Blackpearl Group FY24 Preliminary Results Announcement

1
BLACKPEARL GROUP | Investor Announcement

30 May 2024
Blackpearl reports 177% increase in ARR for FY24

Black Pearl Group Limited (NZX:BPG) is pleased to announce its unaudited preliminary
results for the year ended 31 March 2024 ("FY24"), reporting a 177% increase in Annual
Recuring Revenue (ARR) to $7.4m, now on the cusp of reaching the $10m ARR target.
The strong result is a testament to Pearl Diver, our flagship product which has
accelerated revenue growth, improved Gross Margins and drive us towards the
potential for cash profitability.

Key Financial Highlights
• Subscription Revenue: $4.1m, marking a 183% year-on-year increase.
• Group ARR: Reached $7.4m reflecting a 177% year-on-year increase.
• Pearl Diver Product ARR: $4.9m only 13 months after launch.
• ARR Per Employee: Recorded at $230k exhibiting a 359% year-on-year increase.
• Gross Profit Margin: Increased to 71% for FY24 from 49% in FY23.
• Expenses: Increased 21% year-on-year, however declined as a percentage of
revenue to 130% in FY24 from 297% in FY23.
• Cash Burn 3 month Average: Ended the year at $340k, a 42% decrease from its
peak during the year.
• Revenue Churn: 4.0% as of March 31, 2024.

Summary
FY24 reflects our strategic investments and disciplined execution significantly advancing
BPG's growth and profitability.

Pearl Diver, our flagship product, has fundamentally transformed our revenue
composition, becoming the largest contributor to our Annual Recurring Revenue (ARR).
Within just one year, Pearl Diver's ARR grew from $54k to $4.9m, now representing 67%

1
BLACKPEARL GROUP | Investor Announcement

of our total ARR. This rapid growth underscores the effectiveness of our go-to-market
strategy and our commitment to serving the SME market in the USA and will drive us
towards our short-term target of $10m in ARR.

Our gross margin increased substantially, rising to 71% in FY24 from 49% in FY23, driven
by the scalability of our platform and the higher margin of the Pearl Diver product.
While expenses have grown to support our expansion, it's noteworthy that expenses as a
percentage of ARR have decreased to 126% in FY24 from 297% in FY23.

Over FY24 we have reduced our 3 month average cash burn to $340k from $569k at its
peak. Our approach to managing cashflows was characterised by balancing a drive to
recurring cash profitability, while maintaining aggressive growth.

Karen Cargill - Chief Financial Officer, Blackpearl, commented:

“We have laid the groundwork for our next phase of growth. Key achievements include:
the successful scaling of our infrastructure, the establishment of Pearl Diver's market
presence, and the enhancement of our platform's capabilities to meet growing demand.

As we approach cash profitability and $10m of ARR, we also have a number of exciting
opportunities to scale further. Blackpearl’s strategy continues to evolve to reflect the
success of the business over the last 18 months. Over the coming months, management
looks forward to update on its strategic plan for the next phase of growth.

It is an exciting time for the company."

Please also refer to our Blackpearl Group FY24 Financial Commentary & Unaudited
Financial Statements for the detailed results.

1
BLACKPEARL GROUP | Investor Announcement

Unaudited Financial Results Summary
The FY24 financial statements of Blackpearl Group are still being audited, but
Blackpearl Group is not aware of any likely qualifications. The Company is not proposing
to pay any dividends for the year ended 31 March 2024.

The company’s Audited Financial results and Annual Report will be released to the
market in late June 2024.

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


About Blackpearl Group
Blackpearl Group (BPG) is a market-leading data technology company pioneering 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, BPG is based in Wellington, New Zealand, and Phoenix, Arizona.
Blackpearl.com

---

1
Financial Year End 31 March 2024
Blackpearl Group - FY24 Annual Report
Preliminary
Full Year
Results

2
Blackpearl Group - FY24 Preliminary Full Year Results
Contents:
About Blackpearl
Contents
Consolidated Financial Statements
03
FY24 highlights
13
Consolidated Financial Statements (Unaudited)
07
Product Spotlight
05
Message from the CFO
06
How we performed
Blackpearl Group - FY24 Preliminary Full Year Results
06
ARR Growth
08
Impact of Pearl Diver
08
Attractive Gross Margin
09
Improved Efficiency
10
Cashflow
11
Customer and Market Analysis

