MARKET REPORT: Cybersecurity firm Darktrace falls after cutting earnings forecasts
Shares in Darktrace fell as the cybersecurity firm cut its earnings forecasts.
The Cambridge company said it expected a tale of two halves in the year ahead with growth only coming in the second half.
The stock, which listed in 2021 at 250p, fell 2.5 per cent, or 9.2p, to 360p.
Darktrace said revenues jumped 31.3per cent to 44million in the 12 months to the end of June while annual profits jumped nearly eight times to 32.8million. But it cut forecasts for the year ahead.
The downgrade partly reflected changes to commission payments.
Its sales team will be paid bonuses in a lump sum rather than in two instalments, which it said is how the industry tends to operate and will make it easier to hire and retain key experienced talent.
But it will affect cash flow. Russ Mould, investment director at AJ Bell, said: Darktrace has had a volatile time as a public company it was under pressure thanks to associations with controversial tech entrepreneur Mike Lynch.
An independent audit of accounts gave it an apparent clean bill of health over the summer and it really needs a steady period of delivery to help win credibility.