Revenue growth outside of Canada tops 66%
Blackline Safety Corp. (TSX.V: BLN), a global leader in gas
detection and connected safety solutions, announced $8.9M in record
first-quarter revenue in its results for the quarter ended January
31, 2020. Total revenue grew 43% over Q1 FY2019, marking the
twelfth consecutive quarter of double-digit, quarter-over-quarter
growth with recurring service revenue increasing 38% to $5.6M. As
strong demand for services continued through Q1 FY2020, Blackline
also launched field trials and a pre-order program for G7 EXO — the
world’s first direct-to-cloud area gas monitor.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200326005175/en/
Blackline Safety Q1 FY2020 infographic
(Photo: Business Wire)
“The demand for Blackline services including G7 wearables,
cloud-connected software, 24/7 live monitoring and Blackline
Analytics continues to play an important role in our global
growth,” said Cody Slater, CEO and Chairman at Blackline Safety.
“Our recurring revenue posted a 38% growth, driven by client
adoption spanning a highly diversified base of industries and our
strong retention rate. In parallel, we continue to invest in our
future through the coming addition of area gas monitoring and other
value-added connected safety technology, products and
services.”
Revenues from recurring service and product sales were up 90% in
Europe, 61% in the United States and 20% in Canada
quarter-over-quarter. Blackline closed the quarter with a strong
working capital position, including cash and short-term investments
of $25.6M. Blackline’s overall gross margin was 46% with service
margin improving to 68% from 66% over the previous year due to
growth of Blackline’s recurring service revenue. Blackline achieved
its fifth successive quarter of positive Adjusted EBITDA, a
non-GAAP metric that management believes is valuable for investors
to use to track corporate performance.
In Q1 FY2020, Blackline began field trials of the industry’s
first direct-to-cloud, drop-and-go area gas monitor. G7 EXO
addresses the challenges of traditional systems by introducing
cellular and satellite connectivity with an industry-leading
battery life of more than 100 days. Recent weather tunnel testing
subjected G7 EXO to hurricane-force winds, snow and freezing rain.
It is designed to withstand the harshest of conditions while
delivering a user-friendly, long-lasting solution. Select customers
and partners conducted G7 EXO field trials for oil and chemical
terminals, fence lines and perimeters, spill sites, drilling rigs
and facility maintenance projects. With pre-orders now underway,
Blackline will begin the first shipments in Q3 FY2020.
Global circumstances and continuity
Blackline protects tens of thousands of people across the world
through cloud-connected wearables. These individuals work across a
broad range of industries and include lone worker monitoring, gas
detection and evacuation management scenarios. Blackline has
initiated its continuity plan due the emergence of COVID-19,
providing for the continued delivery of products and services to
its customers around the world. This plan supports Blackline’s
ongoing business operations with a distributed workforce,
protecting the health and safety of employees alongside the ongoing
delivery of services. Blackline’s manufacturing facility continues
to operate with a reduced capacity using personnel split-shifts to
ensure appropriate social distancing. Blackline’s in-house Safety
Operations Center continues to monitor tens of thousands of
employees, with a majority of agents working from home offices.
With the recent shift in oil commodity pricing, Blackline is
closely monitoring and planning for the uncertainties facing the
oil sector and how this will impact upstream, midstream and
downstream segments.
“We are living through an unprecedented time, swiftly enacting
our contingency plan to ensure that we keep our people healthy so
they can keep safe the hard-working men and women who trust us with
their lives each day,” said Mr. Slater. “We are well positioned to
weather this storm and market uncertainties given the strength of
our financial position and our capable and dedicated team who
continue to deliver unparalleled products and services to an
increasingly diverse customer base. Our clients around the world
are tasked with producing and delivering energy to our communities,
creating the necessary consumables we rely on daily and ensuring
that our lines of communication remain open. Our commitment is to
ensure every worker has the confidence to get the job done and
return home safe, especially during these challenging times.”
