Plurilock Security Inc. (TSX-V:PLUR) has reported a more than doubling in first-quarter revenue following the 2022 strategic acquisitions of Integra and Atrion.
The identity-centric cybersecurity solution provider increased revenue by 127% to $15.8 million for the three months ended March 31, 2023, with its gross margins increasing to 13.6% from 6.6% a year earlier, also due to the acquisitions, as well as its pricing strategy and focus on securing high-margin software sales.
The company also highlighted 16 sales orders and contract renewals during the quarter, including cross-sale purchase orders for its flagship AI-driven technology offering with two US financial institutions.
“During the first quarter of 2023, Plurilock achieved significant business milestones with respect to its revenue and gross margin, which saw double-digit growth as compared to the same period in the prior year,” Plurilock CEO Ian L Paterson said in a statement.
The company said a 531% increase in revenue from software, license, and maintenance sales to $2.7 million saw its contribution to total revenue increase to 17% from 6% a year earlier. Hardware and systems sales revenue rose 91% to $12.4 million. Revenue from professional services increased to $609,621 from $27,700 previously, contributing 3.9% of total revenues.
It narrowed its adjusted underlying loss (EBITDA) to $975,305 from $1.89 million in 1Q 2022.
During the quarter, the company generated $1.7 million of cash from operating activities compared to $4.5 million of cash used in the prior year period. It ended March with cash and cash equivalents and restricted cash of $1.43 million.
Growth strategy to reach profitability
As part of its growth strategy to reach profitability, the company said it plans to increase cross-selling its high-margin software solutions to a growing customer pipeline. It also aims to streamline operations as it unlocks more synergies with its recent acquisitions.
Also as 2023 advances, Plurilock said it aims to adjust the pricing of products in its Technology Division to offer competitive rates to customers while increasing its gross profit margins.
Finally, it said it will target more accretive acquisitions of businesses with strong technology assets and customer networks in key regional markets.
“Overall, Q1 fiscal 2023 was a transformational quarter attributable to the strategic and creative acquisitions closed in 2022,” Paterson continued.
“These strong financial results reflect our ongoing efforts to expand our margin profile through streamlining operations, securing more software sales while focusing our attention on growth and executing on our strategy to achieve profitability.”
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