CISO GLOBAL ANNOUNCES RECORD ANNUAL REVENUE BASED ON PRELIMINARY ESTIMATED EARNINGS FOR FISCAL YEAR 2023
- CISO Global reported its highest annual revenue of $57.1 million for the fiscal year ending December 31, 2023.
- The company anticipates achieving Adjusted EBITDA positive by 2H 2024.
- CISO Global secured $3.5 million in bank financing through a Credit Facility with Aion Financial Technologies, Inc.
- The estimated Adjusted EBITDA margin improved by 11% for the fiscal quarter ending December 31, 2023.
- None.
Insights
The announcement of CISO Global's highest annual revenue paired with the acquisition of a $3.5 million bank financing deal is a significant signal for investors and market analysts. The 23% year-over-year revenue growth indicates a strong upward trajectory for the company's sales performance. However, the reported decrease in Adjusted EBITDA by 9% and a negative Adjusted EBITDA margin, albeit an improvement from the previous year, suggests that the company is still experiencing operational costs that outpace revenue growth. The commitment to achieving Adjusted EBITDA positivity by the second half of 2024 could be a pivotal moment for the company's financial stability and future profitability.
From a financial perspective, the revolving credit facility agreement with Aion Financial Technologies, Inc. is crucial as it provides the liquidity necessary to support the company's operations and growth initiatives. The structure of the credit facility, which adjusts based on monthly billings, offers flexibility and indicates a tailored approach to financing that aligns with the company's revenue cycle. This strategic move could enhance the company's ability to manage cash flow and invest in areas that could drive future revenue growth and margin improvement.
As a managed cybersecurity, compliance and proprietary software provider, CISO Global operates within a highly dynamic and competitive industry. The reported revenue increase is a testament to the company's strategic planning and market execution, demonstrating its ability to capitalize on the growing demand for cybersecurity solutions. The emphasis on strategic planning and execution mentioned by the CEO hints at successful market penetration and customer acquisition strategies, which are critical in an industry where technological advancements and threat landscapes evolve rapidly.
The company's anticipation of becoming Adjusted EBITDA positive in the near future could be indicative of operational optimizations and cost management strategies coming to fruition. For stakeholders, the ability to achieve cash flow positivity by the end of the year would be a strong indicator of operational efficiency and a robust business model. This positive outlook, if realized, could enhance investor confidence and potentially lead to a more favorable market valuation of the company.
Within the cybersecurity sector, the financial performance of CISO Global should be contextualized against industry growth trends and the increasing importance of cybersecurity in the digital economy. The company's record revenue performance aligns with the broader industry's expansion as businesses invest more heavily in protecting their digital assets. The ability to secure a line of credit also reflects confidence from financial institutions in the cybersecurity market's potential and CISO Global's business model.
However, the negative Adjusted EBITDA margin—despite improvement—highlights the challenges faced in scaling operations while maintaining profitability. The industry norm for cybersecurity firms is to reinvest heavily in research and development, as well as sales and marketing, to stay ahead of the competition and evolving threats. CISO Global's strategic investments in these areas, as inferred from their financial statements, will be critical in maintaining their market position and achieving the forecasted financial goals.
Following highest annual revenue in Company history, and
Scottsdale, Ariz., March 13, 2024 (GLOBE NEWSWIRE) -- CISO Global (NASDAQCM: CISO), an industry leader as a managed cybersecurity, compliance and proprietary software provider, is announcing preliminary estimated financial information as of and for the fiscal year ending December 31, 2023. These estimated results are being announced ahead of the filing of the Company’s Form 10-K, which will be filed by April 16, 2024.
Highlights include:
$57.1 million in estimated total revenue for the fiscal year ending December 31, 2023, an increase of$10.5 million , or23% , compared to total revenue of$46.5 million for the fiscal year ending December 31, 2022- (
$13.8) million in estimated Adjusted EBITDA for the fiscal year ending December 31, 2023, a decrease of$1.2 million , or9% , compared to ($12.6) million for the fiscal year ending December 31, 2022 - Estimated Adjusted EBITDA margin (calculated as a percentage of net revenue) was (
24.2% ), an improvement of11% , for the fiscal quarter ending December 31, 2023, compared to (27.1% ) in the fiscal quarter ending December 31, 2022
David Jemmett, Chief Executive Officer and Chairman, stated, “These estimated results reflect our highest annual revenue ever, which we believe are a result of careful strategic planning and execution designed to maximize awareness and demonstrate our leadership in the market. In addition, we believe we will be Adjusted EBITDA positive in the first half of the year and cash flow positive by year’s end. We look forward to providing additional details when we file our Form 10-K for fiscal year 2023, which we anticipate will be by April 16, 2024.”
Bank Financing
On February 2, 2024, the Company entered into a Credit Facility with Aion Financial Technologies, Inc. for a revolving line of credit of
About CISO Global
CISO Global (NASDAQCM: CISO), based in Scottsdale, Arizona, is a Top #25 managed cybersecurity and compliance services provider that is delivering innovative solutions through its newly developed AI and ML-powered product portfolio. The company protects the most demanding businesses and government organizations against continuing and emerging security threats and ensures their compliance obligations are being met. For more information about the company, visit CISO Global on LinkedIn, X or at www.ciso.inc.
Safe Harbor Statement
This press release contains certain statements that may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we intend that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, among others, our preliminary unaudited estimates for the fiscal year ended December 31, 2023 for total revenue, Adjusted EBITDA and Adjusted EBITDA margin; our belief that this estimated financial information continues to validate our service offering and our strategy, enabling us to drive significant revenue and market penetration; our belief that we continue to see growing demand for our services and expect this to carry on through 2024; and our intention to use the financing from Aion Financial Technologies to assist with cash flow. These statements are often, but not always, made through the use of words or phrases such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “predict,” “plan,” “project,” “continuing,” “ongoing,” “potential,” “opportunity,” “will,” “may,” “look forward,” “intend,” “guidance,” “future” or similar words or phrases. These statements reflect our current views, expectations, and beliefs concerning future events and are subject to substantial risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, risks related to our ability to raise capital; our ability to increase revenue and cash flow and become profitable; our ability to recruit and retain key talent; our ability to identify and consummate acquisitions; our ability to acquire, attract, and retain clients; and other risks detailed from time to time in the reports filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. Except as required by law, we assume no obligation and do not intend to update any forward-looking statements, whether as a result of new information, future developments, or otherwise.
Media Inquiries:
Janet Brumfield
Ideal PR+ for CISO Global
614.582.9636
janet@idealprplus.com
FAQ
What was CISO Global's total revenue for the fiscal year ending December 31, 2023?
What is the estimated Adjusted EBITDA for the fiscal year ending December 31, 2023?
Who did CISO Global secure bank financing with and for how much?
Did the company see an improvement in its Adjusted EBITDA margin?
