Gorilla Reports Record 2023 Financial Results
- Revenue growth of 189% YoY in 2023, reaching $64.7 million.
- Gross margin of 69% in 2023, reflecting the value of Gorilla's business model.
- Total net income of $19.9 million in 2023, a significant increase from a loss of ($87.5 million) in 2022.
- Adjusted EBITDA surged by 587% YoY in 2023, showcasing exceptional operational efficiency.
- Strong sales pipeline exceeding $1 billion and successful deals in MENA, Thailand, South America, and the UK.
- CEO Jay Chandan's optimistic outlook for Gorilla's future success and shareholder value enhancement.
- None.
Insights
The remarkable revenue growth of 189% reported by Gorilla Technology Group is indicative of the company's successful scaling and market penetration. This level of growth is impressive, especially in the context of the global tech industry, where competition is fierce and customer acquisition costs can be high. The reported gross margin of 69% is well above the industry standard for tech companies, which typically hovers around 40-60%. Such a high margin suggests that Gorilla has a strong pricing power and cost control, likely due to a combination of proprietary technology and a lean operational model.
The transition from a substantial net loss to a net profit of $19.9 million signifies a critical turnaround in the company's profitability. This could be attributed to the operational efficiencies, strategic cost management and perhaps a shift towards higher-margin products and services. The adjusted EBITDA increase is also noteworthy, as it excludes one-time expenses and provides a clearer picture of ongoing operational performance. Investors should note, however, that these figures are unaudited and the upcoming audit could potentially adjust these results.
Long-term investors might see the estimated pipeline exceeding $1 billion as an indicator of future revenue potential, but they should also consider the risks of pipeline conversion and the execution challenges that come with rapid scaling. The CEO's optimistic statements should be balanced with a cautious analysis of the company's ability to sustain such growth and margins in the face of market uncertainties and competitive pressures.
The expansion into new geographic regions like MENA, Thailand, South America and the UK, combined with a strong sales pipeline, suggests Gorilla Technology Group is aggressively pursuing market share. However, the success of these initiatives will depend on the company's ability to localize its offerings and navigate different regulatory landscapes. The technology and IoT sectors are rapidly evolving and Gorilla's ability to maintain its technological edge will be critical to its continued success.
Investors should also consider the broader market trends, such as the increasing demand for security and business intelligence solutions, which Gorilla seems well-positioned to capitalize on. The company's focus on operational excellence and customer satisfaction is a positive sign, but it's essential to monitor customer retention and satisfaction metrics to gauge long-term viability.
It's also important to note that aggressive growth can sometimes lead to quality control issues or service dilution. As Gorilla expands, maintaining the high standards that have contributed to its impressive margins will be a key challenge. Stakeholders should watch for signs of sustained investment in innovation and talent, which will be necessary to support growth without compromising service quality.
The financial results posted by Gorilla Technology Group can be seen as a microcosmic reflection of the broader economic context in which tech companies operate. The ability of Gorilla to rebound from a significant loss to a profitable status in a single fiscal year suggests a favorable economic environment for tech growth or a significant internal restructuring that has paid dividends. The company's performance might also be a function of increased digitization trends and investment in technology post-pandemic.
However, it's important to consider the economic cycle and potential headwinds such as inflation, interest rate hikes and geopolitical tensions that could affect discretionary spending on tech solutions. While the company's current trajectory is positive, external economic factors could impact future performance and investors should be wary of assuming linear growth.
Furthermore, the company's forward-looking statements about its pipeline and expansion plans need to be weighed against the potential for economic downturns which could lead to a tightening of corporate budgets and a reduction in demand for Gorilla's services. An economist would advise stakeholders to keep an eye on economic indicators and sector-specific trends to better understand how Gorilla might perform in various economic scenarios.
-- 2023 revenues up
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LONDON, April 04, 2024 (GLOBE NEWSWIRE) -- Gorilla Technology Group Inc. (NASDAQ: GRRR) (“Gorilla” or the “Company”), a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology, today reported financial results for the fiscal year ending December 31, 2023.
2023 Financial Highlights
- Revenue Growth: Full-year 2023 revenues catapulted to
$64.7 million , marking a substantial189% increase year-over-year. This accelerating growth is a testament to Gorilla’s capabilities in cultivating and harnessing demand, propelling fiscal advancements and prowess in navigating the currents of market demand. Gorilla believes its future is one of crafting an era of unmatched fiscal renaissance, leadership and preeminence within the industry. - Improved Gross Margin: Demonstrating the value of Gorilla’s business model, gross margin surged to
69% for 2023. The increased gross margin indicates the effectiveness and efficiency of the Company’s operations, reflecting its strategic focus on high-margin opportunities and commitment to operational proficiency. - Profitability Turnaround: Gorilla recorded net profit of
$19.9 million in fiscal year 2023, a dramatic shift of123% from a loss of$(87.5) million in fiscal year 2022. Adjusted EBITDA has experienced a strong turnaround with an increase of587% from fiscal year 2022 to fiscal year 2023, reflecting Gorilla's exceptional operational efficiency, strategic management and its resolute trajectory towards financial excellence. This remarkable transition demonstrates Gorilla’s strategic and operational rebound, highlighting the company's robust fiscal management and its successful turnaround strategy. - Forward Momentum: With an estimated pipeline exceeding
$1 billion , expected expansion deals within current geographic regions of operation—MENA, Thailand, South America, and the UK—and successfully won sales amounting to approximately$300 million , Gorilla plans for continued success and shareholder value enhancement in the coming years.
