Blackline Safety divulga resultados do segundo trimestre fiscal de 2023 – Receita recorde de US$ 24,1 milhões, um aumento de 45% em relação ao ano anterior

Calgary, Canada — June 14, 2023 — Blackline Safety Corp. ("Blackline" or the "Company") (TSX: BLN), a global leader in connected safety technology, today reported its fiscal second quarter financial results for the period ended April 30, 2023.

 

Comentário da Administração 

 

“In Q2 our year-over-year revenue growth accelerated to 45% compared to Q1 which saw 34% growth and represented our 25th consecutive quarter of year-over-year revenue growth. The increase was driven by strength in both our service and product segments which grew 46% and 43%, respectively. We were able to achieve this while maintaining our reduced cost structure as we continue on our path to achieving positive Adjusted EBITDA by the end of this fiscal year,” said Cody Slater, CEO and Chair of Blackline.  “Through our revenue growth and sales mix, we were able to deliver 52% gross margins; a quarterly record of $12.5 million driven by record service margins of 75% all of which validates the opportunity for our business model to generate free cash flow in the near term.”

 

“In addition, our Annual Recurring Revenue (“ARR”)(1) also accelerated from Q1 advancing 38% year-over-year to $42.4 million. Exceeding $40 million in ARR is an important milestone in our journey as Blackline scales its connected worker solution globally and continues to earn greater market share through customer adoption of its world-class products and services across a variety of industrial verticals. 

 

Regionally, we experienced year-over-year growth across the board highlighted by 65% growth in the United States 24% growth in Canada and the Rest of World market set a new high-water mark with nearly $2.0 million in quarterly revenue growing by 123% year-over-year as our robust pipeline continues to positively impact our business.” 

 

“On the margin front, we experienced the strongest service margins in Company history of 75%.  Our product margins also improved significantly year-over-year from 13% to 26% and increased sequentially from 21% in Q1 2023. Looking forward, we anticipate continued margin improvements through the remainder of the fiscal year through our enhanced pricing strategy, increased manufacturing automation and continued cost optimization.”

 

“We ended the second quarter in a solid financial position with total cash and short-term investments on hand of $21.9 million. We also completed our lease securitization facility during the quarter, with $8.3 million of funding received from the sale of the initial tranche of lease contracts. Additional funding will be received for lease agreements from Q2 as well as new agreements signed with our customers. This facility provides Blackline with the financial flexibility to accelerate the adoption of our lease program, driving stronger margins and even better customer retention while lowering the Company’s overall cost of capital. In addition, it provides Blackline with the opportunity to aggressively market our lease program which will enable easier customer adoption through an all-in monthly fee, including the new G6 product line.” 

 

 

 

 (1) Este comunicado à imprensa apresenta certas medidas financeiras não GAAP e suplementares, incluindo indicadores-chave de desempenho usados pela administração e normalmente usados por empresas do setor de software como serviço, bem como índices não GAAP para ajudar os leitores a compreender o desempenho da Empresa. Mais detalhes sobre essas medidas e índices estão incluídos nas seções “Indicadores-chave de desempenho” e “Medidas financeiras não GAAP e suplementares” deste comunicado à imprensa. 

 

 

 

Fiscal second quarter revenue was $24.1 million, an increase of 45% from $16.7 million in the prior year quarter. Total revenue for each geographical market increased with the United States leading the growth, up 65% while the other regions also demonstrated strong growth with Rest of World up 123%, Canada up 24% and Europe up 17%, year-over-year.

 

Service revenue during the fiscal second quarter was $12.9 million, an increase of 46% compared to $8.8 million in the prior year quarter. Recurring software services revenue increased 36% to $11.3 million and rental revenue increased 247% to $1.6 million. Software services growth was attributable to new activations of devices sold over the past 12 months as well as net growth within our existing customer base of $1.6 million which represented Net Dollar Retention of 118%. 

 

Rental revenue continues to be strong, with year-over-year growth of 247% with the comparative period representing the first quarter of the Company’s strategic focus to provide this short-term project-based offering across North America for the industrial construction, turnaround, and maintenance markets. 

