Plurilock Security (PLUR.V) releases Q1 2024 results

Plurilock Security Inc (PLUR.V) is a Canadian identity-centric AI cybersecurity solutions company. The cybersecurity company provides multi-factor authentication (MFA) solutions using behavioral-biometric, environmental, and contextual technologies.

Today, Plurilock Security announced Q1 2024 financial results. All figures are in Canadian Dollars.

Main fiscal highlights include:

Gross margins ($2.5 million) increased to 21.9% in Q1 2024 from 13.6% in Q1 2023, driven by increases in Critical Services mix and margin improvements in margin throughout the Company’s portfolio.

Services sales increased 66% driven by Plurilock’s focus on Critical Services and traction it is seeing with new clients.

Adjusted EBITDA improved to a loss of $0.4M in Q1 2024 from a loss of $1.0M from stronger margins and cost containment versus the prior year.

“During the first quarter of 2024, Plurilock achieved growth in its services, a key strategic initiative for the company,” said Ian L. Paterson, CEO of Plurilock. “Plurilock is diligently marching forward with its Critical Services offer and gaining momentum towards its profitability goals.”

Q1 financial fiscal highlights:

Total revenue for the three months ended March 31, 2023, was $11,574,930 as compared to $15,767,328 for the year three months ended March 31, 2023. Revenue for the three months ended March 31, 2024 and 2023, included revenue from both the Technology Division and the Solutions Division. Revenue for the three months ended March 31, 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 offset partially by +66% growth in professional services sales.
Hardware and systems sales revenue for the three months ended March 31, 2024, totalled $8,915,252 compared to $12,444,129 respectively in the prior three months ended March 31, 2023. Software, license, and maintenance sales revenue for the three months ended March 31, 2024, was $1,647,753 compared to $2,713,578 in the prior period ended March 31, 2023. Professional services revenue was $1,011,925 for the three months ended March 31, 2024, compared to $609,621 in the prior period ended March 31, 2023.
Hardware and systems sales revenues for the three months ended March 31, 2024, accounted for 77.0% of total revenues compared to 78.9% for the three months ended March 31, 2023. Software, license and maintenance sales revenues for the three months ended March 31, 2024, accounted for 14.2% compared to 17.2% for the three months ended March 31, 2023. Professional services revenue for the three months ended March 31, 2024, accounted for 8.7% of total revenues, compared to 3.9%% for the three months ended March 31, 2023.
Gross margin for the three months ended March 31, 2024, was 21.9% compared to 13.6% for the three months ended March 31, 2023.
Adjusted EBITDA for the three months ended March 31, 2024 was $(369,551) compared to $(971,966) in the prior three months ended March 31, 2023.
Cash and cash equivalents and restricted cash on March 31, 2024 was $629,473 compared to $2,058,193 on December 31, 2023.
During the three months ended March 31, 2024, the Company used $683,179 of cash from operating activities compared to $1,699,960 in the prior year.

Operational highlights include:

On January 3, 2024, the Company received a US$4.7 million sale order from a US public library.

On January 24, 2024 the Company received a US$2.5 million cybersecurity sale order from the US hospital system.

On February 21, 2024, the Company launched its new Critical Services offer. This offer is aimed at enabling security and resilience for multinational companies and business partners with geopolitical exposure.

In terms of forward guidance, Plurilock remains committed to reaching cash flow breakeven by growing Plurilock Critical Services as well as continuing to identify more opportunities to achieve financial and operational efficiencies across all business units. At the end of December 2023, Plurilock enacted a plan in accordance with this strategy and expects to realize approximately $2.0 million in savings on an annualized basis.

The stock is down 4% at time of writing on today’s news.

We did have a small breakout on the daily chart with price action on April 29th 2024, taking out interim resistance at $0.355. The major resistance comes in at the $0.50 zone which is a major psychological level. The stock rejected this resistance and broke back below $0.375 support. Price attempted to climb back above, but the sellers are jumping in and the stock is in danger of closing below recent lows at $0.30. A close below could see the stock head back to $0.195 or lower.