Blackpearl Group Q2 FY25 Results Announcement

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BLACKPEARL GROUP | Investor Announcement

14 October 2024

Blackpearl Group Q2 FY25 Results Announcement

Introduction
Blackpearl Group (BPG) today presents its results for the second quarter ending on
30 September 2024.

Key Highlights

• Annual Recurring Revenue (ARR): Reached $10.4 million as of 30 September
2024, reflecting a 126% year-on-year increase and a 22% quarter-on-quarter
increase from Q1 FY25.
• Subscription Revenue: Achieved $1.7 million, marking an 86% year-on-year
increase and a 14% quarter-on-quarter increase from Q1 FY25.
• Gross Profit Margin: Achieved 73%, consistent with Q1 FY25 and up from 70%
in Q2 FY24.
• ARR Per Employee: Recorded at $282k as of 30 September 2024, showing a
95% year-on-year increase and a 12% quarter-on-quarter increase from Q1
FY25.

Nick Lissette, Chief Executive Officer, commented on the Q2 results: "Last month, we
passed a major milestone: $10 million in annual recurring revenue (ARR). Success fuels
acceleration; our next milestone is $20 million in ARR, which we aim to reach within 12
to 18 months. With 108% year-on-year growth in new ARR per quarter and 91% year-
on-year growth in average revenue per Pearl Diver customer, we’re confident in our
trajectory. Our recent oversubscribed private placement demonstrates robust
investment support, positioning us for significant growth despite the challenging
economic landscape.”

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BLACKPEARL GROUP | Investor Announcement


Financial Update

"Reaching the $10m milestone is a significant achievement for Blackpearl Group,
underscoring the strength of our SaaS model and the growing demand for Pearl
Diver in the market. With increased recurring revenue and additional capital, we are
well positioned to increase investment in growth, innovation, and customer success,"
says Karen Cargill, Chief Financial Officer.

Future Outlook

As we transition into Q3, we are focusing on operational efficiency while striving for
revenue growth. Key initiatives include structural improvements and deepening our
understanding of Pearl Diver product utilisation to enhance customer retention. We
also aim to leverage new high-value data sources to drive sustained growth towards
our $20 million ARR milestone, delivering value to our stakeholders in the evolving
market 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 Two Report
Quarter Two report for the three-month period to 30 September 2024

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

Foreword from the CEO
Blackpearl Group - Quarter Two Report
Dear Shareholders,
As you may have heard, last month we passed a major milestone: $10 million in
annual recurring revenue (ARR). Success fuels acceleration; our next milestone
is $20 million in ARR, which we aim to reach within 12 to 18 months.
This goal is ambitious, but with improvements in new sales velocity, including
108% year-on-year growth in new ARR per quarter and 91% year-on-year growth in
average revenue per Pearl Diver customer, alongside other key SaaS metrics, we’re
confident in our trajectory.
To support this growth, we opted to raise capital. As I write this foreword, we have
been fortunate that the private placement round was oversubscribed, and we
received investment from leading New Zealand institutions, family offices, brokers,
and other investors. The Share Purchase Plan (SPP) to current investors is still open.
While raising capital via equity issue involves dilution – a process I understand well
as Blackpearl’s founder who once owned 100% – it should improve shareholder
liquidity and position us to grow a much larger, more valuable company.
There’s much to celebrate. We’re hitting our hyper-growth ARR targets,
accelerating our momentum, and securing top-tier investment support – all while
navigating what some are referring to as "challenging economic headwinds."
Blackpearl Group was born and raised in Wellington; we play best in the wind!
Onwards to $20 million and beyond. Ad Astra.
Kind regards,
Nick Lissette
CEO, Blackpearl Group
5

1 July 2024
Highlights
126% increase YoY
95% increase YoY
As of 30 September 2024.
Churn has increased 0.7ppt YoY and
increased 0.6ppt from the previous quarter.
As of 30 September 2024.
A 2ppt increase YoY and a 1ppt decrease
on previous quarter Q1 FY25.
Revenue Churn
4.0%
Annual Recurring Revenue
Top 10 Customers % of Revenue
$10.4m
Was 70% in Q2 FY24 and 73% in the previous
quarter Q1 FY25.
Gross Profit Margin
73% 10%
As of 30 September 2024.
Up 12% from the previous quarter Q1 FY25.
Annual Recurring Revenue Per Employee
$282k
30 September 2024
Blackpearl Group - Quarter Two Report
Note:
• Comparative figures relate to Q2 FY24 unless otherwise stated
• Figures are in NZD$ unless otherwise stated
• ppt stands for percentage points
As of 30 September 2024.
Up 22% from the previous quarter Q1 FY25.
86% increase YoY
Subscription Revenue
$1.7m
For Q2 FY25.
Up 14% from the previous quarter Q1 FY25.
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7