4
Previously $1.4m in FY23
183% increase YoY
177% increase YoY
Subscription Revenue
$4.1m
As of 31 March 2024
Previously $2.7m in FY23
1 April 2023
As of 31 March 2024
Churn has increased 0.9ppt YOY
Previously 3.1% as of 31 March 2023
Revenue Churn
4.0%
Annual Recurring Revenue
$7.4m
For FY24
Previously 49% in FY23
Gross Profit Margin
71%
As of 31 March 2024
Up from 5% in FY23
Top 10 Customers % of Revenue
10%
As of 31 March 2024
359% increase YoY
Annual Recurring Revenue Per Employee
$230k
31 March 2024
Note:
• Comparative figures relate to FY23 unless otherwise stated
• PPT stands for percentage points
Financial
highlights
Blackpearl Group - FY24 Preliminary Full Year Results

6
Blackpearl Group - FY24 Preliminary Full Year Results
5
Reflecting on FY24, our strategic investments and disciplined execution
has meaningfully advanced BPG’s growth and profitability.
Pearl Diver, our flagship product, has evolved our revenue composition,
becoming the largest contributor to our Annual Recurring Revenue
(ARR). Over the financial year Pearl Diver’s ARR grew from $54k to $4.9m,
now representing 67% of our total ARR. This rapid growth underscores
the effectiveness of our go-to-market strategy and our commitment to
serving the SME market in the USA.
Our gross margin increased to 71% from 49% in FY23, driven by the
scalability of our platform and Pearl Diver’s high-margin profile.
While expenses have grown to support our expansion, expenses as a
percentage of ARR have decreased to 130% in FY24 from 297% in FY23.
We have managed our cashflows effectively, balancing our path to
recurring cash profitability with our focus on aggressive growth.
We have also laid the groundwork for our next phase of growth. Key
achievements include: the successful scaling of our infrastructure, the
establishment of Pearl Diver’s market presence, and the enhancement of
our platform’s capabilities to meet growing demand.
It is an exciting time for the company.
Karen Cargill | CFO
Message from
the CFO
How we performed
ARR increased by 177% to $7.4m during FY24,
progressing towards our next milestone of
$10m in ARR.
177%
Total ARR at Quarter End
$8 m
$7 m
$6 m
$5 m
$4 m
$3 m
$2 m
$1 m
$0 m
By Quarter
Q1 FY23Q2 FY23Q3 FY23Q4 FY23Q1 FY24Q3 FY24Q2 FY24Q4 FY24
Total ARR (NZD)
In FY24, Black Pearl Group Limited (“BPG” or
“Blackpearl Group”) achieved consistent revenue
growth, marked by a 177% increase in Annual
Recurring Revenue (ARR), reaching $7.4m.
The driving force behind this growth is our flagship
product, Pearl Diver, which now accounts for 67%
of our ARR. The success of Pearl Diver underscores
the strength of our investment in our proprietary
technology. This investment has allowed us to
rapidly ingest unique data sets and develop
innovative AI-driven solutions that resonate with our
target market.
Our revenue model’s compounding nature supports
continuous growth into FY25. BPG’s applications
use a monthly recurring billing model, generating
regular and predictable revenue. Each new subscriber
adds to the overall revenue, creating continuous,
compounding growth beyond one-time purchases.
The rapid success of Pearl Diver is the result of our
preparation and investment converging with market
forces. It has never been more challenging for a SME
business to acquire new customers in the digital
world. BPG’s ability to rapidly create and deliver
leading AI-driven sales and marketing services that
help ‘our customers find more customers’ has been
key to the company’s success.
As we look ahead, we are confident that our strategic
investment and innovative approach will continue to
drive substantial growth and bring us closer to our
long-term revenue goals.
ARR Growth
How we
performed

