Gorilla Technology Group Inc. (“Gorilla”) (NASDAQ: GRRR), a global
provider of AI-based edge video analytics, IoT technologies, and
security convergence, today reported financial results for the nine
months ending September 30, 2023.
YTD Highlights
- Surging Revenue:
Nine-month revenue of $37.9 million surged by over 2x versus the
same period, last year.
- High and Expanding Margin
Reflects Value of Business Model: The robust 76.5% gross
margin underscores Gorilla's dynamic product-driven and
services-oriented business model, a significant leap from the
approximately 33% gross margin recorded in the previous year.
- Bottom Line Focus:
Achieved an impressive turnaround, with total comprehensive income
soaring to $7.2 million, a remarkable improvement from last year's
comprehensive loss of ($86 million). This result underscores
Gorilla's unwavering commitment to boosting profitability at the
bottom line. The adjusted EBITDA experienced an extraordinary
surge, reaching $13.4 million, marking an outstanding 431% YoY
increase compared to an EBITDA loss of ($4 million) for the same
period last year.
- Exceptional
Visibility: With discounted run rate revenue over $88
million today, Gorilla affirms its target to achieve at least $90
million of revenue in 2024 and is on course to becoming cash flow
positive.
Gorilla Chief Executive Officer Jay Chandan
commented, “I am absolutely thrilled to announce stellar earnings
for the first nine months of 2023! We’ve not just met our numbers
for Q3, but exceeded expectations, showcasing the incredible
dedication and hard work of every member of our team. It’s not just
about the numbers; it’s a testament to our shared commitment to
excellence.
“Our revenue soared to new heights, and in fact
our revenue this quarter far exceeded analyst expectations of $21.8
million. This is due to the success of our innovative strategies
and unwavering customer focus. We’re not just navigating the
market, we’re shaping it. Gross margin more than doubled versus
last year due to our relentless pursuit of quality, creativity, and
customer satisfaction. Furthermore, comprehensive net income and
adjusted EBITDA soared, showcasing our commitment to benefiting
shareholders by driving profitability to the bottom line.”
Chandan continued, “We’re not just achieving
financial milestones—we’re forging a path of sustained growth and
industry leadership. A heartfelt thank you to our dedicated team,
loyal customers, and supportive stakeholders. With our momentum
building, we are confident that the full year 2023 results are
expected to meet prior guidance and that we are primed to achieve
our target 2024 revenue of $90 million. We entered 2024 with a $1
billion sales pipeline. This sales pipeline is not just a numerical
milestone, it is a testament to our dedication to pushing
boundaries, exploring new opportunities, and providing unparalleled
value to our clients. There is still plenty of work to be done to
convert those leads into contracts and revenue, but my confidence
in our team has never been greater.”
Chandan concluded, “Our dedication to judicious
cost management has produced remarkable outcomes. We have
streamlined our expenses without compromising the quality and
efficiency of our operations, making a substantial contribution to
our positive financial results. Our cash flow continues to be
resilient, affording us the financial flexibility to explore
additional project opportunities, invest in innovation, and
navigate potential economic uncertainties. Looking forward, we hold
an optimistic view of the future and persist in upholding the
highest standards of financial stewardship. Our unwavering focus on
innovation, operational excellence and customer satisfaction will
remain the driving forces behind our ongoing success.”
Earnings Call
Earnings Call The Company will host a
pre-recorded conference call on Tuesday, February 6, 2024 at 8:00
a.m. EST to discuss the Company's financial results.
Webcast:
https://edge.media-server.com/mmc/p/95an8tgp
Telephone: Click here to register and join
the event. Upon registering, you will be emailed a dial-in number
and unique PIN.
Third Quarter 2023 Results
Unless noted otherwise, all figures are for the
nine months ended September 30, 2023, and all comparisons are with
the corresponding period of 2022.
The following table summarizes financial results
(unaudited and unreviewed):
|
|
Nine months ended |
September 30 |
Items |
|
2023 |
|
2022 |
|
|
(Unaudited) |
Revenue |
|
$ |
37,963,456 |
|
|
$ |
18,481,617 |
|
Cost of Revenue |
|
|
(8,940,687 |
) |
|
|
(12,354,340 |
) |
Gross Profit |
|
|
29,022,769 |
|
|
|
6,127,277 |
|
Gross Margin |
|
|
76.5 |
% |
|
|
33.2 |
% |
Operating Expense |
|
|
(19,813,528 |
) |
|
|
(90,189,301 |
) |
Operating Income (Loss) |
|
|
9,209,241 |
|
|
|
(84,062,024 |
) |
Net Profit (Loss) |
|
$ |
6,901,573 |
|
|
$ |
(85,024,550 |
) |
The following table shows our EBIT, EBITDA, and
adjusted EBITDA, together reconciled to the net profit (loss) for
the nine-month period ended September 30, 2023, and 2022.