"Reaching the $10m milestone is a significant achievement for Blackpearl
Group, underscoring the strength of our SaaS model and the growing
demand for Pearl Diver in the market. With increased recurring revenue
and additional capital, we are well positioned to increase investment
in growth, innovation, and customer success," says Karen Cargill, Chief
Financial Officer.
Commentary
from the CFO
Key Commentary
Total ARR at Quarter End
Karen Cargill
CFO, Blackpearl Group
$12 m
$10 m
$8 m
$6 m
$4 m
$2 m
$0 m
Q3 FY23Q4 FY23Q1 FY24
Quarter, Financial Year
Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25
Q2 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)
Subscription revenue has risen to $1.7 million, reflecting
an 86% increase year-on-year and a 14% rise from Q1 FY25.
The lag between subscription revenue recognition and
ARR growth is due to a variety of factors such as foreign
exchange fluctuations, increased payment terms for larger
customers and special offers given to customers. One of
our focuses in Q3 is on decreasing this timeframe.
$1.7m
Subscription Revenue
As of 30 September 2024, we’ve crossed the significant
milestone of $10m in ARR, a 126% YoY increase. The rise in
ARR reflects not only an expanding customer base but
also an increase in the average ARR per customer. This is
a direct result of selling our new higher value Pearl Diver
packages.
$10.4m
Annual Recurring Revenue (ARR)
Our gross profit margin remains robust at 73%,
underscoring the scalability of our platform and the
value it continues to deliver in driving sustainable
growth.
73%
Gross Profit Margin
Our top 10 customers now represent 10% of total
revenue, down slightly from the previous quarter.
This decrease reflects our success in broadening our
customer base and reducing dependence on a small
group of large customers.
10%
Top 10 Customers: % of Revenue
Our churn rate rose slightly to 4.0% but remains within
projected parameters. It should be noted we have
increased customer lifetime value, demonstrating our
ability to manage churn while growing revenue. Increased
investment will enhance our understanding of product
utilisation, refine market segmentation, and improve client
retention strategies.
4.0%
Revenue Churn
Delivering on our strategy
ARR per employee increased by 95% YoY to $282k, despite
an increase in headcount from 32 to 37 over this period.
This metric is a key reflection of our operational efficiency
as we scale. We are in the process of expanding our staff
base to circa 45 people in the next six months.
$282k
Annual Recurring Revenue Per Employee
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Blackpearl Group - Quarter Two Report
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Future
Outlook
As we move into Q3, historically a more challenging sales period, we remain
focused on revenue growth while also seizing the opportunity to refine our
operations. This quarter we are prioritising the implementation of structural
and process improvements to enhance operational efficiency. Upgrades, such
as changes to our CRM, will provide the foundation needed to drive the next
phase of our growth towards the $20 million milestone and beyond.
During this period, we are also focused on deepening our understanding
of Pearl Diver product utilisation. This is an important step in streamlining
product development and further refining our ideal customer profile - both
key elements in improving customer retention.
We also have exciting opportunities to gain access to more high-value data
to power our products. As a company that specialises in turning ‘data into
dollars’, new data can generate new revenue pathways. We look forward to
providing updates on these initiatives as and when they materialise.
Blackpearl Group is committed to leveraging these opportunities to build a
stronger, more agile business, ensuring we remain leaders in a rapidly evolving
market landscape.
Delivering on our strategy
Blackpearl Group
aims for $20 million
milestone
Nick Lissette has set a clear vision
for Blackpearl Group's future, with
the immediate goal of reaching $20
million in annual recurring revenue.
Building on our recent success,
Lissette envisions a continued
upward trajectory for the company.
“Our focus is now on reaching $20
million while simultaneously building
a platform that will enable us to drive
toward $100 million in the future.”
said Lissette.
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Blackpearl Group - Quarter Two Report

About Blackpearl Group
Blackpearl Group is a market leading data tech-
nology 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