- Strong Sales Momentum and Pipeline Growth: Plurilock's strategic hires and industry alliances have led to a record US$19.3 million contract. Key partnerships with TD SYNNEX and CrowdStrike have increased credibility, leading to enhanced deal flow and cross-selling opportunities.
- Strategic Expansion of Critical Services Division: Division focuses on high-impact areas like AI-driven cybersecurity and Zero Trust architecture. Integration of prior acquisitions has resulted in $2 million in cost savings, enabling reinvestment into scalable, long term revenue streams.
- Strong Client Relationships Driving Multi-Million Dollar Contracts: Plurilock's success in transforming legacy systems to next-gen AI technology has led to over US$22 million in sales within eight months for a major client, showcasing a trusted, ongoing partnership and significant cost savings for the client.
- Rising Demand in North America: Increasing cyber threats and potential policy changes under President-elect Trump, are expected to boost federal investments in cybersecurity, particularly in critical infrastructure. Plurilock is well-positioned to benefit from this rising demand.
- Strong Year-End Outlook: Plurilock's seasonal business dynamics for the second half are driven by substantial contract milestones across Q4, marked by high-value deals, including significant contracts with law enforcement and semiconductor firms. Plurilock is set for a robust finish, highlighting scalable client relationships and expanding market presence.
Vancouver, British Columbia--(Newsfile Corp. - November 14, 2024) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) ("Plurilock" or the "Company"), a global cybersecurity services and solutions provider, is pleased to provide a corporate update, highlighting significant sales momentum, increased market demand, and the Company's strategic growth initiatives.
"Plurilock continues to solidify its reputation as a trusted cybersecurity provider, offering specialized, high-impact solutions that address the complex security challenges faced by our clients," said Ian L. Paterson, CEO of Plurilock. "Our investments in the Critical Services division, coupled with an expanded sales team, have driven strong client relationships and unlocked new growth opportunities. With demand for robust cybersecurity on the rise, we are well-positioned to support critical infrastructure across North America and to safeguard against evolving threats."
Strong Sales Momentum and Expanding Pipeline via Strategic Partnerships
Plurilock is experiencing robust sales momentum and gross profit, driven by strategic investments in sales staff initiated in Q2 2024. New hires have driven revenue growth and pipeline expansion. Key partnerships with TD SYNNEX and CrowdStrike, along with participation in major industry events like TD SYNNEX Inspire 2024 and CrowdStrike's Fal.Con Europe, have boosted market reach and credibility. This expanded network is fueling deal growth and creating new cross-selling opportunities, positioning Plurilock for sustained success in high-demand sectors.
To capitalize on this momentum, Plurilock has introduced a new sales agent program to penetrate untapped markets and secure high-value contracts. The program prioritizes customer needs, offering top-tier cybersecurity services with competitive incentives. It benefits independent contractors, CISOs, and business advisors, giving clients access to premier solutions without extra intermediary costs.
The program's early success includes a US$19.3 million deal with a major semiconductor company, saving the client US$7 million in costs while reducing cyber risks. This highlights Plurilock's competitive edge in a market with rigorous procurement scrutiny. By demonstrating clear ROI and a solution-based approach, Plurilock is solidifying its market position and attracting new business despite growing competition.
Additionally, the Company has have posted multiple new revenue-generating positions, underscoring our commitment to scaling the sales force and meeting increasing demand for our solutions.
Additional Strength and Experience for Plurilock's Advisory Council
Since its July 2024 update, Plurilock has enhanced its advisory council by adding Ron Wilson, President of Best Buy Canada; David Kris, former DOJ National Security Division head; and Brian Aebig, a seasoned technology sales executive. These advisors bring strategic connections and deep insights, supporting potential M&A opportunities, new contract wins, and talent acquisition, reinforcing Plurilock's industry standing.
Growing Demand in North American Cybersecurity Landscape
The North American cybersecurity market is rapidly expanding, driven by increasing cyber threats and shifting economic policies. Statistics Canada reports that the financial toll of cyber incidents for businesses doubled from $600 million in 2021 to over $1.2 billion in 2023, particularly from foreign actors, highlighting the urgent need for enhanced digital defenses. Recent Canadian reports also revealed substantial cyber espionage efforts, escalating the demand for domestic cybersecurity solutions.
Expanding on the 10% increase to the 2025 U.S. Civilian Federal agencies cybersecurity budget, this trend is echoed in President-elect Trump's "America First" stance and his history of bold regulatory changes suggests a strong emphasis on reshaping domestic tech policy to enhance U.S. self-reliance and counter foreign influence, particularly from adversarial nations like China and Russia. President-elect Trump's emphasis on strengthening cyber operations as part of his broader national security agenda could result in increased federal investments in cybersecurity, with a focus on protecting critical infrastructure, offering a tailwind for Plurilock's public sector business.
Resilient Public Sector Customer Base Driving Stable Growth
Despite economic pressures, Plurilock's strong public sector client base, including U.S. and Canadian government agencies, provides a stable revenue foundation. The Company's integrated approach, combining solutions and critical services, drives additional contracts and client growth.
The synergy between Plurilock's Solutions Division comprised of Integra and Aurora and its Critical Services ("PLCS") team remains a cornerstone of the Company's success. Plurilock's ability to deliver clear ROI and cost-effective cybersecurity solutions has become a key differentiator, driving continued growth and client acquisition. The technology expertise from the Solutions Division frequently opens the door for PLCS engagements, while the service-oriented approach helps drive additional solutions contracts. The successful execution of large-scale projects, such as the $5.4 million VMWare deal with a Canadian law enforcement agency, sets the stage for further cross-selling opportunities within PLCS, reinforcing our integrated approach to clients.