|
|
|
Nine months ended September 30, 2023 |
|
|
Nine months ended September 30, 2022 |
|
|
(Unaudited) |
Net Profit (Loss) |
$ |
6,901,573 |
|
|
$ |
(85,024,550 |
) |
Income tax expense |
|
2,240,873 |
|
|
|
334,333 |
|
Interest and Finance costs |
|
66,795 |
|
|
|
628,193 |
|
EBIT |
$ |
9,209,241 |
|
|
|
(84,062,024 |
) |
Depreciation expense |
|
421,429 |
|
|
|
6,147,749 |
|
Amortization expense |
|
680,871 |
|
|
|
1,604,988 |
|
EBITDA |
$ |
10,311,541 |
|
|
$ |
(76,309,287 |
) |
Transaction costs (one time)(1) |
|
3,097,764 |
|
|
|
72,256,845 |
|
Adjusted EBITDA |
|
13,409,305 |
|
|
|
(4,052,442 |
) |
(1) Transaction costs are one-off expenses for
one-time employee expenses and professional services related to
asset acquisition, professional services for one-time project which
are considered as one-off corporate development events and added
back for calculation of adjusted EBITDA. Transaction cost in nine
months ended September 30, 2022 includes $70.1 million non-cash
de-SPAC share listing expense.
Revenue for the nine months ended September 30,
2023, grew significantly as engagement with the country of Egypt
has begun and is progressing on schedule. Adjusted EBITDA growth of
431% reflects technology service driven gross margin, aggressive
expense control, and the absence of one-time transaction expenses
related to the Nasdaq listing, which were the primary operating
expenses of 2022.
The interim period financial statements for the
first nine months of 2023 included herein have not been audited or
reviewed by the Company’s independent registered accounting
firm.
About Gorilla Technology Group
Inc.
“Empowering Your Tomorrow”
Gorilla, headquartered in London U.K., is a
global solution provider in Security Intelligence, Network
Intelligence, Business Intelligence and IoT technology. Gorilla
provides a wide range of solutions, including, Smart City, Network,
Video, Security Convergence and IoT across select verticals of
Government & Public Services, Manufacturing, Telecom, Retail,
Transportation & Logistics, Healthcare and Education.
The Company’s vision is to empower a connected
tomorrow through innovative and transformative technologies.
Gorilla envisions a world where seamless connectivity transcends
boundaries, enriching lives, industries, and societies.
Gorilla’s commitment is to lead the way in
pioneering innovative solutions that bridge gaps, foster
collaboration, and inspire progress. By relentlessly pushing the
boundaries of technology, the Company aims to create an ecosystem
where individuals, businesses and communities thrive in an era of
digital empowerment.
Through continuous innovation, ethical practices
and a steadfast dedication to quality, Gorilla strives to shape a
future where every interaction, transaction, and experience is
enhanced by the power of technology.
For more information go to
Gorilla-Technology.com.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995. Gorilla’s
actual results may differ from its expectations, estimates and
projections and consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “might” and “continues,” and
similar expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, statements regarding our beliefs about future revenues,
our ability to attract the attention of customers and investors
alike, our ability to fund operations as we execute a strategic
shift to pursue the larger and higher margin opportunities in
Security Convergence, our expectations to swing to profit in the
quarters ahead, our immediate priorities, Gorilla’s strategic shift
to enable it to pursue larger projects with better revenue
visibility, Gorilla’s contract with the Government of Egypt,
Gorilla’s ability to win additional projects and execute definitive
contracts related thereto, along with those other risks described
under the heading “Risk Factors” in the Form 20-F Gorilla filed
with the Securities and Exchange Commission (the “SEC”) on April
28, 2023, those described under the heading “Risk Factors” in
Exhibit 99.5 to the Form 6-K Gorilla filed with the SEC on August
17, 2023 and those that are included in any of Gorilla’s future
filings with the SEC. These forward-looking statements involve
significant risks and uncertainties that could cause actual results
to differ materially from expected results. Most of these factors
are outside of the control of Gorilla and are difficult to predict.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those indicated or anticipated by such
forward-looking statements. Readers are cautioned not to place
undue reliance upon any forward-looking statements, which speak
only as of the date made. Gorilla undertakes no obligation to
update forward-looking statements to reflect events or
circumstances after the date they were made except as required by
law or applicable regulation.
Non-IFRS Measures
Certain of the measures included in this press
release are non-IFRS financial measures, including adjusted EBITDA.
Non-IFRS financial measures should not be considered in isolation
from, or as a substitute for, financial information presented in
compliance with IFRS, and non-IFRS financial measures as used by
Gorilla are not reported by all their competitors and may not be
comparable to similarly titled amounts used by other companies.
