In key news on UK stocks, Darktrace PLC (GB:DARK) shares rallied after the company reported strong growth in its trading update for the third quarter of FY24. Darktrace’s revenue for the third quarter reached $176.1 million, reflecting a growth of 26.5% compared to the same period a year ago. Additionally, the company raised its guidance across different metrics for the full year Fiscal 2024. Darktrace shares gained over 6% today as of writing.
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Darktrace is an AI-focused cybersecurity company that offers solutions to combat a range of threats, including ransomware, cloud attacks, and more.
More from Darktrace’s Trading Update
During the third quarter, Darktrace added a net ARR (annualized recurring revenue) of $29 million, reflecting a 6.2% year-over-year growth. As of March 31, 2024, the company’s ARR stood at $731.1 million on a constant currency basis, indicating a growth of 23.5% compared to the previous year. This signified a return to year-over-year growth for the company and marked the second consecutive quarter of increasing net ARR additions.
Darktrace’s Upbeat FY24 Outlook
Moving forward, Darktrace has revised its forecast for ARR growth, now expecting it in the range of 22.25% to 23%, an increase from its previous projection of 21.5% to 23%. Moreover, FY24 net ARR additions are projected between $141.8 million and $146.6 million, compared to the previous range of $137.0 million to $146.6 million.
Darktrace also revised its projections for the full-year revenue growth and expects it to reach at least 25.5%, slightly surpassing its previous estimate of 23.5% to 25%.
Is Darktrace a Good Stock to Buy?
As per the consensus among analysts on TipRanks, DARK stock has been assigned a Moderate Buy rating based on five Buy and two Hold recommendations. The Darktrace share price target is 506.86p, which indicates a potential change of 10.2% from the current levels.
