Plurilock Security Inc. Reports Second Quarter Fiscal 2024 Financial Results
Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) reported its Q2 2024 financial results, showing revenue of $12.6 million, up from $12.3 million in Q2 2023. The company's Critical Services segment grew 98% to $1.45 million. Gross margin improved to 15.6% from 11.2% in the previous year, driven by increased Critical Services mix. Adjusted EBITDA loss narrowed to $591,888 from $1,870,054 in Q2 2023. The company is focusing on expanding its high-margin Critical Services offerings and implementing a business transformation plan. Plurilock also completed a $5.5 million private placement and secured several new contracts, including a US$6.16 million deal with the U.S. Treasury.
Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando un fatturato di 12,6 milioni di dollari, in aumento rispetto ai 12,3 milioni del secondo trimestre 2023. Il segmento Servizi Critici dell'azienda è cresciuto del 98% raggiungendo 1,45 milioni. Il margine lordo è migliorato al 15,6% rispetto all'11,2% dell'anno precedente, grazie all'aumento della composizione dei Servizi Critici. La perdita dell'EBITDA rettificato si è ridotta a 591.888 dollari rispetto a 1.870.054 dollari nel secondo trimestre 2023. L'azienda si sta concentrando sull'espansione delle sue offerte di Servizi Critici ad alto margine e sull'implementazione di un piano di trasformazione aziendale. Plurilock ha inoltre completato un collocamento privato di 5,5 milioni di dollari e ha ottenuto diversi nuovi contratti, incluso un accordo di 6,16 milioni di dollari con il Tesoro degli Stati Uniti.
Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) reportó sus resultados financieros del segundo trimestre de 2024, mostrando ingresos de 12.6 millones de dólares, en comparación con 12.3 millones en el segundo trimestre de 2023. El segmento de Servicios Críticos de la empresa creció un 98% hasta 1.45 millones. El margen bruto mejoró al 15.6% desde el 11.2% del año anterior, impulsado por un aumento en la mezcla de Servicios Críticos. La pérdida de EBITDA ajustado se redujo a 591,888 dólares desde 1,870,054 dólares en el segundo trimestre de 2023. La empresa se está enfocando en expandir sus ofertas de Servicios Críticos de alto margen e implementar un plan de transformación empresarial. Plurilock también completó un colocación privada de 5.5 millones de dólares y aseguró varios contratos nuevos, incluido un acuerdo de 6.16 millones de dólares con el Tesoro de EE. UU..
Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF)가 2024년 2분기 재무 결과를 발표했으며, 매출이 1,260만 달러로 2023년 2분기 1,230만 달러에서 증가했습니다. 회사의 중대한 서비스 부문은 98% 성장하여 145만 달러에 도달했습니다. 총 마진이 11.2%에서 15.6%로 개선되었습니다, 이는 중대한 서비스 혼합의 증가에 의해 주도되었습니다. 조정된 EBITDA 손실이 591,888달러로 줄어들었습니다, 2023년 2분기 1,870,054달러에서 감소했습니다. 회사는 고수익성 중대한 서비스 제공 확장 및 비즈니스 변환 계획을 실행하는 데 집중하고 있습니다. Plurilock는 또한 550만 달러의 사모 배급을 완료하고 여러 신규 계약을 체결했으며, 미국 재무부와 616만 달러의 계약도 포함되었습니다.
Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) a publié ses résultats financiers du deuxième trimestre 2024, montrant un chiffre d'affaires de 12,6 millions de dollars, en hausse par rapport à 12,3 millions de dollars pour le deuxième trimestre 2023. Le segment des Services Critiques de l'entreprise a augmenté de 98%, atteignant 1,45 million. La marge brute s'est améliorée à 15,6%, contre 11,2% l'année précédente, grâce à une augmentation du mélange de Services Critiques. La perte d'EBITDA ajusté s'est réduite à 591 888 dollars, contre 1 870 054 dollars au deuxième trimestre 2023. L'entreprise se concentre sur l'expansion de ses offres de Services Critiques à forte marge et la mise en œuvre d'un plan de transformation commerciale. Plurilock a également finalisé un placement privé de 5,5 millions de dollars et a sécurisé plusieurs nouveaux contrats, y compris un contrat de 6,16 millions de dollars avec le Trésor des États-Unis.
Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) berichtete über die finanziellen Ergebnisse des zweiten Quartals 2024 und zeigte Umsätze von 12,6 Millionen Dollar, ein Anstieg von 12,3 Millionen im zweiten Quartal 2023. Das Segment der Kritischen Dienste wuchs um 98% auf 1,45 Millionen. Die Bruttomarge verbesserte sich auf 15,6% gegenüber 11,2% im Vorjahr, was auf die gesteigerte Mischung der Kritischen Dienste zurückzuführen ist. Der verfügbare EBITDA-Verlust verringerte sich auf 591.888 Dollar, verglichen mit 1.870.054 Dollar im zweiten Quartal 2023. Das Unternehmen konzentriert sich darauf, seine hochmargigen Angebote in Kritischen Diensten zu erweitern und einen Transformationsplan für das Geschäft umzusetzen. Plurilock hat auch eine Platzierung von 5,5 Millionen Dollar abgeschlossen und mehrere neue Verträge gesichert, darunter einen Vertrag über 6,16 Millionen Dollar mit dem US-Finanzministerium.
- Revenue increased to $12.6 million in Q2 2024 from $12.3 million in Q2 2023
- Critical Services segment grew 98% to $1.45 million
- Gross margin improved to 15.6% from 11.2% year-over-year
- Adjusted EBITDA loss narrowed to $591,888 from $1,870,054 in Q2 2023
- Completed a $5.5 million private placement financing
- Secured a US$6.16 million contract with U.S. Treasury
- Expanded engagement with S&P 500, NASDAQ 100 semiconductor company
- Raised over $2 million from warrant exercises
- Net loss increased to $3,913,608 in Q2 2024 from $2,584,242 in Q2 2023
- Cash used in operating activities increased to $1,450,460 in Q2 2024 from $870,734 in Q2 2023
- Total revenue for the six months ended June 30, 2024, decreased to $24,216,956 from $28,018,471 in the same period of 2023
Critical Services leads margin expansion with
Total revenue of
$12.6 million vs.$12.3 million in Q2 2023, with98% Critical Services growth to$1.45 million in Q2 2024 from$0.73 million in Q2 2023.Gross Margin
$2.0 million (15.6% of sales in Q2 2024) vs.$1.4 million (11.2% ) in Q2 2023, driven by increased Critical Services mix and margin improvements across the Company.Adjusted EBITDA improved to a loss of
$591,888 in Q2 2024 from a loss of$1,870,054 in Q2 2023 from stronger margins and cost management versus the prior year.
Vancouver, British Columbia--(Newsfile Corp. - August 30, 2024) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) ("Plurilock" or the "Company"), a global cybersecurity services and solutions provider, announces its financial results for the three (Q2 2024) and six-months ended June 30, 2024. All dollar figures are stated in Canadian dollars, unless otherwise indicated.
Q2 2024 Financial Highlights
Total revenue for the three and six months ended June 30, 2024, was
$12,642,026 and$24,216,956 respectively as compared to$12,251,143 and$28,018,471 for the three and six months ended June 30, 2023, respectively. Revenue for the three and six months ended June 30, 2024, and 2023, included revenue from both the Technology Division and the Solutions Division. Revenue for the six months ended June 30, 2024, is lower than the comparative period as a result of the timing on a few large orders and lower volume from the Integra acquisition ("INC") offset partially by growth in professional services sales.Hardware and systems sales revenue for the three and six months ended June 30, 2024, totalled
$10,113,915 and$19,029,167 , respectively compared to$10,368,483 and$22,812,612 , respectively in the prior year for the same periods. Software, license, and maintenance sales revenue for the three and six months ended June 30, 2024, was$1,078,736 and$2,726,489 , respectively, compared to$1,150,767 and$3,864,345 , respectively, for the same periods in the prior year. Professional services revenue was$1,449,375 and$2,461,300 for the three and six months ended June 30, 2024, respectively, compared to$731,893 and$1,341,514 , respectively, for the same periods in the prior year.Hardware and systems sales revenues for the three and six months ended June 30, 2024, accounted for
80.0% and78.6% , respectively, of total revenues compared to84.6% and81.4% , respectively, for the three and six months ended June 30, 2023. Software, license and maintenance sales revenues for the three and six months ended June 30, 2024, accounted for8.5% and11.3% , respectively, compared to9.4% and13.8% , respectively, for the three and six months ended June 30, 2023. Professional services revenue for the three and six months ended June 30, 2024, accounted for11.5% and10.2% , respectively, of total revenues, compared to6.0% and4.8% , respectively, for the three and six months ended June 30, 2023.Gross margin for the three and six months ended June 30, 2024, was
15.6% and18.6% , respectively, compared to11.2% and12.5% , respectively, for the three and six months ended June 30, 2023.Adjusted EBITDA for the three and six months ended June 30, 2024, was
$(591,888) and$(963,018) , respectively, compared to$(1,870,054) and$(2,842,020) , respectively, in the prior year for the same periods.Cash and cash equivalents and restricted cash on June 30, 2024, was
$2,909,782 compared to$2,058,193 on December 31, 2023.During the three and six months ended June 30, 2024, the Company used
$1,450,460 and$2,057,639 of cash from operating activities, respectively, compared to$870,734 used and$829,226 generated from operating activities in the prior year during the same periods.