Jay Chandan, CEO of Gorilla, stated: "Today, we shatter expectations and redefine what's possible. Gorilla, with leading innovation and relentless drive, has not just met our financial targets; we have catapulted beyond them. Our earnings are not merely numbers; they are a testament to our technological dominance and visionary foresight. To our investors, you are at the heart of a seismic shift. Gorilla Technology isn't just leading the charge; we are the charge. Brace yourselves, we're just getting started," said Jay Chandan, Chairman & CEO of Gorilla.
“Our robust financial health and positive momentum set the stage for even greater achievements in 2024,” Chandan continued. “With a strong sales pipeline and a strategy focused on innovation, operational excellence and customer satisfaction, we are positioned for sustained growth. Our commitment to cost management and operational efficiency continues to yield significant financial benefits, enhancing our ability to invest in new opportunities and navigate market uncertainties with confidence. As we move forward, our dedication to delivering exceptional value to our clients and stakeholders remains unwavering. In the face of doubters, critics and the perennial chorus of naysayers, my leadership has piloted Gorilla through uncharted waters, transforming a crescendo that rebukes the cynics. This triumph is our answer to every skeptic who bet against us, to every pundit who couldn't see beyond their myopic forecasts. We have not just defied expectations; we have crafted a new lexicon of success. The horizon ahead is brimming with potential, and under my stewardship, Gorilla will continue to conquer the critics, outpace the pessimists and blaze a trail of unprecedented achievements. We no longer will linger in the shadows of feasibility; we bask in the glow of possibility. I stand before you today, humbled by our collective journey and the monumental achievements my team unlocked together. To each and every employee who has stood by us through these difficult times, your unwavering commitment and inventive spirit have been the cornerstone of our success. You are the architects of our future, the pulse of Gorilla Technology. To our esteemed investors, your faith in our vision has fueled our journey, enabling us to push boundaries and redefine paradigms. And to my fellow directors, Ruth Kelly, Gregg Walker, Pina Hirano and Evan Medeiros, your guidance and insight have been invaluable, steering us through challenges and towards our shared aspirations. Together, we have not just reached new heights; we have set the foundation for an era of accelerating innovation and growth. My sincerest gratitude to each one of you for being the catalysts of this remarkable voyage,” closed Jay Chandan.
Gorilla further notes that the audit for fiscal year 2023 is underway and that it is anticipated that audited financials will be filed in due course.
Earnings Call
The Company will host a conference call on Monday, April 8, 2024 at 8:00 AM EDT to discuss the Company's financial results.
Webcast: https://edge.media-server.com/mmc/p/649bk6cd
Telephone: Click here to register and join the event. Upon registering, you will be emailed a dial-in number and unique PIN.
2023 Financial Results
Unless noted otherwise, all figures are for the year ended December 31, 2023, and all comparisons are with the corresponding year of 2022. In addition, refer to the Company’s Form 6-K filed on February 1, 2024, which discloses a change in the Company’s independent registered public accounting firm (to Marcum Asia CPAs LLP) effective as of January 31, 2024.
The following table summarizes financial results (2023, unreviewed and unaudited):
| Year ended December 31 | ||||||||
| 2023 | 2022 | |||||||
| Revenue | $ | 64,694,991 | $ | 22,408,808 | ||||
| Cost of Revenue | (19,976,149 | ) | (14,071,902 | ) | ||||
| Gross Profit | 44,718,842 | 8,336,906 | ||||||
| Gross Margin | 69.1 | % | 37.2 | % | ||||
| Total operating expenses | (20,295,481 | ) | (94,844,401 | ) | ||||
| Operating income (loss) | 24,423,361 | (86,507,495 | ) | |||||
| Net Profit (Loss) | $ | 19,940,614 | $ | (87,537,224 | ) | |||
The following table shows our adjusted EBITDA, together reconciled to the net profit (loss) for the year ended December 31, 2023, and 2022.
