Hello, ladies and gentlemen, and welcome to Darktrace PLC's full year 2022 results. I'm Luk Janssens, Head of Investor Relations. I'm joined by Poppy Gustafsson, our CEO, Cathy Graham, our CFO, and Max Heinemeyer, our newly appointed Chief Product Officer. Together, they will present for 30 minutes, after which we will conduct a question and answer session. We welcome questions from participants using the chat function, and you can start submitting them throughout the presentation. Here is a disclaimer which you can review, but now let me hand over to the CEO of Darktrace, Poppy Gustafsson, to open the presentation. Over to you, Poppy. Thank you, Luk, and welcome everyone to this call. I want to start by acknowledging the recent news that the offer period that commenced in August has now closed. As a reminder, in early August, we received an unsolicited approach from Thoma Bravo, and in keeping with our fiduciary duty, exploratory conversations followed. Thoma Bravo is a well-respected organization with a number of cybersecurity investments, and it is no surprise that our world-leading technology caught their eye. However, I firmly believe, and so does our board, that we still have so much more value to bring to this business as an independent company. We have a set of world-class technology products with enormous potential and a business full of brilliant people. We're executing against a very large total addressable market, as cybersecurity is now a must-have for any organization. Just a reminder, we have more than delivered on all of the key financial metrics that we set out at the IPO. We were the most successful IPO on the London Stock Exchange during 2021, and today we are one of Europe's fastest growing technology companies, and that was just year one. With that, let's turn to our full year financial results, marking the end of our first year as a public company. We have been very busy and that hard work has paid off. What a fantastic year it has been. We've delivered a strong financial performance in the second half of the fiscal year. 46% revenue growth, 43% constant currency ARR growth. The business is delivering over $500 million of ARR. We have over 7,400 customers globally, and we're delivering this stellar growth profitably with an adjusted EBITDA margin in FY, in FY 2022 of 22%. In addition, I'm also pleased that these better than expected headline results are accompanied with improving KPIs, lower churn and higher net retention rates. Today, we are reiterating our guidance for FY 2023, meaning we expect year-on-year constant currency ARR growth of 31%-34% and an adjusted EBITDA margin of 15%-18%, reflecting the strength and profitability of our underlying business model. My personal highlight was the launch of our new product family, PREVENT. As we're hearing from customers, this is exactly the right product at the right time, as business leaders are increasingly looking for ways to prevent business disruption while lowering costs and maintaining compliance. Max will be talking more about this terrific reception we're receiving from early adopter customers later on. PREVENT is a major component of our vision for a Cyber AI Loop, and it's an important milestone in our long-term technology vision. The loop is an always-on feedback system with deep, interconnected understanding of the enterprise. It creates a virtuous cycle in which each capability strengthens and hardens the entire security ecosystem and allows organizations to not just prevent, DETECT, RESPOND, and HEAL from cyberattacks, but to do all of these all at once and all of the time. Cyber AI Loop has always been an ambitious technology vision, something that has never been done before in cybersecurity. With the launch of PREVENT, we are another step closer to achieving it. The reason that we at Darktrace are uniquely positioned to deliver this vision is because every component of the loop is underpinned by Self-Learning AI, Darktrace's real USP. Self-Learning AI knows you. While the majority of the cybersecurity industry takes an outside view on risk by focusing on the attacker and historical attack techniques, we understand the risk from a different perspective. By first understanding you and your organization, our technology learns what normal looks like, and then uses that understanding to rapidly and autonomously spot and stop attacks which have never been seen before. Based on mathematical models and unique to each organization, Self-Learning AI delivers always-on, continuously evolving security, which is complementary to other defense solutions on the market. Taking a step back to look at the broader threat landscape, cyber is no longer just the focus of IT professionals and cybersecurity CEOs such as myself. It is one of the biggest threats to modern society. Our world is a digital one. Our communications, our power supplies, logistics, water, and critical services, they're all provided by organizations that are built upon digital foundations. We assume that those foundations are resilient. Increasingly, those assumptions are being challenged. Over the past year, we have seen several cyberattacks with substantial repercussions on businesses, governments, and people around the world. Without doubt, the most high-profile crisis in the last year has been Russia's invasion of Ukraine. While this was not the big bang cyber event that many were expecting, damage has still been done as we see a dripping tap of cyber warfare being repeatedly used to erode societal structures and support the physical invasion. The geopolitical landscape has heightened the urgency for all organizations to proactively mitigate cyber risk, as the threat of nation-state attacks looms larger than ever, and as the consequences of mass scale cyber conflicts are felt more broadly. The reality is that today there is a constant flow of major cyber incidents threatening to impact critical infrastructure and global supply chains, and to stop people and businesses from getting on with their day-to-day. Adversaries continue to innovate, and the next wave of cyber offensive capabilities is already taking shape. In this context, it is no surprise that the security teams whose job it is to defend their organizations are busier than ever. Conventional cybersecurity solutions typically result in long checklists that must be addressed manually and are therefore often neglected by overstretched security departments. Their digital territory is bigger than ever, with more threats than ever before. In July 2022, our team of analysts studied the external vulnerability data of over 150 organizations and found that 85% of high-risk vulnerabilities are not patched within one week, and 70% are still unpatched after one month, leaving organizations exposed to attack. This isn't because security teams are not doing their jobs. It's because these defenders simply do not have the resources to fight on every front all the time. This brings us back to Darktrace PREVENT, one of the most exciting developments in our recent product evolution. With PREVENT, we are enabling our customers to proactively spot vulnerabilities before attackers get to them, and subsequently harden the business's defenses inside and out to ensure these vulnerabilities are not exploited. This technology has the power to transform the way the industry thinks about cybersecurity, and our customers are telling us how excited they are about the potential of PREVENT. Let me now hand over to Max, who has been spearheading our efforts in this area. Thanks, Poppy. I wanted to start off by reminding everyone what we set out to do with PREVENT. PREVENT is the culmination of