FULL DISCLOSURE: This is sponsored content for Plurilock.
Plurilock Security (TSX: PLUR) last night filed its second quarter financial results for the period ended June 30, 2024. The company reported topline revenue of $12.6 million, an improvement over the $12.3 million reported in the year ago period.
Revenue was said to have seen a 98% increase in the Critical Services segment, which saw revenue grow from $0.73 million to $1.45 million.
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At a division level, Hardware and systems sales revenue amounted to $10.1 million, or 80.0% of the revenue mix. Software, license, and maintenance sales was $1.1 million, while Professional services accounted for $1.4 million, representing 8.5% and 11.5% of the sales mix, respectively.
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“In the second quarter of 2024, Plurilock continued to expand its Service offerings, a key strategic focus of our growth and margin expansion strategies. Throughout the quarter and post June 30, 2024, we continued to add new clients and expand our presence within existing clients. Our pipeline of opportunities remains strong; our high-margin Critical Services is scaling nicely; and our business transformation remains on schedule. We will continue to prioritize its high-end cyber consulting business to generate higher gross margins and accelerate our path to profitability,” commented CEO Ian L. Paterson.
Gross margins meanwhile improved 11.2% to 15.6% on a year over year basis, coming in at $2.0 million. This improvement was attributed to the increase in sales in the Critical Services segment, as well as margin improvements across the company.
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Adjusted EBITDA losses improved during the quarter as well, with losses coming in at $592k for the second quarter of 2024, versus a loss of $1.9 million in the year ago period.
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Plurilock meanwhile saw its cash position on its balance sheet improve to $2.9 million as of quarter end.
Looking forward, the company indicated that it is forecasting increased demand for its critical services segment as a result of the rise in cybersecurity threats globally. This is expected to drive growth for the remainder of 2024, while also contributing to margin improvement. At the same time, the company is exploring accretive M&A opportunities over the next 12 to 24 months.
Plurilock Security last traded at $0.95 on the TSX Venture.
FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
