Plurilock Security Inc. (TSX-V:PLUR) has posted record revenue for the first half of its 2023 financial year after racking up another strong quarter of growth in the three months to June 30.
CEO Ian L. Paterson commented in a statement: "During the second quarter of 2023, Plurilock saw significant growth in the business with respect to its revenue and gross margin, highlighted by our record total revenue of $28 million for the six-month period, increasing by 74% year-over-year.
"Throughout this quarter, our software sales continued to trend upwards, as we look to continue improving our overall gross margins while generating substantial revenues,” Paterson said.
The company attributed the revenue growth to the 2022 strategic acquisitions of IT and cybersecurity solutions providers Integra Networks and Atrion Communications.
The acquisitions, its pricing strategy, and a focus on securing high-margin software sales also contributed to an improved gross margin of 12.5% for the six months, up from 9.6% a year earlier.
It grew high-margin software sales by 445% year-over-year and announced a total of 26 sale orders and contract renewals for the period, including a cross-sale purchase order with a Fortune 500 customer for the Plurilock AI platform.
“Our priority remains to execute on our strategy to achieve cost savings and reach profitability through unlocking operational efficiencies and securing more high-margin contracts,” Paterson added.
For the second quarter, the company reported a 35% increase in revenue to $12.3 million, driven by hardware and system sales revenue of $10.4 million. It posted an adjusted underlying (EBITDA) loss of $1.88 million compared to an adjusted EBITDA loss of $1.8 million in 2Q 2022.
The company also highlighted the appointments of Jord Tanner as its chief information officer and Scott Meyers as its chief financial officer.
Looking forward, with a sizable active customer pipeline and client network of over 400 and the launch of the Plurilock AI platform, the company said it intends to increase high-margin software sales by securing contracts with new and existing customers for its technology offerings.
It also plans to streamline operations by unlocking operational synergies with its previous acquisitions as well as reducing headcount to achieve substantial cost savings.
At the end of August, it noted that it enacted a plan in accordance with this strategy and expects to realize annual savings of approximately $2 million.
The company is also looking to expand its AI-focused product suite and release additional products that are tailored to protect the workforce of organizations across various industry verticals against the threats of using generative AI tools. As a result, it aims to file new patent applications to strengthen its technology portfolio.
Contact the author at stephen.gunnion@proactiveinvestors.com