Trust and Scalability in Plurilock's Client Relationships Driving Contract Growth
Plurilock's strategic growth is evident through its progression from initial client engagements to multi-million-dollar contracts, including long-term projects like security re-platforming and disaster recovery. This pattern highlights Plurilock's ability to scale services and deepen relationships, building a strong foundation for continued growth in 2024, and into 2025.
The expanding scope of contracts, especially with high-value clients like an S&P 500 semiconductor customer, demonstrates the trust Plurilock has earned. Since acquiring the client in March 2024, Plurilock has achieved over US$22 million in total sales. The results have been impactful, delivering US$7 million in cost savings and avoidance for the client by re-platforming their outdated legacy systems to cutting-edge, next-gen AI technology. This transformation has solidified a trusted, ongoing business relationship, leading to new inbound opportunities and contributing to the expansion of Plurilock's brand presence in the market. Plurilock's role as a key partner in managing complex cybersecurity needs underscores its reliability and its ability to execute at scale.
Seasonal Business Dynamics Indicate Strong Year-End Performance
Historically, Plurilock's business has shown a strong seasonal pattern, with the second half of the year outperforming the first. Year-to-date, the Company has announced significant revenue contributions across multiple contracts. Notably, the amount of revenue disclosed thus far in Q4 alone has already surpassed the combined total of the previous quarters. Total new sales announced during each quarter are as follows: US$7.2 million in Q1, US$7.9 million in Q2, US$1.6 million in Q3, and US$28.3 million to date in Q4. With a robust pipeline and ongoing strategic sales initiatives, Plurilock is poised for a strong finish to the year, reflecting the successful execution of its growth strategy.
Plurilock's approach to building deep, scalable relationships with blue-chip clients has resulted in a series of substantial contracts throughout 2024. Our client base, which includes high-profile public sector entities and leading enterprises, reflects the trust Plurilock has earned in the market.
Key Contract Milestones Announced in Q4 2024:
Key Contract Milestones Announced in Q3 2024:
- September 3, 2024: US $1.1 million contract with U.S. agency
- August 20, 2024: US$0.1 million in 2024, total value up to US$0.2 million over 5 years to U.S. DoT
- July 9, 2024: US$0.3 million expands existing engagement with semiconductor company
Key Contract Milestones Announced in Q2 2024:
- June 26, 2024: US$0.8 million 3-year contract with existing laboratory data & advisory firm
- June 19, 2024: US$6.2 million total contract value with U.S. Treasury
- May 2, 2024: $0.9 million sale to Canadian federal government agency
Key Contract Milestones Announced in Q1 2024:
Focused Expansion in High-Value Critical Services
Plurilock's Critical Services business unit continues to accelerate, and the Company remains focused on driving and sustaining expansion. The unit offers leading enterprises advanced solutions for critical business problems, particularly those resulting from challenging externalities in organizations' social, political, business, or larger cyber-risk environments.
Critical Services customer organizations have generally engaged Plurilock in one of two ways-either proactively, through penetration testing or security assessments in anticipation of issues, or reactively in the immediate aftermath of significant incidents that require incident response, risk response, or compromise recovery.
The Company then leverages these initial engagements to drive additional or supplementary IT goods sales, software sales, or follow-on service sales in one of the five key Critical Services practice areas:
- Offensive security (penetration testing, red and purple teaming, attack surface reduction and vulnerability analysis, white box security architecture analysis, cybersecurity risk assessments, continuous security analysis)
- Zero Trust architecture design and implementation (Zero Trust network access, secure web gateway, cloud access security broker, secure access services edge, micro segmentation)
- Security operations (threat hunting, SIEM/NDR/EDR/XDR implementation, incident response and digital forensics)
- IP protection (insider threat management, data loss prevention implementation, supply chain security analysis, IP data mapping and risk assessment, cloud security posture management)
- Advisory (compliance readiness for ISO27001, SOC2, CMMC, FedRAMP, FISMA, PCI-DSS, HIPAA, SEC, SOX, third-party risk analysis, cyber awareness and training)
Plurilock is a leading provider of specialized cybersecurity services, tailored for complex and evolving security needs in large, complex enterprises that generic providers struggle to fulfill. This focused high-expertise approach enables efficient operations with a skilled, compact team, delivering high-impact services cost-effectively while building strong, sticky client relationships conducive to a land-and-expand strategy.
Plurilock's Critical Services has been a key driver of the Company's growth strategy and has enabled Plurilock to strengthen its position as an important provider for government, military, and enterprise clients.
Outlook
Historically, Plurilock sees a stronger performance in the latter half of the year. With an expanding sales force, rising market demand, and targeted strategies to seize new opportunities, Plurilock is poised for continued growth. The Company's commitment to delivering best-in-class cybersecurity solutions and leveraging its strong base of trusted relationships will remain central to our strategy as we navigate an evolving market landscape.
About Plurilock
Plurilock sells cybersecurity solutions to the United States and Canadian Federal Governments along with Global 2000 companies. Through these relationships, Plurilock sells its unique brand of Critical Services-aiding clients with our expertise to defend against, detect, and prevent costly data breaches and cyberattacks.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") related to future events or Plurilock's future business, operations, and financial performance and condition. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock's business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, the impact of general economic conditions, and unforeseen events and developments. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof, and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws. Risks and uncertainties about the Company's business are more fully discussed under the heading "Risk Factors" in its most recent Annual Information Form. They are otherwise disclosed in its filings with securities regulatory authorities available on SEDAR+ at www.sedarplus.ca.
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