Blackline Safety publica los resultados del tercer trimestre fiscal de 2023: ingresos récord de 24,8 millones de dólares, un 34 % más que el año anterior.

26th consecutive quarter of year-over-year revenue growth

• Service revenue increased 41% year-over-year to $13.6 million
• Record gross margins of $13.4 million, up 62% year-over-year
• Annual Recurring Revenue(1) increased 43% year-over-year to $47.0 million
• Record Net Dollar Retention(1) of 125% improves year-over-year from 105%
• Total expenses of $20.1 million, declining 18% from $24.6 million year-over-year
• Q3 Adjusted EBITDA(1) loss of $3.8 million in Q3 2023 compared to $11.5 million loss in Q3 2022, a $7.7 million improvement
• Company remains on track to exit fiscal 2023 generating positive quarterly Adjusted EBITDA
  
  

Calgary, Canada — September 14, 2023 — Blackline Safety Corp. (“Blackline” or the “Company”) (TSX: BLN), a global leader in connected safety technology, today reported its fiscal third quarter financial results for the period ended July 31, 2023.

Management Commentary 

“In Q3 we recorded our second consecutive quarter of year-over-year service revenue growth topping 40% and our 26th consecutive quarter of year-over-year total revenue growth. We set another record in gross margin of $13.4 million, which was driven by strength in both our product and service segments that saw increases of 119% and 50%, respectively. This consistent margin expansion, coupled with our disciplined cost reduction initiatives fuels our path to achieving positive Adjusted EBITDA by the end of this fiscal year,” said Cody Slater, CEO and Chair of Blackline.  “Our year-over-year total revenue growth of 34% illustrates our strong momentum and ever expanding market share in the connected worker market while our competitors report largely flat sales in this space.”

“We surpassed our Net Dollar Retention (“NDR”)⁽¹⁾ target one quarter ahead of schedule, reaching 125% for Q3 2023, demonstrating the powerful value proposition that our connected safety solutions bring to our customers. The increase in NDR was key to the growth in our Annual Recurring Revenue (“ARR”)⁽¹⁾ up 43% year-over-year to $47.0 million. The addition of several large enterprise customers over the past year has contributed to this growth, as Blackline now has over 25 customers that each generate more than $1.0 million in recurring service revenue. We see opportunity to expand within these organizations and other global enterprise customers across utilities, energy and manufacturing sectors.”  

Regionally, we experienced year-over-year growth across the board with 55% growth in Europe, while the United States and Canada grew 36% and 19% respectively. Our Rest of World segment grew 5% building on its strong outlook for next year, with several large deals secured in the last six months.” 

“Our efforts in pricing and lean manufacturing generated product margin of 29% in the quarter compared to 17% in the same quarter last year. Combined with our healthy service margins at 75%, Blackline Safety achieved its highest overall margin percentage in nearly three years. This continues our trend of margin improvements which is key to our goal of achieving positive Adjusted EBITDA and strengthening our sustainable financial model.”

“We remain in a strong financial position with total cash, short-term investments, and availability on our credit facility of $26.6 million as well as our lease securitization facility, which has over $50 million available. As we continue to reduce our cash burn through cost optimization, margin expansion and revenue growth, it is clear that we have the capital resources available to continue on our path to a sustainable free cash flow generating business.” 

Fiscal Third Quarter 2023 and Recent Financial and Operational Highlights

• Total revenue of $24.8 million, a 34% increase over the prior year’s Q3
• Service revenue of $13.6 million, a 41% increase over the prior year’s Q3
• Product revenue of $11.3 million, a 26% increase over the prior year’s Q3
• European market growth of 55% over the prior year’s Q3
• United States (“U.S.”) growth continues to be strong with a 36% increase over the prior year’s Q3
• Canadian market contributed 19% growth over the prior year’s Q3
• ARR(1) growth of 43% year-over-year to $47.0 million
• Total expenses were $20.1 million, declining $4.5 million year-over-year
• Se ha anunciado un valor total de contrato superior a 2 millones de dólares para cientos de organizaciones de bomberos y materiales peligrosos en todo el mundo.
• Se han obtenido contratos por valor de 1,3 millones de dólares con empresas energéticas líderes de Oriente Medio.
• Expanded production capacity by 30%-50% by repurposing space at the Company’s headquarters in Calgary
• Announced a $3.2 million deal with a leading U.S. energy company to protect 1,000 workers, displacing a non-connected competitor with our wearables and Blackline Analytics cloud-based solution 

Aspectos financieros destacados



Información financiera clave

Total revenue for fiscal third quarter was $24.8 million, an increase of 34% compared to $18.6 million in the prior year’s quarter. Total revenue for each geographical market increased with Europe leading the growth up 55% while the other regions also demonstrated strong growth with the United States up 36%, Canada up 19% and Rest of World up 5%.