Product spotlight
Power your
business
growth with
Pearl Diver
·      Industry leading prospect identification platform
·      70+ Data points per identified visitor
·      Visitor Journey Mapping
·      Audience Builder for targeting high-value lead
·    CCPA & GDPR Compliant
·     Trusted 1st Party Data provider with 99.99% uptime
·     Enterprise grade API and integrations
·     Award winning customer support
In an era where data is the cornerstone of
business strategy, Pearl Diver stands at the
forefront as the industry-leading prospect
identification platform. Over the past year, we
have witnessed Pearl Diver revolutionise the way
businesses understand and engage with their
digital audiences.
Powerful features to help our
customers accelerate revenue growth
Our gross margin improved to 71% from 49% in FY23.
The scalability and platform efficiency highlighted in
our interim report have played a pivotal role in this
achievement. Our gross margin expansion is the result of
growing revenue coupled with our ability to affordably
scale infrastructure efficiently. A gross margin of 71% is
considered a positive metric for SaaS products, especially
given that Pearl Diver has only been in the market for 13
months.
As demand for Pearl Diver increases, BPG will need to
increase investment in data processing infrastructure. As
we scale our storage and processing capacity over the
coming months, we anticipate a temporary compression
in gross margin in the near future. However, this strategic
decision allows us to position ourselves for the next level of
growth, thus ensuring long-term sustainability, profitability,
and shareholder value.
8
Gross margin has increased to
71% for FY24 from 49% for FY23
13 months since launch to
reach $4.9m Pearl Diver ARR
13mo
71%
Impact of Pearl Diver
Attractive Gross
Margin
Q1 FY24Q2 FY24Q3 FY24
By Quarter
Q4 FY24
Total Pearl Diver ARR Quarter End
$6 m
$5 m
$4 m
$3 m
$2 m
$1 m
$0 m
Pearl Diver reshaped our revenue composition,
emerging as the largest contributor to BPG’s ARR,
now representing 67% of our total ARR. From its
humble beginnings with just $54k in ARR at the close
of FY23, Pearl Diver’s rapid growth to $4.9m in ARR is
notable.
Developed and brought to market in just 45 days
after gaining access to a new web-based dataset,
Pearl Diver secured its first $1m in ARR within a
90-day period. These short-cycle timeframes were
made possible by our strategic R&D investment in
previous years. BPG has successfully implemented
this go-to-market strategy twice, positioning us to
replicate this methodology for future product builds
and acquisitions.
As we transition into FY25, Pearl Diver will remain the
primary driver of growth, serving as a launch pad for
new products in directly adjacent markets.
Powered by

10
Blackpearl Group - FY24 Preliminary Full Year Results
June 23Oct 23July 23Nov 23Feb 24Aug 23Dec 23Mar 24Sept 23Jan 24
Cash Burn Rate 3 Month Moving Average
$700 k
$600 k
$500 k
$400 k
$300 k
$200 k
$100 k
$0 k
Over FY24 we have reduced our 3 month moving
average cash burn to $340k from $588k at its
peak. Our approach to managing cashflows was
characterised by balancing a drive to recurring cash
profitability while maintaining aggressive growth.
BPG is now on the cusp of monthly recurring cash
profitability and $10m of ARR. The significance of
these milestones validate our business model,
revenue acquisition strategy, and market fit.
3 month Moving Average
Linear (3 month Moving Average)
Q1 FY24Q2 FY24Q3 FY24
By Quarter
Q4 FY24
Average Revenue (ARR) per Employee
$250 k
$200 k
$150 k
$100 k
$50 k
$0 k
By Financial Year
Mar
FY22
Mar
FY23
Mar
FY24
Total expenses as % of ARR
600%
500%
400%
300%
200%
100%
0%
How we performed
Annual Recurring Revenue Per Employee
As of 31 March 2024
359% increase YoY
$230k
Improved efficiencyCashflows
As we approach cash profitability and $10m of ARR,
we also have a number of exciting opportunities to
further accelerate growth. Over the coming months,
we look forward to updating the market on our
strategic plan for the next phase of growth.
Personnel, operating, and administrative expenses
have grown 21% year-over-year, driven by our
scaling efforts, including increased use of offshore
resources and increased spend on marketing.
While expenses have grown to support our
expansion, it’s noteworthy that expenses as a
percentage of ARR have decreased to 130% in FY24
from 297% in FY23. This indicates that despite our
growth, we have maintained good control over our
expenses relative to revenue.
It’s important to highlight that even as we grow
aggressively, we remain mindful of our expense
management. This approach has enabled us to
track towards cash profitability while maintaining a
balance between growth and financial sustainability.

