Good afternoon, ladies and gentlemen, and welcome to Darktrace plc's Financial Year 2021 results. I'm Luk Janssens, Head of Investor Relations. I'm joined by CEO Poppy Gustafsson, and our CFO Catherine Graham, both of whom will together present for about 30 minutes, after which, as you've heard, we will have a Q&A session. On the next slide, here is our standard disclaimer, which you can review. Now, without further ado, let me hand over to our CEO of Darktrace Poppy Gustafsson, to open the presentation. Over to you, Poppy. Thanks very much, Luk, welcome to those of you joining Cathy and I today. This is, as I said, our first results call as a public company, and I thank all of you for your interest. We've been pleased with our performance, despite what has been a difficult year for many due to the uncertainty brought about by the global pandemic. Our Self-Learning AI is truly unique and forms a cornerstone of our success. In terms of financial performance, we have demonstrated the strength of our business model by delivering strong constant currency ARR growth of 46% and robust year-over-year revenue growth across all geographic markets and contract sizes. We grew our customer base from approximately 3,800 to 5,600 customers, up 45%. This year saw us close the largest deal in Darktrace's history, and we are seeing strong traction with our email product, Antigena Email. When it comes to our global workforce, the team has grown to 1,600 globally, up from 1,150 in 2020. Our R&D headcount increased year- on- year by almost a half, with an increase in the very core development team of 97%. This team is comprised of some of the world's leading experts in Self-Learning AI. We remain committed to life at Darktrace being a career, not just a job, and we're building career path programs that encourage long-term retention and loyalty for exceptional employees. We've worked hard to create new leadership development programs, as well as formalizing and structuring the mentoring and coaching initiatives we already have in place. Our strong performance was driven by the uniqueness of our fundamental technology and its ability to tackle an increasingly complex challenge. Modern businesses are under constant attack. Today, in 77% of the companies where we demonstrate our AI, the technology is uncovering serious threats that have got through perimeter defenses. Despite significant existing investment, businesses are still not secure. Looking in the rearview mirror at yesterday's threats is no longer good enough. Self-Learning AI allows us to move rapidly, adapting to extend coverage quickly as the world around us evolves. When the world embraced remote working, we made our technology available for virtual deployment so that the organizations could trial their AI remotely. Everything we do is underpinned by that unique Self-Learning AI, which we call the Darktrace Immune System. We have created a technology that goes into a business and learns self of that organization. That's not just understanding machines and processes, but people and how they interact with those machines. This understanding is constantly changing. As the business changes, the understanding changes with it. By understanding self, the technology can then spot other, even if that other is something that has never been seen before. With this capability, every second of every day, Darktrace's Self-Learning AI is catching in-progress cyber threats already inside a business that have got past existing defenses. Crucially, the AI autonomously and immediately reprograms your digital defenses to interrupt the attack before it escalates into a crisis. There is no other cyber vendor that has this range of capability, from detection, to investigation, to Autonomous Response, and there is no other cyber vendor that is capable of defending the breadth of environments that we can. This year, we announced a range of new products and features that extends that coverage even further. From internet-connected machinery on the factory floor, to email, to employee laptops, to SaaS applications, we protect the entire digital business wherever that data sits. Now, it's well understood that human security teams are overwhelmed and can no longer keep up with the speed of attacks. The boundaries of modern-day businesses are blurred. Remote working is just one of the many contributing factors to this, and security teams are tasked with defending a complex attack surface because of rapid digital transformation and an explosion in IoT. Threats have also moved on, as we saw from the recent attack on Colonial Pipeline in the United States. Attacks now run at machine speed. Even when humans spot them, they simply cannot respond fast enough. We believe that no organization is invulnerable to this new era of cyber attack. For more than 5,600 organizations across the world, Darktrace's artificial intelligence is interrupting cyber threats in their tracks, stopping a problem becoming a crisis every second of every day. Today, this machine fights back capability, what we call Antigena, is on average stopping ransomware within one second of threatening activity being detected. This means companies using our Self-Learning AI do not have to shut down systems for days on end and do not have to pay hefty ransoms to criminals. When, on the 4th of July, 1,500 companies fell victim to the ransomware group REvil, who exploited a vulnerability in Kaseya software, our AI defended our customers before any data was encrypted. Our innovative approach and the uniqueness of our technology was recognized not only by our customers, but also by several award bodies, including the AIconic Awards for Best Enterprise AI Solution, the Computing Technology Awards for Best AI Provider, and the 2021 Cyber Defense InfoSec Awards for five accolades, including Market Leader in Cybersecurity Artificial Intelligence. In addition, Time magazine named Darktrace as one of the 100 most influential companies. Cyber threats continue to make front page news. We believe that this will continue. Colonial Pipeline and other ransomware attacks mean cyber is elevated as a priority for enterprise customers. In our view, that will only grow over