Plurilock Security (PLUR) Q3 2024 earnings summary

Executive summary

• Focus on expanding high-margin Critical Services, leveraging established brands and AI-driven solutions for government and commercial clients across North America and NATO countries.

• Shifted resources to Critical Services in February 2024 to address skills shortages and convert one-time engagements into long-term managed contracts.

• Fiscal 2024 revenue and gross margin are ahead of 2023 as of October, with Q4 2024 expected to surpass Q4 2023.

• 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.

• Integrated four acquisitions, streamlining operations and realizing CAD 2 million in annual savings to reinvest in Critical Services.

Financial highlights

• Q3 2024 revenue was CAD 14.3M, down from CAD 20.9M in Q3 2023; nine-month revenue was CAD 38.6M, down from CAD 48.0M year-over-year.

• Hardware and systems revenue for Q3 2024 was $11.9M (83.1% of total), down from $17.5M (87.6%) in Q3 2023.

• Professional services revenue grew to $875K (6.1%) in Q3 2024, up from $624K (3.1%) in Q3 2023.

• Gross margin for Q3 2024 was 6.8%, slightly 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, compared to negative $1.4M in Q3 2023; YTD 2024 adjusted EBITDA loss improved to $(2.7)M from $(3.8)M YTD 2023.

Outlook and guidance

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

• Revenue and gross margin for the first 10 months of 2024 have already exceeded full-year 2023 totals.

• Strong order growth and sales in early Q4 support a positive outlook.

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

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