LONDON (Reuters) -British cybersecurity company Darktrace lowered its guidance for full-year cash flow on Wednesday due to an accounting change related to its listing as it reported a 36% rise in first-half revenue.
The company said its 2023 guidance range for free cash flow would be about 50% to 55% of adjusted core earnings, down from a previous 60% to 65%. It confirmed other guidance issued earlier this year.
It reported revenue of $259.3 million for the six months to end-December, with growth underpinned by multi-year contracts and a focus on larger account sales, despite a notable slowdown in new customer additions in the second quarter.
Darktrace’s performance was questioned in January by short-seller Quintessential Capital Management, which said it was “deeply skeptical about the validity” of its financial statements.
Darktrace, which listed in April 2021, rejected the claim, and said it was run with “the greatest integrity”.
As a sign of its confidence in its processes and controls, it said last month it had commissioned EY to review its finances.
(Reporting by Paul Sandle; editing by William James and James Davey)
