Shares in machine learning cybersecurity firm Darktrace PLC rose in regular trading after the company revised its outlook thanks to growing demand for its services.

For the six months ended Dec. 31, Darktrace reported a net profit of $5.9 million, compared with a loss of $48.4 million in the same six months in 2020. Revenue rose 52% year-over-year, to $192.7 million.

Adjusted earnings before interest, taxes, depreciation and amortization jumped 124% from the previous six-month period, to $46.7 million, while cash flow before financing activities rose 159%, to $42.3 million. Annual recurring revenue as of Dec. 31 was $427 million, up 46%, and Darktrace had 6,531 customers, up 40%.

Darktrace noted that its recent growth in adjusted earnings was higher than expected because of continuing pandemic-related suppression of key costs. These costs are expected to return over the intermediate term, but it said scale efficiencies continue to support anticipated long-term steady-state margins.

Looking forward, Darktrace said it expects a year-over-year increase in ARR for 38.5% to 40%, revised up from a previous estimate of 37% to 38.5%. The company also expects year-over-year revenue growth of 44.5% to 46.5%, up from the previous guidance of 42% to 44%. The increase is partly driven by lower-than-previously-predicted forecasts for foreign exchange headwinds.

The outlook includes results from Cybersprint B.V., which Darktrace acquired in February. Cybersprint contributes a 1% increase in expected year-over-year ARR growth, and 3.5% of the increase is expected net ARR added.

“The Group continues to balance strong sales momentum trends with potential temporary sales productivity impacts that may occur as it evolves ways to expand and optimize its salesforce structure,” Darktrace said in its earnings release. “These efforts, which are intended to support anticipated growth and continued scaling of its business, began in the second quarter of FY 2022 and are expected to continue through 2H FY 2022.”

In an interview with This is Money, Chief Executive Officer Poppy Gustafsson said that “the current geopolitical situation has heightened the urgency for businesses and governments to improve cyber resilience.”

Investors liked the revised outlook, with Darktrace shares up almost 15% as of 5 p.m. U.K. time.

Image: Darktrace