time. COVID has expanded the attack surface and companies' risk exposure with the shift to working from home. Both of these factors have been part of a continuing emphasis on cyber driving steady demand rather than causing a temporary demand spike. Overall, I am encouraged by what we have achieved in the last year. Exiting the second half of FY 2021 with strong sales trends, we are increasing expectations for FY 2022 once more. Through strong strategic execution, we have also strengthened the foundations for the future. I'm going to come back to this feature later, but for now, to Catherine Graham, for the financial review. Thank you, Poppy. It's a pleasure to be here with you, sharing both our FY 2021 results and increased expectations for FY 2022. Darktrace delivered strong 2021 financial year performance. In our second half, both constant currency ARR and revenue came in above expectations with, in the case of ARR, much of that outperformance coming from better than expected June sales. At GBP 281.3 million, FY 2021 revenue grew by 41.3% over the prior year. More than 99.5% of our revenue continues to come from subscription sales, which combined with our multi-year contract structure, drives significant RPO or contracted backlog. This gives us a high recurring revenue base and provides significant revenue visibility. For FY 2021, approximately 80% of revenue was fully contracted and in RPO before the start of the financial year. As approximately 20% of FY 2021 revenue came from in-year sales efforts, which also drive future period growth, we remain laser-focused on expanding constant currency ARR. In FY 2021, at FY 2021 constant currency rates, we increased ARR by 45.7% to GBP 343.5 million. Underlying this was net ARR added of GBP 107.8 million, which was 62.1% greater than the amount we added in the prior year. Let me spend a minute on this, as a 60-plus% growth rate is higher than we typically expect, and there are good reasons not to just extrapolate this forward. As shown here, the net ARR amounts we added for FY 2020 and FY 2019 were nearly the same. As we've discussed previously, in the second half of FY 2020, we noticed that net ARR added and the resulting ARR growth rates were trending down. We quickly discovered that our sales efforts had become unbalanced with a higher than expected% of contract activity in early renewals and extensions. Because of this, second half of FY 2020 had slightly lower net ARR added than the first half. With some small changes to our sales management structure and commissions plans, however, we were able to restore a more suitable new versus existing balance. Fast-forward to FY 2021, the low level of net ARR we added in the second half of FY 2020 resulted in higher than typical second half and full year FY 2021 net ARR added growth rates. As these rates were driven by a temporary past period aberration, they can't just be rolled forward. I'd encourage you to look at the value of ARR added in FY 2021 rather than just the growth rate when thinking about what to expect for FY 2022. Given our large TAM and prospect pool, we are not a land and expand business. We're a land, land business. This means our focus is on, and most of our ARR growth is coming from adding new customers. During FY 2021, we added 1,747 net new customers, expanding our customer base by 45.3% year- on- year. Further, since our products can be used by businesses of almost any size and industry, we continue to sell across a broad range of customer and contract sizes. Our account distribution in FY 2021 remained consistent with prior years. 53% of total ARR came from the 86% of customers with less than GBP 100,000 in ARR, and 47% came from the 14% of customers with ARR of more than GBP 100,000. While having a ubiquitous platform gives us a large addressable market and a long sales runway, the resulting smaller average customer size means that our gross ARR churn tends to be somewhat higher than vendors who target larger enterprises. Looking over the past several years, you can also see how creating our customer success team in the second half of FY 2020, and then the COVID pandemic have moved this metric. The customer success team was formed after seeing rising churn in late FY 2019 and early FY 2020. Despite having COVID uncertainty in the fourth quarter of FY 2020, that team had a meaningful impact on gross churn. Escalating COVID-related customer budget and viability issues in the first half of FY 2021 drove churn back up. We did see that trend begin to reverse as customers stabilized in the second half of the year. We don't yet have enough data to forecast a trend, we believe it's possible this rate could drift down somewhat as we lap early COVID comparison periods, allowing the work done by our customer success team to show through. Darktrace currently has a 10-product platform, and most of our customers buy multiple products from us. We continue to deepen product penetration, with 62.2% of customers having three or more products and 39.2% of customers having four or more products by the end of FY 2021. Along with our land, land strategy, our aim is to sell as many products as possible in a new customer's first purchase. While this is absolutely the right strategy for us at this point in our life cycle, it does leave fewer opportunities to upsell and results in lower net ARR retention than you would see with a land-and-expand strategy. As churn declined slightly in the second half of FY 2021 and we continued our upsell campaigns, we did see net ARR retention increase to 103.1%. Echoing my previous comment on churn, however, we don't yet have enough data to forecast a trend. We do believe it's possible this rate could drift up a bit if churn continues to improve and our upsell campaigns remain productive. Let's turn to our earnings measures and the costs that drive them. In terms of cost structures and trends, it's hard to compare FY 2021 to prior periods. As is clear from the large year-over-year increase in net loss, despite remaining in a 90% gross margin range, we had a lot going on in and below operating costs. Here, we've broken out our costs in a way we think will help clarify the big movements and