| Gorilla Technology Group Inc. and Subsidiaries | |||||||
| Reconciliation of Non-IFRS Financial Measures - Adjusted EBITDA Calculation | |||||||
| (Expressed in United States dollars) | |||||||
| Items | (Unreviewed and Unaudited) Year ended December 31, 2023 | Year ended December 31, 2022 | |||||
| Net Profit (Loss) | $ | 19,940,614 | $ | (87,537,224 | ) | ||
| Depreciation Expense | 522,963 | 5,938,167 | |||||
| Amortization Expense | 1,001,031 | 1,687,618 | |||||
| Income Tax Expense | 4,435,092 | 430,368 | |||||
| Interest and Finance Costs, net | 47,655 | 599,361 | |||||
| Transaction Costs (onetime) 1 | 3,097,764 | 2,813,803 | |||||
| Share Listing Expense2 | 0 | 70,104,989 | |||||
| Adjusted EBITDA | $ | 29,045,119 | $ | (5,962,918 | ) | ||
(1) Transaction costs are one-off expenses for one-time employee expenses and professional services related to asset acquisition, professional services for one-time ERP implementation project which are considered as one-off corporate development events and added back for calculation of adjusted EBITDA.
(2) Share listing expense represents non-cash IFRS2 charges recorded in connection with the consummation of the SPAC merger.
Revenue for the year ended December 31, 2023, grew significantly as engagement with the country of Egypt has begun and in process. Adjusted EBITDA growth of
The financial statements for the year ended December 31, 2023 included herein have not been audited or reviewed by the Company’s independent registered accounting firm.
About Gorilla Technology Group Inc.
“Empowering Your Tomorrow”
Gorilla, headquartered in London U.K., is a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology. Gorilla provides a wide range of solutions, including, Smart City, Network, Video, Security Convergence and IoT across select verticals of Government & Public Services, Manufacturing, Telecom, Retail, Transportation & Logistics, Healthcare and Education.
The Company’s vision is to empower a connected tomorrow through innovative and transformative technologies. Gorilla envisions a world where seamless connectivity transcends boundaries, enriching lives, industries and societies.
For more information go to Gorilla-Technology.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Gorilla’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “might” and “continues,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding our beliefs about future revenues, our ability to attract the attention of customers and investors alike, the timing of the filing of our audited financial results, our expectations to swing to profit in the quarters ahead, our immediate priorities, Gorilla’s strategic shift to enable it to pursue larger projects with better revenue visibility, Gorilla’s contract with the Government of Egypt, Gorilla’s ability to win additional projects and execute definitive contracts related thereto, along with those other risks described under the heading “Risk Factors” in the Form 20-F Gorilla filed with the Securities and Exchange Commission (the “SEC”) on April 28, 2023, those described under the heading “Risk Factors” in Exhibit 99.5 to the Form 6-K Gorilla filed with the SEC on August 17, 2023 and those that are included in any of Gorilla’s future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Gorilla and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Gorilla undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.
Non-IFRS Measures
Certain of the measures included in this press release are non-IFRS financial measures, including adjusted EBITDA. Non-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with IFRS, and non-IFRS financial measures as used by Gorilla are not reported by all their competitors and may not be comparable to similarly titled amounts used by other companies.
We believe that the non-IFRS measures such as adjusted EBITDA provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present adjusted EBITDA to provide more information and greater transparency to investors about our operating results.
Adjusted EBITDA represents EBITDA excluding transaction costs and share listing expenses which are one-off expenses for professional services related to our Business Combination, asset acquisition and ERP implementation project, which are considered as non-recurring corporate development events and added back for calculation of adjusted EBITDA.
The final table which shows our adjusted EBITDA, together reconciled to the net profit (loss) for the years ended December 31, 2023, and 2022 in this results announcement has more details on the non-IFRS financial measures and the related reconciliations between these financial measures.
Investor Relations Contact:
Cody Fletcher
The Blueshirt Group for Gorilla
+1 (434) 251-7165
gorillair@blueshirtgroup.com
Media Contact:
James McCusker
Canaan Parish Group Inc.
