Blackpearl Group Q4 FY25 Results Announcement

2
BLACKPEARL GROUP | Investor Announcement
16 April 2025

Blackpearl Group Q4 FY25 Results Announcement
Introduction
Blackpearl Group (BPG) today presents its results for the fourth quarter ending 31 March 2025.
Key Highlights
• Annual Recurring Revenue (ARR): Reached $12.5 million as of 31 March 2025, marking a
70% year-on-year increase and a 13% increase from Q3 FY25.
• Subscription Revenue: Achieved $2.4 million, reflecting a 81% year-on-year increase and
11% increase from Q3 FY25.
• Gross Profit Margin: Achieved 57%, down from 72% in Q3 FY25 due to a temporary cost
increase during the crossover to our new fixed-fee data supply agreement.
• ARR Per Employee: Recorded at $245k as of 31 March 2025, up 7% year-on-year,
reflecting efficiency despite a slight quarter-on-quarter decline due to team expansion.
• Revenue Churn: Achieved 5.3% as of 31 March 2025, improving from 9.4% in Q3 FY25.
CEO Commentary
What a quarter! The numbers speak for themselves. BPG achieved a 13% increase in ARR in what
is effectively a 2.5-month period (due to normal seasonal delays at the start of January), and
while global economies went to hell in a handbag.

Central to this growth has been the continued performance of Pearl Diver, our primary revenue
driver. In Q3, we made the strategic decision to phase out of lower-tier, higher-cost customers –
allowing us to focus on higher-value accounts. Since then, we’ve continued to grow ARR while
also returning churn to a more stable and sustainable rate.

I’m equally pleased to report the beta launch of Bebop was a resounding success –
demonstrating our ability to execute on innovation while scaling proven products.

The importance of this should not be underemphasised. The ability to build, acquire, and evolve
multiple products off a singular technology platform is a pillar of BPG’s value proposition. We
can take advantage of growth opportunities in real time and increase revenue expansion in our
primary market (SME businesses in the USA) from multiple vectors.

While Pearl Diver is focused on growing revenue for marketing managers, Bebop is focused on
revenue generation for entrepreneurs and salespeople.

Bebop has achieved a high degree of product–market fit right out of the gate. In fact, in over
two decades of taking innovative technology to market, I’ve never seen such positive feedback

3
BLACKPEARL GROUP | Investor Announcement
at beta. As one customer said: “Bebop is revolutionary – any business selling B2B should have
this immediately.”

Some of you may have seen my comments in the NBR about going for the throats of Silicon
Valley ‘fat cats’. Bebop represents true agentic AI - and with that comes the potential to disrupt
markets at speed. As interest in what we’re building grows, the Board is proactively exploring a
dual listing on the ASX to broaden our investor base, increase visibility, and ensure we’re
positioned to capture the full value of what lies ahead.

It’s going to be an epic FY26. — Nick Lissette, CEO

CFO Commentary
I’m excited to return as Interim CFO at such a pivotal moment for Blackpearl Group.

This quarter’s results highlight continued momentum in our financial performance, with ARR up
13% from Q3 FY25 to $12.5 million and subscription revenue reaching $2.4 million. Churn
improved to 5.3%, down from 9.4% in Q3 FY25, reflecting the success of our deliberate shift
toward higher-value customers. This adjustment has helped stabilise retention and lift the
overall quality of our revenue base.

ARR per employee was $245k, down from $271k in Q3 FY25, as we invested in expanding the
team – particularly across AI and product - to support future growth. Gross margin declined to
57% due to a crossover in data supply agreements, but this is temporary. With our new fixed-fee
model now in place, we expect margins to improve as we scale. We remain confident this
investment will support stronger, more scalable margins going forward. — Karen Cargill, CFO
(Interim) & CGO

Future Outlook
The opportunity ahead is significant. With the launch of Bebop, we’re expanding our reach
within the SME market, targeting new decision-makers and unlocking additional revenue
streams. This product builds on our platform strategy, allowing us to serve our market from
multiple angles while strengthening our position in AI-driven sales and marketing.

We know what needs to be done. Our track record shows we can move quickly and execute
effectively. We’re confident this next phase will unlock even greater value for shareholders.
With momentum building across our business, we’re ready to lead in this next chapter.

To provide deeper insight into our strategy, market opportunity, and growth ambitions, we’re
preparing to host an Investor Day later this year.

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BLACKPEARL GROUP | Investor Announcement
Contact
Released for and on behalf of BPG,
Karen Cargill
Chief Governance 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.

