Smart city video company Gatekeeper Systems plummets after annual earnings

Shares of Canada’s Gatekeeper Systems, which offers intelligent video solutions designed to provide a safer transportation environment, plunged nearly 17% on Friday, December 20. While it reported record revenue for the 2024 fiscal year, the company also revealed a 34% decline in total comprehensive income.

Details

On Friday, Gatekeeper Systems stock fell nearly 17% on the TSX Venture Exchange in Canada to CAD0.55 per share. This marked the largest single-day drop this year. For the year to date, Gatekeeper is up about 2%.

In over-the-counter trading in New York, the company’s shares also fell about 17% on Friday, closing at $0.38 per share.

In its report for the 2024 fiscal year, which ended on August 31, Gatekeeper announced a 36% increase in revenue to a record CAD37.8 million. Operating income surged 56% to CAD4.6 million. However, total comprehensive income dropped 34% to CAD1.9 million. Gatekeeper attributed the drop to the payment of current and deferred income taxes during the reporting period.

“Our financial performance in fiscal year 2024 was our strongest ever and marks our third consecutive year of profitability,” said Gatekeeper President and CEO Doug Dyment.

What Is Gatekeeper Systems

Gatekeeper Systems provides intelligent video and data solutions across multiple transport modes in Canada and the U.S. Its portfolio includes pedestrian detection cameras for blind spots, as well as interior and exterior cameras for city and school buses. The company uses AI, video analytics, thermal cameras, and mobile data collectors, integrating them into a smart city ecosystem. Gatekeeper also offers solutions for transit buses, according to the company.