Intrusion Inc. has been making headlines recently, not all of them positive. Their stock price has been struggling, leaving many investors questioning the company's future. But tucked away within their Q1 2024 earnings call transcript [1] lies a potential revenue bombshell that could reshape the company's narrative and redefine its position in the cybersecurity landscape.

While analysts have focused on the specifics of individual contracts, a broader trend has emerged, one that points towards a substantial and sustained revenue surge for Intrusion. The key lies in CEO Tony Scott's repeated use of the term "plane landings." This seemingly innocuous phrase reveals a strategic shift within Intrusion, a shift that could unlock significant value for investors who are willing to look beyond the immediate stock price fluctuations.

Scott, a seasoned executive and a pilot himself, draws a parallel between landing planes and executing on large contracts. He acknowledges that winning contracts is one thing, but successfully deploying the technology and ensuring customer satisfaction is the real challenge. He emphasizes the complexity of "plane landings" - the intricate process of integrating Intrusion's technology into diverse and often challenging network environments.

This is where the hidden revenue tsunami comes into play. Intrusion is not simply winning contracts; it is securing agreements that are inherently designed to expand over time. A prime example is the Philippine Commission on Elections contract, initially projected to generate $1 million in Annual Recurring Revenue (ARR). Scott reveals that the contract's structure involves a continuous cycle of deployment, testing, reconfiguration, and enhancement, ensuring a steady flow of revenue beyond the initial election cycle.

This pattern extends to other recent customer wins as well. Scott highlights two new clients who have already indicated their intent to "significantly increase their Shield consumption in 2024," with each potentially contributing "several hundred thousand dollars ARR." This is not a coincidence; it reflects a deliberate focus on securing contracts with built-in growth potential.

Consider this: Intrusion is actively targeting larger enterprises, a sector where deployments tend to start small and then rapidly expand. The company is also witnessing success with its managed service provider partnerships, which create a cascading effect, with each partner potentially opening doors to multiple new clients.

Projected Revenue Growth

To further quantify this potential revenue surge, let's examine a hypothetical scenario based on information from the Q1 2024 earnings call [1]:

Assuming a conservative 50% expansion rate on existing contracts with growth potential, the Philippine elections contract could generate $1.5 million ARR in 2025, while the two new logos with expansion plans could contribute a combined $600,000 ARR. Adding this to the projected revenue from the telecom award and the consulting pipeline, Intrusion could be staring at a revenue figure significantly higher than initial projections.

Strategic Investments: Klever AI

But the story doesn't end there. Intrusion is making strategic investments that further amplify its growth prospects. The company's investment in Klever AI, an artificial intelligence firm, underlines its commitment to staying at the forefront of the AI revolution in cybersecurity. Klever AI's expertise will not only enhance Intrusion's existing Shield technology but also open doors to new customer segments in diverse industries such as healthcare, finance, and IoT.

Revenue Breakdown

The chart below shows the revenue breakdown between Intrusion's consulting and Shield services over the past four quarters based on information from their earnings calls [2] [1].

Conclusion

Intrusion's "plane landings" are not just about executing on existing contracts; they are about laying the foundation for a sustained and substantial revenue surge. The company is strategically positioning itself to capture a larger share of the cybersecurity market, driven by a compelling product, innovative strategies, and a deep understanding of the evolving threat landscape. While the current stock price may not reflect this potential, investors who can see beyond the immediate fluctuations are likely to reap the rewards of this hidden revenue tsunami.

Intrusion's journey is reminiscent of the early days of tech giants like Amazon and Google, companies that weathered initial skepticism and emerged as dominant players by focusing on long-term value creation. Intrusion's strategic focus on "plane landings" suggests a similar trajectory, a journey that could transform the company from a struggling micro-cap to a major force in the cybersecurity arena.

"Fun Fact: Intrusion's threat intelligence database, which powers its Shield technology, contains over 20 years of historical data on IP addresses, making it one of the most comprehensive and mature databases of its kind in the cybersecurity industry."