Darktrace shares down as it brings in new work practices
AI and cyber security specialist Darktrace’s shares are down after it said it is bringing in new work practices.
Darktrace says that with the first quarter typically being the smallest sales quarter of its financial year, it chose this period to deliver new sales and product training, alter targeting and sales tactics and workflows, revise commissions plans, and introduce other significant changes to its teams and go-to-market approach.
Outside of this the company also said it saw a 28% year-on-year revenue growth in the first quarter, confirming full-year 2024 expectations.
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Impressive revenue growth in Q1 2024
This growth in earnings was expected and aligns with previous predictions. During this period, Darktrace aims to provide new sales and product training, as well as making adjustments to its commission plans and sales strategies.
Despite this positive news, investors have focused on the changes in Darktrace's go-to-market approach, leading to a 5.4% drop in share prices during today's trading session. As a result, the company's shares have fallen to a four to five-week low, reaching a level not seen since September 7th.
Although Darktrace's share prices have declined recently, it is important to note that they have still risen by an impressive 114% since the start of the year, indicating strong overall performance.
However, it should be mentioned that the current stock price is a long way from the record high of £10 per share, which was achieved in September 2021.
Sales strategy changes impact market confidence
To summarise, Darktrace has reported positive year-on-year revenue growth in the first quarter of fiscal year 2024. While the company is implementing changes to its go-to-market approach, this has caused some concern in the market and a decline in share prices. Nevertheless, Darktrace's performance remains strong when compared to the beginning of the year, although it falls short of the record high achieved previously.
In simpler terms, Darktrace has made more money this year compared to the same period last year. They are now making changes to how they sell their products, which has worried investors and caused the company's shares to drop.
However, Darktrace's shares have still increased a lot since the start of the year, although they are not as valuable as they were before. Overall, Darktrace is doing well financially, but there are some concerns about their future sales strategies.
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