help you to think about what our cost structure might look like going forward. Instead of starting at the top, let's get finance costs out of the way because it's the largest impact and about GBP 107 million of it is both non-cash and non-recurring. In July 2020, we issued about GBP 163 million in convertible notes to a small number of existing investors, using most of the proceeds to buy back shares as a part of restructuring our ownership before listing. The note's conversion feature meant that we had to separate the instruments into smaller notes and larger derivatives, then run both interest and accretion to the expected note conversion values through finance costs. As both the accreted note and interest values were convertible, the entire amount was non-cash. The conversion did occur and these costs stopped at IPO. We should only have a normal level of bank charges, letter of credit fees, and other operating finance costs in FY 2022. Moving back to operating costs, let's start in sales marketing with recurring non-T&E costs. These costs, primarily salaries, commissions, and direct marketing spend, were a bit lower than we typically expect, largely because of early COVID hiring delays. While the exact amount of that impact is hard to quantify, it was not the major driver of the nine percentage point reduction in these costs as a percent of revenue. The economies of scale we continue to drive in sales and marketing are real. Like many companies, we had a significant T&E savings from COVID-related travel and gathering restrictions. At Darktrace, GBP 17.9 million of our total GBP 19.2 million in year-over-year savings were in sales and marketing. It's hard to predict how T&E will return and what normal looks like over the next 12-24 months. You should expect that we are resuming customer and prospect visits, marketing and customer events, and employee gatherings for training and collaboration as it becomes safe and productive to do so. In R&D, the three percentage point increase in recurring non-T&E costs as a percentage of revenue was largely the result of us acting on our stated intention to expand product development capacity. Year-over-year, our R&D headcount increased by 47.8%, including a core development team that increased by 97.2%. Similarly, in other administrative expenses, the three percentage point increase in recurring non-T&E costs as a% of revenue was driven primarily by staffing growth. As we only formalized our customer success function in the second half of FY 2020, that team scaled significantly during the year, increasing by 150%. We also hired more and more experienced staff in finance, legal, and other supporting functions, enabling us to operate successfully as a listed company. Year-over-year, headcount in those functions increased by 39.5%. In FY 2021, both share-based payments and related employer tax charges increased across all three operating categories. Share-based payment charges increased by GBP 6.7 million year-on-year, driven by both a normal increase in participating employees as our business grows and the impact of grants we made as a part of transitioning from private to public company share plan structures. This increase was dwarfed, however, by the related employer tax charges, which went from a small GBP 67,000 benefit in FY 2020 to a GBP 21.5 million charge in FY 2021. For most countries where we have participants, tax charges don't get recognized until there's a clear path to liquidity for the underlying shares, which we triggered by entering the IPO process. At that point, we had to recognize out-of-period catch-up charges for previously vested grants. Additionally, we had to start recognizing charges related to both prior period grants still vesting and the transition grants we made at IPO. Finally, and perhaps the most importantly, these tax charges depend on our share price in that the tax we accrue is on the employee's expected gain. As such, the rise in our share price from IPO to June 30 substantially increased the charge we recognized for FY 2021. Given the vesting structure of the transition grants we made, we expect the combination of share-based payments and related tax charges to remain high through FY 2022 before normalizing. Going forward, we expect employee stock plan dilution to average in the range of 1%-2% per year. Adjusted EBITDA increased by 233.3% in FY 2021 to GBP 29.7 million. Most of this growth was due to real improvements in underlying profitability. Since year-on-year, T&E savings of GBP 19.2 million were largely offset by GBP 15.3 million in one-time IPO costs. I also want to remind you that to be more comparable to vendors that deploy software on hardware they sell, we adjust out the appliance depreciation running through cost of sales for customer deployments, lowering our adjusted EBITDA. For FY 2021, this was GBP 11.6 million of the total GBP 15.9 million in appliance depreciation recognized during the year. Turning to guidance, I first want to remind you that for purposes of reporting constant currency ARR and related measures, we have reset our constant currency rates for FY 2022. This results in a rebased ARR balance of GBP 357.3 million at June 30, 2021, which is what we'll measure constant currency ARR growth against for FY 2022. Now that we've completed our FY 2021 audit and know there were no adjustments that could affect future periods, and with July and August typically our slowest months having performed towards the upper end of our expectations, we're raising our guidance for FY 2022. We now expect year-over-year revenue growth of between 35%-37%, up from the 29%-32% range we provided in July. This step-up reflects both an increase in constant currency ARR growth expectations to between 34%-36%, with corresponding constant currency ARR added growth expectations of between 12%-14%. In earlier guidance, we built in an expectation that the FX tailwind we saw in FY 2021 could reverse, adding a bit of conservatism to our conversion of ARR into revenue. With little headwind in the first two months, we have updated our expectations to incorporate that experience, but have still left some room for lower ARR-to-revenue conversion later in