Gorilla Technology Group Q1 2025 Earnings Call Transcript

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Provided by Quartr
June 18, 2025

Key Takeaways

  • Gorilla reported Q1 revenue of $18.3 million (up 109% y/y), an adjusted EBITDA of $5.16 million (+48% y/y), and adjusted net income of $4.47 million, while closing the quarter with $33.8 million in cash and reducing debt to $17 million.
  • The company reiterated full-year 2025 guidance of $100–110 million in revenue, $20–25 million in EBITDA, and $15–20 million in net income, supported by a 2025 backlog of $93 million and a 2026 backlog of $70 million with a qualified pipeline exceeding $5 billion.
  • Gorilla is executing strategic global expansion across the United States, Latin America, Southeast Asia, East Asia, the Middle East, and North Africa, securing and moving to execution national infrastructure contracts in ports, airports, data centers, hospitals, education, and law enforcement.
  • The company committed a total of $5 million to the One Amazon environmental monitoring partnership via a SAFE agreement, aiming to leverage AI, potential low-orbit satellites, and tokenized data revenue for natural capital valuation.
  • Aiming to deepen regional scale and delivery capabilities, Gorilla plans to close a strategic acquisition in Thailand in Q2, which will increase full-time headcount to approximately 300 and consolidate operations across ASEAN.
AI Generated. May Contain Errors.
Earnings Conference Call
Gorilla Technology Group Q1 2025
00:00 / 00:00

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Operator

Thank you for standing by. This is the conference operator. Welcome to Gorilla Technology Group Inc. Earnings Call for the First Quarter of twenty twenty five. As a reminder, all participants are in a listen only mode and the conference is being recorded.

Operator

After the presentation, there will be an opportunity to ask questions. Before we begin, we will read the forward looking statement. Today's call includes forward looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and projections about future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Forward looking statements often include terms such as expects, believes, plans, anticipates, may, should and similar expressions.

Operator

For a discussion of important factors that could affect Gorilla's results, please refer to our filings with the SEC, including our most recent annual report on Form 20 F. Except as required by law, Gorilla undertakes no obligation to update or revise any forward looking statements made on this call, whether as a result of new information, future events or otherwise. I would now like to turn the conference over to Jay Chandan, Chairman and Chief Executive Officer and Bruce Bauer, Chief Financial Officer. Please go ahead.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Thank you very much, Nick. Well, for everyone who's here today, first of all, welcome to our conference call. I'm delighted you all could join. This has been one of the most operationally significant quarters in Gorilla's history. We are expanding across The United States, Latin America, Southeast Asia and East Asia, converting real pipeline into delivery and deepening partnerships with some of the world's most respected institutions.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Gorilla is scaling fast and executing harder. The quarter reflects exactly what we've been building towards, strong financial performance, global expansion and material progress across smart infrastructure, AI security and national digital systems. What you all are seeing right now is not an early stage growth, it's a strategic expansion. We're securing projects at ports, airports, data centers, hospitals, education, law enforcement and all of this is now moving from negotiation to execution. Over the last two years, we have made deliberate decision to focus inward, fixing the fundamentals, which is very key for our business, restructuring globally, scaling our delivery capabilities, hiring the right people and proving above all that we can execute.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Now we are not just a high proven company. Whilst others were chasing headlines and inflated projections, we were securing national infrastructure contracts, deploying mission critical systems in the public sector and more importantly getting our financial house in order. That meant tightening our operations, rebuilding teams, pushing through complexity in multiple markets, quietly, consistently and without the need for a drum roll. Now, with our revenue up more than 100% year on year and with a positive net income and more importantly, with a $5,000,000 plus pipeline and real deals being delivered across Southeast Asia, Middle East, North Africa, Latin America and beyond, the results are loud enough or I believe the results are loud enough on their own. We're seeing immense acceleration from Q2, Q3, Q4 going into 2026.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

And I couldn't be more excited to join you all on this call and let you know that we are positioned for a very strong '26 as well. Bruce, do you want to take them through the numbers on a very high level?

