Blackpearl Group Q1 FY25 Results Announcement

1
BLACKPEARL GROUP | Investor Announcement
16 July 2024
Blackpearl Group Q1 FY25 Results Announcement
Introduction
Blackpearl Group (BPG) today presents its results for the first quarter ending on 30
June 2024, demonstrating continued growth and strategic advancements.
Key Highlights
•Subscription Revenue: Achieved $1.5 million, marking a 143% year-on-year
increase and a 15% quarter-on-quarter increase from Q4 FY24.
•Annual Recurring Revenue (ARR): Reached $8.6 million as of 30 June 2024,
reflecting a 162% year-on-year increase and a 16% quarter-on-quarter
increase from Q4 FY24.
•Gross Profit Margin: Achieved 73%, an improvement from 62% in Q1 FY24 and
slightly lower than 75% in the previous quarter, Q4 FY24.
•ARR Per Employee: Recorded at $252k as of 30 June 2024, exhibiting a 308%
year-on-year increase and a 9% quarter-on-quarter increase from Q4 FY24.
BPG’s Chief Executive Nick Lissette commented on Q1 results, saying: " The secret to
our success over the last year has been growing customer numbers while
simultaneously increasing the average annual recurring revenue (ARR) of the new
customers we acquire. In Q1 of FY25, the average ARR per Pearl Diver customer
increased to NZD$10,451, more than double the average deal value per customer
from Q1 FY24. However, the most significant achievement in Q1 of FY25 was
enhancing our Pearl Diver packages, opening us up to new customer segments with a
ninefold increase in deal value.”

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BLACKPEARL GROUP | Investor Announcement

Financial Update

“Q1 FY25 was underpinned by successfully balancing in-quarter growth with
investment in our products to support increased sales velocity for the future. The
biggest barrier to evolution is continuing execution excellence in ‘business-as-usual’
while also building and implementing new initiatives for future growth. As we say
internally ‘we need to row the boat while building it’. I’m proud that the team was able
to achieve this; it’s no small achievement given our team size," says Karen Cargill,
CFO.
Future Outlook
The US SME market, already hungry for relief from blind pay-to-play advertising and
marketing, is now undergoing unprecedented disruption, increasing demand for our
services even further.
Pearl Diver is set for substantial growth and has just started tapping into its higher-
tier offerings. Our product development remains our greatest competitive
advantage, with the Pearl Engine designed to penetrate new areas more quickly than
anyone else.
The US market is vast, and we have already proven our growth capability there. As
we continue to push forward, we are confident in our strategy and our ability to
capture new market opportunities, driving sustained growth and delivering value to
our stakeholders in the evolving business landscape.
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

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BLACKPEARL GROUP | Investor Announcement

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

Blackpearl.com

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Quarterly
Investor Update
Black Pearl Group Limited - Quarter One Report
Quarter One report for the three-month period to 30 June 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,

The secret to our success over the last year has been growing customer numbers
while simultaneously increasing the average annual recurring revenue (ARR) of
the new customers we acquire. In Q1 of FY25, the average ARR per Pearl Diver
customer increased to NZD$10,451, more than double the average deal value per
customer from Q1 FY24. However, the most significant achievement in Q1 of FY25 was
enhancing our Pearl Diver packages, opening us up to new customer segments with
a ninefold increase in deal value.
Google is scheduled to block cookies in January 2025. For businesses that rely on
digital advertising, this means their ability to perform retargeting marketing will
be severely diminished. The businesses that will be hit the hardest are those with
significant marketing spend and processes. Businesses can no longer rely on third-
party data to drive marketing—it’s now time to provide your own first-party data.
This is the data our product, Pearl Diver, provides.
To address the needs of this market segment, we have created two new Pearl Diver
packages. The first is US$3,000 per month (NZD$59,040 in ARR on current exchange
rates), and the second is US$5,000 per month (NZD$98,400 in ARR on current
exchange rates).
Between 1 July 2024 and 15 July 2024, we have already billed or received
commitments for nearly NZD$1m (gross) in new ARR. This is double where we would
normally aim to be at this stage in a month, thanks to the team successfully selling
and provisioning the new higher-value packages.
We are now approximately six weeks away from surpassing the milestone of
NZD$10m ARR. But let me be clear, our ambition is not just to thrive in our part of the
US small-to-medium-sized business market, but to dominate it. To do this, we need
to aggressively grow from NZD$10m ARR to NZD$20m ARR, and our goal is to achieve
this over the next 12-18 months.
These new packages are a big part of ensuring we achieve this.
Foreword from the CEO
Nick Lissette
CEO, Blackpearl Group
Blackpearl Group - Quarter One Report
5