years of R&D in our AI research center in Cambridge. It's a completely new product family, and built on top of that understanding of self of the business that Poppy just talked about. PREVENT identifies the critical assets and applies an attacker's perspective. How could this be hacked? This knowledge allows organizations to prioritize security assets most efficiently and wrap protection around these issues by feeding back into DETECT and RESPOND. This reduces risk proactively. We're making the job of a cyber attacker much harder. I know this because I started my career as a white hat hacker or ethical hacker myself. PREVENT consists of two products. There's PREVENT End-to-End, or E2E, and PREVENT Attack Surface Management, or PREVENT ASM. These are breaking new ground in the industry, and they are all about feeding back into the loop to reduce risk for our customers. E2E, on the one hand, delivers continuous visibility into the most vulnerable and critical attack paths within an organization. To our knowledge, there's no product with this breadth of capabilities. E2E crucially feeds into DETECT and RESPOND. On the other hand, there's Attack Surface Management, or ASM, that continuously monitors an organization's external attack surface for a diverse set of risks such as shadow IT, unwanted exposure, high impact vulnerability, and many more. It is establishing itself as a strong market category at the moment and is well known to security professionals. We've been really pleased with how the rollout has gone since PREVENT was made generally available in August. At the major cyber conference Black Hat in early August, I had the pleasant opportunity to talk to peers, fellow hackers, customers, and prospects about PREVENT, and the feedback has been very positive indeed. For several days, we presented PREVENT to customers and prospects, had discussions, and showed demos on how the product works. This really demonstrates to us that we're striking a chord here. Security teams want to become more proactive but haven't found the right solutions yet. We have exactly what they need. With PREVENT, we can finally tell customers what needs protecting the most and what the impact of a compromise can be by taking our Self-Learning AI and overlaying the view of an attacker. For example, for one organization, we discovered that a new product they were working on was exposed to the internet on their attack surface. They were completely unaware of this. This was a brand and business risk that went straight to their executive team. For another organization, Darktrace had learned the organization from the ground up, and we immediately saw that one of their mid-level IT people stood out from all of the rest. He had an extreme overload of permissions. That person could basically do anything, anywhere in the organization. The person was also susceptible to social engineering, which we validated with an AI-generated social engineering attack straight away. We basically showed within minutes that the organization could burn to the ground easily if an attacker hit this one person. They were aware of their permission problem, and we showed them that it's not just a theoretical risk. That desire to become more proactive is also broadly reflected in our customer base. We've got the longest list of opt-ins that we've ever seen, and it's still growing. We've closed a number of PREVENT deals already, even though it's only been available for the last month or so. I've personally never seen as many jaw-dropping moments in my career in sales meetings as I've seen with PREVENT. Don't just hear it from me. Here you can see some of our customer testimonials. We are excited to continue rolling PREVENT out to both new and existing customers, transforming the way that organizations are able to protect themselves from the threat landscape we are dealing with today and tomorrow. With that, I pass it back over to Poppy. Thank you, Max. As you can hear, we are super excited about the potential of PREVENT to transform our customers' approach to security. Brilliant products like this are the outcome of hard work from our teams in our AI research center in Cambridge, and increasingly from our secondary R&D center in The Hague, after our acquisition of Cybersprint earlier this year. The team's headcount there has gone up by nearly 30% and now comprises over 150 experts in disciplines from mathematics and astrophysics through to linguistics and data science. It boasts over 80 master's degrees and 30 doctorates, and under Jack Stockdale's leadership, the team is relentlessly interrogating how AI can be applied to real-world problems and augment human capability. Today, we have filed more than 150 applications, with over 30 of those already issued as a result of their efforts. This team has continued to improve our existing products in the second half, adding an early warning system to Darktrace RESPOND, which allows members of the Darktrace community to contribute and to benefit from insights gleaned from across the fleet. We also expanded our DETECT and RESPOND capability to zero trust technology. What else have we been up to? I also want to talk a bit about our customers and other updates. We are proud to be protecting over 7,400 organizations today, helping them to regain the upper hand in the battle against an ever-changing threat landscape. Not only did we improve and expand our product set for existing customers, but we continued to grow our customer success team, which is focused on ensuring customers have the best possible experience with Darktrace. This is reflected in the 2.8 percentage point increase in the net ARR retention rate from 103% to 106% in the period. Understanding our customers is important to us, and so we commissioned an independent research organization to survey cybersecurity experts to understand what their experience of Darktrace has been like. I'm really proud to say that the data shows that 90% of customers surveyed found that our technology is more effective at identifying threats than other solutions have been. Respondents highlighted how our technology helps teams with limited resources to scale their efforts, particularly in big global organizations, as well as the breadth of use cases we are able to address and how passionate our team is about the technology. Even more importantly, we are also using the results of the survey to identify areas of improvement so that we can do an even better job for our customers in continuing enhancing our value proposition. I'll pass over now to a very happy customer, Gregory Smith, Chief Information Officer at American Kidney Fund, who uses Darktrace's technology to stay secure. My name is Gregory Smith. I am the Chief Information Officer for the American Kidney Fund. What we do at the American Kidney Fund is we fight on all fronts to, you know, to help protect the 37 million Americans with kidney disease and millions more that have hidden symptoms of kidney disease. Darktrace is applied for our email system enterprise-wide, our Microsoft 365 environment, including our Teams collaboration platform for every license and every mailbox across the enterprise. It's a pretty comprehensive footprint of cybersecurity protection. CIOs have got to start thinking offensively instead of defensively, and Darktrace is one of the tools that we employ in our arsenal to do just that. What Darktrace was able to identify and block and allow us to block through configurations, especially at the GeoIP blocking level, was substantial, and it was a game-changer decision for us to select Darktrace over the other provider. The MDR algorithms out there take a collaborative