Gorilla Technology Group, Inc. Q4 FY2024 earnings call

• Jay highlighted the transformation from a regional player to a globally focused, scalable business with $74 million+ revenue in 2024, net income growth, and a $6 billion pipeline. - Bruce discussed financials including revenue growth, gross margin mix, foreign exchange loss, preferred shares conversion, cash flow, balance sheet improvements, and 2025 guidance of $100M-$110M revenue, 40%-50% gross margins, etc. - Raj detailed the technological evolution from software to purpose-built appliances to comprehensive solutions, emphasizing holistic approach in projects like ONE Amazon, and the process of operationalizing large-scale projects from understanding problems to delivery.

In 2024, Gorilla Technology Group delivered over $74 million in revenue, exceeding guidance. Net income excluding one-off non-cash items surged to over $21 million, surpassing guidance by over 253%. Adjusted EBITDA reached over $20 million, outperforming estimates by over 70%. Operating income excluding exceptional items climbed to over $19 million, exceeding guidance by over 40%. Adjusted EPS beat market expectations by over 470%. Revenue in 2023 was $64.7 million, a 189% increase from the prior year. Gross profit in 2024 was 49.96%, a decline from 2023 due to mix change, but expected to stay in 45%-low 50% range going forward.

• 2025 revenue guidance: $100 million to $110 million. - Gross margins: 40% to 50%. - EBITDA margins: 20% to 25%. - Net margin: 10% to 18%. - Backlog at $93 million, with projects like Thai Tourist Police and Latin America smart cities expected to contribute to the guidance range. - Anticipates cash flow operations to be positive in 2025.

Q: Looking at your guidance, how much does the Egypt project represent of this year’s revenue guidance?

A: Jay mentioned Egypt currently is a significant portion but aims to be under 30% of 2025 revenue.

Q: Order some that’s needed before you start recognizing material revenue on ONE Amazon, the Thailand energy deal and the Asia smart school deal and when might that occur?

A: Jay and Raj discussed that it takes time for project execution, including solution design, architecture planning, compliance, etc., with timelines varying but typically 3-4 months before building and scaling operations start.

Q: As it relates to the $400 million-plus smart education first phase of that contract, in December, I think you announced you were down selected as the provider, I kind of thought of that as an intend award. Has that contract been finalized? What are the obstacles?

A: Jay said there are no obstacles but it's a lengthy process with a 900+ page SOW. Raj estimated a best guess of just south of 6 months for finalization.

Q: Is management still committed to reporting results on a quarterly basis going forward?

A: Jay confirmed management is committed to quarterly reporting.