Darktrace reports continued strong top-line growth ahead of Thoma Bravo takeover

18th Jul 2024 07:53

(Sharecast News) - Cybersecurity group Darktrace saw continued double-digit top-line growth in its fourth quarter, helped by decent customer growth and strong retention rates.

The company, which in April accepted a $5.3bn takeover offer from US investment firm Thoma Bravo, said revenues for the year ended 30 June are expected to come in at $689.5m, up 26.4% on the previous year with growth more or less steady from the third quarter.

Annualised recurring revenue (ARR) was up 22.7% at $782.2m, adding net ARR of $51.1m in the fourth quarter. This represented annual growth of 12.4% on a constant currency basis, and marked an an acceleration in year-over-year growth from the third quarter (+6.2%).

Darktrace added 936 net new customers over the financial year, 333 of which were added in the fourth quarter, taking its total customer base to 9,735.

Meanwhile, the net ARR retention rate was 106.6%, rising 1.3 and 2.0 percentage points from March 2024 and June 2023, respectively, "as a stabilised churn environment enabled a greater proportion of the continued improvements in upsell activity to be reflected in Darktrace's net ARR retention rate".

"We are pleased with the strong close to our financial year, which saw the third consecutive quarter of upward trajectory in year-over-year Net ARR added growth," said chief executive Poppy Gustafsson.

Gustafsson said the Thoma Bravo takeover is progressing as expected after shareholders voted overwhelmingly in favour.

"The regulatory processes are proceeding with relevant waiting periods having expired and formal and informal clearances being received in line with the anticipated timelines," Gustafsson said.

The stock was up 1% at 582.04p by 0840 BST.