Plurilock Security delivers on third quarter earnings

The numbers are coming in bigger and better for Canadian cybersecurity company Plurilock Security (Plurilock Stock Quote, Charts, News, Analysts, Financials TSXV:PLUR), which just announced its third quarter financials. The Victoria-based Plurilock hit revenue of $15.2 million after earlier this year completing a pivotal acquisition in California-based cybersecurity tech and services company Aurora Systems Consulting.

Victoria-based Plurilock offers identity-centric, cloud-based and AI-driven cybersecurity technologies which feature behavioural biometrics for continuous authentication and monitoring. The company acquired Aurora in April, the company’s first acquisition since going public through a reverse takeover in September 2020 and one which came with a business already generating revenue of $35.8 million in 2020. 

Plurilock’s Q3 revenue rose from $168,854 for the third quarter 2020 to now $15.2 million, which was also up from the $8.6 million generated for the second quarter 2021. Plurilock said the increase was primarily due to revenue from its new Solutions segment after integrating Aurora’s business into the company. Hardware sales were $13.9 million compared to nil a year ago, while adjusted EBITDA was a loss of $1.2 million compared to a loss of $276,205 a year earlier.

“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 2021 Cybersecurity Breakthrough award,” said Ian L. Paterson, CEO of Plurilock, in a November 26 press release.

Plurilock gave a corporate update last week where it outlined its recent developments including a $4.6-million bought deal and the pending acquisition of the assets of cloud access security broker (CASB) CloudCodes. As well, Plurilock recently announced a new strategic partnership with Canadian endpoint security company Absolute Software, one which involves the release of a new product called Plurilock DEFEND Persisted. 

Plurilock has said that industry dynamics are showing a rise in cyber threats worldwide, particularly of the ransomware variety, quoting a Cybersecurity Ventures stat that ransomware attacks will occur every two seconds and reach $265 billion in costs by 2031.

Plurilock said its business continues to develop in the United States.

“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,” Peterson wrote.

“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,” he said.

Plurilock’s share price has slid over the past month and a half but the stock is still up about 23 per cent since debuting on September 24, 2020. In September of this year, Plurilock won “Authentication Solution of the Year” in the Identity Management category at the 2021 Cybersecurity Breakthrough Awards for its DEFEND product. 

Disclosure: Plurilock Security is an annual sponsor of Cantech Letter.