the year. With respect to ARR and net ARR added growth, I also want to remind you that over the next few months, we'll be evolving our sales force to give us additional levers to pull in the future, something Poppy will talk more about. While we don't expect a big change to what our prospect-facing teams do or to the composition of our customer base, every time you adjust something, no matter how small, you risk distraction. We have incorporated some potential impact into our ARR expectations for FY 2022, but are convinced that these changes will further support our ability to scale in the longer term. Also, to help you think about seasonality and how we expect the business to evolve across the year, we're currently expecting approximately 45%-46% of both revenue and net ARR added to be recognized in the first half of the year. Regarding sales force growth, we are close to returning to pre-pandemic levels for total sales force growth. Because it takes until month five of employment for a new salesperson to be productive, we don't expect productive sales force growth to normalize until mid-year. Further, as quotas for new salespeople scale up between months five and 12, we'll still be scaling sales force maturity, and therefore sales capacity into the second half of FY 2022. With these increases to the top line and its drivers, we are also raising our adjusted EBITDA margin expectations to between 2% and 5%. With this positive outlook on the back of a very strong set of annual results, I'm going to hand things back to Poppy to talk about what we're doing for the rest of the year. Thank you, Cathy. Now let's take a look at what is on the horizon. I'm going to do this through three lenses. First of all, Darktrace's purpose, our ambitious vision, and then strategic focus. Let me start with our purpose. To date, cybersecurity is characterized by restriction on how the workforce and business can operate. Organizations are encouraged to curb employee behavior and think twice about which new devices and platforms they bring into a business. At Darktrace, we are seeking to change the narrative. Cybersecurity can and should be an enabler. Done correctly, cybersecurity enables and accelerates business transformation rather than constrains it. Darktrace is here to help strengthen the organizations on which we all depend in our daily lives, to empower employees to focus on what they do best, and to enable executives to bring in emerging, exciting technologies all while remaining safe and secure. We are proud that our technology currently defends the organizations on which we all rely, from the NHS to power stations, government departments, supermarkets, and global shipping. Where might this take us next? Innovation is woven into the fabric of Darktrace, and our company culture encourages our employees to challenge the status quo and approach problems in a way that no one has before. We began by building algorithms based on Self-Learning AI with the ability to discover unpredictable attacks as they emerged. We then moved on to using that understanding to create Autonomous Response to interrupt attacks, minimize disruption, and keep the business running. There is more that can be done. Jack Stockdale, our Chief Technology Officer, has continued to oversee the development team in Cambridge. With the additional investments in R&D, Jack and his team have set the most ambitious technology vision in cybersecurity to date, one that transforms the way that we protect our customers from cyber disruption. As we speak, our R&D team is looking at how we can create an AI-driven feedback loop that autonomously improves and optimizes the digital business to best mitigate cyber risk. This research will drive the next phase of product development. I want to remind you of what Darktrace has excelled at to date, using Self-Learning AI to handle the parts of cybersecurity that are not only labor-intensive for humans but go beyond human capabilities. For example, responding at machine speed to stop an in-progress attack. There are two very interesting areas in cyber that still heavily rely on humans today. The first is a large services industry conducting penetration testing and red teaming. Simply put, businesses pay to be attacked to try and find out where their weaknesses are. What should then be an optimization and verification process can all too often result in big surprises and a very long to-do list of technical fixes that will likely not be completed before the next test is conducted, if ever. Take critical infrastructure, for example. A nuclear power plant is a major capital investment that is intended to operate for many decades. It is frequently impossible to fix security risks with this equipment, and it won't be replaced anytime soon. But what if, with Darktrace's breadth and contextual understanding, you're able to autonomously identify and mitigate against these risks rather than just telling you that you are vulnerable? CIOs don't need more lists of things to fix. They need businesses that become self-resilient. The second area is in cleanup or remediation. An attack, once thwarted, needs to have all the tendrils of infection removed. This is a human-intensive task that is prone to human error and insufficient vigilance. Imagine a future where this is handled by artificial intelligence that is personalized. Using its understanding of the unique fingerprint of the business as well as its understanding of how the attack happened, it can return that organization to its normal, as if the attack was never there. We see a future where this process is AI-driven to create truly continuous cyber defense, effectively a self-learning, self-healing network that can protect, defend, and heal. We are uniquely positioned to achieve this because we have this interconnected understanding of the enterprise, where each AI brain feeds into the next. This forms a continuous AI loop, a virtuous circle that amplifies our ability in each of them. We are currently creating algorithms that, based on the understanding of self for a business, can continuously test the technology and human relationships for security risks and mitigate them before they're exploited