Earnings call transcript: Plurilock Security sees revenue surge in Q1 2025

Plurilock Security Inc. (market cap: $35.56 million) reported a significant revenue increase of 48% to $19 million for the first quarter of 2025, reflecting strong performance in its cybersecurity offerings. The company’s stock saw a modest rise of 4% following the announcement, with shares closing at $0.26. According to InvestingPro data, the stock is currently trading at $4.54, down nearly 28% over the past year. Despite the positive revenue growth, the company posted an adjusted EBITDA loss of $1.3 million, slightly higher than the loss in the previous year.

Key Takeaways

• Plurilock’s revenue grew 48% year-over-year to $19 million in Q1 2025.
• Gross margin declined to 12.2% from 14.2% in the previous year.
• The critical services division experienced a 78% growth, contributing $3.9 million.
• The company focuses on AI-native cybersecurity tools and expanding its North American market presence.

Company Performance

Plurilock Security demonstrated robust revenue growth in Q1 2025, largely driven by its AI-native cybersecurity tools. The company reported a total revenue increase of 48% compared to the same period last year. However, the gross margin decreased slightly to 12.2%, reflecting increased costs or pricing pressures. The company continues to expand its critical services division, which showed a remarkable 78% year-over-year growth.

Financial Highlights

• Revenue: $19 million, up 48% from Q1 2024.
• Gross profit: $2.3 million, up 28% year-over-year.
• Gross margin: 12.2%, down from 14.2% in Q1 2024.
• Adjusted EBITDA loss: $1.3 million, compared to a $1 million loss in Q1 2024.
• Cash and cash equivalents: $2.7 million, up from $1.4 million in the previous year.

Outlook & Guidance

Plurilock is optimistic about its future prospects, focusing on expanding its critical services and North American market presence. The company anticipates margin expansion and decreased operating expenses as it leverages offshore hiring centers and internal AI adoption. For FY 2025, the company forecasts an EPS of $17.55, with an increase to $27.23 in FY 2026. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with analysts setting a price target of $12.00.

Executive Commentary

Ian Patterson, CEO of Plurilock Security, emphasized the growing importance of cybersecurity as a national security priority, stating, "Cybersecurity has very much become a boardroom and national security priority." He also highlighted the company’s commitment to customer-focused solutions, saying, "We’ve always been focused on staying loyal to the customer and not staying loyal to any one specific technology."

Risks and Challenges

• Declining gross margins could impact profitability if costs continue to rise.
• The competitive landscape in cybersecurity remains intense, with major players expanding their offerings.
• Economic uncertainties could affect government and commercial sector spending on cybersecurity solutions.
• Potential delays or challenges in expanding the North American market presence.

Plurilock Security’s focus on AI-driven solutions and market expansion plans position it well for future growth, despite the challenges of declining margins and competitive pressures.

Full transcript - Plurilock Security Inc (PLUR) Q1 2025:

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Good morning, and thank you for joining us for Pluralloc Securities conference call to discuss its financial results for the quarter ending 03/31/2025. I’m Sean Peasgood from Soffit Capital. We handle Plurlock’s Investor Relations. On the call today, have Plurlock’s CEO, Ian Patterson. During the call, all participants are in a listen only mode.

Following the presentation, we’ll conduct a question and answer session. We encourage you to submit your questions through the Q and A tab at any time, and management will answer them following their prepared remarks. Before Ian discusses the results, I’d like to remind everyone that certain statements in this call may be forward looking in nature. These include statements involving known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in our forward looking statements. For caveats about forward looking statements and risk factors, please see Plurlock’s MD and A for the quarter ending 03/31/2025, which can be found on our company profile at SEDAR plus Unless otherwise stated, all dollar amounts referred to in this call are Canadian dollars, the company’s reporting currency.

I’ll now pass the call over to Ian Patterson, CEO of Plurlock. Ian?

Ian Patterson, CEO, Plurlock: Thank you, Sean, and thanks everybody for joining us today. I will say good evening from Europe, which is where I am today, and also good morning to, to everybody else in in North America. And welcome to Plurlock’s financial results conference call for the first quarter of twenty twenty five. My name is Ian l Patterson. I am CEO of Plurlock.