First quarter highlights
- Twelfth consecutive quarter of double-digit year-over-year
revenue growth
- Total revenue of $8.9M, a 43% increase over the prior year’s
Q1
- Recurring service revenue, including lease revenue, of $5.6M, a
38% increase over the prior year’s Q1
- Product revenue of $3.3M, a 53% increase over the prior year’s
Q1
- Total revenue grew by 90% in Europe, 61% in the United States
and 20% in Canada over the prior year’s Q1
- Overall gross margin percentage was 46% the equivalent
percentage achieved in the prior year’s Q1
- Overall gross margin percentage was comprised of product and
service margin percentages of 8% and 68%, compared to 8% and 66% in
the prior year’s Q1
- Fifth consecutive quarter of positive Adjusted EBITDA
- Contracted future service revenue (Blackline Complete 3-year
lease commitments) was $6.8M at January 31, 2020
- Total cash and short-term investments of $25.6M at January 31,
2020
- Continued development of Blackline’s new G7 Exo area monitor
product line
Financial Highlights
The subsequent values in this release are in thousands, except
for percentages and per share data.
Quarter Ended January 31
2020
2019
Change
Revenue
$8,918
$6,229
43%
Gross Margin
$4,059
$2,842
43%
Gross Margin Percentage
46%
46%
0%
Net Loss
($2,355)
($1,745)
(35%)
Net Loss per Share
($0.05)
($0.04)
Net Loss excluding stock- based
compensation expense
($2,278)
($1,617)
(41%)
Adjusted EBITDA
$504
$33
1427%
Adjusted EBITDA per Share
$0.01
$0.00
Key Financial Information
First quarter revenue was $8,918, an increase of 43% from $6,629
in the comparable quarter of the prior fiscal year with revenue
growth of 90% in Europe and 61% in the United States
quarter-over-quarter.
Product revenue during the first quarter was $3,341, an increase
of 53% compared to $2,180 in the same period last year. The Company
saw an increase in sales of its products through the Blackline
Complete leasing program in the quarter. Had these orders been
delivered through traditional purchases, the overall product
revenue would have increased by approximately $320.
Service revenue was $5,577, an increase of 38% compared to
$4,049 in the same period last year. This growth was primarily
driven by increased adoption throughout international markets
outside the oil and gas industry.
Gross margin percentage for the fourth quarter was 46%, which
was equivalent to that achieved in the comparable quarter of the
prior year, with the service revenue margin improving to 68% from
66% driven by the growth of Blackline’s service revenues
quarter-over-quarter.
Adjusted EBITDA was $504 for the first quarter compared to $33
in the comparable quarter of the prior year. The increase in the
Adjusted EBITDA for the quarter was attributable to increased
revenues and gross margin and reduced general and administrative
expenses, offset by an increase in sales and marketing expenses
quarter-over-quarter.
Blackline’s unaudited condensed consolidated interim financial
statements and management’s discussion and analysis on financial
condition and results of operations for the period ended January
31, 2020 (including the reconciliation of non-GAAP measures) are
available at www.sedar.com. All results are reported in Canadian
dollars.
About Blackline Safety: Blackline Safety is a global
connected safety leader that helps to ensure every worker gets
their job done and returns home safe each day. Blackline provides
wearable safety technology, personal and area gas monitoring,
cloud-connected software and data analytics to meet demanding
safety challenges and increase productivity of organizations in
more than 100 countries. Blackline Safety wearables provide a
lifeline to tens of thousands of men and women, having reported
over 100 billion data-points and initiated over five million
emergency responses. Armed with cellular and satellite
connectivity, we ensure that help is never too far away. For more
information, visit BlacklineSafety.com and connect with us on
Facebook, Twitter, LinkedIn and Instagram.
Note Regarding Forward-Looking Statements
This press 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 Safety's expectation to
realize potential from its intended investment in organic growth
opportunities in 2020, Blackline's intention to expand its product
offerings to total workplace connectivity and management's
expectation that Blackline will continue to focus on its
comprehensive approach to connected devices, live monitoring,
consulting and integration services. Blackline provided such
forward-looking statements in reliance on certain expectations and
assumptions that it believes are reasonable at the time, including
expectations and assumptions concerning business prospects and
opportunities; customer demands, the availability and cost of
financing, labor and services and the impact of increasing
competition. 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
discussed in Blackline's Management's Discussion and Analysis.
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200326005175/en/
INVESTOR/ANALYST CONTACT Cody Slater, CEO
cslater@blacklinesafety.com Telephone: +1 403 451 0327 MEDIA
Heather Houston hhouston@daltonagency.com Telephone: +1 904 398
5222 Cell phone: +1 386 216 9472
Blackline Safety (TSXV:BLN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Blackline Safety (TSXV:BLN)
Historical Stock Chart
From Jul 2023 to Jul 2024