by a genuine attack. Development of this breakthrough innovation, which can be understood as our PREVENT capability, is on track, and we expect it to be released to early adopters by the end of the calendar year. This loop is much more than a couple of new products. It's one that transforms the way businesses can protect themselves from cyber disruption. Darktrace's technology is what sets it apart from not only every other cybersecurity solution on the market today, but also from other approaches to artificial intelligence. This vision is only possible because of our deep, leading expertise in Self-Learning AI. Unlike many other AI applications on the market, it does not rely on being programmed with vast amounts of training data that collect data on the average Windows laptop or cloud server, but instead, it learns on the real business on the job. Unlike other approaches, we bring our AI to the data rather than bringing data to the artificial intelligence. As we look ahead, where does this bring our strategic focus? When it comes to growth opportunity, I want to remind you that our current bottom-up TAM amounts to approximately GBP 41 billion, reflecting a substantial global greenfield opportunity. There are over 150,000 companies that would benefit from our immune system, 27x our current customer base. We aspire for every single one of these organizations to become Darktrace customers. We do not segment the market in the same way that other vendors do, and our focus is to continue delivering our technology to all organizations around the world. This large addressable market will remain our number one driver of growth for many years to come. As mentioned before, the beauty of Darktrace's AI is that it can be applied to companies of almost all sizes across all sectors and geographies, and is complementary to traditional cybersecurity solutions. As a platform-based business, we continue to see large proportions of new customers buy multiple components of our platform upfront, as demonstrated by the significant increase we've seen in the percentage of customers with multiple product deployments. Our priority has always been, and will be for the foreseeable future, winning as many new customers that we can and landing as much of that platform from day one as possible. As mentioned by Cathy, this is not your typical land and expand model. Our focus remains land, land. Next up, in order to achieve our ambitious goals and take advantage of our global greenfield opportunity, we know that we need to be adding more and more talented and ambitious people to the workforce. As I touched on at the start, during 2021, Darktrace's total number of employees increased by 45%, despite an early COVID hiring freeze. We have a well-established graduate recruitment model that seeks out bright, energetic individuals with strong educational backgrounds, and we provide extensive on-the-job training. This approach to hiring gives the company access to a largely unconstrained talent pool, reducing barriers to growth, and enables management to train and develop its sales force according to the needs of the company, and crucially, our customers. At this time of the year in the Darktrace financial calendar, we are known for launching new initiatives and refreshing our focuses. We've just completed our annual sales kickoff, delivering new messaging and training to our global workforce so they are set up for success as we head into a new financial year. Many prior years, this is also the point in the year that we look to make changes to the sales organization and structure to allow the business to prepare for the future anticipated scale. As I just described, Darktrace's key lever to revenue growth is adding more talented, bright sparks to the workforce, specifically to the sales function. At our inaugural trading update, I mentioned that we will not only be adding people to our sales force, but they will be evolving the structure of the team. This is to lay the foundations for the future and to provide us with another lever for growth. Historically, Darktrace salespeople have had the latitude to sell any kind of business in their region, and this has worked incredibly well for us, and that is evident in the strong year-on-year growth that we have sustained. After some successful small-scale experiments, we'll begin to segment the sales force according to the size of a customer's organization at the beginning of October. I want to remind you that this is not about changing the profile of our customer base. There are 150,000 organizations out there that are potential Darktrace customers, and our aim is to deliver our technology to all of them. However, this evolution builds the foundation for the future, and while there may be short-term impact to sales productivity, this more structured approach builds in optionality in terms of focus and sales motion as we scale up the company in the years to come. I'm happy that we've been able to grow our customer base by over 45% this financial year. We have built a business that can scale, but we also know that customer retention plays an important part in our future success. We are doubling down on our customer success team, the part of the business that is dedicated to providing a stellar customer experience at every stage of their journey. Having formalized the team in 2019, we know that we were slow in launching this function, and over the last financial year, we have worked hard to double the size of the team. In closing, we've delivered a strong financial performance this year whilst laying the foundation for the future. Over the last 12 months, we've added almost 2,000 organizations to our customer roster. We've grown our workforce to over 1,600 employees, and we continue to protect businesses, critical services, and infrastructure from increasingly sophisticated cyber threats. At our core, we continue to be a fundamental technology company. All of our success has been underpinned by our expertise in Self-Learning AI and innovation is at the heart of everything we do. Our priority as a business remains on those 150,000 organizations globally that can benefit from our technology in fighting back against