Today, as we review quarterly results, I’ll provide some highlights, along with a business update. We’ll go through the the financial results, and then we’ll conclude the prepared portion, talking a little bit about our outlook, and then leave some time at the end for q and a. Before we get into the financials, I’d actually like to highlight a few trends in the evolving cybersecurity landscape. In the first quarter of twenty twenty five, we saw cyber threats escalate significantly with an almost 50% increase in weekly attacks per organization and more than a 20% rise in ransomware incidents compared to the prior year. These attacks largely driven by AI, nation state actors, and supply chain vulnerabilities are increasingly targeting high impact sectors like government manufacturing and others that we focus on here at Plerlock.

Against this backdrop, cybersecurity has very much become a boardroom and national security priority. Plerlock continues to respond with discipline and focus, delivering real world solutions to organizations that cannot afford failure. Our role as a trusted partner to North American and NATO allied public and private institutions has never been more critical, and our work remains grounded in securing what matters most in this high risk environment. Now during this conversation today, we’ll be talking about two interconnected business segments. The first is our solutions division.

This is a a core unit which provides technology and cybersecurity products through an extensive network of partners and customers, and it also serves as a key entry point for both critical services, as well as follow on portions of business. The critical services portion, or or segment of the business is a specialized team that delivers tailored cybersecurity services, which help clients address urgent security challenges and build long term resilience. While while both segments are contributing to overall progress, critical services, which we formally launched in February of twenty twenty four, has become a strategic priority due to its significantly higher margin profile and its ability to create long lasting client relationships. Acting as a trusted cybersecurity adviser, Plerlock brings deep domain expertise and regulatory compliance, security architecture, and technology integration to support government agencies in Canada and The US as well as large global enterprises. Our strategy is to build on existing customer engagements and transition them into recurring managed services.

By introducing adjacent high value offerings through our reseller network, we help clients solve more of their cybersecurity challenges, deepening relationships, increasing retention and ultimately enhancing profitability. Let me walk you through a few highlights from the quarter. So the first part is that with the implementation of our new accounting policy in, at the end of of q four twenty twenty four, which we talked about during our last investor call, this focuses on recognizing revenue from software and services over time rather than upfront. And so recognized revenue for the first quarter of twenty twenty five was 19,000,000, which was an increase of 48% over the new adjusted, q one twenty twenty four revenue of 12,800,000.0. Gross sales bookings, of 11,700,000.0 for the first quarter of twenty twenty five, and this is an increase of 4.1% from our previously reported 11,200,000.0 revenue in q one twenty twenty four.

Now gross sales bookings are unaudited numbers but reflect what our revenue would have been had we continued to report with the same accounting policies as we had had in the past. Our critical services business grew a 78% year over year to 3,900,000.0. This area of the business has been central to our strategy, and we intend to maintain focus here. Now this focus aims to strengthen margins over time by expanding our revenue mix and building deeper recurring services relationships, and we’re already seeing positive results. Gross profit increased 28% year over year to $2,300,000 with a slight dip in gross margin percentage to 12.2% down from 14.2%.

Now this is due to the increase in resell revenue for the quarter, and a higher revenue overall compared to the comparative period. It’s important to note that getting a foot in the door, opens the flywheel with clients whereby we begin to penetrate deeper and expand capabilities. So the increased resell has strong potential to lead to further cross sell and upsell opportunities. And lastly, in the first quarter of twenty twenty five, we announced nearly $10,000,000 in new business across a range of high value clients, and this included, multiyear critical services contracts in both The US commercial and public sector markets. These contracts reflect growing demand for high trust recurring cybersecurity services and validate our strategy of deepening customer relationships through hands on technical leadership.

Now Plerlock’s recent wins are not just financial. They reflect our strategic position in the market. As threats become more sophisticated, customers are turning to partners who can deliver and implement advanced security solutions, and that’s where we stand out. Plerlok’s partners remain vital to expanding market reach and meeting diverse client needs across government and enterprise sectors. Through trusted relationships with US and Canadian government agencies, we’re now expanding into commercial sector, bringing our proven capabilities to enterprise clients with similarly complex needs.

Partner driven opportunities continue to support ongoing customer acquisition and service delivery. Our partnerships with leaders like CrowdStrike and Forcepoint help extend our reach, reinforce our credibility, and have already resulted in direct referrals and closed business. As we scale, our sales efforts are focused on higher margin offerings and supported by targeted tools and incentives. With stronger capabilities, deeper client ties, and growing recurring revenue, we’re beginning to see a flywheel effect, momentum we expect to build as we carry out our 2025 strategy. At this point, I’d like to move on to reviewing our first quarter results ending 03/31/2025.

