Darktrace plc revised earnings guidance for the year 2023. When Darktrace set its Fiscal Year 2023 guidance at the start of its financial year, it sought to account for macro-economic uncertainty and the potential impact; late in the second quarter, it became clear that the impact on new customer growth had been larger than expected. Based on 1H Fiscal Year 2023 preliminary results, recent trends and its expectation that these trends will continue through the second half of its financial year, Darktrace is lowering Fiscal Year 2023 guidance for constant currency ARR and net ARR added, as well as for revenue.

However, as it expects to be able to continue to operate efficiently while still investing to support future growth, is raising its expectations for adjusted EBITDA margin. For Fiscal Year 2023, Darktrace now expects a year-over-year increase in its constant currency ARR of between 29.0% and 31.5% (previously 31% to 34%). This implies a year-over-year change in net ARR added of between (2)% and 6%.

Foreign exchange headwinds present early in the financial year have largely reversed, allowing to moderate reduction in revenue expectations. Based on this partial offset to lower ARR growth expectations for Fiscal Year 2023, Darktrace is now expecting year-over-year revenue growth of between 29.5% and 31.0% (previously 30% to 33%).