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

---

Quarterly
Investor Update
QUARTER FOUR REPORT FOR THE THREE-MONTH
PERIOD TO 31 MARCH 2025
QUARTER FOUR REPORT
BLACKPEARL GROUP

Contents
03 Foreword from the CEO
04 Highlights
06 Commentary from the CFO
08 Future Outlook
PAGE 01Q4 REPORTFY 2025BLACKPEARL GROUP

WELCOME TO SHAREHOLDERS
Foreword
from the CEO
Dear Shareholders,
What a quarter!
The numbers speak for themselves. BPG achieved a 13%
increase in ARR over the quarter in what is effectively a
2.5-month period (due to normal seasonal delays at the
start of January), and while global economies went to
hell in a handbag.
Central to this growth has been the continued
performance of Pearl Diver, our primary revenue driver.
Last quarter, we made the strategic decision to phase
out of lower-tier, higher-cost customers – allowing us
to focus on higher-value accounts. Since then, we’ve
continued to grow ARR while also returning churn to
a more stable and sustainable rate.
I’m equally pleased to report the beta launch of Bebop
was a resounding success – demonstrating our ability
to execute on innovation while scaling proven products.
The importance of this should not be underemphasised.
The ability to build, acquire, and evolve multiple
products off a singular technology platform is a pillar
of BPG’s value proposition. We can take advantage of
growth opportunities in real time and increase revenue
expansion in our primary market (SME businesses in
the USA) from multiple vectors.
While Pearl Diver is focused on growing revenue for
marketing managers, Bebop is focused on revenue
generation for entrepreneurs and salespeople.
Bebop has achieved a high degree of product–market
fit right out of the gate. In fact, in over two decades
of taking innovative technology to market, I’ve never
seen such positive feedback at beta. As one customer
said: “Bebop is revolutionary – any business selling B2B
should have this immediately.”
Some of you may have seen my comments in the
NBR about going for the throats of Silicon Valley
‘fat cats’. Bebop represents true agentic AI - and with
that comes the potential to disrupt markets at speed.
As interest in what we’re building grows, the Board is
proactively exploring a dual listing on the ASX to broaden
our investor base, increase visibility, and ensure we’re
positioned to capture the full value of what lies ahead.
It’s going to be an epic FY26.
Ad Astra.
KIND REGARDS,
NICK LISSETTE
CEO, BLACKPEARL GROUP
PAGE 03FY 2025Q4 REPORTBLACKPEARL GROUP

Highlights
• COMPARATIVE FIGURES RELATE TO Q4 FY25 UNLESS
OTHERWISE STATED
• FIGURES ARE IN NZD$ UNLESS OTHERWISE STATED
• PPT STANDS FOR PERCENTAGE POINTS
NOTE:
TOP 10 CUSTOMERS % OF REVENUE
17%
As of 31 March 2025.
A 7ppt increase YoY and a 1ppt decrease
on previous quarter Q3 FY25.
REVENUE CHURN
5.3%
As of 31 March 2025.
Churn has increased 1.3ppt YoY and decreased
4.1ppt from the previous quarter.
GROSS PROFIT MARGIN
57%
Was 75% in Q4 FY24 and 72%
in the previous quarter Q3 FY25.
ANNUAL RECURRING REVENUE
$12.5m
As of 31 March 2025.
Up 13% from the previous quarter Q3 FY25.
70% INCREASE YOY
SUBSCRIPTION REVENUE
$2.4m
For Q4 FY25.
Up 11% from the previous quarter Q3 FY25.
81% INCREASE YOY
ANNUAL RECURRING REVENUE PER EMPLOYEE
$245k
As of 31 March 2025.
Down 9% from the previous quarter Q3 FY25.
7% INCREASE YOY
1 JAN 2025
BLACKPEARL GROUP
31 MAR 2025
PAGE 05Q4 REPORTFY 2025BLACKPEARL GROUP