And again, as as, Sean mentioned, all dollar amounts, I’ll refer to our Canadian dollars, which is Plerlock’s reporting currency. For more detailed information, please refer to the financial statements and management discussion and analysis documents that we have filed on Cedar Plus. In our effort to explore a possible listing or other corporate activities in The US, the company last year appointed, new auditors, MMP, to streamline the process of doing an audit under both, Canadian and and, US standards. Under review with auditors, the company changed how it recognized revenue, and the changes were predominantly as follows. Resell software is now recognized over the life of the contract as opposed to at a single point in time.

This change reflects the nature of most modern software offerings that have some sort of ongoing service component attached to the software. Secondarily, the vendor maintenance and support is now treated as an agent transaction as opposed to a principal transaction. Agent transactions recognize only the net amount of revenue, which is revenue less costs as revenue. Principal transactions recognize gross revenue as revenue and the costs as cost of goods sold or COGS. Now turning to our first quarter financial results for the three months ending 03/31/2025.

Total revenue for Q1 twenty twenty five increased 48% to $19,000,000 as compared to $12,800,000 for the first quarter ended 03/31/2024. Comparable gross sales under previous accounting interpretations would have been 11,700,000.0 for 2024 and 11,200,000.0 for 2023, which was a 4% increase, year over year. Now the gross sales bookings is the gross value of all contracts signed and delivered within a within a given fiscal year, and is an unaudited number. And I believe I’ve actually just, misspoken there. I I what I intended to say was 11,700,000.0 for 2025 versus 11,200,000.0 for 2024.

So I apologize for that, for that miss misspoke. Hardware and systems sales revenue for q q one twenty twenty five totaled 2,700,000.0 compared to 1,400,000.0, in q one of twenty twenty four, accounting for 14.3% of total revenues compared to 10.9, 10.6% in q one twenty twenty four. Software license and maintenance sales revenue for q one twenty twenty five totaled 12,400,000.0 compared to $10,100,000 in q one twenty twenty four, which accounted for 65.2% of total revenues compared to 78.4% in q one twenty twenty four. Lastly, professional services revenue for Q1 twenty twenty five was $3,900,000 compared to 1,400,000 in the prior quarter ended 03/31/2024, accounting to 14.7% of total revenues compared to 5.8% in 2023. Gross margin for Q1 twenty twenty five was 12.2% compared to 14.2 in Q1 twenty twenty four.

Despite the small decline in gross profit, gross profit increased 28% to 2,300,000.0 Adjusted EBITDA, which is a non GAAP measure, declined 24% for Q1 twenty twenty five to a loss of $1,300,000 compared to a loss of $1,000,000 in Q1 twenty twenty four. Cash and cash equivalents and restricted cash on 03/31/2025, was $2,700,000 compared to $1,400,000 on 03/31/2024. And also worth noting, the company has an additional $7,800,000 of unused credit facilities at the March. This concludes the financial summary for the first quarter of fiscal twenty twenty five. And moving on to the outlook, for the year.

Plurlock reiterates the outlook provided on 05/01/2025, during our fiscal twenty twenty four results webinar approximately a month ago. PLORALOC began 2025 with strong momentum and a clear focus on scaling high margin services and delivering long term value after investing in sales in 2024. With strong relationships across some of the most security conscious institutions in North America, our critical services business continues to expand, and our pipeline reflects real demand for practical and effective cybersecurity solutions. Plerlock expects continued progress in our critical services business supported by strong interest from both partners and customers. Following recent successful engagements, the company is experiencing a notable increase in word-of-mouth referrals and inbound inquiries.

This growing demand highlights the value of PlerLock’s hands on cybersecurity expertise, and the team remains focused on converting these opportunities into long term customer relationships. This year, PLURLOCK is focused on expanding in the North American market while responding to select inbound international opportunities. As cyber threats grow more frequent and more severe, organizations are under increasing pressure to improve visibility, strengthen cyber defense, and respond swiftly. At Plurlock, we’re positioned to help meet that demand and deliver consistent performance with tailored operational cybersecurity support. And with that, I’d like to open the call to any questions.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Hey. Great. Thank you, Ian. As a reminder, to submit a question, please click the q and a tab at the bottom of the webinar, and you could submit your question at any time. I’d like to thank participants for your questions that have already come in, and we’ll start here.

So, okay. First question, can you talk about your use of cash in q one?

Ian Patterson, CEO, Plurlock: Yeah. Thanks, John. So when we’re talking about cash, there’s really, we we tend to put cash to work, really as as quickly as we had it. And and as and the more that we can use the cash on the balance sheet, we can actually reduce the, any interest, expense that we have. I think with our business, we really have two working capital loops.