approach for collecting risks, piping those up into a centralized cloud database, and leveraging that database for agent-based actions. Darktrace takes a very different approach, and now I understand why it's such an effective tool. It takes the approach that every customer environment is its own AI database, and it leverages the knowledge to hone a faster algorithmic response. Darktrace's algorithms are focused on one thing, and it's your organization. It's not any other organization, it's yours. It learns faster, it adapts faster, it morphs faster. What Darktrace does for us is it saves us an immense amount of labor and time that my team doesn't have to spend keeping our platform safe. You know, computer scientists throughout history have written algorithms to make things that are manual much more automated and much more efficient, and Darktrace's engineers have done just that with regards to the risks of cybersecurity. Thank you, Gregory, for that. We've always had a very diverse customer base, and this year was no different. We added 1,800 new customers to our roster across a huge range of sectors. We closed a number of significant organizations in the sporting industry through to the aviation sector, healthcare providers, global semiconductor suppliers, and manufacturing giants. Every customer win represents a step forward in capturing the significant total addressable market ahead of us and means that we're getting closer to fulfilling our mission of freeing the world of cyber disruption. Outside of what's happening on the product and customer side of things, I wanted to take the chance to talk to you today about other exciting developments happening across the business. Earlier in the year, we announced that we were launching Darktrace Federal, a new division to serve the U.S. Department of Defense, the U.S. Intelligence Community, and national critical infrastructure providers. The team is based in Reston, Virginia, and both experts in critical infrastructure and former members of the U.S. Intelligence Community. We've appointed Marcus Fowler as Darktrace Federal CEO. Marcus spent 15 years at the CIA developing a global cyber operation and has been part of the Darktrace team for several years. Finally, some of you will remember from the PREVENT launch that we have conducted a thorough review and update of our brand and positioning as a result of our expanded product portfolio and subsequently updated our brand proposition, including how we convey the value of our technology and the commitment that we make to our customers. We're really pleased with the new positioning, which better reflects our product set and highlights the contribution that our technology makes to society. You'll see this new proposition reflected in our brand-new look and feel, including the launch of our newly designed website. Now, before I come back to talk about our immediate business priorities, I'll pass on to Cathy to go through the financial review. Thanks, Poppy. I'm pleased to be here sharing both our final FY 2022 results and additional detail around our expectations for FY 2023. Before we move to the year's numbers, however, I want to address two things you should understand before reviewing our results. First, for customer ARR and ARR-related measures, we've recast the impact of Cybersprint to report these measures as though it had been owned in all periods presented. We've done this to improve comparability, particularly in the second half of FY 2023, by reflecting all Cybersprint customers and ARR added at the contract date rather than at the acquisition date. Second, in preparing our FY 2022 results, we determined that GBP 3.8 million of the revenue we were recognizing in FY 2022 was related to prior periods and should more appropriately be recognized in FY 2021. This difference was discovered after, in the second half of the year, we enhanced our revenue reporting systems to allow us to analyze contracts at a more granular level. This identified a limited group of contracts, largely contracts that had post-commencement modifications, where a portion of the contract revenue should have been recognized in prior periods. As a result, we've reallocated approximately GBP 3.8 million in revenue from FY 2022 to FY 2021, reducing revenue recorded in FY 2022 to GBP 416.5 million from the GBP 419.2 million that we otherwise expected. However, as FY 2021 revenue is increasing by the same amount, the combined revenue of FY 2021 and FY 2022 remains unchanged. Most importantly, we didn't find any differences in total revenue across these contracts. This adjustment was made solely to correct the timing of revenue recognition and ensure proper revenue recognition going forward. Further, this adjustment has no impact on ARR or its related measures, cash position, or the US dollar value of Darktrace's FY 2023 guidance. Turning back to our FY 2022 results, Darktrace continued to deliver strong growth across our customer base, ARR, and revenue, as well as delivering and maintaining the improvements to key customer and contract metrics. At GBP 416.5 million, the FY 2022 revenue grew by 45.7% over the adjusted prior year, with more than 99% of our revenue continuing to come from subscription sales. This, combined with our multi-year contract structure, creates significant RPO or contracted backlog, which at over $1 billion was up 31.5% over the prior year. With ±80% of our annual revenue typically being in RPO at the start of the financial year, we maintain a high recurring revenue base and significant revenue visibility. To drive continuing top-line growth, we focused the business on expanding constant currency ARR. During FY 2022, we delivered net ARR added of GBP 153.7 million, 36.8% greater than the prior year, increasing our constant currency ARR by 42.6% year-over-year to GBP 514.4 million. In a reverse of our FY 2021 experience, when ARR growth in US dollar terms outpaced that in constant currency, the significant foreign exchange headwinds in the last half of the year had our constant currency measures coming in ahead of the US dollar equivalents for FY 2022. USD ARR ended the year at $484.9 million, for 34.4% year-over-year growth. Growth in our ARR measures continued to be driven primarily by the addition of new customers. Year-over-year, we added 1,808 net new customers, a 32.1% year-over-year increase. We also saw movement in other new and existing customer contract metrics. Year-over-year, the average ARR of new customer contracts increased by 13.4%, and combined with significant year-over-year ARR uplift per existing customer resulted in a 7.9% year-over-year increase in average contract ARR across our customer base. We continued to sell across a broad range of customer and contract sizes, however, driven by the period-over-period increase in average contract ARR, our account distribution shifted slightly towards larger accounts. For FY 2022, 52% of ARR came from the 17% of customers with ARR of more than $100,000, compared with 49% of the ARR from 15% of the customers in FY 2021. Key to this shift was a continued deepening of product penetration. At the end of FY 2022, 69.3% of our customers had three or more products, and 46.4% of customers had four or more. This reflected a year-over-year shift towards 3+ and 4+ products of 7.4 percentage points in both categories. Subsequent to year-end, we launched the first two products in our Prevent family, bringing our product set up to 12. While our customers still buy most of their products from us upfront, we've strengthened our upsell focus over the past year, and these new products should further support both upfront and