KAREN CARGILL,
CFO (INTERIM) & CGO
CFO Commentary
ANNUAL RECURRING REVENUE (ARR)
ARR reached $12.5 million in Q4 FY25, up from $11.1 million
in Q3 FY25 – a 70% year-over-year increase. Momentum
remains strong, driven by ongoing customer acquisition
through Pearl Diver. While early signs from Bebop’s beta
launch are encouraging, Pearl Diver remains the primary
contributor to ARR growth this quarter.
$12.5m
GROSS PROFIT MARGIN
Gross margin declined to 57% in Q4 FY25, down from 72%
in Q3 FY25. This reflects a temporary cost increase during
the crossover to our new fixed-fee data supply agreement.
While we are currently incurring costs under both the lega
-
cy and new agreements, the new structure is more scalable
and cost-effective. As ARR grows and the legacy contract
phases out, we expect margins to improve.
57%
ANNUAL RECURRING REVENUE PER EMPLOYEE
ARR per employee was $245k at the end of Q4 FY25, down
from $271k in Q3 FY25. This reflects a planned investment

in strategic hires, with headcount increasing from 41 to 51.
Key additions include a dedicated AI team, a VP of Product,
and roles across data, revenue operations, and customer
experience – all designed to accelerate product develop
-
ment and support scalable growth. While this has temporarily
impacted productivity per head, these hires are foundational
to our long-term strategy, particularly in building out our AI
capability and future-ready operating model.
$245k
SUBSCRIPTION REVENUE
Subscription revenue grew to $2.4 million in Q4 FY25, up
from $2.1 million in Q3 FY25 - reflecting strong progress
throughout the year. This steady increase aligns with our
ARR growth, confirming the strength of our recurring rev
-
enue model. While there is a natural lag between ARR and
recognised revenue, the consistent uplift in both metrics
signals strong underlying business momentum.
$2.4m
REVENUE CHURN
Revenue churn reduced to 5.3% in Q4 FY25, down from 9.4% in
Q3 FY25. This improvement reflects the success of our deliberate
strategy last quarter to phase out lower-tier, higher-cost custom
-
ers who were not aligned with our Ideal Customer Profile (ICP). By
focusing resources on higher-value accounts with stronger reten
-
tion characteristics, we’ve returned churn to a more sustainable
level and sharpened our long-term revenue quality.
5.3%
TOP 10 CUSTOMERS: % OF REVENUE
Our top 10 customers accounted for 17% of revenue in Q4
FY25. This reflects stronger engagement with high-value
accounts and aligns with our strategy to deepen rela
-
tionships with customers who see long-term value in our
products.
17%
DELIVERING ON OUR STRATEGY
QUARTER, FINANCIAL YEAR
TOTAL ARR (NZD)
$00 M
Q4 FY23Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25Q3 FY25
$02 M
$04 M
$06 M
$08 M
$10 M
$12 M
$14 M
TOTAL ARR AT QUARTER END
Q2 FY25Q3 FY25
QUARTER, FINANCIAL YEAR
TOTAL ARR (NZD)
Q4 FY23Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25
$00 K
$50 K
$100 K
$150 K
$200 K
$250 K
$300 K
ARR PER EMPLOYEE AT QUARTER END
Q4 FY25
Q4 FY25
PAGE 07Q4 REPORTFY 2025BLACKPEARL GROUP

The opportunity ahead is significant. With the launch
of Bebop, we’re expanding our reach within the SME
market, targeting new decision-makers and unlocking
additional revenue streams. This product builds on our
platform strategy, allowing us to serve our market from
multiple angles while strengthening our position
in AI-driven sales and marketing.
We know what needs to be done. Our track record
shows we can move quickly and execute effectively.
We’re confident this next phase will unlock even greater
value for shareholders.
To provide deeper insight into our strategy, market op-
portunity, and growth ambitions, we’re preparing to host
an Investor Day later this year.
Additionally, Blackpearl Group is actively exploring a dual
listing on the ASX. This move would broaden our share-
holder base, increase liquidity, and open greater oppor-
tunities to raise capital as we scale.
With momentum building across our business, we’re
ready to lead in this next chapter.
Future
Outlook
Driving Toward
$20 Million ARR
& Beyond
As CEO Nick Lissette states, “Our focus is now on
reaching $20 million ARR while building a platform
to scale to $100 million and beyond. This is the
fastest, most efficient path to long-term success.
Blackpearl Group is well on track to achieve its
goals, ensuring long-term shareholder value while
solidifying its position as a leader in AI-driven sales
and marketing solutions.
DELIVERING ON OUR STRATEGY
PAGE 09Q4 REPORTFY 2025BLACKPEARL 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: ‘Creating Motivating
Opportunities.’
Blackpearl creates the
opportunities that motivate
action. We create high-impact
products that pivot at speed to
serve what businesses really
need, kick-starting action –
turning data into dollars.
Founded in 2012, Blackpearl
Group is based in Wellington,
New Zealand, and Phoenix,
Arizona.
blackpearl.com
Thank YouAd Astra
Q4 REPORTBLACKPEARL GROUPFY 2025