Blackpearl Group - FY24 Preliminary Full Year Results
12
With revenue churn standing at 4.0% as of March 31,
2024, our customer base is diversified, with no single
large accounts dominating our revenue stream.
This diversification mitigates risk and underscores
the strength of our customer relationships across
various sectors and industries.
In our journey towards growth and market leadership,
understanding our customers and the dynamics of our
target market is paramount.
Our focus remains firmly on catering to the needs of Small
and Medium Enterprises (SMEs) within the US market, a
segment comprising of approximately 26.5m businesses
according to Census.gov. This segment presents a
compelling opportunity as these businesses often struggle
with cost-effectiveness and ROI from traditional digital
advertising methods. Here lies our niche – providing
solutions that enable businesses to transition from relying
on 3rd Party to harnessing the power of 1st Party data.
With a total addressable market (TAM) of 5.5m SME
businesses in the USA, the potential for growth and
expansion is substantial.
Our customer base is a testament to the market demand
of our offerings. Pearl Diver, our flagship product,
has emerged as a game-changer in the SME market,
revolutionising how businesses access their own data,
and crucially, turn that data into dollars. Its competitive
edge is evident in the positive reviews and ratings across
platforms like Google and G2, affirming its impact and
value to our customers.
Despite our achievements, we recognise that there is still
ample market opportunity waiting to be tapped. With
Pearl Diver at the forefront, we are democratising data
access and empowering SMEs to make informed decisions
based on actionable insights. As we continue to innovate
and expand our product portfolio, our goal is clear – to
capture a significant share of the SME market and drive
sustainable growth.
How we performed
Customer and Market AnalysisMarket focus
Pearl diver has a much higher price point than our
original products, as shown in the chart below. This
affords it a superior gross margin and lifetime value
per customer, which also allows for more efficient
return on marketing.
Average ARR per Customer (NZD)
$10 k
$7.5 k
$5 k
$2.5 k
$0 k
NewOldStampBlack Pearl MailPearl Diver
$505
$1,934
$9,410
Blackpearl Group - FY24 Preliminary Full Year Results

14
Blackpearl Group - FY24 Preliminary Full Year Results
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 31 March 2024
20242023
UnauditedAudited
$$
Subscription revenue4,053,0201,430,746
Cost of sales
Reseller commissions(331,803)(40,770)
Personnel expenses(284,304)(234,060)
Hosting and server costs(381,555)(382,151)
Merchant bank fees (164,006)(73,036)
Gross profit2,891,352700,729
Other revenue1,424,049179,888
Personnel expenses(3,322,320)(3,590,928)
Operating expenses(3,879,023)(2,597,690)
Administrative expenses
(2,378,366)
(1,730,129)
Finance income26,3582,822
Finance costs(163,848)(135,362)
Loss before income tax(5,401,798)(7,170,670)
Net income tax credit -270,022
Loss for the year attributable to owners of the parent(5,401,798)(6,900,648)
Earnings per share20242023
$$
Basic loss for the year attributable to owners0.12(0.21)
Diluted loss for the year attributable to owners0.12(0.21)
Consolidated Statement of Other
Comprehensive Income
As at 31 March 2024
At 31 March
2024
At 31 March
2023
UnauditedAudited
$$
Loss for the year(5,401,798)(6,900,648)
Other comprehensive income that may be subsequently reclassified through
profit or loss
Exchange differences on translation of foreign operations(73,532)(103,725)
Total comprehensive loss for the year attributable to owners of the parent(5,475,330)(7,004,373)
Financial Statements

16
Blackpearl Group - FY24 Preliminary Full Year Results
Consolidated Statement of Financial Position
As at 31 March 2024
At 31 March
2024
At 31 March
2023
UnauditedAudited
$$
Assets
Current assets
Cash and cash equivalents1,854,4581,759,268
Trade and other receivables368,468301,599
Income tax receivable-3,846
Prepayments173,37669,828
Total current assets2,396,3022,134,541
Non-current assets
Property, plant and equipment32,37721,597
Goodwill2,872,4932,872,493
Intangible assets1,295,7511,659,872
Right-of-use asset130,874-
Total non-current assets4,331,4954,553,962
Total assets6,727,7976,688,503
Liabilities
Current liabilities
Trade and other payables450,878511,008
Employee entitlements243,123195,313
Lease liabilities133,282-
Current contingent consideration24,461576,941
Current loans and borrowings82,8771,291,790
Contract liabilities607,825481,402
Total current liabilities1,542,4463,056,454
Non-current liabilities
Non-current contingent consideration30,451481,919
Non-current loans and borrowings283,7331,093,907
Total non-current liabilities314,1841,575,826
Total liabilities1,856,6304,632,280
Consolidated Statement of Financial Position
As at 31 March 2024
At 31 March
2024
At 31 March
2023
UnauditedAudited
$$
Equity
Share capital
37,493,169
28,545,173
Accumulated losses
(34,214,187)
(29,796,748)
Share based payment reserve
1,082,889
2,687,853
Shareholder warrants reserve478,394515,511
Foreign currency translation reserve30,902104,434
Equity attributable to the owners4,871,1672,056,223
Total liabilities and equity6,727,7976,688,503
Financial Statements