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

Yes. So I'd like to mention a few of the highlights that I'm sure you've seen from the release. So the first is of course the revenue of $18,300,000 109% year on year growth. But not only that, we're quite happy with the adjusted EBITDA of $5,160,000 which represented a 48% increase year on year and then the adjusted net income of $4,470,000 which is a 46.7% increase. In total, this means that we're executing well on the contracts, the business that we have and it's flowing through into profitability.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

The other thing I'd like to point out is that the balance sheet remains strong. So the first thing is total cash reserves, both restricted and unrestricted, closed the quarter at 33,800,000.0 In addition, we did that while managing to reduce debt. So the debt has dropped from over $20,000,000 at the end of the year to 18,400,000.0 Subsequent to the close of the quarter, we actually have reduced the debt further to $17,000,000 as of today. We've done that in a cash neutral fashion, where basically we have blocked deposits that are collateralizing the loan. So pay off $1 of debt, that releases $1 of block deposit.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

So we're very proud of the way that we've managed the balance sheet in this time. A couple of other things I'd like to point out is first of all the cap table. So we ended the first quarter with around 20,150,000.00 I'm sorry, with less than 20,000,000 shares outstanding, slightly less than 20,000,000 and now it's a hair over 20,000,000 shares outstanding at 20.15. And then the fully diluted share count remained the same because that increase in outstanding shares came due to the exercise of warrants. The other thing I'd like to point out is that during the quarter the second quarter, so subsequent to this to the earnings release, we spent $1,800,000 on share buybacks.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

So that means that we've spent a total of $5,400,000 on the buyback program in the last twelve months. In addition to that, we have a total of $10,000,000 program authorized, so that gives us $4,600,000 of remaining capacity. We've done all this with the business, with the balance sheet while also investing for the future. So Jay, of course, mentioned some of the pipeline and some of the partnerships that we have. I would like to highlight, first of all, the One Amazon partnership, where in the first quarter, we made a $1,500,000 investment.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

We followed with $3,500,000 in the second quarter. So a total commitment of $5,000,000 to secure that long term partnership. I'm sure Jay can mention more about what's going on in general with that, but we're very happy to have to be participating in this partnership in a financial way. For the at the moment, you can see that, that investment is carried at cost on the balance sheet for the quarter. One other thing I'd like to point out is the guidance.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

So the guidance has remained for 2025 the same, where it's 100,000,000 to $110,000,000 is the revenue guidance. This is based on a backlog, which is revenue that we have secured in the sense of where we have contracts signed and is either due to be implemented or it's being implemented already. There's a date attached to the revenue. And we expect an EBITDA of 20,000,000 to $25,000,000 based on that revenue number and then a net profit in the range of 15,000,000 to $20,000,000 Of course, that excludes extraordinary items. So that guidance remains the same.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

And then 2026, we are not in a position to issue guidance for the full year, but we can say that the backlog continues to shape up. So it's at $70,000,000 for 2026. And then also we have several projects that we have talked about where it's in the proof of concept stage and advancing. So we are confident that that backlog will grow. And then the last thing as Jay mentioned that we have over $5,000,000,000 in pipeline and qualified leads.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

The sharp observers will note that, that has actually decreased from earlier in the year, whereas over $6,000,000,000 The reason for that is actually because our MOU with the PEA, the provincial electricity authority in Thailand has moved into proof of concept stage. So it's no longer a qualified lead. It's in the proof of concept stage. So that is the reason for the drop. Outside of that, actually, the qualified leads, the amount of sort of contract potential contract value attached to them grew.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

And then one other thing, not quantitative, but I'd like to talk about the funding. So as you can tell, we have a strong balance sheet fortress like in terms of cash balance, both restricted and unrestricted cash and also the debt that continues to reduce. The funding that we have on the balance sheet now is enough to tackle the projects that we have signed already, and it's enough to tackle what we envision as the projects that we will be signing shortly. If we are to sign more projects that need funding, then we would first look for project level funding. Second would be debt or debt like insurance and only then maybe would we look for equity.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

But I'd just like to emphasize that we're very confident in the balance sheet that we have and our ability to take on new projects without first of all, hopefully, having to raise outside funding. And if we do have to raise outside funding, Jay and I remain committed to protecting shareholders. That those are the main points from me. Back to you Jay or over to the moderator.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Thank you. Nick, I'm happy to take questions so that we can respond get some more time and respond more diligently to all the questions both the analysts and the shareholders may have.

Operator

Got you. We will now begin the question and answer session. And your first question today will come from Brian Kinstlinger with Alliance Global Partners. Please go ahead.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

Great. Thanks so much for taking my questions. Nice results. I'm hoping we can I thought I heard your comment that helped clarify, but I want to make sure I understand? For the Royal Thai tourist police contract that you had originally talked about 50,000,000 to $60,000,000 Can you remind us, is a signed purchase order?

