British cybersecurity vendor Darktrace saw its revenue increase by 31% last year as its AI-powered technology is used by more businesses to improve security. However, the company’s shares fell on Wednesday morning after the company announced that its outlook for next year was not as optimistic as initially expected.
The company’s full-year profit for the 12 months to the end of June was on sales of $545.4 million, up 31.3% from $415.4 million in 2022, and net income was $5,890, up from just $1.4 million a year earlier. It skyrocketed to $1 million.
However, it said it expected EBITDA growth in 2024 to be between 17% and 19%, down from the 22% expected in its July trading update. It said it may take on more debt and is in talks with banks about new credit facilities.
Darktrace CEO talks about AI revolution and cybersecurity
Co-headquartered in Cambridge and San Francisco, Darktrace provides security software to 8,799 customers worldwide. The company’s technology uses AI and machine learning to discover and counter cyberattacks.
CEO Poppy Gustafsson said the AI boom and the growing popularity of generative AI tools such as ChatGPT is a turning point for the cybersecurity industry. “We have always known that AI would ultimately dramatically change the landscape of enterprises and their data, but few predicted the seismic changes that generative AI would bring to our world and cybersecurity. ,” Gustafsson said. “Generative AI was a transition point. We now live in a world of generative AI that is already dramatically changing the cyber space and will continue to do so.”
He added that security teams “also have questions about how advances in AI could be used against them,” adding, “Many believe the era of AI-powered attacks has arrived. “We are concerned by the increasing speed, scale, and sophistication of new attacks.” increase. “
Gustafsson argues that this change means that Darktrace’s technology is more relevant to enterprises than ever before. “From ransomware to the rise of generative AI, our customers are protected not only from the threats of today, but also the emerging threats of tomorrow,” she said.
Earlier this year, the company strengthened its portfolio with a new product, HEAL, designed to help businesses recover after a cyberattack.
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Is the situation improving for Darktrace?
Darktrace was hailed as a shining light in the UK tech world when it went public in 2021, but after seeing a value boom in its first year of trading on the London Stock Exchange, its reputation has been hit by a dispute with shareholders. Ta.
The company appointed auditors from EY to audit its accounts in February after investor Quintessential Capital Management raised questions about its financial statements. However, an audit report released in July found only minor “errors and discrepancies” that affected earlier financial statements.
The company has also been embroiled in a turmoil over founder and major shareholder Mike Lynch, who was extradited to the United States in 2011 to face fraud charges related to the sale of his former business Autonomy to HP. It is. Mr. Lynch used the equivalent amount of Darktrace stock. His bail in the United States is set at $50 million, but he and his wife have reduced their stake in Darktrace in recent months.