sophisticated cyber threats. There is a long runway ahead of Darktrace, and we look forward to a continuing conversation with our investors as we execute on our ambitious goals. Thank you very much for taking the time. Thank you, Poppy, and thank you, Cathy. We're now ready to take questions. I'm pleased to let you know that in addition to our CEO, Poppy, and our CFO, Cathy, we're now also joined on the line by Dave Palmer, the Chief Product Officer here at Darktrace, who can address any technology-related questions. Operator, could we have our first question, please? Just to remind people how to ask a question. If you'd like to ask a question, it's star, then one on the telephone. To withdraw the question, please key star two, and you're also able to use Ask a Question button on the webcast. Thank you. First question comes from Benjamin May from Berenberg. Please go ahead. Hi. Good morning, all, and congratulations on a great set of maiden figures. Just two questions from myself if that's okay. Firstly is on the new PREVENT products that are shipping to early adopters at the end of this calendar year. Is that gonna ship as one product or in modules, a little bit like Antigena? Also, it would be helpful to get an understanding of how and when your sales team will start selling this product more extensively. For example, are they gathering pre-orders at this stage, or are you waiting for early adopter feedback before doing so? That's the first question. I know a little bit long-winded. Sorry about that. Second question is just about deal values. If I look at net new ARR added in the second half and the number of customers added, it looks like deal values have jumped. What's driving the success? Is it pricing? Is it customers taking more product at the outset? Just a little bit more color on that would be helpful. Hi, Ben. It's Dave. Thank you for the questions. I'll begin with the future products. I would definitely expect modules to be the way that we think about packaging up the PREVENT products. As you know, we really aim for Darktrace to be able to cover an enormous breadth of a customer's business and to be applicable no matter what types of technology that customer has adopted. There really isn't a one-size-fits-all deployment of Darktrace, and I wouldn't expect that to change for PREVENT. Of course, it is all the same underlying AI underneath, but we do need to make sure we fit to whatever the customer's different needs are. When will we start selling it? We're absolutely not enabling the sales force right now. There's more work to be done on the development side. We're really excited about it, as is the sales force, but I would expect that to be happening in the next calendar year. Ben, it's Cathy. Jumping in on the second question. That's very helpful. Thank you. Let me jump in on the second question you had about deal values increasing in the second half. One of the things that we've talked about before is that when we first rolled out Antigena Email as a standalone product, we were tending to sell it to smaller customers in smaller deals. That has consistently risen over the course of the last year. That was pretty much the first quarter of 2021. We've seen a consistent rise in the value of those contracts since then, and that's really the impact of what you're seeing. What you're seeing now is that being restored to the fact that there isn't much difference between an Antigena Email contract or one that has Antigena Email embedded in it. That's the effect. Okay. That's very clear. Thank you very much. Thank you. Next question comes from Charles Brennan from Jefferies. Please go ahead. Great. Thanks so much for taking my question. I just wanted to ask a question about the competitive backdrop, actually. You're obviously first to market with your AI-driven approach to security. I was just wondering how competitors are responding to your success at the moment, and particularly, can you say something about Vectra and ExtraHop? They seem to be getting more visible to investors at the moment. They've obviously been through private equity sponsorship. I think a lot of investors are assuming that they're going to get greater access to invest in sales and capabilities. Can you just talk about what you're seeing from them in the field at the moment? Thank you. Hi, Charles. Dave again. Thanks for the question. We talked about this quite a lot in the IPO and in the preparations and in some of the formal documents. No change since then. We rarely encounter competition in deals. We very rarely lose to competition. We just don't see these organizations catching up. They're very much still point products. They don't have the breadth that we have in terms of being able to operate in the email space across all types of cloud, not just a certain vendor. The industrial environment can't be supported by those technologies. These things are all a testament to the fact that those technologies aren't actually able to learn on the job and be broadly applicable in customer environments. When you add on top the lack of Autonomous Response, no ability for these products to react to attacks that they don't know about and interrupt the incident before it comes into a crisis, we find it very easy to differentiate ourselves from them and maintain the prices that we want to sell our products at. No changes, and a pretty good place to be. Great. Thank you. Just a small follow-up. It sounds like when you're doing the proof of concept, finding potential problems in 77% of instances, that sounds like that percentage has ticked higher. Are you finding greater flaws in systems, and is that an indication of how sophisticated attacks are getting these days? At macro level, things aren't better in cybersecurity than they were a year or several years ago. It's headline news, the damage that is happening to organizations and the substantial modernization changes that businesses have been through, partly triggered by the pandemic or remote working, et cetera, has frankly created more opportunity for criminals to do harm. I think the threat environment is worse. That's reflected in that uptick of about 3% in us finding truly significant issues during