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

Did you just say you were going into POC? And just maybe I'd like to hash out details have already been completed or where you are in that process?

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Brian, first of all, thanks for joining in. The Royal Thai project has actually exceeded our expectations. We started out with a simple proof of concept. And as I'm not sure if you've seen, the National Daily actually put out a press release, not us, this is the National Daily, put out a press release about Gorilla and we're commending our AI surveillance system. What we've helped them do as soon as we kind of finished the proof of concept was to apprehend little more than 200 suspects every week, which has been a real success.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Now that for me in a real world speaks for itself. Now we are closely working with the leadership to expand and deepen the platform capability nationwide. So we have now been asked to actually work on a multitude of projects because of the success of this. And as you can see, tourism is growing quite significantly. In Thailand, they've gone from having 32,000,000 tourists to 43,000,000 tourists this year.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

What we are doing is we are now integrating the Royal Thai Police with the Royal Thai Tourist Police with the immigration, working with the AOT. And finally, we are going to be working with the individual provinces of each of those key islands, including Phuket, Khuahweh, Simulon, James Bond, Ko Phi Phi, Pangna Bay and so on and so forth. What they are asking us to do is not just deploy surveillance systems, but they're also asking us to build connectivity across these sea islands so that they could keep in touch and allow each of these tourists to traverse safely across all these islands so that they don't get lost. And this is also helping them connect to the emergency services at any given point of time where they're going to use an RFID tag or their mobile phones if stranded or lost. And that will be Gorilla's technology as well. I hope that answers your question.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

It didn't mostly. I just want to make sure I understood. The 50,000,000 to $60,000,000 that was discussed, is that the total opportunity of the Thai police and the islands? Is that a signed contract number? Or is that just take me through I think there's questions about those kinds of things about your contracts.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

So just take us through what has been signed versus what's the opportunity.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Perfect. So the one that is being signed is to a tune of 50,000,000 to $60,000,000 What we are now going towards or headed towards is where we've actually got a teaming agreement with them and I can confirm that, that we will be looking at a total size of between $500,000,000 to $550,000,000 for the entirety of the project. But this is spread over five to six years, just FYI.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

That's the addressable opportunity. Got it. Is the Yes.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

So I've got a few more. I'm going ask one question and respect and go back in the queue because I have a few more. Again, talking to you put out a lot on different contracts. Can you update us on where you are with that large $400,000,000 opportunity for the smart education contracts? I believe that was MOU and we're six months down the road.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

What's the progress you're making on a formal agreement? Thank you.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Brian, I understand it's been a little over six months, but let me tell you the world has been in turmoil. And all governments have been shaking, shaking every single day as you can imagine. Decisions have been very complicated. Political situations have been also very complicated, but that did not stop us from pushing. We've been pushing.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

And I'm very happy to report that we're in the late stage negotiation process on actually two of the projects of the education projects. One is for smart education. And on top of that, they've just added a little nugget, which is another $80 plus million for smart cloud infrastructure for the same educational project as well. As I mentioned, we are working to get their support, their final support, both of which are very transformative. And if you give me a few more days, maybe a couple of weeks, three to four weeks, I will be able to give you a more concrete solid update by then.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

I can tell you that we are literally in the last stage right now. Right now.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

Don't commit to weeks. Don't when it happens, it happens, you'll update us. Thank you. And I'll get back in the queue and ask tomorrow when I'm back.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

If I could just chip in one thing. So when we announce an initial MOU or something along those lines with clients, that's usually based on the proposal that we've made. All sides understand the proposal, the scope, etcetera, and we move forward on that basis. But governments, when it's dealing with critical national infrastructure and security, they don't just say, let's go and do everything all at once. There's usually a proof of concept phase where we test it, we make sure that everything works as planned, the economics are what's planned, etcetera.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

And then it moves into a rollout phase where it's more copy paste and scale over. So typically, we announce an agreement like this, for instance, with the World Tide Tours Police, the initial scope, we have to go through a proof of concept phase that takes months and for a larger opportunity may even take a year or more. And the whole purpose of that is to make sure it works properly. And then it moves into a binding agreement where all sides are happy with the scope, who's going to do what, what time frames, what milestones, billing cycles, etcetera. So the timing may be a little frustrating for investors where things take longer than they would like, but that's the only way that it's going to happen.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

Thank you. Great. I'll get back in the queue.

