Plurilock Security Inc. (TSX-V:PLUR) has reported record revenue of C$46.8 million for the nine-month period ended September 30, 2022, a 96% increase year-over-year.
“During the third quarter of fiscal 2022, Plurilock saw significant growth across the business as highlighted by our record revenue of $46.8 million for the nine-month period, and our completion of two accretive acquisitions,” Plurilock CEO Ian L. Paterson said in a statement accompanying the results.
“Throughout this quarter, our sales pipeline continued to grow rapidly, and we have secured more customers for our high-margin software solutions, most notably, with the Canadian Department of National Defence."
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“This further validates our business model of driving customers to our owned software products. Furthermore, our Solutions Division has generated a net income of $0.9 million, which underscores our strategy to acquire profitable cybersecurity companies with reputable customers,” he added.
Revenue for the nine months is significantly higher than a year ago due to the timing of the acquisitions of Aurora Systems Consulting Inc and Integra Networks Corporation and the increase in sales revenue from the Technology Division, the company said.
Gross margin for the nine months was 6.7%, compared to 5.3% in the prior year period, while adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) was a loss of $4.6 million against a loss of $3.3 million a year earlier.
The company had cash and cash equivalents and restricted cash of $3.4 million on September 30, 2022, compared to $9.5 million on December 31, 2021.
“As we scale our business, the priority is to continue enhancing our gross margins and reach breakeven in the near term. The recent acquisitions will enable us to potentially unlock new revenue and cost synergies that will improve our top and bottom-line,” Paterson said.
“Additionally, with our increased line of credit, we intend to advance our M&A program to extend our distribution channels and technology infrastructure, and we are seeing numerous opportunities for accretive transactions in the marketplace. Overall, we are looking to expand all verticals of our business while maintaining cost-efficient operations,” he added.
Plurilock Security provides identity-centric cybersecurity for today's workforces. The Plurilock family of companies enables organizations to operate safely and securely while reducing cybersecurity friction.
The company offers world-class IT and cybersecurity solutions through its Solutions Division, paired with proprietary, AI-driven and cloud-friendly security through its Technology Division.
Contact the author at jon.hopkins@proactiveinvestors.com