By Geoffrey Smith
Investing.com -- Shares in Darktrace (LON:DARK) tumbled nearly 20% in early trading on Tuesday after the cyber-security company lowered its growth forecasts for the year, due to the weak economy.
Darktrace said that the impact from the slowdown on new business had become more evident toward the end of last year. As a result, it now expects annualized recurring revenue, adjusted for foreign exchange swings, to rise by between 29% and 31.5%, down from a range of 31%-34% previously.
It may be doing less business than expected, but the dollar's recent fall is at least allowing it to make slightly more money on the business Darktrace does. The company raised its underlying operating margin forecasts to a range of 16%-18.5% from 15%-18% previously.
Markets chose to concentrate on the revenue forecast, pushing Darktrace stock down by as much as 19% before recovering slightly to trade down 13% by 03:35 ET (08:35 GMT).