Darktrace reported its Q1 trading update on Wednesday as the firm maintained its annual guidance but warned of FX headwinds.

Darktrace shares are currently down 2.11%.

The cyber security company showed strength and resilience in its sales performance, growing its customer base by 320 net new customers to 7,757, a 29.1% year-over-year increase.

With new customers being its primary driver, Annual Recurring Revenue (ARR) came in at $26.6 million, up 13.4% compared to the prior-year quarter. This was in line with its first-quarter expectations, which is traditionally its slowest sales quarter.

The company warned that adverse currency movements could drag on its performance. Darktrace stated exchange rate movements created a $17.1 million headwind that is likely to impact the conversion of constant currency for the rest of FY 2023.

Cathy Graham, CFO of Darktrace said: “This focus, and the value it provides to users of our technology, allowed us to maintain strong sales activity through the first quarter of FY 2023, again expanding our customer base, ARR and revenue.”

Technology investor Thoma Bravo recently said it would not make an offer for Darktrace after it failed to agree on a deal.

Finally, Darktrace is maintaining its expectation for FY23 year-over-year revenue growth of between 30% and 33%.