Plurilock Security Inc, an identity-centric cybersecurity solution provider, posted fiscal year 2022 results that saw its full year revenue jump 75% year-over-year with strong demand emanating from the United States.
For the 12 months ended December 31, 2022, the Victoria, British Columbia-based technology company reported revenue of $64.63 million, compared to $36.62 million for full year ended December 31, 2021.
Plurilock chalked up the revenue to strong contributions from both its Technology and the Solutions divisions. New acquisitions Aurora Systems Consulting Inc (ASC) and Integra Networks Corporation (INC) also played their part in the increase in sales volume, noted the company.
Revenue generated in the US accounts for approximately 95% of Plurilock's total full year 2022 revenue.
"Fiscal 2022 was a transformational year filled with key business milestones with respect to our revenue growth and advancing our pathway to reaching profitability in 2023," Plurilock CEO Ian L Paterson said in a statement.
"We have also accelerated the cross-sale process for our Plurilock platform through our existing distribution channels which have been showcased in 2023."
Plurilock said it completed “three accretive acquisitions” in 2022, resulting in the expansion of its client network for potential cross-selling opportunities and the addition of new technology assets.
The tech company also saw substantial foreign exchange rate gains due to revenue generated in US dollars and company overhead costs paid in Canadian dollars.
“Reaching profitability remains a key focus for our company, and we intend to roll out several new initiatives to achieve this goal,” said Paterson.
“In the near term, we will continue to integrate the operations of our previous acquisitions, which could enable us to potentially achieve multiple operational efficiencies and produce significant cost savings in 2023. Furthermore, we aim to continue improving our gross margins for the remainder of 2023 by focusing on securing high-margin sales."
Gross margin for the full year 2022 was 7.7%, compared to 6.8% for the full year 2021.
During 2022, Plurilock said it used $9.84 million in cash from operating activities, compared to $2.03 million a year earlier.
Blowout 4Q revenue
For its fourth quarter ended December 31, 2022, Plurilock reported total revenue of $17.82 million, compared to $12.70 million for the three months ended December 31, 2021.
The company revealed that hardware and systems sales revenue for the 4Q totaled $16.72 million, software, license, and maintenance sales revenue totaled $596,140, while professional services revenue was $502,453.
Robust growth outlook
Plurilock said that as part of its growth strategy for 2023 and in order to reach profitability it had a four-pronged plan.
As part of this growth blueprint, Plurilock said it will increase cross-selling of its high-margin software solutions to customers, streamline operations, adjust pricing of the Technology Division's products to increase gross margins and focus on its M&A strategy.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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