We believe that the non-IFRS measures such as
adjusted EBITDA provide useful information about our core operating
results, enhance the overall understanding of our past performance
and prospects and allow for greater visibility with respect to key
metrics used by our management in its financial and operational
decision-making. We present adjusted EBITDA to provide more
information and greater transparency to investors about our
operating results.
Adjusted EBITDA represents EBITDA excluding
transaction costs and share listing expenses which are one-off
expenses for professional services related to our Business
Combination, asset acquisition and SOX 404 implementation project,
which are considered as non-recurring corporate development events
and added back for calculation of adjusted EBITDA.
The final table which shows our EBIT, EBITDA,
and adjusted EBITDA, together reconciled to the net profit (loss)
for the periods ended September 30, 2023, and 2022 in this results
announcement has more details on the non-IFRS financial measures
and the related reconciliations between these financial
measures.
Investor Relations
Contact:
Cody Fletcher The Blueshirt Group for
Gorilla +1 (434)
251-7165 gorillair@blueshirtgroup.com
Media Contact:James
McCuskerCanaan Parish Group Inc.+1 (203)
585-4750canaanparishgroup@gmail.com
Gorilla Technology Group |
Consolidated Balance Sheet |
September 30, 2023 and 2022 |
(Expressed in USD) |
|
Items |
|
September 30, 2023 (Unaudited and Unreviewed) |
|
December 31, 2022 |
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
18,757,494 |
|
|
$ |
22,996,377 |
|
Financial assets at fair value
through profit or loss - current |
|
|
1,014,613 |
|
|
|
1,073,229 |
|
Financial assets at amortized
cost - current (restricted cash) |
|
|
39,774,961 |
|
|
|
6,871,187 |
|
Contract assets |
|
|
9,578,119 |
|
|
|
725,441 |
|
Accounts receivable |
|
|
18,840,146 |
|
|
|
14,041,611 |
|
Inventories |
|
|
46,322 |
|
|
|
68,629 |
|
Prepayments - current |
|
|
1,048,575 |
|
|
|
1,266,442 |
|
Other receivables |
|
|
669,217 |
|
|
|
648,617 |
|
Other current assets |
|
|
31,030 |
|
|
|
61,803 |
|
Total current
assets |
|
|
89,760,477 |
|
|
|
47,753,336 |
|
Non-current
assets |
|
|
|
|
|
|
Property, plant and
equipment |
|
|
15,138,075 |
|
|
|
16,132,567 |
|
Right-of-use assets |
|
|
6,396 |
|
|
|
16,675 |
|
Intangible assets |
|
|
8,907,133 |
|
|
|
56,342 |
|
Deferred income tax
assets |
|
|
32,365 |
|
|
|
29,905 |
|
Prepayments - non-current |
|
|
353,612 |
|
|
|
612,982 |
|
Other non-current assets |
|
|
996,543 |
|
|
|
659,071 |
|
Total non-current
assets |
|
|
25,434,124 |
|
|
|
17,507,542 |
|
Total
assets |
|
$ |
115,194,601 |
|
|
$ |
65,260,878 |
|
|
|
|
Items |
|
September 30, 2023 (Unaudited and Unreviewed) |
|
December 31, 2022 |
Liabilities and Equity |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Short-term borrowings |
|
$ |
16,835,012 |
|
|
$ |
13,492,935 |
|
Contract liabilities |
|
|
265,736 |
|
|
|
58,475 |
|
Notes payable |
|
|
574 |
|
|
|
602 |
|
Accounts payable |
|
|
7,210,756 |
|
|
|
6,674,528 |
|
Other payables |
|
|
9,108,295 |
|
|
|
3,620,998 |
|
Provisions - current |
|
|
76,432 |
|
|
|
88,469 |
|
Lease liabilities -
current |
|
|
6,501 |
|
|
|
16,981 |
|
Warrant liabilities |
|
|
11,540,506 |
|
|
|
2,042,410 |
|
Convertible Preference Shares
Liabilities |
|
|
13,384,346 |
|
|
|
0 |
|
Long-term borrowings, current
portion |
|
|
1,601,806 |
|
|
|
2,108,896 |
|
Other current liabilities,
others |
|
|
88,990 |
|
|
|
152,373 |
|
Total current
liabilities |
|
|
60,118,954 |
|
|
|
28,256,667 |
|
Non-current
liabilities |
|
|
|
|
|
|
Long-term borrowings |
|
|
6,993,180 |
|
|
|