upsell product penetration. With our half-year report, we told you that one-year growth churn and net ARR retention rates had significantly improved year-over-year. As the smaller end of our customer base stabilized after early pandemic impacts, our customer success team reached the scale and maturity to influence results, and we continued to focus on upsell activity. I'm pleased to say that in the second half, those improvements have largely been maintained. At year-end, and after adjusting for the retrospective treatment of Cybersprint, one-year constant currency growth ARR churn was 6.5%. This was a 1 percentage point improvement year-over-year, though a slight 0.2 percentage point worse than at mid-year. As we've said previously, with churn now in the sixes, we expect it to fluctuate within what we see as the normal operating range for the profile of our customer base. Remember that while a ubiquitous platform gives us a large addressable market and long sales ramp length, the resulting smaller average customer size means that growth ARR churn will naturally be a bit higher than vendors who specifically target larger enterprise. That said, retention has been holding among our smaller customers as we've expanded our ability to manage and demonstrate value in those relationships. Our churn has continued to benefit as we've delivered larger contract values and deeper product penetration where retention tends to be higher. In addition to maintaining an appropriate one-year growth churn for the profile of our customer base, we have continued a steady focus on upsell activities. This resulted in a net ARR retention rate at year-end of 105.5%, a 2.5 percentage point year-over-year improvement, and after adjusting to reflect Cybersprint on this retroactive basis, 0.3 percentage point better than at mid-year. While our primary focus remains on new customer acquisition, as our customer base continues to grow, it makes more and more sense for us to increase the attention we pay to existing customer product adoption. We've already talked about revenue, so now let's spend a few minutes on cost trends and their impact on profitability. For FY 2022, gross margin stayed within our expected range, but declined by 0.8 percentage point versus the prior year. This was largely driven by an increase in hosting costs as we expand and drive sales of our cloud-based offerings, and our customers continue to work in hybrid environments. We are continuously looking for technical efficiencies in our deployment costs, and with respect to cloud costs, have negotiated volume-based arrangements that will allow us to take advantage of unit cost efficiencies as we grow. In aggregate, FY 2022 operating expenses remained below our initial expectations, largely because of three factors. First, travel and entertainment expenses were slower to return than we had forecasted, though they did pick up meaningfully in the second half of the year. We believe these costs are still scaling, and we have a way to go before they reach normal rates of growth relative to the growth of our business. Second, it took longer than expected to recontract many of the offices we let go during the pandemic and to get our staff back on site. We believe these costs have now been fully restored, and except for periodic step functions inherent in opening these key new or expanded offices, we believe facilities costs should now scale in line with our business. Finally, we were below planned staffing levels for much of the first half, though we have since largely caught up to our year-end expectations. Within our operating cost categories, we pay close attention to other operating costs, which excludes T&E, facilities, and share-based payment costs. This removes the impact of costs that are currently volatile, in transition, or out of our control, and allows us to more readily assess whether our recurring cost movements align with our goals. In sales and marketing, these core other operating costs, which made up 84% of the total expense category in both FY 2022 and FY 2021, remain a bit lower than we typically expect due to the three factors we just discussed. That said, these factors were not the major driver of the 8.7 percentage point reduction in these costs as a percent of revenue. As we continue to leverage our expanding customer base and multi-year contracts. The economies of scale we're driving and customer acquisition costs are being reached. In R&D, these other operating costs, which made up 64% and 55% of the total category expense in FY 2022 and FY 2021 respectively, increased by 1.3 percentage points as a percent of revenue between the periods. This increase was driven by a 45.4% increase in staffing costs because of both an increase in the weighted average number of employees by 28.1% and retention-related compensation changes across this key employee group. Hiring into our development and broader R&D teams remains a core focus of the company, and the capabilities gained through the acquisition of Cybersprint in March of this year represents a significant step in our R&D expansion. In other administrative expenses, these operating costs, which made up 71% and 77% of the total category expenses in FY 2022 and FY 2021 respectively, decreased by 6.8 percentage points as a percent of revenue. This decrease was driven by economies of scale that are now emerging after a period of expansion preparing for our IPO and to absorb public company costs. I'll remind you that our customer success group sits within this cost category, so continued investment in this area is partly offsetting economies of scale emerging elsewhere. Additionally, most early investments in our new U.S. federal division are also captured in G&A, further offsetting some economies of scale. Relative to the prior year, FY 2022 share-based payment charges increased in aggregate, largely reflecting a full period of costs for private to public transition schemes put in place at IPO. Movement in these charges across our cost categories are related entirely to the type and timing of prior grants and their related vesting, not to any policies or practices around who is eligible to participate in our current plans. For FY 2022, we reported a net profit of $1.5 million, a $147.3 million improvement from the net loss reported in the prior year. While economies of scale were a part of this shift, the biggest factor was a GBP 106.4 million reduction in finance costs between the two periods. In FY 2021, we recognized non-cash finance costs related to GBP 163 million in convertible notes, the proceeds of which were primarily used to buy back shares as a part of restructuring our ownership before listing. The notes converted upon IPO and the related non-cash charges stopped, so in FY 2022 we had only a normal level of bank charges, letter of credit fees, and other operating finance costs. For anyone who wants to dig deeper into our cost trends, we've provided a schedule showing additional cost breakdowns and their period-over-period movements in the appendix to this presentation. One of the core features underlying our business model is that multi-year contracts create increasing levels of committed revenue backlog. This has continued to underpin the scale efficiencies that drove year-over-year improvements across all our earnings measures. Year-over-year, adjusted EBITDA increased by 173% to GBP 91.4 million, an adjusted EBITDA margin of 22%. We continue to see economies of scale across the business, but particularly in sales and marketing, where we recognize continuing revenue from prior period contracts, though a significant portion of the cost of acquisition