+1 (203) 585-4750
canaanparishgroup@gmail.com
| Gorilla Technology Group | ||||||||
| Consolidated Balance Sheet | ||||||||
| December 31, 2023 and 2022 | ||||||||
| (Expressed in USD) | ||||||||
| Items | (Unaudited and Unreviewed) December 31, 2023 | December 31, 2022 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 5,306,857 | $ | 22,996,377 | ||||
| Financial assets at fair value through profit or loss – current | 995,101 | 1,073,229 | ||||||
| Financial assets at amortized cost - current | 27,827,915 | 6,871,187 | ||||||
| Contract assets | 34,213,379 | 725,441 | ||||||
| Accounts receivable | 9,087,304 | 14,041,611 | ||||||
| Inventories | 23,116 | 68,629 | ||||||
| Prepayments – current | 7,445,195 | 1,266,442 | ||||||
| Other receivables | 107,228 | 648,617 | ||||||
| Other current assets | 170,461 | 61,803 | ||||||
| Total current assets | 85,176,556 | 47,753,336 | ||||||
| Non-current assets | ||||||||
| Financial assets at amortized cost - non-current | 13,643,000 | - | ||||||
| Property, plant and equipment | 15,878,965 | 16,132,567 | ||||||
| Right-of-use assets | 53,036 | 16,675 | ||||||
| Intangible assets | 8,594,512 | 56,342 | ||||||
| Deferred income tax assets | 77,059 | 29,905 | ||||||
| Prepayments - non-current | 451,580 | 612,982 | ||||||
| Other non-current assets | 1,034,000 | 659,071 | ||||||
| Total non-current assets | 39,732,152 | 17,507,542 | ||||||
| Total assets | $ | 124,908,708 | $ | 65,260,878 | ||||
| Items | December 31, 2023 | December 31, 2022 | ||||||
| Liabilities and Equity | ||||||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings | $ | 16,449,110 | $ | 13,492,935 | ||||
| Contract liabilities | 107,603 | 58,475 | ||||||
| Notes payable | 603 | 602 | ||||||
| Accounts payable | 11,045,758 | 6,674,528 | ||||||
| Other payables | 6,080,563 | 3,620,998 | ||||||
| Provisions - current | 68,510 | 88,469 | ||||||
| Lease liabilities - current | 30,327 | 16,981 | ||||||
| Current income tax liabilities | 4,664,091 | - | ||||||
| Warrant liabilities | 6,221,482 | 2,042,410 | ||||||
| Convertible Preference Shares Liabilities | 7,767,238 | - | ||||||
| Long-term borrowings, current portion | 1,817,873 | 2,108,896 | ||||||
| Other current liabilities, others | 89,614 | 152,373 | ||||||
| Total current liabilities | 54,342,772 | 28,256,667 | ||||||
| Non-current liabilities | ||||||||
| Long-term borrowings | 6,822,438 | 8,251,788 | ||||||
| Provisions - non-current | 63,947 | 61,057 | ||||||
| Deferred income tax liabilities | 59,807 | 148,183 | ||||||
| Lease liabilities - non-current | 23,011 | - | ||||||
| Total non-current liabilities | 6,969,203 | 8,461,028 | ||||||
| Total liabilities | 61,311,975 | 36,717,695 | ||||||
| Equity | ||||||||
| Equity attributable to owners of parent | ||||||||
| Share capital | ||||||||
| Ordinary share | 7,846 | 7,136 | ||||||
| Capital surplus | ||||||||
| Capital surplus | 169,168,318 | 154,730,389 | ||||||
| Retained earnings | ||||||||
| Accumulated deficit | (76,954,309 | ) | (96,984,380 | ) | ||||
| Other equity interest | ||||||||
| Financial statements translation differences of foreign operations | 955,018 | 370,178 | ||||||
| Treasury shares | (29,580,140 | ) | (29,580,140 | ) | ||||
| Equity attributable to owners of the parent | 63,596,733 | 28,543,183 | ||||||
| Total equity | 63,596,733 | 28,543,183 | ||||||
| Significant contingent liabilities and unrecognized contract commitments | ||||||||
| Total liabilities and equity | $ | 124,908,708 | $ | 65,260,878 | ||||
| Gorilla Technology Group Inc. and Subsidiaries | |||||||
| Reconciliation of Non-IFRS Financial Measures – Adjusted EBITDA Calculation | |||||||
| (Expressed in United States dollars) | |||||||
| Items | (Unaudited and Unreviewed) Year ended December 31, 2023 | (Unaudited and Unreviewed) Year ended December 31, 2022 | |||||
| Profit (loss) for the year | $ | 19,940,614 | $ | (87,537,224 | ) | ||
| Depreciation Expense | 522,963 | 5,938,167 | |||||
| Amortization Expense | 1,001,031 | 1,687,618 | |||||
| Income Tax Expense | 4,435,092 | 430,368 | |||||
| Interest and Finance Costs, net | 47,655 | 599,361 | |||||
| Transaction Costs (onetime) 1 | 3,097,764 | 2,813,803 | |||||
| Share Listing Expense2 | 0 | 70,104,989 | |||||
| Adjusted EBITDA | $ | 29,045,119 | $ | (5,962,918 | ) | ||
(1) Transaction costs are one-off expenses for one-time employee expenses and professional services related to asset acquisition, professional services for one-time ERP implementation project which are considered as one-off corporate development events and added back for calculation of adjusted EBITDA.
(2) Share listing expense represents non-cash IFRS2 charges recorded in connection with the consummation of the SPAC merger.
FAQ
What was Gorilla Technology Group Inc.'s revenue growth in 2023?
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