📋 Tender Overview
Blackline Safety Corp. Blackline Safety Blackline the Company we us or our a global leader in connected safety technology with a Hardware-enabled software-as-a-service HeSaaS business model today released record annual and fiscal fourth quarter results.19 consecutive quarters of year-over-year growthFor the fiscal quarter ending October 31 2021 Blackline achieved a record 19.3 million in total revenue an increase of 67 compared to the same period last year. Product revenue grew 129 from the prior years quarter with service revenue up 22 to 8.2 million from 6.7 million driven by a 20 increase in recurring software services revenue.Annual 2021 revenue was a record 54.3 million with product revenue up 93 to 24.8 million and service revenue up 16 to 29.5 million from the prior year.Despite a business environment that continues to be challenging we are seeing a return to our pre-pandemic growth trajectory driven by 11.1 million in product revenue as new device deployments hit record levels and 100 customer retention fuelling our HeSaaS business model said Cody Slater CEO and Chair at Blackline Safety.These results show that our invest to grow strategy over the past 18 months is now paying dividends. We look forward to seeing the ongoing impact of our enhanced sales marketing and product capabilities that will continue to strengthen the business and drive growth throughout fiscal 2022 and beyond. Service revenue momentum continues up 22 quarter-over-quarterProduct sales alongside strong retention and renewal activity and the Companys entry into the rental market resulted in service revenue increases in the fourth quarter. Total service revenue for the quarter was 8.2 million up 22 from 6.7 million over the prior year quarter. Recurring software services revenue increased 20 over the same period.Service gross margin percentage1 improved to 69 in the fourth quarter from 67 in the prior year quarter excluding the impact of the Canadian Emergency Wage Subsidy CEWS. Product gross margin percentage1 though impacted by ongoing global supply chain challenges remained strong at 30 with growing sales of the Companys G7 EXO area gas monitor contributing proportionately higher product margin compared to our other connected safety devices. Blackline closed the fourth quarter with cash and short-term investments of 54.5 million and no debt. The Companys cash position enabled it to invest in manufacturing infrastructure and support the working capital required to achieve record product deliveries during the quarter despite ongoing challenges in the global supply chain.The Company strengthened its financial position at the end of the fiscal year closing its bought deal short-form prospectus offering on October 19 2021 raising gross proceeds of 40 million. Blackline continues to maintain flexibility to support its growth strategies and investments in sales and marketing with an expanded sales network and new digital lead generation capabilities. Our product commercialization will continue to accelerate including the launch of the first of its kind G6 connected personal safety device for the compliance market in July 2022 as well as the next generation of Blackline Live for cloud-based real-time reporting. We are also building toward a 2023 initial product launch of our offering in the light industry and construction market through our Wearable Technologies Limited WTL subsidiary with a total of 1.5 million expended during the fourth quarter.Our Company has continued to demonstrate resiliency through wave after wave of the pandemic as we find new ways to grow amid tremendous uncertainty and adversity. During this period we have seen our overall quarterly revenue grow by 127 globally and 176 in our growth markets outside of Canada added Mr. Slater.Thanks to the committed Blackline team worldwide we are well-positioned to reap the rewards of our strategy to invest in product development as well as sales and marketing globallyall driven by our corporate purpose to keep workers safe and contribute to digital transformation of the industrial workforce. Fourth quarter highlightsNineteenth consecutive quarter of year-over-year quarterly revenue growth Total revenue of 19.3 million a 67 increase over the prior years Q4 and 80 in our targeted growth markets outside Canada Service revenue of 8.2 million a 22 increase over the prior years Q4 comprised of Software services revenue of 6.8 million a 20 increase from the prior years Q4 Operating lease revenue of 0.8 million a 20 decrease from the prior years Q4 Rental revenue of 0.6 million a 539 increase from the prior years Q4 Product revenue of 11.1 million a 129 increase from the prior years Q4 Total revenue grew by 81 in the United States US 80 in Europe and 66 in Australia New Zealand and Rest of World compared to the prior years Q4 Closed five multi-year agreements with global customers in the turnaround water and wastewater utility and defense industries for a combined total contract value of 12.7 million Total cash and short-term investments of 54.5 million at October 31 2021 which was bolstered by the bought deal short-form prospectus offering completed in October 2021 for gross proceeds of 40 million Expanded globally by opening offices in Houston Texas and Dubai to service the Companys growing customer segments in the US and the United Arab Emirates UAE Expanded our manufacturing capacity in preparation for the launch of the Companys high volume G6 product line
