Gorilla Technology Group Inc. (GRRR) AI Stock Analysis

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Gorilla Technology Group Inc.

(NASDAQ:GRRR)

Rating:62Neutral

Price Target:

$20.50

▲(6.16%Upside)

The overall stock score is largely influenced by positive earnings call insights, which highlight strong revenue growth and profitability improvements. However, ongoing financial performance issues, including consistent net losses and negative cash flows, weigh down the score. Technical indicators show moderate bullish momentum, while valuation remains uncertain due to lack of traditional metrics.

Gorilla Technology Group Inc. (GRRR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$416.38M

Dividend YieldN/A

Average Volume (3M)1.34M

Price to Earnings (P/E)―

Beta (1Y)1.41

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees142

SectorTechnology

Sector Strength79

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.01

Shares Outstanding20,222,242

10 Day Avg. Volume1,608,963

30 Day Avg. Volume1,339,385

Financial Highlights & Ratios

PEG Ratio-0.01

Price to Book (P/B)13.95

Price to Sales (P/S)0.00

P/FCF Ratio-33.79

Enterprise Value/Market Cap0.96

Enterprise Value/Revenue1.33

Enterprise Value/Gross Profit10.69

Enterprise Value/Ebitda3.81

Forecast

1Y Price Target

$35.00

Price Target Upside81.25% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Gorilla Technology Group Inc. Business Overview & Revenue Model

Company DescriptionGorilla Technology Group Inc. (GRRR) is a technology company specializing in video analytics, artificial intelligence, and big data solutions. The company is committed to delivering cutting-edge products that enable organizations across various sectors, including security, retail, transportation, and smart cities, to leverage data intelligence for enhanced decision-making. Its core offerings include advanced video analytics and IoT technology designed to optimize security and operational efficiency.

How the Company Makes MoneyGorilla Technology Group Inc. generates revenue primarily through the sale of its software solutions and services. The company offers a range of products that utilize video analytics and artificial intelligence to provide actionable insights, which are sold to clients in sectors such as security, retail, and smart infrastructure. Key revenue streams include licensing fees for its proprietary software, service contracts for ongoing support and updates, and potential custom development projects tailored to specific client needs. Strategic partnerships with hardware manufacturers and system integrators may also contribute to earnings by expanding the market reach and integration capabilities of Gorilla's solutions.

Gorilla Technology Group Inc. Earnings Call Summary

Earnings Call Date:Mar 31, 2025

(Q4-2024)

% Change Since: -34.76%|

Next Earnings Date:Jun 18, 2025

Earnings Call Sentiment Neutral

The earnings call reflects significant growth in revenue and profitability, with a positive outlook for future contracts and cash position improvements. However, challenges such as foreign exchange losses, margin declines, and substantial non-cash losses indicate areas of concern.

Q4-2024 Updates

Positive Updates

Revenue Growth

Revenue increased by 15% to $74.67 million, driven by large contracts and new client onboarding.

Net Income Turnaround

Net income excluding one-off non-cash items surged to $21 million, surpassing guidance by 253%.

Strong EBITDA Performance

Adjusted EBITDA reached over $20 million, outperforming estimates by over 70%.

Significant Backlog for 2025

Current backlog for 2025 is $93 million, with guidance for revenue between $100 million and $110 million.

Cash Position Improvement

Unrestricted cash balance increased to $21.7 million, up from $5.3 million in 2023.

Negative Updates

Foreign Exchange Loss

A $27.5 million foreign exchange loss was incurred due to the devaluation in Egypt.

Gross Margin Decline

Gross profit margin declined to 49.96% due to a change in service mix.

High Non-Cash Loss

A non-cash loss of $59.54 million was recorded due to the conversion of preferred shares and exercise of warrants.

Cash Flow from Operations

There was a significant cash outflow from operations amounting to $34 million.

Company Guidance

During the Gorilla Technology Group Inc. Full Year 2024 Earnings Call, the company provided comprehensive guidance for their fiscal year 2025. Gorilla anticipates achieving revenue in the range of $100 million to $110 million, with gross margins between 40% and 50%. They expect EBITDA margins of 20% to 25% and a net margin of 10% to 18%. The company emphasized a backlog of $93 million for 2025, which supports their confidence in reaching these targets. Additionally, Gorilla highlighted a significant backlog of $67 million already attributed to 2026, suggesting ongoing growth momentum. The company also addressed the significant contracts and initiatives underway, such as a $74 million-plus revenue achievement in 2024, exceeding guidance, and a focus on transformative projects like ONE Amazon and the Thai Tourist Police. Gorilla's strategic focus remains on building long-term, scalable infrastructure solutions across various global markets, ensuring sustainable growth and solidifying its leadership position in AI and digital infrastructure.