Service revenue during the fiscal third quarter was $13.6 million, an increase of 41% compared to $9.7 million in the prior year’s quarter. Software services revenue increased 41% to $12.4 million and rental revenue increased 35% to $1.1 million. The increase in Software services revenue was attributable to new activations of devices sold over the past 12 months as well as net growth within our existing customer base of $2.4 million which resulted in Net Dollar Retention of 125%. 

Rental revenue continues to be strong, with year-over-year growth of 35% with the comparative period representing the first quarter that the Company established its global rental team to implement our strategic focus of providing short-term, project-based offerings across North America for the industrial construction, turnaround, and maintenance markets. 

Product revenue during the fiscal third quarter was $11.3 million, a 26% increase compared to $8.9 million in the prior year’s quarter. The increase in the current year period reflects the Company’s expanded sales network and investment in our global sales team over the past twelve months. 

Overall gross margin percentage for the fiscal third quarter was 54%, a 9% increase compared to the prior year’s quarter. The increase in total gross margin percentage was due to a combination of higher sales volume, our enhanced pricing strategy, continued cost optimization across our business and a shift in revenue mix towards higher margin service revenue. Product revenue comprised 45% of total revenue in the third quarter, compared to 48% in the prior year’s quarter, while service revenue made up 55% of total revenue for the quarter, compared to 52% in the prior year’s quarter. Service gross margin percentage increased to 75% compared to the prior year’s quarter of 70%. This was primarily due to our continued service revenue growth, through additional value-added features and the scale absorbing more fixed cost of sales.

Product gross margin percentage for the fiscal third quarter increased to 29% from 17% in the prior year’s quarter and 26% in the fiscal second quarter. The Company has been able to mitigate most global supply chain challenges that it has experienced since the third quarter of 2021, while implementing other lean manufacturing initiatives and cost optimizations. During the quarter the Company continued to process sales under our updated pricing structure. The Company has been able to automate more of its manufacturing line, improving the efficiency and throughput of its operations.

Net loss for the fiscal third quarter was $6.8 million, or $0.09 per share, compared to $16.3 million or $0.27 per share in the prior year’s quarter. Net loss decreased due to an increase in total gross margin as well as decreases in general and administrative expenses, sales and marketing expenses, and product research and development costs. 

Adjusted EBITDA⁽¹⁾ for the fiscal third quarter was ($3.8) million or ($0.05) per share compared to ($11.5) million or ($0.19) per share in the prior year’s quarter. The $7.7 million improvement in Adjusted EBITDA is primarily due to the increase in total gross margin, as well as the decrease in total expenses. 

At the end of the fiscal third quarter, Blackline had total cash and short-term investments on hand of $17.6 million and $8.0 million available on its senior secured operating facility. The decrease in cash and short-term investments is mainly due to operating losses which were offset by net funding from the lease securitization facility of $1.8 million during the quarter.

Blackline’s Interim Condensed Consolidated Financial Statements and Management’s Discussion and Analysis on Financial Condition and Results of Operations for the three and nine-months ended July 31, 2023, are available on SEDAR+ under the Company’s profile at www.sedarplus.ca. Todos los resultados se expresan en dólares canadienses.
  
Conferencia telefónica

A conference call and live webcast have been scheduled for 11:00 am ET on Thursday, September 14, 2023. Participants should dial 1-800-319-4610 or +1-416-915-3239 at least 10 minutes prior to the conference time. A live webcast will also be available at https://www.gowebcasting.com/12668. Participants should join the webcast at least 10 minutes prior to the start time to register and install any necessary software. If you cannot make the live call, a replay will be available within 24 hours by dialing 1-800-319-6413 and entering access code 0356.

Acerca de Blackline Safety Corp

Blackline Safety is a technology leader driving innovation in the industrial workforce through IoT (Internet of Things). With connected safety devices and predictive analytics, Blackline enables companies to drive towards zero safety incidents and improved operational performance. Blackline provides wearable devices, personal and area gas monitoring, cloud-connected software and data analytics to meet demanding safety challenges and enhance overall productivity for organizations with coverage in more than 100 countries. Armed with cellular and satellite connectivity, Blackline provides a lifeline to tens of thousands of people, having reported over 200 billion data-points and initiated over seven million emergency alerts. For more information, visit BlacklineSafety.com and connect with us on Facebook, Twitter, LinkedIn y Instagram.

CONTACTO PARA INVERSORES Y ANALISTAS
Shane Grennan, director financiero
sgrennan@blacklinesafety.com
Teléfono: +1 403 630 8400

CONTACTO CON LOS MEDIOS DE COMUNICACIÓN
Christine Gillies, directora de marketing
cgillies@blacklinesafety.com 
Teléfono: +1 403 629 9434

 
Medidas financieras no ajustadas a los PCGA y complementarias

Este comunicado de prensa presenta ciertas medidas financieras complementarias y no conformes con los PCGA, incluidos los indicadores clave de rendimiento utilizados por la dirección y que suelen emplear nuestros competidores en el sector del software como servicio, así como ratios no conformes con los PCGA para ayudar a los lectores a comprender el rendimiento de la empresa. Estas medidas no tienen un significado estandarizado y, por lo tanto, es poco probable que sean comparables con medidas similares presentadas por otros emisores y no deben considerarse de forma aislada ni como sustituto de las medidas de rendimiento preparadas de acuerdo con los GAAP.