18
Blackpearl Group - FY24 Preliminary Full Year Results
Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
Share
capital
Accumulated
losses
Share
based
payment
reserve
Share
warrants
reserve
Foreign
currency
translation
reserve
Total
$$$$$$
Balance at 31 March 202328,545,173(29,796,748)2,687,853515,511104,4342,056,223
Loss for the year-
(5,401,798)
---
(5,401,798)
Translation differences of
foreign operations
----(73,532)(73,532)
Transactions with owners in their capacity as owners
Issue of share capital6,160,149-(754,049)--5,406,100
Shares issued on
conversion of loan
1,800,736----1,800,736
Share based payments
994,049
-
133,445
--
1,127,494
Equity classified
contingent consideration
-984,360(984,360)---
Transaction costs arising
on share issue
(44,055)----(44,055)
Share warrants issue37,117--(37,117)--
Balance at 31 March 202437,493,169(34,214,187)1,082,889478,39430,9024,871,167
Balance at 31 March 202222,012,727(22,672,146)1,419,248-208,159967,988
Loss for the year-(6,900,648)---(6,900,648)
Translation differences of
foreign operations
----(103,725)(103,725)
Transactions with owners in their capacity as owners
Issue of share capital6,082,758-(608,545)--5,474,213
Distribution to owners to
extinguish pre-dividend
loan
223,954(223,954)----
Share based payments608,545-759,056--1,367,601
Equity classified
contingent consideration
--1,118,094--1,118,094
Transaction costs arising
on share issue
(382,811)----(382,811)
Share warrants issue---515,511-515,511
Balance at 31 March 202328,545,173(29,796,748)2,687,853515,511104,4342,056,223
Notes20242023
$$
Cash flows from operating activities
Cash receipts from customers4,088,1771,688,631
Cash paid to resellers for their commission(565,295)(85,505)
Cash paid to suppliers and employees(9,100,570)(7,173,622)
Receipt of government grants109,225180,244
GST payments18,599(33,273)
US Federal taxes paid27,016(178)
NZ Income tax refund3,846215,910
Interest Paid (Lease Liabilities)(6,033)-
Net cash used in operating activities 32(5,425,035)(5,207,793)
Cash flows from investing activities
Purchase of property, plant and equipment(30,710)(12,344)
Acquisition of Newoldstamp-(783,608)
Acquisition and development of intangible assets(340,889)(184,642)
Proceeds on disposal of property, plant and equipment245-
Interest received26,3582,822
Net cash used in investing activities (344,996)(977,772)
Cash flows from financing activities
Repayment of loans and borrowings(33,255)(5,200)
Repayment of lease liabilities(41,217)-
Proceeds from borrowings-2,400,000
Direct costs incurred in issuing equity(44,055)(291,112)
Cash receipts from issue of share capital6,125,9864,991,330
Net cash from financing activities 326,007,4597,095,018
Consolidated Statement of Cash Flows
For the year ended 31 March 2024
Financial Statements

Blackpearl Group - FY24 Preliminary Full Year Results
Notes20242023
$$
Net increase/(decrease) in cash and cash equivalents237,428909,453
Opening cash and cash equivalents at beginning of the year1,759,268900,588
Effect of exchange rate fluctuations on cash held(142,238)(50,773)
Cash and cash equivalents at year end121,854,4581,759,268
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

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023




Results for announcement to the market
Name of issuer Black Pearl Group Limited
Reporting Period 12 months to 31 March 2024
Previous Reporting Period 6 months to 30 September 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$4,053 183%
Total Revenue $5,503 242%
Net profit/(loss) from
continuing operations
$(5,402) 22% (loss reduction)
Total net profit/(loss) $(5,475) 22% (loss reduction)
Interim/Final Dividend
Amount per Quoted Equity
Security
Black Pearl Group does not propose to pay a dividend
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.010731 $(0.070020)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to Blackpearl Group FY24 Financial Commentary and
Unaudited Financial Statements
Authority for this announcement
Name of person authorised
to make this announcement
Karen Cargill
Contact person for this
announcement
Karen Cargill
Contact phone number +64 21 1355183
Contact email address Karen.cargill@blackpearl.com
Date of release through MAP 30/05/2024

Unaudited financial statements accompany this announcement.