CISO Global, Inc. Reports Q3 2023 Financial and Business Performance

CISO Global, Inc., a leading provider of security managed services and professional services, has released its Form 10-Q report for the third quarter ended September 30, 2023. The report highlights significant financial and operational developments, driven by strategic acquisitions and growth in customer revenue.

Financial Highlights

• Total Revenue: $43.3 million, increased by $11.5 million compared to the nine months ended September 30, 2022, primarily due to revenue acquired through two acquisitions and new and existing customer revenue growth.
• Total Gross Profit: $3.9 million, increased from $1.7 million for the nine months ended September 30, 2022, reflecting improved profitability.
• Loss from Operations: $(68.1) million, increased by $44.4 million compared to the nine months ended September 30, 2022, primarily due to an impairment of goodwill and increased selling, general, and administrative expenses.
• Net Loss: $(69.7) million, compared to $(23.9) million for the nine months ended September 30, 2022, driven by increased operating expenses and impairment charges.
• Net Loss Per Common Share - Basic and Diluted: $(0.44), compared to $(0.17) for the nine months ended September 30, 2022, reflecting the increased net loss.

Business Highlights

• Revenue Segments: Security managed services revenue increased by 22% for the three months ended September 30, 2023, primarily due to revenue acquired through two acquisitions over the last 12 months and new and existing customer revenue growth.
• Revenue Segments: Professional services revenue increased by 51% for the three months ended September 30, 2023, driven by acquisitions and growth in new and existing customer revenue.
• Geographical Performance: Revenue from Chile saw a significant increase, contributing $5,157,981 for the three months ended September 30, 2023, compared to $2,148,503 in the same period in 2022, indicating strong growth in this region.
• Geographical Performance: The U.S. market generated $8,835,728 in revenue for the three months ended September 30, 2023, showing a slight decrease compared to the same period in 2022.
• Operational Efficiency: Cost of payroll increased by 10% for the three months ended September 30, 2023, due to headcount added primarily through acquisitions.
• Operational Efficiency: Stock-based compensation expenses decreased by 63% for the three months ended September 30, 2023, due to the timing of recognition of the reversal of expense for options forfeited by former employees.
• Future Outlook: The company is actively pursuing additional debt and/or equity financing to improve liquidity and continue operations, although there is no assurance of success in securing additional financing.

SEC Filing: CISO Global, Inc. Reports Q3 2023 Financial and Business Performance [ NASDAQ:CISO ] - 10-Q - Nov. 13, 2023