Operator

And your next question today will come from John Roy with Water Tower Research. Please go ahead.

John Roy
Managing Director at Water Tower Research LLC

Hey, guys. Hey, congrats on the quarter. I was curious as to what definitive steps you're taking to sustain the growth. Obviously, this kind of growth is amazing, but it's difficult to continue. I was wondering if you could give us some color as to the steps you're taking to continue the growth.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

John, great question and good to hear from you. So there are five to six key steps we are taking today. First of all, as you know, we've built a strong foundation. We're scaling towards what we call precision. First step, we're converting pipeline into revenue.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Now we have a very significant qualified pipeline. What we're doing in Q2 and Q3 is we're laser focused on converting these launch deals, which are in late stage negotiations. Bruce touched upon it. It is frustrating for shareholders. It is frustrating for us, but we have not lost sight.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Now these are across public safety, education, energy in regions such as Southeast Asia, Latin America, Middle East, North Africa and The United States. And this is not just pipeline for the sake of PR, as many have alluded to, it is active progressing and tied to national outcomes. Second, we are very actively working across major deployments in the progress. For example, we are now entering into multiyear contracts. None of our contracts none of our contracts are one year contracts.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

The minimum is three, five, I think the average is about seven to ten now is what we've looking at. So what we are doing is we're working with national stakeholders to get them to understand the difference between an OpEx model and a CapEx model, making sure that these deployments will show up meaningfully for Algorilla at the same time, not just in Q2, Q3 and Q4, but 2026, 2027 and '28. We are looking at new markets and new partnerships. That's number three. That's our foot number three or prong number three.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

We expect to announce new market entry, including further expansion into the regions I've just mentioned. But at the same time, we're also advancing our discussions with very well known household name partners, particularly around energy, AI, hardware integration. And these alliances are only helping us scale faster whilst we maintain a capital discipline. The fourth most important approach is our financial discipline. We could be going out willy nilly and spending a lot of money trying to bring growth, but what we are focused on is profitable growth.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

We're not chasing it purely because of at any cost, but more importantly, what we are doing is we're scaling with structure. What is important to us, margin, EBITDA, cash flow, they remain core to our KPIs. The fifth most important point is we are keeping a very keen eye on media and market visibility. We are making sure that investors are taking note. They're starting to pay attention to the real estate With earnings, new partnerships, global projects in motion, we hope that Q2 and Q3 will be more a period of increased exposure and momentum building.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

And last, to round it off, John, we're also pursuing strategic acquisition in Southeast Asia. We're finalizing currently on an acquisition in Thailand that will allow us to get operational depth and local scale. This will allow us to consolidate regional operations and turn Gorilla into a dominant AI infrastructure player, not just in Thailand, but also across the entire ASEAN region. We expect to close that sometime in Q2 and begin the integration in Q3.

John Roy
Managing Director at Water Tower Research LLC

Hope that answers Great, Jay. Yes, that does a great job. Maybe this was one for Bruce as a follow-up. I mean, is the state of your pipeline or backlog? And maybe you could give us some color on what is in that and what is not in that, if you know what I mean?

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

Without going into specific contracts, I would say that in 2025, the guidance is we have $93,000,000 of backlog for this year. That is almost entirely due to existing contracts and clients. And then that's three large clients and then several sort of smaller ones. For next year, we count the backlog at $70,000,000 so far. That is a couple of existing clients, And then that is several smaller new or new contracts that start end of twenty twenty five, but most of the financial benefit hits in 2026.

John Roy
Managing Director at Water Tower Research LLC

Great. Thanks, Bruce. Thanks, guys.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Thank you.

Operator

And your next question today will come from Mike Latimore with Northland Capital Markets. Please go ahead.

Aditya Dagaonkar
Analyst at Northland Capital

Hi. This is Aditya on behalf of Mike Latimore. So could you give some color on if you expect sequential revenue growth each quarter this year and also some color on the gross margins?

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

Did you say sequential revenue, can you share a hand of it?

Aditya Dagaonkar
Analyst at Northland Capital

Revenue growth, yes. Sequential revenue growth.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Bruce, you want to take that?

