Proactive Investors -Plurilock Security Inc (TSXV:PLUR). has reported a rise in revenue for the first nine months of fiscal 2023 following the 2022 acquisitions of Integra Networks and Atrion Communications and due to its strategic shift to sales of higher-margin software and professional services.
The AI-driven cybersecurity solutions provider grew total revenue for the nine months to September 30, 2023, by 2.6% to $48 million after delivering 3Q revenue of $20 million.
Its gross margins increased to 10.3% for the nine months.
"During the first nine months of fiscal 2023, we continued to produce significant revenues while optimizing for capital controls and efficiencies in all areas of our business," Plurilock CEO Ian L. Paterson commented in a statement.
"While the economic outlook remains unclear, cybersecurity threats are on the rise and show no signs of slowing down. This growing global issue is one of the main drivers of our growing sales pipeline and resulted in three consecutive quarters of increased gross margins on a year-over-year basis."
The company highlighted increases in high-margin software sales and Professional Services for the nine months of 421% and 719%, respectively, year-over-year, totaling $2.8 million in revenue.
It also achieved $133,000 in cost savings as a result of streamlining operations and unlocking new business synergies across all acquisitions as part of a plan that was enacted in August 2023.
It reported an adjusted underlying (EBITDA) loss for the three and nine months of $1,590,551 and $4,444,890 respectively compared to an EBITDA loss of $904,344 and $4,581,767 in the prior year for the same periods.
Plurilock ended September with cash, cash equivalents and restricted cash of $3,713,374 compared to $2,853,107 on December 31, 2022.
The company said it remains committed to reaching cash flow breakeven by increasing its high-margin software sales and delivering more professional services as well as identifying more opportunities to achieve financial and operational efficiencies across all business units.
Under the plan enacted a plan at the end of August it is targeting $2 million in savings on an annualized basis, with the results expected to have a broader impact on savings starting in 4Q 2023.
"Given the difficult macroeconomic market, our focus remains on reaching cash flow breakeven by securing additional high-margin software sales and expanding the delivery of our cybersecurity services to existing and new customers,” Paterson concluded.
Plurilock Security secures workforces in the age of AI through its Plurilock AI platform, delivering advanced identity, data safety, and guard rails to safely implement AI solutions to commercial and government customers worldwide.