And I’ll and I’ll talk about both both of these two loops, and then I’ll talk a little bit about what that looked like for q one. So the first working capital loop is within our solutions division, and that’s where we’re providing resell, whether it’s hardware or software, but we’re we’re providing third party products to customers. And so, typically, the way that that works is a customer will come to us. They’ll they’ll place a a purchase order with us. We’ll then go to a distributor or directly to the vendor.

We’ll then purchase those products. We’ll provide them to the customer, and then we will collect payments and then remit payments throughout throughout the the cycle. So that that working capital loop, is is pretty straightforward. It’s it’s one that we’ve had in place, for for the last four years, and we have good, we have, kinda good good repeatability around that working capital loop. The the second working capital loop, is similar to that, but that’s where we’re providing critical services.

And so in that case, we might have a customer who approaches us. We have a project to work on or or a potentially a a recurring contract that we’re working on with them. We’re going to perform services. And at the end of that services work, then we’ll bill we’ll bill the customer, and then collect funds. Depending on who the customer is, we might bill, some amount ahead of time.

So we might actually be funded ahead of time for the work that we are about to be doing, or in some cases, particularly with public sector, for instance, we will need to, be paid in arrears. So the the change in the business for us is that we’ve seen a very strong uptick in critical services as we’ve as we’ve talked about over the last, several investor calls. And so where we found, the best, kinda allocation of capital is towards the working capital for critical services. And to the extent that we can do that, we don’t need to tap the line of credit, and, ultimately, we don’t incur as much, as much much interest expense. So two two different working capital loops, one of them growing quite a bit faster, which, again, is is critical services, and we certainly saw that in, in q one.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Okay. Great. Question coming from the same person. What do you expect your burn rate to be for the balance of the year, and can you tie that into operating expenses at all?

Ian Patterson, CEO, Plurlock: Yeah. So I I might I might look at this on an on an annualized basis. So in 2024, on a full year basis, what we saw as compared to 2023 was that, you know, OpEx was sort of in the 14,000,000 ish neighborhood. Gross profit grew year over year, but those lines did not yet intersect. What we’re looking at for the balance of this year is is we’re very focused on margin expansion, which, again, as we’ve talked about, the largest driver for that is gonna be critical services.

We also expect, OpEx to decrease. And so some of the activities that we have in place, which includes leveraging our, some of our offshore, hiring centers as well, frankly, as as, adopting, some of the initiatives around, our own internal adoption of AI, we expect to be able to to reduce the OpEx, OpEx amount as well. The one thing that I would say for q one as compared to the balance of the year is we did we did front load some of the projects that we have. So for instance, we’ve talked about the PCAOB audit, and some of the corporate activities that that we wanted to do, and those expenses were landing in, in the first half of the year as opposed to the second. But they’re, you know, not necessarily, expenses that that flow the the full way through.

So, we were we were pretty intentional about wanting to make some specific investments in first part of the year, and and then we’re also expecting some of those initiatives to, to bear fruit later on. So all that having been said, you know, we’re focused on on growing margin. We’re focused on, reducing expense, and that’s sort of how we see the the the remainder of the year.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: K. Great. Switching to, revenue. What specific factors drove the revenue growth in this quarter, and how much of it was attributed to new client contracts versus existing client expansions?

Ian Patterson, CEO, Plurlock: Yeah. It’s a good question. You know, what I would what I would talk about is the strong uptick in critical services sales that we saw towards the second half of last year. We had a lot of those a lot of that work carry through into into this calendar year. So the difference is that in 2025, we started with a a bigger backlog of work as compared to when we started, in 2024 where where we didn’t have that backlog, frankly.

So so that was part of the existing work that we’d already done, and this is this is true, by the way, both for services work as well as, some of the technology resell work. What we’re seeing today, and we alluded to this earlier in the in the conversation, is that the the flywheels are starting to spin, when it comes to new client acquisition. So when we’re looking at adding additional logos, we’re seeing a lot more referrals and word-of-mouth coming inbound to us, as opposed to, you know, strictly focusing on on existing client expansion. The the importance is to have both. You you always need to be adding new clients, you always need to be, hopefully, expanding your wallet share within those clients.