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

Yes. So our guidance is for the full year. We don't guide to any particular quarter and that's just because some of the government clients and sometimes the timing could slip by a week or something. So we don't want to risk the quarter by saying that every quarter will be a stair step up. But it's obvious from the full year guidance compared to the first quarter that the second half will be stronger than the first half in terms of top line.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

In terms of gross margin, we guide to 40% to 45% for this year. Jay mentioned how about our financial discipline and I think that's a very good point. So the first is that we have basically a cutoff for new projects of 40%. The other thing is that given the scale of the number of qualified leads and the number of new opportunities that are coming our way every day is we're basically tightening up the terms that we accept. So like Jay mentioned, in terms of margins, in terms of length of contracts duration, etcetera, the nature of the mix, we're trying to be much more disciplined.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

So the aim is to drift is to see the margin gross margins drift higher over the next two to three years, hopefully, towards closer to 45% to 50% range.

Aditya Dagaonkar
Analyst at Northland Capital

Got it. And what is the current headcount and where might that be by the year end?

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Good question. So we're currently north of 200 plus. That those are full time employees.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Contractors will be in the middle over 100. With the acquisition closing, we'll be at about 300 full time employees. And by the end of this year, we should be between 300 to 400 full time employees and probably between 100 to 200 contractors. As you can see, Aditya, we've been hiring quite significantly in India, Egypt and then in Thailand. And what we are going to do is scale for growth.

Aditya Dagaonkar
Analyst at Northland Capital

That's great. Thank you.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Thank you so much.

Operator

And your next question today is coming from Brian Kinstlinger with Alliance Global Partners with a follow-up. Please go ahead.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

Great. Thanks. Three quick questions. The first on the Amazon contract. You've spent $5,000,000 in terms you set up investments.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

What is it that you're investing? Where is that money going towards? And how much more investment is needed?

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Bruce, do you want to talk about the agreement? And then I

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

So we have a SAFE agreement. We're basically one Amazon, which is the company that does two things. We have an equity stake in that. So for those not familiar, the SAFE means a simple agreement for future equity. So when they do a priced funding rounds, that is the moment in which we're issued the equity.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

But right now, this is a contract that will guarantee us equity in that event. So one Amazon Jay will go into more detail, but basically, this is not in the token. This is in the parent company that manages the token and also the impact investments. So it's the TOPCO.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

Okay. So that gives you financial interest. Got it.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

It does. And that's why we brought Gorilla on board of the company as well. So the One Amazon project as you may know, it's a thirty year project for environmental monitoring across the Amazon basis, right? On the capital side, we are in deep, deep discussions with leading family offices, infusion investors and development banks across U. And Latin America.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

This is not just an environmental data project, it's what we're calling it is a new financial framework for valuing and protecting natural capital using real time AI driven intelligence. Now, the reason why we've been very active and what we are doing right now is three things. One, we are working with strategic partners and creating a global validation. So as you know, we have partners such as Aecom, Goldman Sachs, MIT, TAC, Media Labs and so on. And what we are doing is that we're expecting this alliance to become a gold standard for climate aligned finance.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Now, if you look at the second aspect of the One Amazon, we are actively engaged in evaluating the deployment of our own constellation of low orbit satellites so that we can provide sovereign environmental intelligence over the Amazon itself, replacing overpriced third party services and putting us in control of our own data economy. Okay. This is important because this would mean that Gorilla along with one hundred and will launch its own low orbit satellite. So we are actively looking at whether we purchase these satellites or actually we buy the company itself. That's number two.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Third, what we are also doing is actually we're building a model where we're not just talking about deploying value for the token, we're actually creating value for the data that is being generated. So what are we doing today? We're working very closely with companies who are potentially going to be investing into ecotourism, renewable energy, agroforestry, biodiversity, credit monetization and so on and so forth. And as I mentioned previously, Brian, 25% of the funds of every dollar raised is going towards Gorilla for technology deployment and we're well positioned to create both increasingly intrinsic token value and long term recurring data revenue. And as I've mentioned, this is putting us in control of our own data economy. I hope that answers your question.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

It does. Thank you. My last two part question for Bruce, I think is a numbers question. First, the gross margin in the quarter was about 500 points below your target. I assume that's more hardware deliveries and that the remainder of the year will be less weighted towards hardware.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

That's my first question. Is that true? Or is that what you're thinking? And then second, on the cash flow, you would have been cash flow positive, but you've got this large unbilled receivable, a very large outflow. Maybe just speak to that and how that might reverse itself so you'll be generating cash for the remainder of the year maybe?

