Gatekeeper Systems Inc. (TSXV: GSI) this morning announced record financial results for the fiscal year ending August 31, 2024. The company achieved its highest-ever annual revenue of $37.8 million, a 36% year-over-year increase, driven by robust growth in its transit and school bus safety segments.
Revenue surged from $27.85 million in FY 2023, reflecting its ability to tap into the rising demand for AI-powered safety technologies. Segment revenue for School Bus Safety Solutions grew by 20%, reaching $22.6 million, accounting for 60% of the company’s total income. The company has now installed 57,000 Mobile Data Collectors on school buses, along with 200,000 video devices, to enhance child safety during transit.
The Transit Solutions segment generated $12.5 million, a 76% YoY increase, fueled by strong adoption among smaller transit agencies and partnerships with major players like the Southeastern Pennsylvania Transportation Authority. Meanwhile, subscription-based analytics services saw a 41% YoY increase, contributing $2.7 million to the overall revenue.
Gross profit for the year reached $17.24 million, a 37% YoY increase from $12.54 million in FY 2023, and the gross margin improved slightly to 46%, up from 45% in the previous year. However, operating expenses also surged 32%, rising from $9.85 million in FY 2023 to $13.05 million in FY 2024, reflecting increased investments in research and development, as well as customer support initiatives.
Despite this, operating profit climbed to $4.19 million, marking a significant 56% YoY increase from $2.69 million in the prior year.
The company also reported $1.90 million in total comprehensive income, a 34% decline from $2.89 million in FY 2023. This drop can largely be attributed to a higher tax burden, which included $1.46 million in deferred income tax expenses and $811,233 in current income tax expenses.
In terms of quarterly performance, Gatekeeper set a new record in the fourth quarter, posting $11.67 million in revenue, a 59% YoY increase from $7.34 million in Q4 FY 2023. This also marked a sequential increase from the $10.03 million reported in Q3 FY 2024. Operating profit in Q4 edged up by 5% to $776,422, compared to $742,189 in the same period last year.
Gatekeeper’s financial position remains robust. The company reported $6.72 million in cash and cash equivalents as of August 31, 2024, up from $4.68 million a year earlier. Working capital stood at $16.7 million, and the company maintained a debt-free balance sheet, providing a solid foundation for further investment in growth initiatives. Shareholder equity rose 15% YoY to $18.16 million, reflecting Gatekeeper’s ability to generate value for its stakeholders.
“We continue to invest in our people, and we are extremely proud of the exceptional customer service our employees delivered to our valued customers in 2024,” explained Gatekeeper CEO Doug Dyment.
Gatekeeper Systems last traded at $0.58 on the TSX Venture.
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