Convincing corporate c-suites of its skill in defending against “novel attacks” is a crucial part of Darktrace delivering on its growth ambitions. More recently, the cybersecurity group has faced external threats of its own.
Annual figures do not offer a definitive riposte to the doubters. A change in the way commission is paid to salespeople will hit free cashflow and margins this year, causing management to lower guidance for the margin it generates on adjusted earnings before interest, taxes and other charges to 17-19 per cent. The impact should be a one-off.
A slowdown in annualised recurring revenue (ARR) growth, a measure of contracted revenues, is more telling of a challenging trading environment. ARR rose just under 30 per cent last year, lower than the