the PoVs. That's not about run-of-the-mill problems in an organization. We define it essentially as would our CISO be on the phone immediately taking action if they receive that report? We can really help, and we prove that during the PoVs. AI works immediately to deliver value for the customers, and that's fueling our success. Great. Thanks so much. Thank you. The next question is from Alex Henderson from Needham. Please go ahead. Thank you very much. Just a simple one to start off with. Do you have the fully diluted share count as if you were profitable? We need that data for valuation purposes. While you're looking that up, obviously there's a number of moving parts here in the sales organization. Broad sales capacity, the realignment headwind. You talk about the improvement of productivity. Can you give us some raw data around the sales capacity additions, what your expectations are? Excluding the customer success additions, just raw sales capacity additions, so that we can get some gauge of what the expectations are for hiring in that sales force over the course of FY 2022. Hey, Alex, it's Cathy. We're not giving sort of direct productive sales force numbers. Where we are is that we are looking for productive sales growth on a year-over-year basis to get back to where it was pre-pandemic. Let's talk March of 2020 kind of timeframe. By the middle of this fiscal year, the end of December. The one caution that I would give is that in looking at it on a productive sales heads basis, remember that while people get quota, are productive after month five or after month four, in month five, their quota scales up between months five and month 12. What you actually have is a little less actual sales capacity until they pass their year mark. They're into the second half of this year. We will still have a maturing sales force component, even though that growth rate should have gotten back by around mid-year. The other thing that I want to remind you is that we've layered on top of that some conservatism for this sales force evolution that we're in the process of. We would be remiss if we did not assume that as we ask people to make some changes, there is some impact there. I think you should think about that sort of more in the, we catch up on the first measure in mid-year. There's still some capacity catch up in the second half, and then we have this overlaying piece for the evolution Poppy has talked about that kicks off in October. With regard to your fully diluted share count, we will have to do some estimates for you because quite frankly, since it doesn't apply to us, we don't bother to go through the treasury method calculations, which are quite extensive. If you'd like us to help you get to an estimate, we'll certainly help you do that offline. Okay. Just going back to the sales organization staff increases. Can you give us some conceptual frameworks for how you're thinking about the magnitude of that, at least? Do you think that your sales staffing level will increase comparable to your revenue growth rate? Somewhat less than that? How are you thinking about the strategy around that? Are you trying to drive consistent growth at this level? Would something slightly less than that be inappropriate, given that net sales capacity is a clear one to one correlation to your growth rates? The other thing that I think I would add to this is, you'll recall one of the things we've said about how we think about this going forward is that we do think over time that on an individual sales head basis, that sales capacity does decline or sales productivity on a relative basis does decline somewhat over time. The reason for that is that we have a sales force who is not only responsible for new customer sales but is also responsible for renewals and upsells. Therefore, the larger we get and the more mature our sales force gets, the more existing customers they have responsibility for, and we have to take that into account as to how they're spending their time. Okay, one last one. Alex, yes. I'll cede the floor. The R&D side of it, very sharp increases there. Could you talk about the importance of that R&D hiring and the stickiness of your staffing around that? Thanks. Why don't I start on that one and then maybe if Dave wants to come in, I don't think I have a key product to represent. I think the key thing for me there is you've seen there that we've increased our headcount by almost half across the R&D as a whole. We've almost doubled that real core, the R bit, if you like, of the R&D. That's where that sort of real deep self-learning expertise exists, and we're sort of really doubling down on that as we think about those sort of future product sets that we talked about. We have all of our R&D team are based in Cambridge, where I'm sat today, in fact, and we don't have any trouble attracting some of the best talent that is available. We are world leaders, if only, and we're very unique with regards to that approach in Self-Learning AI, and that's something that's attractive to people that are interested in AI. When you think about the fact that we are solving a very, very real and relevant problem with cybersecurity, we certainly don't have any troubles to attract and retain the talent. It's a very different situation here in the U.K., I think, to perhaps what some organizations are seeing elsewhere, such as in the U.S. Alex, I'm going to jump back in quickly. Just to your diluted share note, can you take a look when you have a chance at note number 13 to the accounts, which has some discussion of that, and let me know if that doesn't answer your question. Great. Thanks. S orry. Would it be okay if I added just a little bit more color on the R&D point there, Alex? That's fine. Okay. The important for me to get across, we've never been constrained by R&D spend. We have significant number of products. We're only eight years old. I think our breadth rivals companies that are far older than us, and it's all been done organically in-house. We are not spending to catch up. What we are is excited about the large number of ideas that we've got for the future. We didn't want to have to develop those sequentially when we could expand the