was incurred in those prior periods. With respect to the add backs used to calculate these measures, we've presented our adjusting items here by cost category. As a reminder of what we told you at mid-year, we booked a catch-up adjustment in the first half of FY 2022 to reflect our decision to capitalize the share-based payment charges related to other capitalized R&D labor now that those amounts have become material. Lastly, we're now providing a free cash flow measure with our annual results and have established our FCF definition based on those used by similar companies. For FY 2022, free cash flow increased by 290.2% to GBP 99.5 million, driven by the economies of scale and other factors we discussed that improved our earnings measures. This represented approximately 108.9% of adjusted EBITDA, which is above our stated 90% target within a typical 75%-105% range. We provide this plus or minus 15 percentage point of target range because we know that in any period, free cash flow can vary significantly because of invoicing, collections, and other cash flow timings. Now, with our audit of FY 2022 now complete, we are confirming the expectations for FY 2023 we provided in our July trading update. Let me first remind you that for purposes of reporting constant currency ARR and related measures, we have reset our constant currency rate and opening ARR balance for FY 2023. At FY 2023 rates, we had an ARR balance of GBP 484.9 million at 30 June 2022, which is what we'll measure constant currency ARR growth against for FY 2023. In maintaining our previously stated FY 2023 guidance, we are continuing to monitor the strong demand for cybersecurity products balanced against the uncertainties inherent in the current global economic environment. For constant currency ARR, we confirm our expectations for FY 2023 year-over-year growth of between 31% and 34%. Measured against our final FY 2022 numbers, this implies year-over-year growth in net constant currency ARR added of between 4% and 14%. Driven by our ARR expectations and based on our final FY 2022 revenue, we are increasing our FY 2023 percentage growth expectation to between 30% and 33% for revenue. This maintains the US dollar revenue expectations for FY 2023 that would have been derived had revenue we were recognizing in FY 2022 not been reallocated to FY 2021. I'll also remind you that our revenue growth expectations incorporate the impact of significant exchange rate movements in late FY 2022. Besides this impact for you, our guidance represents approximately 4%-5% less revenue and 6-7 percentage points lower revenue growth than we would have been presenting if monthly exchange rates were equal to those in effect in FY 2022. This impact will be particularly apparent in year-over-year growth comparisons for the first six to nine months of the year, which are expected to be dampened by the significant year-over-year movement in sterling and the euro relative to the US dollar. As a reminder, our business has significant net ARR added seasonality across the financial year and typically experiences softer first quarter sales and new ARR generation. Because of the high percentage of each financial year's revenue that is under contract prior to the start of the year, however, these seasonal patterns do not apply to revenue. Additionally, in line with previous patterns, we currently expect that approximately 45%-46% of both constant currency net ARR added and revenue will be recognized in the first half of FY 2023. This pattern should be further supported by our recent launch of the first two products of the PREVENT product family for both new and existing customers. We anticipate these will begin to contribute positively to our growth and net retention results starting in the second half of this year. Turning to profitability, we are confirming an expected adjusted EBITDA margin for FY 2023 of between 15% and 18%. While we expect to maintain many of the true economies of scale evident in our 2022 financials, please remember that as well as having to reflect the current exchange rate environment, we are also bridging from FY 2022, where travel and entertainment, facilities, and other costs were suppressed by pandemic restrictions for a large portion of the year. Moving through later FY 2022 and FY 2023, restrictions have been released, and we see these costs returning, but now further burdened by inflationary pressures across our economy. While we acknowledge that these overarching economic factors may be with us for a while, we do not believe they will have any impact on our long-term economic model, which anticipates adjusted EBIT margins in the mid-20s. This high-level model of our steady-state financial expectations is available in the appendix to this presentation. We're also confirming guidance for free cash flow that we provided for the first time in our July trading update. For FY 2023, we continue to expect free cash flow to be approximately 60%-65% of the year's adjusted EBIT. For this year only, we're predicting lower than our typical 75%-105% range due to unusually high cash payments for employer taxes related to the vesting of grants made to a broad group of employees at IPO as a part of the transition from private to public company share plan structures. As these cash payments begin to normalize, we expect our free cash flow generation to move back within our typical range, where it is primarily impacted by variable trends in invoicing collections and other cash flow timings. Finally, in line with our previous statements, we expect that for FY 2023, dilution from securities issued under employee share plans will be limited to approximately 1% of outstanding shares. Given the vesting structure of the transition grants we made at IPO, we expect a combination of share-based payments and related tax charges to remain high through FY 2023 before they begin to normalize. In summary, we're very pleased with our positive FY 2022 performance, reflected in the robust and sustainable growth across our various customer and contract-related metrics and enhanced by economies of scale across our estate. We not only delivered constant currency ARR and net ARR added growth of 43% and 37% respectively, but we did so at 22% adjusted EBITDA margin and with almost GBP 100 million in free cash flow. Those are great results, and we're not stopping. In what is clearly a challenging global economic environment, I'm pleased to confirm what continues to be a strong set of expectations for FY 2023. With that, I'm going to hand it back to Poppy to talk about our plans for the year ahead. Thank you, Cathy. As I said at the outset of this call, there is so much we are excited about as we look ahead to full year 2023, and we're hard at work to deliver on our strategic objectives. Let's start by looking firstly at how we're planning to deliver on our Cyber AI Loop, which we believe is the next generation of cybersecurity. It's impossible to overstate how important the loop is, both for Darktrace and the wider cybersecurity industry. It represents a fundamental shift in how we think about cybersecurity and artificial intelligence with next-generation capabilities allowing security teams to get out in front of attackers. As we said earlier, with the rollout of PREVENT, we are giving security teams unprecedented proactive tools to predict and preempt the most complex cyberattacks ever, inside the organization and outside in the attack surface. The next build in the loop will be the release of HEAL, which will allow organizations to increase cyber resilience through automation of remediation and recovery planning. Based on groundbreaking