8,251,788 |
|
Provisions - non-current |
|
|
72,496 |
|
|
|
61,057 |
|
Deferred income tax
liabilities |
|
|
145,502 |
|
|
|
148,183 |
|
Total non-current
liabilities |
|
|
7,211,178 |
|
|
|
8,461,028 |
|
Total
liabilities |
|
|
67,330,132 |
|
|
|
36,717,695 |
|
Equity |
|
|
|
|
|
|
Equity attributable to
owners of parent |
|
|
|
|
|
|
Share capital |
|
|
|
|
|
|
Ordinary share |
|
|
7,646 |
|
|
|
7,136 |
|
Capital surplus |
|
|
167,450,030 |
|
|
|
154,730,389 |
|
Retained earnings |
|
|
|
|
|
|
Accumulated deficit |
|
|
(90,082,807 |
) |
|
|
(96,984,380 |
) |
Other equity interest |
|
|
|
|
|
|
Financial statements
translation differences of foreign operations |
|
|
69,740 |
|
|
|
370,178 |
|
Treasury shares |
|
|
(29,580,140 |
) |
|
|
(29,580,140 |
) |
Equity attributable to
owners of the parent |
|
|
47,864,469 |
|
|
|
28,543,183 |
|
Total
equity |
|
|
47,864,469 |
|
|
|
28,543,183 |
|
Significant contingent
liabilities and unrecognized contract commitments |
|
|
|
|
|
|
Total liabilities and
equity |
|
$ |
115,194,601 |
|
|
$ |
65,260,878 |
|
|
|
|
|
|
|
|
Gorilla Technology Group |
Consolidated Income Statement |
For the Period Ended September 30, 2023 and
2022(Unaudited and Unreviewed) |
(Expressed in USD) |
|
|
Nine months ended September 30 |
Items |
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
37,963,456 |
|
|
$ |
18,481,617 |
|
Cost of revenue |
|
|
(8,940,687 |
) |
|
|
(12,354,340 |
) |
Gross profit |
|
|
29,022,769 |
|
|
|
6,127,277 |
|
Operating expenses |
|
|
|
|
|
|
Selling and marketing
expenses |
|
|
(1,224,888 |
) |
|
|
(2,915,374 |
) |
General and administrative
expenses |
|
|
(11,633,842 |
) |
|
|
(5,319,841 |
) |
Research and development
expenses |
|
|
(3,358,489 |
) |
|
|
(11,261,954 |
) |
Share listing expenses |
|
|
0 |
|
|
|
(70,104,989 |
) |
Other income |
|
|
83,292 |
|
|
|
968,389 |
|
Other gains (losses) –
net |
|
|
(3,679,601 |
) |
|
|
(1,555,532 |
) |
Total operating expenses |
|
|
(19,813,528 |
) |
|
|
(90,189,301 |
) |
Operating income (loss) |
|
|
9,209,241 |
|
|
|
(84,062,024 |
) |
Non-operating income and
expenses |
|
|
|
|
|
|
Interest income |
|
|
524,738 |
|
|
|
33,199 |
|
Finance costs |
|
|
(591,533 |
) |
|
|
(661,392 |
) |
Total non-operating income and
expenses |
|
(66,795 |
) |
|
(628,193 |
) |
Profit (Loss) before
income tax |
|
|
9,142,446 |
|
|
|
(84,690,217 |
) |
Income tax expense |
|
|
(2,240,873 |
) |
|
|
(334,333 |
) |
Profit (Loss) for the
period |
|
$ |
6,901,573 |
|
|
$ |
(85,024,550 |
) |
Other comprehensive
(loss) income |
|
|
|
|
|
|
Components of other
comprehensive (loss) income that may be reclassified to profit or
loss |
|
|
|
|
|
|
Exchange differences on
translation of foreign operations |
|
$ |
300,438 |
|
|
$ |
(1,085,141 |
) |
Other comprehensive
income (loss) for the period, net of tax |
|
$ |
300,438 |
|
|
$ |
(1,085,141 |
) |
Total comprehensive
income (loss) for the period |
|
$ |
7,202,011 |
|
|
$ |
(86,109,691 |
) |
Gorilla Technology Group Inc. and
Subsidiaries |
Reconciliation of Non-IFRS Financial Measures – Adjusted
EBITDA Calculation |
(Unaudited and Unreviewed) |
(Expressed in USD) |
Items |
|
Nine months ended September 30, 2023 |
|
Nine months ended September 30, 2022 |
Profit (Loss) for the period |
$ |
6,901,573 |
$ |
(85,024,550 |
) |
Depreciation Expense |
|
421,429 |
|
6,147,749 |
|
Amortization Expense |
|
680,871 |
|
1,604,988 |
|
Income Tax Expense
(Benefit) |
|
2,240,873 |
|
334,333 |
|
Interest and Finance
Costs |
|
66,795 |
|
628,193 |
|
Transaction Costs
(one time) |
|
3,097,764 |
|
72,256,845 |
|
Adjusted
EBITDA |
$ |
13,409,305 |
$ |
(4,052,442 |
) |
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