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In this Research Note, we examine Gorilla Technology Group, the London, UK-headquartered security convergence business, based on their 2023 financial results, Annual Report, and investor presentation, June 2024.
The Gorilla Technology IPO, was completed in July 2022, through a SPAC merger with dedicated “blank check company” Global SPAC Partners Co. Gorilla Technology Group Inc. (Nasdaq: GRRR) is a former Taiwanese security solution provider in video intelligence, network intelligence, and IoT. The company reports over 150 employees.
Gorilla has operated in the field of video analytics since their incorporation in 2001. Their developed technologies in edge AI computing, video analytics, and operational technology (OT) security are the backbone of their suite of product and service solutions for a diversified customer base of commercial, industrial, municipal, and government entities.
Gorilla Technology 2023 Financial Highlights
Full-year 2023 revenues of $64.7 million marked a substantial 189% increase year-over-year. After a 47% revenue decline in 2022, this result demonstrated Gorilla’s strategic and operational rebound, highlighting the company's turnaround strategy to focus on security convergence.
Gorilla Technology recorded a net profit of $19.9 million in fiscal year 2023, a 123% increase from a loss of $(87.5) million in fiscal year 2022. Adjusted EBITDA has experienced a strong turnaround with an increase of 587% from fiscal year 2022 to fiscal year 2023, reflecting Gorilla's operational efficiency and its trajectory towards financial improvement.
Business Segments
The company has two primary business segments, Security Convergence and Video IoT. The security convergence offering accounted for the majority of 2023 sales, with 95.5% of total revenues, primarily due to a large contract to build a secure governmental air-gapped network for the Egyptian government.
The decrease in the revenue from the Video IoT segment is attributable to their business focus shift to security convergence which has led to the pursuit of larger projects with higher gross margins and the reduction of hardware infrastructure and service for the Video IoT segment.
Global Presence
Gorilla has expanded its reach across Southeast Asia, India, the UK and broader EU, MENA, and South America.
Their strategic AI-driven partnerships, including projects such as implementing Advanced Video Analytics at Rama Hospital in Thailand, deploying Security Convergence Smart City Solutions in collaboration with the Government of Colombia, and advancing smart city innovations through their alliance with Thames Freeport in the UK, have broadened their market presence.
Additionally, their partnership with MTI to establish a manufacturing plant in Egypt shows their efforts to foster technological advancement and economic growth in the region.
Gorilla Technology has evolved from a company focused exclusively on the Taiwanese market into a security convergence specialist in APAC & MENA with expertise in IoT, video intelligence, edge AI computing and cyber security.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.