 

Product revenue during the fiscal second quarter was $11.2 million, a 43% increase compared to the prior year quarter of $7.9 million. 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 second quarter was 52%, a 10% increase compared to the prior year quarter. The increase in total gross margin percentage is due to a combination of a 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 46% of total revenue in the second quarter, a decrease of 1% from the prior year quarter, while service revenue made up 54% of total revenue for the quarter, representing a 1% increase. Service gross margin percentage increased to 75% compared to the prior year quarter at 69% as service revenue continued to grow, through additional value-added features and the scale absorbing more fixed cost of sales.

Product gross margin percentage increased to 26% from 13% in the prior year quarter and 21% in the fiscal first quarter as the Company has been mitigated most global supply chain challenges that it has experienced since the third quarter of 2021. During the quarter the Company completed most sales orders under our newly introduced pricing structure. The Company has automated more of its manufacturing line, improving the efficiency and throughput of its operations.

 

Net loss was $6.6 million, or $0.09 per share in the fiscal second quarter, compared to $14.5 million or $0.24 per share in the prior year quarter. Net loss decreased due to an increase in total gross margin as well as decreases in sales and marketing expenses and product research and development costs, partially offset by increases in general and administrative expenses which were higher due to transaction costs related to the closing of the Company’s lease securitization facility. 

 

Adjusted EBITDA(1) was ($4.5) million or ($0.06) per share for the fiscal second quarter compared to ($12.3) million or ($0.20) per share in the prior year quarter and ($6.2) million or ($0.09) per share in the fiscal first quarter of 2023. The $7.8 million improvement in Adjusted EBITDA is primarily due to the increase in total gross margin, as well as the decrease in total expenses. 

 

At quarter end, Blackline had total cash and short-term investments on hand of $21.9 million and $8.0 million of availability on its senior secured operating facility after paying down $1.0 million during the quarter. The decrease in cash and short-term investments is mainly due to operating losses which were offset by funding from the initial tranche of leases that were sold under the Company’s $15 million CAD plus $35 million USD securitization facility. The lease securitization facility will create a step change in our cash burn which combined with our improving gross margins and cost discipline, ensures the Company has the cash it requires to execute on our path to quarterly positive Adjusted EBITDA.

 

Blackline’s Interim Condensed Consolidated Financial Statements and Management’s Discussion and Analysis on Financial Condition and Results of Operations for the three and six-months ended April 30, 2023 are available on SEDAR under the Company’s profile at www.sedar.com. All results are reported in Canadian dollars.

 

 

A conference call and live webcast have been scheduled for 11:00 am ET on Wednesday, June 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/12594. 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 0243.

 

 

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 and Instagram.

 

Shane Grennan, Diretor Financeiro

Telefone: +1 403 630 8400

 

Christine Gillies, Diretora de Marketing

Telefone: +1 403 629 9434

 

 

 

Este comunicado à imprensa apresenta certas medidas financeiras não GAAP e suplementares, incluindo indicadores-chave de desempenho utilizados pela administração, normalmente utilizados por nossos concorrentes no setor de software como serviço, bem como índices não GAAP para ajudar os leitores a compreender o desempenho da Empresa. Essas medidas não têm nenhum significado padronizado e, portanto, provavelmente não são comparáveis a medidas semelhantes apresentadas por outros emissores e não devem ser consideradas isoladamente ou como substituto para medidas de desempenho preparadas de acordo com o GAAP.

 

A administração utiliza essas medidas financeiras não GAAP e complementares, bem como índices não GAAP e indicadores-chave de desempenho, para analisar e avaliar o desempenho operacional. A Blackline também acredita que as medidas financeiras não GAAP e complementares definidas abaixo são comumente utilizadas pela comunidade de investidores para fins de avaliação, são medidas complementares úteis de rentabilidade e fornecem métricas úteis no setor da Blackline. 

 

Ao longo deste comunicado à imprensa, são utilizados os seguintes termos, que não têm um significado padronizado de acordo com os GAAP.

 

 

A Empresa reconhece as receitas de serviços proporcionalmente ao longo do período de prestação dos serviços, de acordo com as disposições dos contratos celebrados com os clientes. Os termos dos contratos, combinados com as elevadas taxas de retenção de clientes, proporcionam à Empresa um grau significativo de visibilidade das receitas a curto prazo. A administração utiliza várias métricas, incluindo as identificadas abaixo, para medir o desempenho da Empresa e as tendências dos clientes, que são utilizadas para preparar planos financeiros e definir a estratégia futura. Os indicadores-chave de desempenho podem ser calculados de maneira diferente dos indicadores-chave de desempenho semelhantes usados por outras empresas. 

