Plurilock Security Inc (PLUR.V) is a Canadian identity-centric cybersecurity solutions company. The cybersecurity company provides multi-factor authentication (MFA) solutions using behavioral-biometric, environmental, and contextual technologies.
Equity Guru founder Chris Parry, has recently written about Plurilock and the Company using REAL AI. Plurilock is also highlighted in his AI sector roundup. Definitely a company that anyone interested in AI investing should have in their watchlist.
Today, Plurilock announced its financial results for the three and twelve months ended December 31st 2022. A record was achieved.
Key achievements include (all figures in Canadian Dollars):
- Full year 2022 revenue reached the $65-million threshold.
- Total revenue for the year ended December 31, 2022, was $64,632,371 as compared to $36,624,610 for the year ended December 31, 2021. An increase of 75% year-over-year. Revenue for the year ended December 31, 2022, and December 31, 2021, included revenue from both the Technology Division and the Solutions Division. Revenue for year ended December 31, 2022, is significantly higher than the prior year ended December 31, 2021
- Hardware and systems sales revenue for the year ended December 31, 2022, totalled $56,919,768 and compared to $33,546,047 in the prior year ended December 31, 2021. Software, license and maintenance sales revenue for the year ended December 31, 2022, was $6,970,057 compared to $2,597,826 in the prior year ended December 31, 2021. Professional services revenue was $742,546 for the year ended December 31, 2022, compared to $480,737 in the prior year ended December 31, 2021.
- Hardware and systems sales revenues for the year ended December 31, 2022, accounted for 88.1% and of total revenues compared to 91.6% for the year ended December 31, 2021. Software, license, and maintenance sales revenues for the year ended December 31, 2022, accounted for 10.8% compared to 7.1% for the year ended December 31, 2021. Professional services revenue for the year ended December 31, 2022, accounted for 1.1% of total revenues, compared to 1.3% for the year ended December 31, 2021.
- Revenue generated in the United States accounts for approximately 95% of Plurilock’s total full year 2022 revenue.
- Plurilock completed three accretive acquisitions in 2022, resulting in the expansion of its client network for potential cross-selling opportunities and the addition of new technology assets.
- Substantial foreign exchange rate gains due to revenue generated in U.S. dollars and company overhead costs paid in Canadian dollars.
- Gross margin for the year ended December 31, 2022, was 7.7% compared to 6.8% for the year ended December 31, 2021.
- Cash and cash equivalents and restricted cash on December 31, 2022, was $2,853,107 compared to $9,468,104 on December 31, 2021
“Fiscal 2022 was a transformational year filled with key business milestones with respect to our revenue growth and advancing our pathway to reaching profitability in 2023,” said Ian L. Paterson, CEO of Plurilock. “While our full year 2022 revenue grew to $64.6 million as compared to $36.6 million in the previous fiscal year, we have also accelerated the cross-sale process for our Plurilock platform through our existing distribution channels which have been showcased in 2023, year to date.”
- Total revenue for the three months ended December 31, 2022, was $17,822,224 as compared to $12,698,591 for the three months ended December 31, 2021.
- Hardware and systems sales revenue for the three months ended December 31, 2022, totaled $16,723,631 and compared to $12,098,191 for the three months ended December 31, 2021. Software, license, and maintenance sales revenue for the year ended December 31, 2022, was $596,140 compared to $497,892 in the prior year ended December 31, 2021. Professional services revenue was $502,453 for the three months ended December 31, 2022, compared to $102,508 for the three months ended December 31, 2021.
- Hardware and systems sales revenues for the three months ended December 31, 2022, accounted for 93.8% and of total revenues compared to 95.3% for the three months ended December 31, 2021. Software, license, and maintenance sales revenues for the three months ended December 31, 2022, accounted for 3.3% compared to 3.9% for the three months ended December 31, 2021. Professional services revenue for the three months ended December 31, 2022, accounted for 2.8% of total revenues, compared to 0.8% for the three months ended December 31, 2021.
- Gross margin for the three months ended December 31, 2022, was 10.3% compared to 9.7% for the three months ended December 31, 2021.
Plurilock has already kickstarted 2023 strong with plenty of contract renewals and new deals. Just look at their consistent press releases to see how active the Company has been year to date. Growth outlook looks positive. Here are the goals for the year:
- Increase cross-selling of Plurilock’s high-margin software solutions to the Company’s growing customer pipeline.
- Streamline operations by further unlocking synergies between the Company and previous acquisitions to improve Plurilock’s bottom-line.
- Adjust pricing of Technology Division’s products to offer competitive rates to customers while increasing gross margins.
- Advance Plurilock’s M&A strategy to complete accretive acquisitions of synergistic business with strong technology assets and extensive customer networks in key regional markets.
CEO Ian L. Paterson said, “Reaching profitability remains a key focus for our company, and we intend to roll out several new initiatives to achieve this goal. Most notably, in the near term, we will continue to further integrate the operations of our previous acquisitions, which could enable us to potentially achieve multiple operational efficiencies and produce significant cost savings in 2023. Furthermore, we aim to continue improving our gross margins for the remainder of 2023 by focusing on securing high-margin sales.”
The stock is down -3.03% on the news at time of writing and sits at a market cap of just under $14 million.
The stock has regained a major support zone at $0.16. This is highly significant since the technical retest failed to hold above this zone recently. With a breakout above the $0.16 zone, a breakout was in play. However in recent days, the stock had fallen and closed back below this major breakout zone while respecting a downtrend line. The retest of the breakout failed, and did not see buyers step in.
With the stock back above $0.16, the stock can regain upside momentum and potentially test resistance at $0.225 and then $0.25. It should be noted that the stock is now in a small range between $0.16 and $0.175. The last 8 trading days have seen Plurilock consolidate in this small range. A close above $0.175 would be considered a breakout and would add to upside momentum.