Plurilock Security Inc. (PLUR.V) today reported its financial results for the three and nine months ended September 30, 2021.
“The third quarter of fiscal 2021 saw us deliver strong year over year revenue growth, achieve
multiple operational milestones with key product initiatives domestically and abroad, while
having our organization highlighted by winning the 2021 Cybersecurity Breakthrough Award…Many U.S. state and federal agencies have become our customers, validating how integral security is to the structure of government organizations and why our organization is a leader in providing trusted, reliable and simple cybersecurity tools,” commented Ian L. Paterson, CEO of Plurilock.
The U.S. Cybersecurity and Infrastructure Security Agency (CISA) recently issued a binding operations directive, titled Reducing the Significant Risk of Known Exploited Vulnerabilities (22-01) as most hacks that have occurred in recent months have targeted flaws in software systems. This directive has established a CISA-managed catalog of known exploited vulnerabilities that carry significant risk to the federal enterprise. In particular, this directive has established requirements for agencies to remediate any such vulnerabilities included in the catalog.
According to CISA, compared to critical and high-risk vulnerabilities, known exploited vulnerabilities should be the top priority for remediation. Based on a study of historical vulnerability data, only 4% of the total number of vulnerabilities have been used by hackers in the wild. That being said, rather than dedicating resources to vulnerabilities that may never be used in a real-world attack, directive 22-01 focuses on known vulnerabilities that pose as an active threat. With this in mind, Plurilock offers the tools needed to deal with such threats. Looking at the Company’s latest orders, the results speak for themselves.
Q3 2021 Financial Highlights
According to Plurilocks Q3 2021 Finacial Results, for the three months ended September 30, 2021, the Company’s revenue increased by CAD$6.6 million compared to revenue for the three months ended June 30, 2021. In total, Plurilock’s revenue for the three and nine months ended September 30, 2021, was CAD$15,245,948 and CAD$23,926,019, respectively, compared to CAD$168,854 and CAD$351,705 over the same periods in the prior year. The Company attributes this growth primarily to revenue generated from the new Solutions Division following the acquisition of Aurora Systems Consulting Inc. (ASC).
For context, ASC is a cybersecurity company offering products and services that proactively prevent, secure, and manage advanced threats and malware. The company services hundreds of enterprise clients worldwide including Fortune 1000 organizations, local government, and federal institutions. With this in mind, having acquired ACS, Plurilock has access to over 140 tier-1 customers and a professional sales team based in the U.S. As an existing authentication technology provider, Plurilock is now able to cross-sell its high-margin software solution to ACS’s end customers.
Revenue aside, Plurilock also reported hardware sales revenue for the three and nine months ended September 30, 2021, totaling CAD$13,866,649 and CAD$21,447,857, respectively. In the same periods, hardware sales revenues accounted for 91% and 89.6% of total revenues, respectively, compared to nil YOY.
Similarly, electronic software license and maintenance sales revenues for the three and nine months ended September 30, 2021, were CAD$1,294,124 and CAD$2,099,934, respectively, compared to CAD$84,915 and CAD$248,395 over the same periods in the prior year. In total, electronic software, license, and maintenance sales revenues for the same periods accounted for 8.5% and 8.8%, respectively, compared to 50.3% and 70.6% YOY.
Lastly, professional services revenue was CAD$85,175 and CAD$378,228 for the three and nine months ended September 30, 2021, respectively, compared to CAD$83,939 and CAD$103,310 over the same periods in the prior year. With this in mind, professional services revenue for the three and nine months ended September 30, 2021, accounted for 0.6% and 1.6% of total revenues respectively, compared to 49.7% and 29.4% YOY.
“Moving into the end of the year and 2022, we are focused on executing on our stated strategy of acquiring synergistic assets that can help our operation scale while providing our customers with a broader range of options when it comes to protecting their enterprise from cyber threats,” continued Ian L. Paterson.
Overall, Plurilock reported cash and cash equivalents of CAD$7,050,291 on September 30, 2021, compared to CAD$1,721,179 on December 31, 2021, representing a substantial increase. During the three and nine months ended September 30, 2021, the Company generated CAD$1,904,265 and CAD$327,717 of cash from operating activities respectively, compared to using CAD$346,795 and CAD$865,338 YOY. The Company’s adjusted EBITDA for the three and nine months ended September 30, 2021, was
CAD$1,244,593 and CAD$3,286,133, respectively, compared to CAD$276,205 and CAD$1,313,954 over the same periods in the year prior.
Q3 2021 Operational Highlights
- September 15, 2021 – Plurilock releases ADAPT Administration Dashboard V1.2 to customers under the Early Access Program
- September 17, 2021 – the Company transitions its auditors from Deloitte LLP to Mazars, LLP
- September 29, 2021 – The Company receives a SOC2 Type II report from the security and compliance firm BARR Advisory, P.A.
- September 30, 2021 – The Company deploys Plurilock DEFEND 5.4 in Asia, marking the first time Plurilock DEFEND version 5 was deployed outside of North America
- September 30, 2021 – Plurilock was named “Authentication Solution of the Year” as a winner of the 2021 Cybersecurity Breakthrough Awards, for its cutting-edge DEFEND continuous authentication product
Additionally, during Q3 2021, Plurilock announced USD$8.36 million new orders and contracts which include USD$1.7 million and USD$1.9 million orders with the U.S. Department of Defense, announced July 15, 2021, and July 21, 2021, respectively. Moreover, on August 23, 2021, the Company announced an order for USD$1.08 million with the U.S. Air Force as part of the National Aeronautics and Space Administration’s (NASA’s) Solution for Enterprise-Wide Procurement (SEWP) program, a United States Government-Wide Acquisition Contract Vehicle (GWAC). For more details on that mouthful, check out this article.
Plurilock’s share price opened at $0.43, down from a previous close of $0.45. The Company’s shares are down -4.44% and were trading at $0.43 at closing.