Cyber security firm Darktrace slumps after slashing growth forecasts
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Darktrace shares fall below their float price after the cybersecurity firm slashed growth forecasts
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Darktrace shares fell below their float price after the tech darling slashed growth forecasts.
The FTSE 100 company said the impact of economic uncertainty was “greater than expected” as customers shy away from spending on cybersecurity.
As a result, it expects a key measure of earnings to rise 29 percent to 31.5 percent this year, down from an earlier forecast of 31 percent to 34 percent.
Shares fall: Darktrace, led by Poppy Gustafsson (pictured), said it expects revenues to rise 29% to 31.5% this year – down from a previous forecast of 31% to 34%
The update sent shares in early trading by 20 percent to a low of 240 pence – below the 250 pence at which the shares were floated in April 2021. The share later closed at 250.7 pence, valued at £1.8 billion.
The slump is a setback for Darktrace CEO Poppy Gustafsson, who has been lauded in the City since listing.
Chief financial officer Cathy Graham said clients focused on “survival and their payroll.” The company uses AI to detect cyber-attacks.
Customers range from blue-chip titans to start-ups. Graham said the biggest customer losses meant the Cambridge company put more focus on big hitters and raised some prices.