Gorilla Technology Group, Inc. Q4 FY2023 earnings call

• Relentless innovation: The R&D team has worked tirelessly to enhance product offerings to meet the evolving needs of clients in AI, IoT, and cybersecurity, setting new industry standards. - Strategic market expansion: The company has entered new geographies, formed strategic partnerships, and diversified the client base, with revenue growth being a direct result of these aggressive yet thoughtful expansion strategies. - Customer success: Committed to client success, which has led to recurring revenue and a strong sales pipeline. - Financial performance: Highlighted by revenue of $64.7M, a gross margin of 69%, a net profit of $19.9M, and an adjusted EBITDA of $29M. - Strategic partnerships: Forged partnerships with entities like Lanner Electronics and Protactics, and expanded into regions such as the MENA region with an operational hub in Cairo, and in Thailand by integrating with a hospital using video management and intelligent video analytics solutions.

Revenue for Gorilla Technology Group in the fiscal year ended December 31, 2023, reached $64.7 million, a historical high, representing an 189% year-over-year increase. The gross margin improved significantly to 69%, up by 32 percentage points from the previous year. Net profit for the year was $19.9 million, marking the first profitable full year since de - SPAC. Adjusted EBITDA stood at $29 million, a 587% increase over the previous year. Revenue contribution comes from areas such as system integration services, AI, IoT, and cybersecurity solutions.

• In 2024, the financial priority is to continuously manage operational efficiency while driving top - line growth. - Aim to pursue high - growth opportunities in markets with strong demand for smart government projects. - Guard profitability through active expense control and financial oversight to navigate future market dynamics.

• Forward - looking statements are subject to risks and uncertainties as actual results may differ materially from current expectations. - Challenges such as high inflation and high interest rates pose difficulties for small - cap companies in achieving business expansion. Additionally, there is a risk of potential delays in government payments affecting working capital.

Q: In terms of competitive positioning, where do you see you are now? And what are your plans to enhance that in the future?

A: Jay Chandan mentioned creating an ecosystem/platform - as - a - service focusing on data intelligence, video intelligence, security convergence, and building multiple layers for smart cities, etc.

Q: Can you just talk a little bit about what you deployed or what were the services in Egypt in 2023? And what are the kind of key things you expect to do for Egypt this year?

A: Jay Chandan talked about building an Air Gap Network for the government in Egypt, being in the deployment phase, and expanding beyond Egypt to other regions.

Q: Can you provide some more detail around the pipeline, maybe average deal size, maybe the number of programs you're tracking or competing for?

A: Jay Chandan discussed pipeline details, proof - of - concept s ranging from $0.1M to $1M, larger projects $10M - $30M, $80M - $200M, and $250M - $750M deals, and sales cycle details.

Q: Briefly touching on the working capital needs for 2024.

A: Daphne Huang mentioned short - term working capital pressure due to Egypt project and plan to raise additional funds.

Q: Briefly touching on the new deal announced in Colombia.

A: Jay Chandan talked about project commencing in May, requirements analysis, proof - of - concept in 2 - 4 weeks, and budget deployment.