The concerns which dogged cyber security Darktrace ahead of its stock market listing, with investors wary of its associations with alleged fraudster Mike Lynch, have well and truly been put in the shade after the company’s maiden results.
As much as the numbers for the year to 30 June were impressive in terms of revenue growth and customer additions what will really excite the market is the upgraded revenue guidance for 2022.
“This is not the first time guidance has been lifted and it’s a useful habit for a newly listed business trying to forge a reputation on the public markets to get into,” AJ Bell’s Russ Mould said.
“IPO costs mean losses have actually increased but, for now at least, investors seems to be prepared to look past a lack of profitability to the prize Darktrace is chasing in a fast-moving and fast-growing industry.
“The importance of cyber security was reinforced in the pandemic as an increasing number of organisations shifted activities online and the cost of paying for the services of a company like Darktrace arguably pale into insignificance when compared with the costs and reputational hit facing any organisation which suffers a major data breach.
“Darktrace’s smart technology, using a self-learning, adaptive platform to spot anomalous activity, has already helped it win a swathe of blue chip customers across a range of sectors and industries.
“The company seems to be doing a good job of hanging on to its existing customers and selling them new services too, and this is crucial if Darktrace is to build on its success to date.”