Gorilla Technology Stock Rallies Pre-Market After $400M Project Win: Retail Stays Confident
Synopsis
The company said the project, which is based in a major investment-grade city in Southeast Asia, marks the beginning of a multi-phase program and that additional projects would exceed $2.5 billion in spending over a 15-year period.
Shares of London-based Gorilla Technology Group Inc. ($GRRR), a provider of security and network intelligence solutions, rallied nearly 4% in Friday’s pre-market after the firm announced it has been shortlisted for a smart education and digital infrastructure project with an anticipated value of over $400 million for an initial five-year phase.
The company said the project, which is based in a major investment-grade city in Southeast Asia, marks the beginning of a multi-phase program and that additional projects would exceed $2.5 billion in spending over a 15-year period.
CEO Jay Chandan noted that the opportunity represents a monumental step forward in the firm’s mission to enable large-scale, impactful change through technology.
Following the announcement, retail sentiment on Stocktwits continued to trend in the ‘bullish’ territory (57/100).
Meanwhile, Stocktwits users expressed optimism on the stock’s potential in the coming times.
Last month, the firm said it expects 2024 revenues to reach $72 million, with an earnings before interest, tax, depreciation, and amortization (EBITDA) margin of over 20%. Gorilla Technology also stated that it expects net income of over $10 million for the fiscal year. Going into 2025, the company’s backlog (signed contracts) stands at $93 million, it added.
For 2025, the firm projects revenues to surpass $90 million, net income to exceed $15 million, and EBITDA margins of 20-25%.
Gorilla had notified that it is pursuing additional projects in the AI-powered analytics, cybersecurity and smart city sectors, and said that some of these contracts are in advanced stages of discussions and valued in the hundreds of millions.
Shares of Gorilla Technology have lost over 9% on a year-to-date basis.
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