technology from our AI research center, HEAL will enable businesses to restore assets and systems affected by cyberattacks back to trusted operational state. Guided by our Cyber AI Analysts, Explainable AI, which produces clear reports to help human teams prioritize tasks, security teams will be able to make quicker and confident decisions when it comes to identifying assets affected by a cyberattack, their condition, and how best to restore them. All of this is being designed to take place during an attack and after, with a goal of keeping the business up and running. Taken together, these PREVENT, DETECT, RESPOND, and HEAL will reinforce each other, making a virtuous circle where each AI brain feeds into the next. Cybersecurity is not a static state of being. It is fluid, constantly shifting and adapting as your business and the threat evolves. The loop will continuously optimize an organization's state of security, reassessing decisions in light of new information to ensure your business is resilient, whatever the threat of tomorrow looks like. Secondly, let's turn to what we're doing to support our people at Darktrace, who are the driving force behind every innovation that we deliver and every sale that we make. You may remember that at our half-year results, I showed you the results of a company-wide survey. Since then, we have conducted a second survey with an even greater participation level and maintained our strong score of 7.8 out of 10, which is above the industry and benchmark. The areas we are focused on are personal growth and ensuring employees feel recognized for their contributions and can feed into wider business processes. We're taking further steps to ensure that employees have the training and support they need, and that their feedback is being taken into account as we continue to develop our systems and processes. We also have set up an employee forum chaired by Paul Harrison, our Chair of the Audit and Risk Committee, and an independent non-executive director. The forum represents a cross-section of employees across our regions and departments and gives employees the opportunity to express their views and ideas on a range of topics for consideration by the board. Finally, a quick update on the evolution of our sales team structure as we keep evolving the business to lean into the large market opportunities that we see ahead of us. As many of you know, in October 2021, we started the process of segmenting the sales team according to the size of the customer's organization, which will provide another lever for growth. This is all about building in optionality as we scale up the company to go after every one of the potential Darktrace customers out there. Now that process is completed, we're building further on those changes, looking more carefully at the most appropriate PAB, the size of the organization, where we are sourcing the leads, and what the upsell journey looks like. This is all spearheaded by the sales team. It also involves collaborating with other team members from areas such as accounts. As ever, the task ahead of us is to get our groundbreaking technology into the hands of as many organizations as possible. With over 150,000 companies that could benefit from our AI, 20 times our current customer base, we have a huge runway of organic growth ahead of us. This large addressable market is the primary driver of our revenue growth and will remain so in the coming years. 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 security solutions. To wrap up, I repeat the comment that I started with. We have had a very busy year, and we are just starting to explore the opportunity that lies ahead of us. Having consistently outperformed across all of our key metrics, our focus is now on building on this strong performance and pushing the boundaries of how AI can be used to create cyber resilience. With the inevitable uncertainty and distraction of an offer period now removed, we are fully focused on leaning into the opportunities we see ahead of us. I believe passionately that we have a real edge in the work that we do. We're hugely excited by the continuing evolution the R&D team are driving in our underlying technologies. We see great opportunities to drive upsells across our existing customer base, and we continue to advance on getting our proof of value demonstrations to prospective customers around the world and across a wide range of industries. We remain fundamentally driven by innovation, and our market-leading technology, combined with a talented workforce, means we are well placed to capture the large market opportunity ahead of us. Onward to brighter future. Thank you to Poppy, Cathy, and Max for that presentation. We're now ready to take your questions. Can I remind participants to use the chat function to pose your questions to management? I see many of you have already been submitting questions as the presentation has gone on, and I appreciate that. Poppy, as I look across these questions, there's a lot of commonality in asking for clarification regarding Thoma Bravo, the deal process. A number of folks are inquiring whether it was simply a question of price. Could you make some comments on all of that for us? Hi. Yes, thank you. As a reminder, this was an unsolicited approach, and it leaked very, very early on in the conversations that we were having. Now, as a board, of course, we have a fiduciary duty to explore all such offers. While the conversations were limited, we found the Thoma Bravo team to be a very professional and engaging team throughout. Ultimately, we weren't able to agree terms, and we remain as an independent company. Personally speaking, I am just as excited about the future prospects of this business as I have been at any time since we founded. Our innovation is world-class, and there is still so much more yet to come. On top of that, our results are equally as impressive. Thanks for that, Poppy. To avoid any doubt, two people have specifically asked if the $3.8 million revenue restatement was the reason for Thoma Bravo walking away. I wanna clarify to them, firstly, that as you heard from Cathy in her presentation, of course, this would be immaterial to the valuation of our business. To be clear, Thoma Bravo categorically did not have access to that information. They would have gotten this information at the same time as you did when the RNS was released this morning. Now, Poppy, we've had a number of follow-ups from people asking, did this process attract other potential bidders? Can you comment on that for us as well? I'd just like to make the point that, you know, any public company at any time can be approached by anyone, and the board always has a responsibility to explore any credible proposals. But also, the board has a responsibility to report to the market if there is a material likelihood of a deal happening, and we have not reported as such. Great. Let's move on to some questions about the business now. Our next question comes from David Binyon, who asks about the PREVENT product launch and how meaningful this could be to our FY 2023 outlook and beyond. Max Heinemeyer, could you elaborate on some of the comments you made in your pre-prepared remarks around Prevent and what the year holds for us? Cathy can choose to follow up on how that feeds into our guidance afterwards. Sure. It's a great question. How I think about it, that PREVENT sets us in such a strong starting position for the coming fiscal year. It really couldn't be better for us. Think about it. So far, we could help organizations when they wanted to DETECT and RESPOND to cyberattacks, so in the time when they were under active