team and run with many more of these ideas in parallel. That's absolutely brilliant. It's brilliant for the long-term health of the company. We do have these wonderful ideas, and they will pull through. As we've said a lot in the past, our R&D efficiency, we believe, is a reflection of that ability to reuse the Self-Learning AI again and again to create new products. We don't have to start from scratch. We pretty firmly believe that you will start to see more companies with that sort of shape as the AI era really takes hold and moves forward. Thank you. Thank you. The next question comes from Harvey Robinson from Panmure Gordon. Go ahead. Hi, guys. Thanks very much for taking the call. Just to follow on the questions, I suppose, driving at the sales productivity dynamics, if you like. You're clearly not giving us the productive sales capacity numbers you had given us, but we can all take some guidance from elsewhere. You've previously been quite clear about what salespeople are expected to do within the business. Certain number of meetings per month and certain number of PoVs. I know you haven't given us a conversion rate of PoVs, but could you talk to the sort of conversion rate trends you're seeing within your sales force? Then I've got a couple of related questions on churn and net ARR retention. Hello, Harvey. It's Poppy here. Let me take that. Hi. You're right. We do have some very clear expectations for sales force, and we talked earlier as well about how we're evolving the sales force, but the whole time, those expectations will still ring true. I think those principles of understanding, we have meetings and then Proof of Values, those fundamental principles will remain even as we evolve that sales force structure. We don't disclose the conversion ratio on our POVs for a very good reason, which would be there would be the adverse consequence, I think, where you could optimize that number by just doing fewer POVs. It would be sort of if you measure perhaps too closely, the natural tendency will be just do fewer of them, convert more of them, you're able to manage the number up, and that would be overall damaging to the organization because many, many prospects out there will become convinced of the value of Darktrace once they see it working within their environment within the PoV. We want to encourage people to take PoVs and not pre-qualify those. That's why we don't disclose that conversion ratio. At high level, what I can tell you is that it has stayed relatively consistent throughout the pandemic and beyond, and we are pleased with where that is, and I think that's very encouraging as we start thinking about how we bring in more of those salespeople and get them productive quickly. Okay, thanks. Just on the churn and net retention, if I understood you correctly, you're saying your churn is higher with a smaller customer cohort. Obviously as you evolve with your ARR, does more of it become focused on larger customers? Although the churn may stay at that relatively high level versus some of your peers, does it actually naturally drive your net retention higher without your customer success team's involvement? Obviously, that's additive and good to hear, is there a natural trend higher in your net retention given the customer mix changes? I actually don't think we're expecting to see customer mix changes. What you saw from FY 2020 to FY 2021 was that the percentage of customers and the percentage of revenue generated by accounts that have over and under GBP 100,000 in ARR remained exactly the same. While we are going through this sales force evolution, the purpose of this is not to change what our composition of our customer base looks like. It's to provide us optionality and levers to pull for future products or future situations that may have some application. The reality is we don't know, with 150,000 potential customers, whether the next 2,000 will be larger or smaller, what combination of products they will buy or any of those things. We are not looking at this as anything that is going to change the composition or the characterization of our customer base. We don't see that happening. From our perspective, while indeed larger customers do have lower churn than smaller customers do, it's not something we're anticipating to have any impact on our business over the foreseeable future. Thank you. Could I ask a final question? You've talked before about new markets and verticals, if you like, outside of the core cyber area, which you're obviously clearly tackling with an exciting product. Which area do you think is most suited? Thanks, Harvey. From my perspective, we are leaders in Self-Learning AI, and today we are using that capability to solve the very real and relevant problem of cybersecurity. There are, as you've alluded to and we spoke about during the IPO, there are so many other business challenges that could be solved given our breadth of coverage and our understanding of what normal looks like for that given organization. In the near term, especially as you think about the performance of the organization across the next 12 to 24 months, that investment in terms of the R&D is going to be very much cyber focused, albeit extending the capability, so you've got more opportunities to spot the attacks at different stages, whether that's at the prevent end that we talked about or at the heal end and sort of in terms of remediation. Certainly in the near term, you should be thinking about this as very cyber focused. Okay. Thank you very much. Thanks for your quick answers. Thank you. Operator, we have time for one more question if there is one, please. Thank you. There are no further questions at this moment. I'd like to hand back to Luk Janssens for his concluding remarks. Great. Thank you all for your interest in Darktrace. I'd like to remind you that on our investor website, which is ir.darktrace.com, we today published our annual report for FY 2021 in addition to the earnings release and accompanying video. If you do have any follow-ups, please get in touch with me on luk.janssens@darktrace.com, I will also respond to any inquiries submitted through this webcast. Enjoy the rest of your day. Thank you.