1 April 2024
Highlights
143% increase YoY 162% increase YoY
308% increase YoY
As of 30 June 2024.
Churn has increased 0.3ppt YOY and
decreased 0.6ppt from the previous quarter.
As of 30 June 2024.
A 6ppt increase YoY and 1ppt increase on
previous quarter Q4 FY24.
Subscription Revenue
Revenue Churn
$1.5m
3.4%
Annual Recurring Revenue
Top 10 Customers % of Revenue
$8.6m
Was 62% in Q1 FY24 and 75% in the previous
quarter Q4 FY24.
Gross Profit Margin
73% 11%
As of 30 June 2024.
Up 9% from the previous quarter Q4 FY24.
Annual Recurring Revenue Per Employee
$252k
30 June 2024
Blackpearl Group - Quarter Four Report
Note:
• Comparative figures relate to Q1 FY24 unless otherwise stated
• Figures are in NZD$ unless otherwise stated
• ppt stands for percentage points.
As of 30 June 2024
Up 16% from the previous quarter Q4 FY24.
For Q1 FY25
Up 15% from the previous quarter Q4 FY24.
7
7

“Q1 FY25 was underpinned by successfully balancing in-quarter growth
with investment in our products to support increased sales velocity
for the future. The biggest barrier to evolution is continuing execution
excellence in ‘business-as-usual’ while also building and implementing
new initiatives for future growth. As we say internally ‘we need to row the
boat while building it’. I’m proud that the team was able to achieve this;
it’s no small achievement given our team size," says Karen Cargill, CFO.
Commentary
from the CFO
Key Commentary
Total ARR at Quarter End
Karen Cargill
CFO, Blackpearl Group
$9 m
$8 m
$7 m
$6 m
$5 m
$4 m
$3 m
$2 m
$1 m
$0 m
Q3 FY23Q4 FY23Q1 FY24
Quarter, Financial Year
Q2 FY24Q3 FY24Q4 FY24Q1 FY25
Total ARR (NZD)
$300k
$250 k
$200 k
$150 k
$100 k
$50 k
$0 k
Q3 FY23Q4 FY23
Quarter, Financial Year
Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25
ARR per employee at Quarter End
Total ARR (NZD)
We have achieved a 143% increase YoY in subscription
revenue, with a 15% rise from the previous quarter, Q4
FY24. This growth reflects the enduring success of our
flagship product, Pearl Diver.
$1.5m
Subscription Revenue
As of 30 June 2024, ARR per employee has increased by
308% YoY and 9% from Q4 FY24. Our average revenue
per employee is equal to that of a SaaS business many
times the size of Blackpearl Group and is especially
pleasing given our continued investment in growth
and innovation.
$252k
Annual Recurring Revenue Per Employee
As of 30 June 2024, we have reached a new milestone
in ARR, recording a 162% YoY increase and a 16% rise
from Q4 FY24. The key to the financial success of Pearl
Diver has been increasing customer numbers while
also increasing average annual recurring revenue per
customer. In Q1 FY25 the average new ARR per Pearl
Diver customer was $10,451, up 132% YoY.
$8.6m
Annual Recurring Revenue (ARR)
Our gross profit margin stands at 73%, up from 62%
in Q1 FY24 but slightly lower than the 75% recorded
in Q4 FY24. The margin reflects the prior year’s
investment in creating a rapidly scalable technology
platform. Our Pearl Engine platform continues to
shine as our strategic advantage in the hyper paced
technology sector.
73%
Gross Profit Margin
Our top 10 customers contribute 11% of our total
revenue, a 6ppt increase YoY and a 1ppt rise from
Q4 FY24.
11%
Top 10 Customers: % of Revenue
Churn rate has increased by 0.3ppt YoY but has
improved by 0.6ppt compared to the previous quarter.
Incremental increases are expected as we move to
higher-value products.
3.4%
Revenue Churn
Delivering on our strategy
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Blackpearl Group - Quarter One Report
9

Future
Outlook
The US SME market, already hungry for relief from blind pay-to-play
advertising and marketing, is now undergoing unprecedented disruption,
increasing demand for our services even further.
Google have stated that in January 2025, they will join Apple and Mozilla in
blocking cookies. Cookies are small data files stored on users' devices that
track their online behaviour for targeted advertising. They are crucial for
retargeting because they allow advertisers to follow users across the web,
delivering personalised ads based on browsing history. With cookies being
blocked, advertising and marketing will become more expensive and less
effective, driving the need for alternative solutions.
Blackpearl Group’s technology enables businesses to capture their
own first-party data—a more transparent and compliant class of data.
First-party data is the ideal fuel for marketing activities. It allows for precise,
high-quality marketing without relying on third-party cookies. Instead of
generic algorithms, businesses can use detailed, demographically filtered
data to enhance their marketing strategies.
First-party data, which is what Pearl Diver creates, can be seen as the antidote
to the negative effects of blind retargeting caused by cookie depreciation.
We have seen a significant increase in inbound customer demand, especially
in the larger SME deal range (US$3,000-US$5,000 monthly packages). Capturing
this market sentiment will help further fuel Blackpearl Group’s growth over the
coming year and beyond.
Pearl Diver is set for substantial growth and has just started tapping into
its higher-tier offerings. Our product development remains our greatest
competitive advantage, with the Pearl Engine designed to penetrate new
areas more quickly than anyone else.
The US market is vast, and we have already proven our growth capability
there. As we continue to push forward, we are confident in our strategy and
our ability to capture new market opportunities, driving sustained growth
and delivering value to our stakeholders in the evolving business landscape.
Delivering on our strategy
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 One Report

About Blackpearl Group
Blackpearl Group 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), Blackpearl Group 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