Darktrace shares dip below their float price after cyber security firm slashes growth forecasts
Darktrace shares fell below their float price after the tech darling cut growth forecasts.
The FTSE 100 firm said the impact of economic uncertainty was ‘larger than expected’ as customers shied away from spending on cyber-security.
As a result, it expects a key measure of revenues to rise by between 29 per cent and 31.5 per cent this year, down from an earlier forecast of 31 per cent to 34 per cent.
Shares slump: Darktrace, led by Poppy Gustafsson (pictured) said it expects revenues to rise by between 29% and 31.5% this year – down from an earlier forecast of 31% to 34%
The update sent shares plunging 20 per cent in early trading to a low of 240p – below the 250p the shares were floated at in April 2021. The stock later closed at 250.7p, valuing it at £1.8billion.
The slump is a setback for Darktrace chief executive Poppy Gustafsson who has been lauded in the City since it listed.
Chief financial officer Cathy Graham said clients were focusing on ‘survival and their payrolls’. The company uses AI to detect cyber-attacks.
Clients range from blue-chip titans to start-ups. Graham said its biggest customer losses meant the Cambridge firm was putting greater focus on big-hitters and raising some prices.