attack. Now we can talk to them and help them and provide value before that happens to reduce risk. That is a huge opportunity. On top of that, I can tell you that everyone is buzzing. This is a very interesting market. Our customers want this. The prospects are interested. Our field teams are so excited to go out there. I spoke a bit about the opt-in, and I want to elaborate on that for a second. We have an innovation period always set where customers can sign up and say, "I'm interested to test new innovations." Of course, we did that for PREVENT. We have the longest list ever that we got these opt-ins in. I touched on the market earlier. Everybody wants proactive solutions. Nobody wants to wait to be hacked and then scramble to do something. We're really striking a chord here and see the interest momentum that we now can start to capture in this fiscal year. Really taking a step back from this, I think this gives us yet another reason to speak to prospects and customers and engage. I've seen organizations that historically were maybe not very interested to engage with us for DETECT and RESPOND but have really warmed up and turned around and came now to us to engage on the PREVENT discussions. Let me follow up on that, Luk, with just a few comments on how we are thinking about PREVENT. First, understand that it's early, but we do have expectations around PREVENT baked into our expectations for FY 2023. So that is in there. The thing I do wanna emphasize is that we expect this to appeal to new customers and to existing customers. From sort of an operating standpoint and a metrics standpoint, we are thinking about PREVENT as becoming a positive contributor, not only to our growth, but to some of our ARR-related metrics starting in the second half of this year. Great. Thank you both. Our next question comes from Varun Rajwanshi from JP Morgan, who asks, "Can you comment on the current demand environment and commercial activity? And has anything changed since the last update in July?" Poppy, could you tackle that for us, please? Thank you. Yeah, of course. Happy to. And hello, Varun. If I'm honest, we're probably a terrible indicator for you in terms of the macro environment. As we've commented on the past, our growth is so determined by the rate at which we scale the sales organization, and that still continues to be our biggest driver of growth today. You're not necessarily gonna see any sort of external impact there in the same way as perhaps you would expect. From our perspective, that continues to be the case. Headcount growth is still a really important factor for us, and there's been no change since July in my comments on that. Thank you, Poppy. Our next question comes from Harvey Robinson at Panmure Gordon, who asks, "Can you talk about the complementary nature of your products, who you're working with most often?" He asks about Palo Alto, CrowdStrike, Microsoft and others. Max, can you talk a little bit about that for us? Absolutely. Darktrace is in a great position as we don't compete with almost all of the other products out there. We're complementary in nature and are another layer of defense that is much needed. I want to remind everybody that we serve to a broad range of customers and organizations and institutions in terms of size, geography, industry. We have customers that have many other solutions, everything you could imagine under the sun, and they still get Darktrace because it delivers the value, it finds the known unknowns, it stops the things that still get through. With other customers that might not have as many other solutions, and they still get tremendous value from Darktrace. I don't wanna make any misleading comments on who we see most often, but it's absolutely the names that have dimensions, but also many others. I think that underpins the complementary nature. It doesn't matter what the security stack looks like. There's the need for something that acts like a last line of defense that catches the things that still get through, that are bespoke to you, that haven't been found on the threat landscape, in threat intelligence, in signatures and rules, but that can only be understood and seen if you know that self-learning of your organization and your company. Thank you, Max. Let's move to some questions about the financials now. Benjamin May from Berenberg asks, "Am I right in thinking that with a lower starting point on revenues in FY 2022 and an increasing FX headwind since your pre-close update, that retaining guidance in FY 2023 in U.S. dollar terms is actually an underlying upgrade?" He had a follow-up question. Cathy, could you start on that for us, please? I certainly can. You know, Ben, I think that that's potentially a reasonable way to think about it. The point we wanted to make is despite the reallocation of revenue out of FY 2022 into FY 2021, and despite additional deterioration in the FX, in the FX environment for us, we are confident in maintaining our US dollar, our actual US dollar guidance around revenue for FY 2023. It does, from an FX perspective, imply that additional ARR will be required to convert into that revenue. I believe you're thinking about it the right way. Great. Ben's follow-up question is just around expected seasonality in light of the launch of PREVENT product. Typically, he says fiscal Q2 and Q4 have been the largest periods of the year. Should we expect anything different this year? Or are there any nuances here you'd like to point us to? Cathy. Sure. Let's talk about the nuances, but let me first point you to the fact that we think that in general, our trends for ARR added and for revenue will remain similar to prior years, which is that for both of those, 45%-46% gets added in the first half of the year. I guess then further than that, let's just go to the quarters, which is, remember that our December-ending and June-ending quarters are always our largest. Our first and fourth, so ending in September and March, and particularly the quarter over the summer, are always a little bit lighter. Our hope, of course, is that PREVENT provides significant momentum. However, remember that when we were originally preparing these, it was our forecast that this product had not yet launched. It launched in August, and these are early days. It is really too soon for us to be talking about whether or not there's any change in our seasonality, particularly in 2023, because we just don't know the timing of those things yet. Thanks, Cathy. Our next question comes from Charles Brennan at Jefferies, who asks, "In the statement, you point to continuous improvements in systems, and in part, this led to the restatement. Are you now 100% happy with where the finance systems are, or are there still aspects that need optimization? And more broadly, given the quantum of growth you've delivered, are there any other important enterprise systems that need upgrading? Thanks for the question, Charlie. I don't think you'll ever get a CFO, particularly a CFO in a high-growth tech company, to tell you that they will make no further changes or enhancements to their systems. We are in continuous improvement and continuous scaling because you can't build a really big house without building a foundation to support it. You know, that is something that we're going to be doing on an ongoing basis. The other point is we have told you that we are upgrading our financial systems, and we are in the process of implementing Workday at this point, which will be happening through this financial year. One of our goals always has been to get to the point where we felt that should we be asked to be, in U.S. terms, Sarbanes-Oxley compliant, that we