Gorilla Technology Group Inc. GRRR recently announced some encouraging updates and a strong outlook for 2025. Based in London, it is a global solution provider in network intelligence, security intelligence, business intelligence and IoT technology.
The technology services firm has secured a significant smart education contract in Southeast Asia, which is in the final stages of negotiations. It is set to kick off 2025 with a solid $93 million backlog, not including the smart education contract in Southeast Asia.
GRRR’s partnership with Boston-based BroadSat is expected to generate $6-$9 million in revenue in the first year, with expectations to surpass $20 million annually as the partnership continues to grow. Leveraging their combined expertise, the two companies are also bidding on projects worth more than $70 million.
Gorilla is also focusing heavily on expanding its footprint in the U.S. market, with a more than $70 million project bid in progress and a growing list of new opportunities. The company’s project pipeline has reached over $2 billion, spanning multiple years, setting the stage for consistent revenue streams and long-term growth.
On the shareholder value-boosting side, Gorilla has already utilized $3.8 million of its $6 million share repurchase program and is planning to increase its fund to $9 million, supported by healthy cash reserves. For 2025, Gorilla expects to generate $90-$100 million in revenues, with an EBITDA margin of 20-25%.
The Zacks Consensus Estimate for GRRR’s current-year revenues is pegged at $71.8 million, indicating 220.2% year-over-year growth. However, the consensus mark for its 2024 earnings of 33 cents per share suggests a nearly 80% decline from a year ago. The same for 2025 signals a further 24.2% fall.
Price Performance
Shares of Gorilla Technology have gained 68.4% in the past year, outperforming the industry’s 56.8% increase.
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Zacks Rank & Key Picks
Gorilla Technology currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services space are Coinbase Global, Inc. COIN, Cantaloupe, Inc. CTLP and DLocalLimited DLO. While Coinbase currently sports a Zacks Rank #1 (Strong Buy), Cantaloupe and DLocal carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s current-year earnings of $5.39 per share indicates a massive jump from the year-ago level of 37 cents. COIN beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 341.4%. The consensus estimate for current-year revenues is pegged at $5.6 billion, implying 80.6% year-over-year growth.
The Zacks Consensus Estimate for Cantaloupe’s current-year earnings indicates a 113.3% year-over-year surge. CTLP beat earnings estimates in two of the trailing four quarters, met once and missed on the other occasion, with the average surprise being 20%. The consensus estimate for current-year revenues implies 15.9% year-over-year growth.
The consensus estimate for DLocal’s current-year earnings is pegged at 47 cents per share, which witnessed three upward revisions in the past 60 days against none in the opposite direction. It beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 22.6%. The consensus estimate for DLO’s current-year revenues is pegged at $745 million, implying 14.6% year-over-year growth.
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