"In the second quarter of 2024, Plurilock continued to expand its Service offerings, a key strategic focus of our growth and margin expansion strategies," said Ian L. Paterson, CEO of Plurilock. "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."
Q2 2024 Operational Highlights
April 1, 2024: New Executive Chair and Company begins business transformation plan
April 29, 2024: Close
$5.5 million private placement financingsMay 2, 2024:
$900,000 sale to Canadian federal government agencyMay 23, 2024: Amendment to Convertible Debenture terms and warrant inducement program and closing of debt settlement
June 19, 2024: US
$6.16 Million total contract value with U.S. TreasuryJune 21, 2024: Scale critical services sales and support staff
June 26, 2024: US
$814,000 t hree-year contract with existing customer to deliver cloud security to major laboratory data and advisory firm
Subsequent to Q2 2024 Operational Highlights
July 9, 2024: Plurilock Critical Services expands existing engagement with S&P 500, NASDAQ 100 semiconductor company
July 15, 2024: Appoint former White House lawyer/senior CIA officer to Industry Advisory Council
July 16, 2024: Appoint former CrowdStrike board member / AppDynamics President to Industry Advisors Council
July 25, 2024: Named 2024 Quadrant Champion by Info-Tech for fifth year
July 30, 2024: Appoints 35-year veteran of enterprise technology IT and solutions sales to Industry Advisory Council
August 14, 2024: File nonprovisional patent application for AI-driven cloud access security broker technology for generative AI
August 19, 2024: Appoint Ron Wilson, President of Best Buy Canada, to Industry Advisory Council
August 20, 2024: New sales to the United States Department of Transportation
August 26, 2024: Engages Clear Street review U.S. strategic options
August 28, 2024: Announces Gross Proceeds of Over
$2 Million from Warrant Exercises
Outlook for 2024
The Company continues to see strong growth in the cybersecurity market, with organizations investing heavily to protect their assets. With the expedited pace of digital transformation, cyber threats are on the rise, and businesses need to rethink their approach to cybersecurity to mitigate risks. This rethinking involves integrating security into digital transformation initiatives and embedding cybersecurity into business processes. It also involves re-evaluating the role of cybersecurity within the organizational structure. However, such transformation demands time, resources, and strategic planning. As such, Plurilock is receiving increased demand from customers seeking help with critical services, which is expected to drive further growth in this area, leading to higher gross margins. The Company is also exploring M&A opportunities and will consider strategic, accretive deals over the next 12 to 24 months.
Summary of Key Financial Metrics
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Revenue | 12,642,026 | 12,251,143 | 24,216,956 | 28,018,471 | ||||||||||||
| Hardware and systems sales | 10,113,915 | 10,368,483 | 19,029,167 | 22,812,612 | ||||||||||||
| Software, license and maintenance sales | 1,078,736 | 1,150,767 | 2,726,489 | 3,864,345 | ||||||||||||
| Professional services | 1,449,375 | 731,893 | 2,461,300 | 1,341,514 | ||||||||||||
| Gross margin (%) | ||||||||||||||||
| Net loss for the period | (3,913,608 | ) | (2,584,242 | ) | (5,026,218 | ) | (3,942,229 | ) | ||||||||
| Basic and diluted loss per share - for the period | (0.11 | ) | (0.29 | ) | (0.23 | ) | (0.45 | ) | ||||||||
| EBITDA(1) | (3,546,284 | ) | (2,304,404 | ) | (3,988,170 | ) | (3,569,537 | ) | ||||||||
| Reconciliation of EBITDA: | ||||||||||||||||
| Net loss for the period | (3,913,608 | ) | (2,584,242 | ) | (5,026,218 | ) | (3,942,229 | ) | ||||||||
| Foreign exchange translation gain/(loss) | (36,779 | ) | (155,731 | ) | 86,206 | (306,415 | ) | |||||||||
| Amortization | 107,834 | 194,874 | 238,914 | 292,428 | ||||||||||||
| Interest expenses | 287,787 | 239,622 | 704,446 | 383,167 | ||||||||||||
| Income tax recovery | 8,482 | 1,073 | 8,482 | 3,512 | ||||||||||||
| Adjusted EBITDA(1) | (591,888 | ) | (1,870,054 | ) | (963,018 | ) | (2,842,020 | ) | ||||||||
| Reconciliation of adjusted EBITDA: | ||||||||||||||||
| EBITDA(1) | (3,546,284 | ) | (2,304,404 | ) | (3,988,170 | ) | (3,569,537 | ) | ||||||||
| Stock-based compensation | 377,959 | 54,782 | 438,798 | 220,092 | ||||||||||||
| Financing expenses | 215,285 | 22,150 | 219,128 | 131,944 | ||||||||||||
