Darktrace to See Continued Revenue Momentum, Slower Customer Acquisition Rate

British cybersecurity company Darktrace (LSE: DARK) has experienced significant revenue growth, growing at a CAGR of 47% from 2018 to 2023. According to Visible Alpha consensus, the company’s revenue is projected to continue growing in the forecast period, albeit less aggressively, with a CAGR of 19% between 2024 to 2028. Darktrace, which leverages AI to combat cyber threats, is expected to see its annual recurring revenue (ARR) increase by 24% year over year in 2024, reaching $781 million.

In terms of customer acquisition, having grown by +18.3% year over year in 2023, Darktrace’s growth in the number of total customers is expected to moderate in 2024 and beyond. The company is projected to add almost a thousand new customers in 2024, taking its total client base to 9,808, up from 8,799 in 2023.

As of April, Darktrace has accepted a $5.3 billion takeover bid from U.S. private equity firm Thoma Bravo. The deal, expected to be finalized in the second half of the year pending shareholder and regulatory approval, aims to strengthen Darktrace’s position as a leading cyber AI service provider. Thoma Bravo is a software and cybersecurity-focused private equity firm.