La dirección utiliza estas medidas financieras complementarias y no ajustadas a los PCGA, así como ratios no ajustados a los PCGA e indicadores clave de rendimiento, para analizar y evaluar el rendimiento operativo. Blackline también cree que las medidas financieras complementarias y no ajustadas a los PCGA que se definen a continuación son utilizadas habitualmente por la comunidad inversora con fines de valoración, son medidas complementarias útiles de la rentabilidad y proporcionan métricas útiles en el sector de Blackline. 

A lo largo de este comunicado de prensa, se utilizan los siguientes términos, que no tienen un significado estandarizado según los PCGA.

Indicadores clave de rendimiento

La Compañía reconoce los ingresos por servicios de manera proporcional durante el plazo del período de servicio, de conformidad con las disposiciones de los acuerdos con los clientes. Los términos de los acuerdos, combinados con las altas tasas de retención de clientes, proporcionan a la Compañía un grado significativo de visibilidad de los ingresos a corto plazo. La dirección utiliza varios indicadores, incluidos los que se identifican a continuación, para medir el rendimiento de la Compañía y las tendencias de los clientes, que se utilizan para preparar planes financieros y definir la estrategia futura. Los indicadores clave de rendimiento pueden calcularse de forma diferente a los indicadores clave de rendimiento similares utilizados por otras empresas.

• “Annual Recurring Revenue” (“ARR”) is the total annualized value of recurring service amounts (ultimately recognized as software services revenue) of all service contracts at a point in time. Annualized service amounts are determined solely by reference to the underlying contracts, normalizing for the varying revenue recognition treatments under IFRS 15 Revenue from Contracts with Customers. It excludes one-time fees, such as for non-recurring professional services, and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely.
• “Net Dollar Retention” (”NDR”) compares the aggregate service revenue contractually committed for a full period under all customer agreements of our total customer base as of the beginning of each period to the total service revenue of the same group at the end of the period. It includes the effect of our service revenue that expands, renews, contracts or is declined, but excludes the total service revenue from new activations during the period. We believe that NDR provides a fair measure of the strength of our recurring revenue streams and growth within our existing customer base.

Non-GAAP Financial Measures

A non-GAAP financial measure: (a) depicts the historical or expected future financial performance, financial position or cash of the Company; (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most comparable financial measure presented in the primary consolidated financial statements; (c) is not presented in the primary financial statements of the Company; and (d) is not a ratio.

Non-GAAP financial measures presented and discussed in this news release are as follows:

El «EBITDA ajustado» es útil para los analistas de valores, inversores y otras partes interesadas a la hora de evaluar el rendimiento operativo, ya que presenta los resultados de la empresa excluyendo el impacto de determinados elementos no operativos y determinados elementos no monetarios y no recurrentes, como los gastos de compensación basados en acciones. El EBITDA ajustado se calcula como las ganancias antes de los gastos por intereses, los ingresos por intereses, los impuestos sobre la renta, la depreciación y la amortización, los gastos de compensación basados en acciones, las pérdidas (ganancias) por cambio de divisas y las transacciones de impacto no recurrentes, si las hubiera. La empresa considera que un elemento es no recurrente cuando no es razonablemente probable que se produzcan ingresos, gastos, pérdidas o ganancias similares en los dos años siguientes o cuando no se han producido en los dos años anteriores.

 
Ratios no ajustados a los PCGA

Un ratio no GAAP es una medida financiera presentada en forma de ratio, fracción, porcentaje o representación similar y que tiene una medida financiera no GAAP como uno o varios de sus componentes.

Los ratios no GAAP presentados y analizados en este comunicado de prensa son los siguientes:

“Adjusted EBITDA per common share” is useful to securities analysts, investors and other interested parties in evaluating operating and financial performance. Adjusted EBITDA per common share is calculated on the same basis as net income (loss) per common share, utilizing the basic and diluted weighted average number of common shares outstanding during the periods presented.

Medidas financieras complementarias

Una medida financiera complementaria: (a) se divulga, o está destinada a divulgarse, periódicamente para describir el rendimiento financiero histórico o previsto para el futuro, la situación financiera o el flujo de caja de la empresa; (b) no se presenta en los estados financieros de la empresa; (c) no es una medida financiera no sujeta a los PCGA; y (d) no es un ratio no sujeto a los PCGA.

Las medidas financieras complementarias presentadas y analizadas en este comunicado de prensa son las siguientes:

• “Gross margin percentage” represents gross margin as a percentage of revenue
• “Annual recurring revenue” represents total annualized value of recurring service amounts of all service contracts 
• “Net dollar retention” represents the aggregate service revenue contractually committed
• “Product gross margin percentage” represents product gross margin as a percentage of product revenue
• “Service gross margin percentage” represents service gross margin as a percentage of service revenue