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Nerds On Site sees revenue jump 14% in fiscal 2020 driven by expanding customer base

For the fiscal year ended May 31, 2020, the Toronto-based company reported revenue of $10,143,336

Nerds On Site - Nerds On Site sees revenue jump 14% in fiscal 2020 driven by expanding customer base during pandemic
The company has added approximately 5,500 new clients in the current year, up from around 3,000 new clients last year

Nerds On Site Inc (CSE:NERD) (OTCMKTS:NOSUF), a provider of cybersecurity and mobile IT-support services, posted results on Wednesday for the fiscal year ended May 31, 2020 that saw its revenue jump 14% year-over-year driven by an increasingly expanded and diverse customer base during the pandemic.

For the fiscal year ended May 31, 2020, the Toronto-based company reported revenue of $10,143,336, a jump of 14%, compared to $8,906,433 for the year ended May 31, 2019.

READ: Nerds On Site CEO says firm seeing increased business due to the pandemic

The company's gross profit in 2020 was $2,639,410, a 16% jump, compared to $2,265,522 for the year earlier. Similarly, gross margin for 2020 was 26%, compared to 25% for 2019.

The company succeeded in narrowing its net loss for the year ended May 31, 2020 to $2,034,711, a 40% decrease, compared to $3,423,321 for the year ended May 31, 2019. Loss per share, both basic and diluted, was $0.0236, compared to $0.0478 for the year ended May 31, 2019.

In a statement accompanying the numbers, Nerds on Site CEO Charles Regan said the company had added a slew of new clients. The new opportunities relate to remote workplaces, as well as battling an alarming rise in cyber crime.

“We have added approximately 5,500 new clients in the current year – up from approximately 3,000 new clients last year - representing an increase of more than 80% year over year," said Regan.

He noted the firm was focused on driving up the “productivity” of technology in the firm’s sweetspot — small and medium-sized enterprise (SME) and corporate clients — across Canada and the US.

"NERDS has focused its business to support our customers, both existing and new. Classified an essential service business during this COVID 19 pandemic, Nerds has not experienced a negative impact as so many other enterprises have,” said Regan.  

“As a truly mobile and remote service with almost no burden of office or real estate overhead, our business model has proven most effective during this global event,” he added.

Responding to cybercrime

The company said it is prioritizing its ongoing response to the increase in cybercrime.

"Our priorities going forward include the expansion of our partnership efforts in the Risk Aversion and Cyber Insurance space to more fully serve business clients and their business systems security needs," said Regan.

"In addition, our highly responsive model is working right now to provision the SME space with standard, secure and productive remote workplace station setups. The new normal may now be in development, with some of our old – and some of our new – clients finding higher productivity opportunities with their distributed work-from-home team members.”

The company also talked about its new offering, SchoolZone aimed at helping familes cope with the challenging 'back to school' experience.

“One thing becoming quite clear is that online security and technology will play an ever more important role in the new enterprise normal," said Regan.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

Quick facts: Nerds On Site

Price: 0.04 CAD

CSE:NERD
Market: CSE
Market Cap: $3.45 m
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