Plurilock Security (PLUR) Q3 2024 earnings summary

Executive summary

• Revenue and gross margin for 2024 YTD have surpassed 2023, with Q4 expected to be a record quarter.

• Focused on expanding high-margin Critical Services, leveraging deep government and commercial relationships across North America and NATO countries.

• Shifted resources to Critical Services in February 2024 to address skills shortages and drive recurring managed services contracts.

• Achieved significant sales growth with a major S&P 500 client, generating $22 million in sales and $7 million in client cost savings over seven months.

• Q3 2024 saw significant order activity, setting up a strong Q4 finish.

Financial highlights

• Q3 2024 revenue: CAD 14.3M (or $14.3M), down from CAD 20.9M (or $20.0M) in Q3 2023; nine-month 2024 revenue: CAD 38.6M ($38.5M) vs. CAD 48.0M ($48.0M) in 2023.

• Hardware and systems revenue declined to $11.9M (Q3) and $30.9M (nine months), while software license and maintenance revenue was $1.5M (Q3) and $4.3M (nine months).

• Professional services revenue grew to CAD 875K (Q3) and CAD 3.3M (nine months), up 40% year-over-year for the quarter.

• Gross margin for Q3 2024 was 6.8% (down from 7.2% in Q3 2023); nine-month gross margin improved to 14.2% from 10.3% year-over-year.

• Adjusted EBITDA for Q3 2024 was negative $2.1M; YTD 2024 adjusted EBITDA loss was $(2.7)M, improved from $(3.8)M YTD 2023.

Outlook and guidance

• Q4 2024 is expected to be a record quarter, with revenue and gross margin for the first 10 months already exceeding full-year 2023.

• Management expects Q4 gross margin to recover to levels seen in the first half of 2024.

• Plurilock aims to accelerate growth through strategic acquisitions over the next 12–24 months.

• No specific 2025 guidance provided, but focus remains on profitability and expanding Critical Services.