Blackpearl Group Q4 FY24 Results Announcement

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BLACKPEARL GROUP | Investor Announcement

15 April 2024
Blackpearl Group Q4 FY24 Results Announcement

Introduction
Blackpearl Group (BPG) today presents its results for the fourth quarter ending on 31
March 2024, demonstrating robust growth and strategic advancements.

Key Highlights
• Subscription Revenue: Achieved $1.3 million, marking a 184% year-on-year
increase and a 10% quarter-on-quarter increase from Q3 FY24.
• Annual Recurring Revenue (ARR): Reached $7.4 million as of 31 March 2024,
reflecting a 177% year-on-year increase and a 33% quarter-on-quarter
increase from Q3 FY24.
• Gross Profit Margin: Achieved 75%, showing significant improvement from
52% in Q4 FY23 and 73% in the previous quarter, Q3 FY24.
• ARR Per Employee: Recorded at $230k as of 31 March 2024, exhibiting a 359%
year-on-year increase and a 25% quarter-on-quarter increase from Q3 FY24.


BPG’s Chief Executive Nick Lissette commented on Q4 results, saying: "Our fourth
quarter has been our strongest yet, marking the close of a financial year
characterised by hyper growth." Our monthly revenue acquisition velocity grew by
33% from Q3 to Q4, reaching an average of $800k in new ARR per month.

Lissette’s focus is on sustained exponential growth through innovation and strategic
moves, such as exploring DIY capabilities within our software. Empowering customers
with self-service options not only optimises resource allocation but also unlocks new
market avenues, particularly within affiliate marketing and marketplace
opportunities.

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BLACKPEARL GROUP | Investor Announcement


Financial Update
"Q4 concluded with strong financial performance, reflecting our strategic initiatives
and resilient market positioning," says Karen Cargill, CFO. "We remain focused on
prudent fiscal management and sustainable growth strategies, driving towards our
long-term objectives."

Future Outlook
As we review the past quarter, our focus on robust growth and profitability has been
clear, with an emphasis on innovation, market expansion, and customer-centric
product development as we enter the new fiscal year.
Looking forward, Blackpearl Group is positioned for a dynamic future. Our strategy is
anchored in diversification, harnessing cutting-edge technologies, and exploring self-
service capabilities within our software. This approach reflects our commitment to
operational efficiency and expanding our market footprint.

Contact
Released for and on behalf of BPG,
Karen Cargill
Chief Financial Officer

For further information, please contact:
Karen.cargill@blackpearl.com | +64 21 135 5183


ENDS

About Blackpearl Group
Blackpearl Group (BPG) is a market leading data technology company that pioneers
AI driven, sales and marketing solutions for the US market.

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BLACKPEARL GROUP | Investor Announcement


Specifically engineered for small-medium sized businesses (SMEs), BPG consistently
delivers exceptional value to its customers. Our mantra is simple: ‘Better Growth
Together’. When our customers win, we win.

Founded in 2012, BPG is based in Wellington, New Zealand, and Phoenix, Arizona.

Blackpearl.com

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Quarterly
Investor Update
Black Pearl Group Limited - Quarter Four Report
Quarter Four report for the three-month period to 31 March 2024

Contents:
Contents:
04
Foreword from the CEO
06
Highlights
08
Commentary from the CFO
10
Future Outlook
Blackpearl Group - Quarter Four Report
3

Dear Shareholders,

I'm pleased to share that our fourth quarter has been our strongest yet, marking the
close of a financial year characterised by hyper growth.

Quarterly reports typically focus on financial comparisons with the same period in
the prior fiscal year. Given BPG's consistent growth, these tend to show substantial
percentage gains. Nonetheless, a keen observer will recognise significant
momentum from Q3 alone. Our monthly revenue acquisition velocity increased by
33%, growing from an average of $600k new ARR per month in Q3 to $800k in Q4.
Moreover, our total ARR increased by nearly $2 million over the quarter.

What truly stood out over the last quarter is our team's ability to balance business-
as-usual execution with innovation. One notable strategic move has been our
exploration into DIY capabilities within our software, reflecting our commitment
to efficiency and market diversification. Empowering customers with self-service
options not only optimises resource allocation but also unlocks new market
avenues, particularly within affiliate marketing and marketplace opportunities.

Thank you for your ongoing support and confidence in Blackpearl Group.
Ad Astra – to the stars.
Foreword from the CEO
Nick Lissette
CEO, Blackpearl Group
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Blackpearl Group - Quarter Four Report

1 January 2024
Highlights
Up 10% from the previous quarter Q3 FY24.
184% increase YoY
177% increase YoY
359% increase YoY
As of 31 March 2024.
Churn has increased 0.9pt YOY and 0.3ppt
from the previous quarter.
As of 31 March 2024
A 5ppt increase YoY and 1ppt decrease on
previous quarter Q4 F24.
Subscription Revenue
Revenue Churn
$1.3m
4.0%
Annual Recurring Revenue
Top 10 Customers % of Revenue
$7.4m
Was 52% in Q4 FY23 and 73% in the previous
quarter Q3 FY24.
Gross Profit Margin
75% 10%
As of 31 March 2024.
Up 25% from the previous quarter Q3 FY24.
Annual Recurring Revenue Per Employee
$230k
31 March 2024
Blackpearl Group - Quarter Four Report
Note:
• Comparative figures relate to Q4 FY23 unless otherwise stated.
• PPT stands for percentage points.
As of 31 March 2024.
Up 33% from the previous quarter Q3 FY24.
7
7