Gorilla Technology Group Inc. Financial Statement Overview

Summary

Gorilla Technology Group Inc. has shown strong revenue growth, but significant profitability challenges and cash flow issues persist. Leverage has improved, but consistent net losses and negative cash flows are major concerns.

Income Statement

Neutral

Revenue grew significantly over the years, particularly from 2022 to 2023 with a 189% increase. However, the company has experienced volatile earnings with consistent net losses, and declining gross profit margins, from 40% in 2020 to 50% in 2023, highlighting profitability challenges. The EBIT and EBITDA margins indicate operational inefficiencies, as both metrics have been negative in recent years, except for a brief positive EBITDA margin in 2021.

Balance Sheet

Neutral

The company's debt-to-equity ratio has shown improvement, dropping from 0.56 in 2020 to 0.30 in 2023, indicating better leverage management. However, the equity ratio decreased from 58% in 2020 to 47% in 2023, reflecting a potential decline in asset financing through equity. The return on equity remains negative due to persistent net losses, signaling inefficiencies in generating shareholder returns.

Cash Flow

Negative

The company has struggled with negative free cash flow, which has worsened from -$40,625 in 2019 to -$31M in 2023. Operating cash flow has remained negative, indicating cash generation issues from core activities. The free cash flow to net income ratio remains unfavorable, further stressing liquidity concerns.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
74.67M	64.69M	22.41M	42.24M	45.41M
	Gross Profit
37.31M	44.72M	8.34M	15.77M	18.56M
	EBIT
-66.94M	17.06M	-88.71M	-8.04M	-3.84M
	EBITDA
21.77M	19.08M	-78.65M	626.62K	2.67M
	Net Income Common Stockholders
-64.79M	13.50M	-87.54M	-8.55M	-5.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.47M	34.13M	30.94M	18.95M	19.59M
	Total Assets
153.80M	115.44M	65.26M	94.93M	92.29M
	Total Debt
22.21M	32.91M	23.87M	35.92M	29.18M
	Net Debt
508.96K	27.60M	874.83K	25.98M	17.02M
	Total Liabilities
80.69M	61.29M	36.72M	49.00M	38.79M
	Stockholders Equity
73.10M	54.15M	28.54M	45.93M	53.50M
Cash Flow		Free Cash Flow
-31.11M	-13.24M	-11.78M	-6.77M	-7.47M
	Operating Cash Flow
-29.65M	-9.43M	-8.77M	1.62M	-1.95M
	Investing Cash Flow
16.64M	-38.69M	-1.93M	-9.91M	-7.73M
	Financing Cash Flow
27.98M	29.73M	23.61M	5.99M	3.88M

Gorilla Technology Group Inc. Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price19.31

Price Trends

50DMA

18.06

Positive

100DMA

21.12

Negative

200DMA

14.08

Positive

Market Momentum

MACD

0.76

Negative

RSI

50.86

Neutral

STOCH

53.21

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRRR, the sentiment is Neutral. The current price of 19.31 is above the 20-day moving average (MA) of 18.66, above the 50-day MA of 18.06, and above the 200-day MA of 14.08, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 53.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GRRR.

Gorilla Technology Group Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLTR	64 Neutral	$317.99M	―	-89.29%	―	2.40%	54.99%
GRRR	62 Neutral	$416.38M	―	24.92%	―	―	―
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
BAND	61 Neutral	$424.42M	―	-0.32%	―	18.51%	97.57%
BLZE	59 Neutral	$289.32M	―	-74.75%	―	21.81%	28.80%
RXT	48 Neutral	$322.85M	―	81.52%	―	-6.14%	67.53%
RZLV	44 Neutral	$521.46M	―		―	―	-1012.30%

* Technology Sector Average

Performance Comparison

GRRR

Gorilla Technology Group Inc.

19.31

16.08

497.83%

BAND

Bandwidth

13.76

-1.82

-11.68%

RXT

Rackspace Technology

1.27

-1.20

-48.58%

KLTR

Kaltura

1.99

0.69

53.08%

RZLV

Rezolve AI

2.03

-9.38

-82.21%

BLZE

Backblaze

5.04

-0.86

-14.58%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.