And the good news is that is that we are seeing both. I think the change this year versus last is that a lot of those a lot of the investment that we’ve made in, the the partnerships, which we’ve talked about, like Forcepoint and CrowdStrike, are are certainly, we’re certainly seeing the impact of those today, now that we’ve, now that we’ve been investing in them for for a bit of time.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Okay. One just came in here, and you you just mentioned this. So maybe you could I don’t know if you can elaborate, but could you go into detail on how Forcepoint added value to the company or adds value to the company?

Ian Patterson, CEO, Plurlock: So, you know, rather than talking about a specific partner, I’ll just talk about partners, generally. And so it could be it could be Forcepoint. It could be CrowdStrike. It could be TD Synix, or it could be other partnerships that, that maybe, we we haven’t necessarily announced. In a lot of ways, the the large, OEMs like Forcepoint and and CrowdStrike, they have great brand recognition, and they’ll they’ll they’ll oftentimes be, be top of mind

And so when if a customer were to go to, let’s say, a Forcepoint just just by way of example because that’s what the question had, you know, Forcepoint might then turn around to us and say, hey. We need some help with with x y z part of the part of the business. And it could be a a a direct, opportunity in the sense that, you know, they might need help implementing and deploying Forcepoint, or it might be something that’s a little bit more indirect. So perhaps the customer approached Forcepoint and they need a pen test, and Forcepoint doesn’t necessarily do that themselves. They might refer that customer to us.

And so having those partnerships in place allows those, those referrals or, or or or direct opportunities to to come from those partners. And so that forms, you know, that forms part of how we are we are going out and and landing those new logos. So, hopefully, that provides a bit of an explanation.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: K. Perfect. Next one. What trends are you seeing in client demand for specific cybersecurity services, such as cloud security or ransomware protection, and how are you positioning your offerings to meet these needs?

Ian Patterson, CEO, Plurlock: So with Plurlock, we’ve we’ve always been focused on staying loyal to the customer and not staying loyal to any one, specific technology. And the reason for this is that technology trends can change. So for instance, I don’t think anybody, was really talking about quantum security five years ago. And and today, it’s it’s not an uncommon conversation to be having with customers today around quantum preparedness and and understanding the the impact of of, quantum computing and how that might impact customer environments and specifically their their security. So what I would say is that broadly speaking, we are we’re focused on staying loyal to the customer.

What we’re seeing now is is a lot of focus around native, AI, security tools. So it’s not it’s not around, companies adopting AI generally, but it’s actually more specifically how are, how are cybersecurity products embedding AI and how can we help our customers with either the adoption of those technologies or the implementation of those technologies or the operation of those technologies. Notably, we announced a very large, sale last year. It’s approximately $19,000,000, and that was an AI, an AI native cybersecurity tool suite. It replaced, from memory, seven or eight legacy cybersecurity point solutions that the customer had deployed.

And it was a combination of both cost savings, getting better technology, and being able to leverage AI within the within that tool, that led to that procurement. And so that that trend, is not dissimilar from from other clients that we are speaking to. It’s it’s definitely a focus today for CIOs and CISOs to be looking for technology that has AI embedded in it, when they’re going through and procuring procuring new solutions. I think the other thing is that there’s there’s there’s certainly a a recognition that there is a, deficit of talent in the cybersecurity industry. And so tools or software that requires an additional human or additional five humans to, to actually operate, is is certainly not as favorable as either a tool that’s easier to use or that uses AI to to replace having to to to manually kinda work in it, or to procure a piece of software and then turn to a partner like Plurlock to help, deploy and integrate and operate.

And so that’s the other thing is that there, there there’s just a recognition now that there’s not enough people, and they have to, CSOs and CIOs have to, find other solutions to solving those problems.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Perfect. Okay. Next one, I’m I’m gonna kinda paraphrase this, but the the the question is around, US government work and how you’re positioned there as far as requiring people on the ground there? Do you need to kind of have your head office there? Or and then maybe just talk about the structure of Pluralloc, where you’re located, how you’re addressing The US and other regions from a location basis?

I think it it’s to do with, obviously, what’s going on in The US and and just making sure that we’re positioned there.

Ian Patterson, CEO, Plurlock: Yeah. So so the the headquarters of the company doesn’t matter as much when it comes to doing business with governments. And and you can use very large, companies in The United States, as it as additional examples. So just because a company might be headquartered in Europe or in Canada doesn’t necessarily preclude being able to do business with the US federal government. And by the way, the the opposite is also true.

