-on-year revenue growth
The firm said it witnessed a slowdown in customers’ orders over the second quarter.
It told shareholders it expects to see more demand as a result of “Hacktivist threats” and the use of ransomware.
It also flagged that the rapid growth in AI, and software such as ChatGPT, is another area where there is likely to be specific demand in cybersecurity.
Net profits for the latest six-month period meanwhile dropped by 86% to 581,000 dollars (£490,000).
The firm also highlighted an unexpected dip in cash flow for the period, as a result of taxes paid on share-based bonuses to executives.
Poppy Gustafsson, chief executive, said: “Our business continues to deliver against a challenging macro-economic backdrop, with continued strong year-on-year revenue growth.
“Although there has been a slowdown in new customer wins, I am pleased that our investments in retaining customers and increasing the value of both new and existing contracts are paying off.”
Russ Mould, investment director at AJ Bell, said: “Darktrace is sticking with its full-year targets and flags ‘hacktivism’ and AI as drivers of future sales.
“There is logic to this argument.
“We live in an increasingly digitised world and cyber security is like a fourth emergency service – keeping us safe from harm online.”