FULL DISCLOSURE: The Deep Dive is long the equity of Gatekeeper Systems.

Gatekeeper Systems (TSXV: GSI) is one of today’s major market movers, with the equity currently up 30.0% to $0.65 on 687k shares traded. The massive jump in the equity follows the release of the firms first quarter financial results.

The first quarter of fiscal 2024, which is for the period ended November 30, 2023, saw the company record revenue of $9.8 million, a massive increase of 101% over the year-ago revenues of $4.9 million. The rise was dramatic that gross margins, at $4.8 million, were nearly on par with revenue figures from the same period last year. As a percentage of revenue, gross margins came in at 49%, compared to 32% in FY23.

Comprehensive income meanwhile totaled $2.3 million, or $0.02 per share.

“These are the strongest first fiscal quarter financial results in our history by a wide margin. Both the school and transit segments of our business are exhibiting solid growth based on our Platform as a Service (PaaS) business model,” commented CEO Doug Dyment on the results.

In reference to the success seen in the current quarter, Dyment suggested recurring revenue has played an important role in the growth, along with new offerings.

“The installed base of Mobile Data Collectors (MDCs) has grown to more than 50,000, and we are now actively preparing and selling recurring-revenue solutions to help our customers monitor and optimize the vast amounts of video and data being recorded every day. These new offerings utilize AI, video analytics, hosted software solutions, and wireless data connectivity, and they form the data layer in our PaaS business model that enables Gatekeeper’s evolution as a data company.”

Earlier this month, the company broadcast that it would see a strong revenue figure in the first quarter, which is attributed to the completion of a C$9.0 million transit video and data contract. At the time, the company indicated that C$3.47 million would be recognized in the first quarter related to the contract, in addition to its regular business. An additional C$5.0 million is set to be recognized in Q2, and $0.5 million in Q3, setting the company up for strong revenue results in the coming quarters as well.

Gatekeeper Systems last traded at $0.65 on the TSX Venture.

FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Gatekeeper Systems. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.