There are large, US headquartered companies that do a a lot of business in Canada with the Canadian government. So it it really you know, it it goes both ways. The the requirements generally to do business with public sector customers have to do with information assurance, and ensuring that there are appropriate controls in place to to protect sovereignty or or data depending on on what the case may be. And so Pollo Lok has Pollo Lok is a is a Canadian headquartered company. We operate a subsidiary in Ottawa called Integra, and we operate another subsidiary in The United States called Aurora.

And we have different security controls in place within those different subsidiaries to be able to do business with with the respective customers. So that that is the more important part. You know, I think, I think relocating a a headquarters doesn’t doesn’t necessarily get you, the ability to do business with with the US federal government as an example. And, actually, part of the moat that we have, here at Portalock is is both the know how of of what it takes to do business as well as a lot of the infrastructure to to be able to do that work. And so we see that, we see that as a, as a as a positive in in terms of having made that investment already, and, and being able to benefit from that on on a go forward basis.

I think the last thing that I would say, in just in regards to tariffs, is that, the way that we’ve structured Plurlock is that we have a a US subsidiary, which is Aurora, which employs US people, and we sell largely US products to US customers. And so, again, it comes back to kind of the the structure and the controls in so much as we don’t, we don’t do a whole lot of of cross border, cross border stuff for, you know, for for the reasons that, that that we’ve just articulated.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Great. Next one, what’s your outlook on an uplisting? And I’m gonna there’s two of them. And how are you positioning yourself, to get that uplisted?

Ian Patterson, CEO, Plurlock: Yeah. So so this kind of is is in response to to a press release that we’d put out last year. And and in that press release, we had talked about a desire to potentially, access, The US capital markets. And we didn’t put a a a timeline around that. We simply identified that the company is looking at, at at alternatives, and The US capital markets could certainly be one of those alternatives.

What we have been doing in the background is laying the foundation, such that if there is a a window, where we believed it made sense and would would create shareholder value to Uplift, that we would be able to do so. And so some of the things which which we talked about, both on this call as well as the last call, has to do with, making sure that that our accounting practices are are ready to go when it comes to, forms that are acceptable to to US capital markets. And so, specifically, we’ve we’ve we referenced the PCAOB, audit that we undertook as as well as other other investments that we’ve made in the g and a function, here at the company to be able to be in a position to to do that. And we’ll continue to to lay the foundation, while looking for, for opportunities to to potentially act on that. I think that, for us, you know, a couple things have to come together.

There has to be a a route to a potential uplift. There has to be a a a strategic rationale for that uplift. And that strategic rationale really comes down to whether we believe it’s gonna create more value for shareholders. And if those things, you know, look to be look to be good, then it’s something that we could certainly certainly act on, and we’ll be in a better position to be able to do so having, having made these investments, over the last six months.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Perfect. Okay. As a reminder, if you have a question, please do submit it in the q and a box. Right now, we have one more, Ian. And I think you’ve touched on this a little bit, but maybe a way to wrap it up.

What are your growth expectations for 2025?

Ian Patterson, CEO, Plurlock: Yeah. So so for us, it’s gonna be a a continuation of of focus on on critical services. You know, I

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: think that

Ian Patterson, CEO, Plurlock: for for a company like ours, it can be, it can be easy to just focus on top line revenue. And the way to do that is is, you know, to over index on the solutions division, you know, go after million dollar deals, but they they might be fairly thin in terms of margins. And so for us, what what what we’re looking for is is growth overall, but specifically growth around, around gross margin. And the other thing that, focusing on critical services does for us is is also, give us a a a vehicle to be able to focus on either recurring revenue or or highly repeatable revenue. So we’re gonna continue to focus on critical services.

We’re gonna continue to to deliver on the existing clients that we have. We’re gonna continue to respond to incoming opportunities that we’re starting to see come inbound as a result of the partnerships that we have and and some of the foundations that we’ve been laid or that that that we have laid. And that’s that’s gonna be the story for for the balance of the year.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Great. Okay. Well, that’s, there’s no further questions at this point. If you weren’t able to ask your question or have any other questions after the call, please reach out to us, and we’d be happy to answer them. Our contact information is available on the screen in front of you.

I’ll pass the call back to Ian now for closing remarks.

Ian Patterson, CEO, Plurlock: Well, I’d just like to thank everybody for for listening in. I I see some of the some of the same names for this call as last call. It’s it’s a pleasure to see you again, and we look forward to continuing to share our progress with you in the quarters ahead. Thanks, Sean.

Sean Peasgood, Investor Relations, Soffit Capital, Soffit Capital: Excellent. This, this concludes our call for our q one twenty twenty five results. We thank you for joining. Have a good day.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.