  

 

Uma medida financeira não GAAP: (a) representa o desempenho financeiro histórico ou futuro esperado, a posição financeira ou o caixa da Empresa; (b) no que diz respeito à sua composição, exclui um montante que está incluído ou inclui um montante que está excluído da composição da medida financeira mais comparável apresentada nas demonstrações financeiras consolidadas primárias; (c) não é apresentada nas demonstrações financeiras primárias da Empresa; e (d) não é um rácio.

 

As medidas financeiras não GAAP apresentadas e discutidas neste comunicado à imprensa são as seguintes:

 

“Adjusted EBITDA” is useful to securities analysts, investors and other interested parties in evaluating operating performance by presenting the results of the Company which excludes the impact of certain non-operational items and certain non-cash and non-recurring items, such as stock-based compensation expense. Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization, stock-based compensation expense, foreign exchange loss (gain), and non-recurring impact transactions, if any. The Company considers an item to be non-recurring when a similar revenue, expense, loss or gain is not reasonably likely to occur within the next two years or has not occurred during the prior two years.

 

 

Um índice não GAAP é uma medida financeira apresentada na forma de um índice, fração, porcentagem ou representação semelhante e que tem uma medida financeira não GAAP como um ou mais de seus componentes.

 

Os índices não GAAP apresentados e discutidos neste comunicado à imprensa são os seguintes:

 

“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.

 

 

Uma medida financeira complementar: (a) é, ou se destina a ser, divulgada periodicamente para descrever o desempenho financeiro histórico ou futuro esperado, a posição financeira ou o fluxo de caixa da Empresa; (b) não é apresentada nas demonstrações financeiras da Empresa; (c) não é uma medida financeira não GAAP; e (d) não é um índice não GAAP.

 

As medidas financeiras complementares apresentadas e discutidas neste comunicado à imprensa são as seguintes:

 

This news release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to, among other things, Blackline’s expectation to deliver continued revenue growth, including growth in the adoption of lease agreements with its customers, coupled with disciplined cost management, which is expected to allow Blackline to exit fiscal 2023 in a position of sustained positive Adjusted EBITDA, that the Company expects to realize continued improvement in gross margins in fiscal 2023 driven by enhancements to pricing strategy, cost optimization and greater business scale, the Company's expectation that it will have liquidity to execute on its fiscal 2023 path to profitability and its ability to generate free cash flow. Blackline provided such forward-looking statements in reliance on certain expectations and assumptions that it believes are reasonable at the time. The material assumptions on which the forward-looking information in this news release are based, and the material risks and uncertainties underlying such forward-looking information, include: expectations and assumptions concerning business prospects and opportunities, customer demands, the availability and cost of financing, labor and services, that Blackline will pursue growth strategies and opportunities in the manner described herein, and that it will have sufficient resources and opportunities for the same, that other strategies or opportunities may be pursued in the future, and the impact of increasing competition, business and market conditions; the accuracy of outlooks and projections contained herein; that future business, regulatory, and industry conditions will be within the parameters expected by Blackline, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability, and cost of labour and interest, exchange, and effective tax rates; projected capital investment levels, the flexibility of capital spending plans, and associated sources of funding; cash flows, cash balances on hand, and access to the Company's credit facility being sufficient to fund capital investments; foreign exchange rates; near-term pricing and continued volatility of the market; accounting estimates and judgments; the ability to generate sufficient cash flow to meet current and future obligations; the Company's ability to obtain and retain qualified staff and equipment in a timely and cost-efficient manner; the Company's ability to carry out transactions on the desired terms and within the expected timelines; forecast inflation, including on the Company's components for its products, the impact of a potential pandemic and the war in Ukraine on the global economy; and other assumptions, risks, and uncertainties described from time to time in the filings made by Blackline with securities regulatory authorities. Although Blackline believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Blackline can give no assurance that they will prove to be correct. Forward-looking information addresses future events and conditions, which by their very nature involve inherent risks and uncertainties, including the risks set forth above and as discussed in Blackline's Management's Discussion and Analysis and Annual Information Form for the year ended October 31, 2022 and available on SEDAR at www.sedar.com. Blackline's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Blackline will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide readers with a more complete perspective on Blackline's future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and Blackline disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.