| Acquisition-related expenses | 87,975 | 348,438 | 92,255 | 363,162 | ||||||||||||
| Loss on disposal on assets | - | 8,980 | - | 12,319 | ||||||||||||
| Loss on convertible debt conversion inducment | 1,817,470 | - | 1,817,470 | - | ||||||||||||
| Loss on debt settlement | 454,128 | - | 454,128 | - | ||||||||||||
| Impairment on assets | 1,579 | - | 3,373 | - | ||||||||||||
| June 30, 2024 | December 31, 2023 | |||||||||||||||
| $ | $ | |||||||||||||||
| Cash and cash equivalents | 2,889,782 | 1,917,770 | ||||||||||||||
| Restricted cash | 20,000 | 140,423 | ||||||||||||||
| Total current assets | 14,914,606 | 21,607,729 | ||||||||||||||
| Total assets | 20,346,567 | 27,135,736 | ||||||||||||||
| Total current liabilities | 19,561,974 | 29,941,855 | ||||||||||||||
| Total liabilities | 20,308,091 | 31,471,496 | ||||||||||||||
| Weighted average common shares outstanding (millions) | 20.7 | 8.8 | ||||||||||||||
Note:
(1) Non-GAAP measure. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and Adjusted EBITDA should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines EBITDA as earnings before interest, taxes, and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation, financing, acquisition related expenses, loss on disposal on assets, impairment on assets and change in fair value of convertible debt. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.
Non-IFRS measures
This news release presents information about EBITDA and Adjusted EBITDA, both of which are non-IFRS financial measures, to provide supplementary information about operating performance. Plurilock defines EBITDA as net income or loss before interest, income taxes, depreciation, and amortization. Adjusted EBITDA removes non-cash share-based compensation, financing, and acquisition-related expenses from EBITDA. The Company believes that EBITDA and Adjusted EBITDA is a meaningful financial metric for investors as it adjusts income to reflect amounts which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA are not intended as a substitute for IFRS measures. A limitation of utilizing these non-IFRS measures is that the IFRS accounting effects of the adjustments do in fact reflect the underlying financial results of Plurilock's business and these effects should not be ignored in evaluating and analyzing Plurilock's financial results. Therefore, management believes that Plurilock's IFRS measures of net loss and the same respective non-IFRS measure should be considered together. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Readers should refer to the Company's most recently filed MD&A for a more detailed discussion of these measures and their calculations.
Quarterly Filings
Management's Discussion and Analysis and Interim Condensed Consolidated Financial Statements and the notes thereto for the fiscal period ended June 30, 2024 can be obtained from Plurilock's corporate website at www.plurilock.com and under Plurilock's SEDAR+ profile at www.sedarplus.ca.
About Plurilock
Plurilock sells cybersecurity solutions to the United States and Canadian Federal Governments along with Global 2000 companies. Through these relationships, Plurilock sells its unique brand of Critical Services-aiding clients with our expertise to defend against, detect, and prevent costly data breaches and cyberattacks.
For more information, visit https://www.plurilock.com or contact:
Ian L. Paterson
Chief Executive Officer
ian@plurilock.com
416.800.1566
Ali Hakimzadeh
Executive Chairman
ali@sequoiapartners.ca
604.306.5720
Sean Peasgood
Investor Relations
sean@sophiccapital.com
647.953.5607
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") related to future events or Plurilock's future business, operations, and financial performance and condition. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock's business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, the impact of general economic conditions, and unforeseen events and developments. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof, and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws. Risks and uncertainties about the Company's business are more fully discussed under the heading "Risk Factors" in its most recent Annual Information Form. They are otherwise disclosed in its filings with securities regulatory authorities available on SEDAR+ at www.sedarplus.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221588
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