could get there. I think that once we get through the larger financial system and Workday implementation, we're gonna feel very comfortable around that kind of systems capacity, not only from the ability to support the business, but from a regulatory and compliance aspect as well. I would never tell you that we're not going to continue to upgrade systems. We absolutely will, and that's probably going to happen for a very, very long time. We've made significant progress. You know, again, I'll remind you the revenue work that we did largely resulted in an immaterial difference that we've determined to post. Charlie has a follow-up for you, Cathy, which is the backlog growth is slightly below the ARR growth. Does that mean there's a reduction in contract duration, and is this a strategic decision or just a consequence of how contracts landed? Yeah, Charlie, we're very clear. Our average contract length is still sitting at 36 months. It's a difficult one to look at because effectively you get into average of the average calculation. Look at the 36-month number, and we're still there. Great. Our next question comes from David Binyon at Stifel, who asks, "Regarding the U.S. federal opportunity, could you please give us a bit of insight into the roadmap and when you expect to receive authorizations with the FedRAMP program or with the U.S. Department of Defense?" Cathy, maybe over to you again. Yes. We are in the FedRAMP process. We have not disclosed sort of where we are on the timeline, but I can tell you that we are actively working that both with an internal team and external consultants on that side. As typical in the federal market, you are always working in parallel because at these early stages, because of long sales cycles. What we have is people who have the relationships and are working on understanding and developing the opportunities so that as we get through the FedRAMP process, and we also have other funding source and other relationships necessary to operate in the federal market already in place, that we're looking for those things to sort of converge. As I'll remind you, we've said clearly we're not anticipating any revenue from the federal division in FY 2023 just because of those long sales cycles. Thanks, Cathy. Our next question comes from Patrick at finnCap, who asks, "The growth in R&D staff has been swift. Can we expect a similar pace in FY 2023 and beyond? And if so, are you expecting any challenges with hiring?" Max, do you wanna take that question for us? I can give it a start, certainly. I think what's clear is that we're focused on closing the loop. We spoke a bit about here, we're incredibly excited with the opportunities that PREVENT presents us with. In the past, we never had challenges to get these things done. Jack, our CTO, is always looking at new projects. There's a lot of R&D going on, and I can tell that we're very focused on making sure we can deliver on the loop and the innovations we're producing here. I can also say that we are attracting talent and key staff. I'm sitting close to the Hague Research Center here at the moment, and the buzz and the excitement has been amazing. It really feels like one big team, and there's gonna be more and more innovations coming out of our research centers. Thanks, Max. Poppy, I know R&D is close to your heart. Do you wanna make any observations about that? Yeah, I would describe our R&D team as like the nucleus to the atom that the rest of us sort of orbit around. It is a central part of our business and one that we're sort of incredibly proud of. I think, and as Max talked about, you know, our priority is delivering on the loop and making sure that we've got the resource in order to be able to deliver on that. As with any great sort of R&D roadmap, there's always a number of curious and interesting ideas that spur off of that and making sure that we're continuing to invest in that team so that all those little sparks of ideas can be explored to the best extent that they possibly can, is really important. I suspect that we will continue to see real investments into the R&D team. Great. Thanks to both of you. Our next question comes from Hinel at RBC, who asks, "Can you break out net dollar retention between over $100,000 ARR customers and under $100,000 ARR customer cohorts?" Cathy, can you talk about that a little bit? Of course. We haven't given this to you previously in quantified form, but we have talked about it qualitatively with regard to what is going to be the largest factor of the difference in that churn. Below $100,000 and above $100,000 in ARR, we've generally said that there are several percentage points of difference between the average churn below $100,000 and above $100,000. That as you sort of look at the spectrum, it gets higher churn as you go smaller and lower churn as you get much larger. I'll remind you that we have customers who pay us between $12,000 a year and $2.25 million a year. We have a very, very, very broad spread. I think that if you think about those splits in churn, you could convert those into the impact on net dollar retention, and you would see some sort of similar distribution. Great. Thanks, Cathy. Just circling back to where we started with questions about Thoma Bravo, our next question comes from Sophia, who asks whether there was any management distraction related to the situation with Thoma Bravo. Poppy, could you comment on that for us? I think what I'd say is that, you know, yeah, since the few weeks since it leaked, it has been distracting. I'm sure that there was gossip around the watercooler, and it obviously consumed a limited group of individuals' management time as they sort of worked through the process. But let's remind you that this is a very, very early leak. At the start of July, as I do every year, I stand in front of the business and set out everything that we're trying to achieve over the coming year and beyond. Then, of course, the leak happened in August, and after the leak, I had employees coming up to me saying, "You know, does this mean our plans have changed?" The uncertainty can be unsettling, but there is no change in our plans. Everything that I articulated to them back in July still holds true, and we are looking forward to being able to sort of get back into the day jobs. One extra comment, if I may, is that this business has got resilience embedded into its very, very DNA, and we are so used to living through headlines that are not of our making. My only regret will be that if this news takes away from the incredible set of results that sits below all of this, and I know that our employees have worked very hard to deliver on that, and I'd love to see their success celebrated. Thank you for that. Thank you everyone for your questions. If anyone has follow-ups, please do get in touch with me on luk.janssens@darktrace.com. Poppy, would you like to make any closing comments before we end the call? Yeah, I would. I mean, just to, again, thank you all for your interest and your time. I'm conscious we have run a little bit over, so thanks again for your time there. I know that a lot of the questions in the short term is gonna be around the narrative, but let's not forget that the real news here is that we have just delivered yet another impressive set of financial results. Darktrace is delivering growth, cash and world-class innovation. Honestly, I am so deeply and incredibly proud of all of the employees that we have here and everything that they have delivered. From my personal perspective, I'm really looking forward to raising a glass with them this evening to celebrate. That concludes our call. Thank you all for joining.