“Q4 concluded with strong financial performance, reflecting our
strategic initiatives and resilient market positioning. We remain
focused on prudent fiscal management and sustainable growth
strategies, driving towards our long-term objectives. With gratitude
for the dedication of our team and the ongoing support of our
stakeholders, we enter the new fiscal year with confidence and
purpose.” says Karen Cargill, CFO.
Commentary
from the CFO
Key Commentary
$8 m
$7 m
$6 m
$5 m
$4 m
$3 m
$2 m
$1 m
$0 m
$250 k
$200 k
$150 k
$100 k
$50 k
$0 k
Q3 FY23
Q3 FY23
Q4 FY23
Q4 FY23
Q1 FY24
Quarter, Financial Year
Quarter, Financial Year
Q1 FY24
Q2 FY24
Q2 FY24
Q3 FY24Q4 FY24
Q3 FY24Q4 FY24
Total ARR at Quarter End
ARR per employee at Quarter End
The 184% YoY increase in subscription revenue is
representative of the acquisition of our Newoldstamp
product in November 2022 and the ongoing success
of our higher-value flagship product, Pearl Diver. The
compounding nature of our revenue supports our drive
to profitability.
Our effective utilisation of global resourcing plays a
pivotal role in the increase of ARR per employee. Our
new annual recurring revenue of $2.4M was achieved
with the introduction of 2 new employees. With an
increase in resourcing planned for Q1 FY25, we expect
this number to drop in the short term and then rise with
future increases in revenue.
In this quarter, we achieved new annual recurring
revenue of $2.4M, growing from an average of $600k
new ARR per month in Q3 to $800k in Q4, bringing our
total ARR to $7.4m. This underscores our commitment
to steady expansion and success in Q4.
Prior investment in Blackpearl Group's private
platform, the Pearl Engine, is still providing scalability
and efficiency at near-zero marginal cost, allowing
us to maintain our strong gross profit margin. We
are forecasting an increase in platform costs as we
continue towards $10M ARR.
We are not reliant on large customers due to our
diverse customer base.
Revenue churn has increased by 0.9ppt YoY and by
0.3ppt from the previous quarter. This is expected as
we move to higher-value products. Nevertheless, it
remains below the assumed 5% churn rate used in our
planned path to profitability.
$1.3m$230k
$7.4m
75%
10%
4.0%
Karen Cargill
CFO, Blackpearl Group
Total ARR (NZD)
Total ARR (NZD)
Subscription RevenueARR per Employee
ARR
Gross Profit Margin
Top 10 Customers: % of Revenue
Churn
Delivering on our strategy – Profitability
9
Blackpearl Group - Quarter Four Report
9

Future
Outlook
As we review the past quarter, our focus on robust
growth and profitability has been clear, with an
emphasis on innovation, market expansion, and
customer-centric product development as we enter
the new fiscal year.
Looking forward, Blackpearl Group is positioned
for a dynamic future. Our strategy is anchored
in diversification, harnessing cutting-edge
technologies, and exploring DIY capabilities
within our software. This approach reflects
our commitment to operational efficiency and
expanding our market footprint.
Central to our vision is customer empowerment
through self-service options. This move not only
optimises resource allocation but also unlocks
new market avenues. Particularly, we anticipate
significant opportunities in affiliate marketing and
marketplace ventures, driven by the accessibility
and adaptability of our self-service solutions.
As we move into the upcoming quarter and beyond,
Blackpearl Group remains focused on sustained
growth and success. With a solid foundation and
forward-thinking strategies, we’re confident in
delivering value to our stakeholders in the evolving
business landscape.
Delivering on our strategy – Profitability
Blackpearl Group
targets $10 million
milestone as
annual recurring
revenue doubles.
Nick Lissette has now set his sights on
continuing that upward trajectory and
hitting the $10 million target within the
next financial year.
Longer term, Lissette has set even bolder
targets for the business to achieve.
“I believe our sights will soon be on the
$100 million revenue mark,” said Lissette.
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Blackpearl Group - Quarter Four Report

About Blackpearl Group
Blackpearl Group (BPG) is a market leading data
technology company that pioneers AI driven,
sales and marketing solutions for the US market.
Specifically engineered for small-medium sized
businesses (SMEs), BPG consistently delivers
exceptional value to its customers. Our mantra
is simple: ‘Better Growth Together’. When our
customers win, we win.
Founded in 2012, Blackpearl Group is based in
Wellington, New Zealand, and Phoenix, Arizona.
Blackpearl.com