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

Yes. So on the first one, that is absolutely correct. So there was a disproportionate amount of hardware, more than sort of what we expect for the full year in the mix in the first quarter. And that is what that's one of the reasons. The second thing is that in terms of the overall margins for the company is first quarter is usually the slowest.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

So in terms of business And we also carry higher SG and A costs. So there's usually thirteen months in Taiwan. There's usually some other kind of costs. At the same time, activity is slower. So yes, those are the two reasons why the margins both gross and then EBITDA margins would be a little bit weaker in the first quarter, and we expect that to normalize over the full year.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

Like I mentioned, we target the full year, not an unusual quarter because things can move around. And then second to your second question. I'm sorry, I'm blanking on it. You

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

have 18,000,000 outflow for unbilled. So I assume you're you haven't invoiced yet, but maybe just take us through dynamics of that in collections.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

Yes. So there are two components to it. So one is what we need to bill and the second is what we need to collect. So in the second quarter so far, we haven't raised any new invoices, substantial new invoices. We will do that in the remaining two weeks.

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

And then we have collected on the receivables that were there. We've collected about $7,000,000 on the receivables that were there at the sorry, 5,000,000 on the receivables and $2,000,000 was the release of guarantee and the receivables that were there in the end of the first quarter. So the cash is moving in the right direction. And then basically, we're collecting on some of the other receivables. Anticipate collecting on them either before the June or in July. Sorry, the $80,000,000 outflow is

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

you didn't invoice yet for some of your to some of your customers for your work. Is that right?

Bruce Bower
Bruce Bower
CFO at Gorilla Technology Group

It's correct. So we didn't really invoice in the first quarter. And then the second thing is that we performed a lot of work or we deliver a lot of goods. That's why.

Brian Kinstlinger
MD, Director of Research & Head of Technology Research at Alliance Global Partners

Got it. Okay. Thank you.

Operator

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Thank you, Nick. Bruce, do you want me to take this? Yes, excellent. Everybody who's listening in shareholders, I've been awfully quiet and that's what the purpose. It has been a phenomenal period of momentum and expansion for Corilla.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

As I've mentioned to Brian and the rest of the team, John and so on, we are scaling rapidly. We are currently engaged in projects across infrastructure, ports, ports, centers and so on. We're expanding very rapidly across Asia. As I mentioned, we're in the final contracting stages for quite a number of projects. Our One Amazon project is moving forward at a pace.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

We are really, really kicking it out there. As you all know, we've also recently signed an OEM agreement with Hewlett Packard Enterprise. This is not a local partnership, as many have alluded to. It's an operational venture. I'm actually meeting with their CEO and all of their senior leadership next week in Las Vegas, where we'll be showcasing Gorilla's full stack to their global partners.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

This also marks a major leap in our global scale up strategy and validates our strength of technology and execution unlike others may lead you to believe. We are also actively very engaged in scaling up our core intelligence platform. For example, we didn't talk about this, but we have been actively engaged with our current one of our current large clients in scaling up their five gs lock in interception in Taiwan and being an existing customer and moving to the next phase of deployment, we're also in active discussions to introduce the same solution in The Middle East for where there's a high demand, especially now for secure high integrity five gs interception infrastructure, which is growing very quickly. So across the regions and sectors, Gorilla is no longer just participating. We are absolutely leading.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

And the reason I've been quiet is not because of some reports. I've been quiet because I've been working, I've been pushing the boundaries and we've all coming together to make sure that we're able to deliver success to our customers and to our stakeholders. That is my only objective. Now we are solving national problems with speed, position and confidence, but more importantly, this next phase of growth is all about converting that momentum into lasting infrastructure and long term impact. So thank you all for believing in us.

Jay Chandan
Jay Chandan
Chairman & CEO at Gorilla Technology Group

Thank you for believing in me. And we will make this happen. This is just the beginning. Thank you once again everybody.

Operator

This concludes today's conference call. You may now disconnect your lines. Thank you for participating and have a pleasant day.

Executives
    • Jay Chandan
      Jay Chandan
      Chairman & CEO
    • Bruce Bower
      Bruce Bower
      CFO
Analysts
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