Plurilock Security Inc has continued to post skyrocketing revenue in the first quarter of 2022, with contributions predominantly from hardware and system sales related to its acquisitions of Integra Networks Corp (INC) and Aurora Systems Consulting (ASC).
The cybersecurity solutions provider said hardware and systems sales revenue contributed 93.4% of the C$6,953,052 revenue posted in the three months ended March 31, 2022, compared to revenue of C$75,761 a year earlier. No hardware and systems sales revenue was recorded in the prior year.
“Overall, this quarter showcased our ongoing commitment to acquire profitable cybersecurity companies with top-tier customers, that can expand our operating margins and give us access to new distribution channels for cross-selling our software products as well as innovating new technology with an emphasis on zero-trust principles,” the company's CEO Ian L. Paterson said in a statement.
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“Throughout this quarter, we achieved significant organic and inorganic growth through M&A, most notably, the acquisition of Integra Networks, a cybersecurity solutions provider with a large Canadian federal presence as well as strategic partnerships. Furthermore, we expanded our leadership and advisory team with the addition of two seasoned executives and advanced our zero-trust technology program by submitting two non-provisional US patent applications and announcing a new product release for Spring 2022,” he added.
Plurilock saw software, license and maintenance sales revenue for the three months of C$429,456 compared to C$67,756 a year earlier, while professional services revenue was C$27,700 against C$8,005, the company said.
Gross margin in 1Q was 6.6% compared to 88.3% a year ago, while adjusted EBITDA was a loss of C$1,886,015 compared to C$1,029,785 in the prior year.
The company had cash and cash equivalents of C$5,997,613 at the end of March 2022 compared to C$9,468,104 at the end of December 2021.
Plurilock noted that cybersecurity risk continues to increase, with the reported number of data breaches in double digits in 1Q 2022.
“Credential compromise has also continued to be a significant threat vector, with a report that 20% of all data breaches are caused by compromised credentials during at least the initial phases of a cyberattack,” it said, noting that cybercrimes are expected to hit $10.5 trillion by 2025, while the cost of data breaches will increase to more than $5 trillion annually by 2024 from $3 trillion.
Plurilock offers world-class cybersecurity solutions paired with AI-driven, cloud-friendly security technologies for workforces.
Contact the author at jon.hopkins@proactiveinvestors.com