Blackline Safety Corp. have announced record first quarter results for the period ended January 31, 2019.
“Demand for Blackline’s connected safety technology continues to gain momentum as we enter our fiscal 2019, generating a record $6.2M in overall quarterly revenue,” said Cody Slater, Blackline CEO and Chairman. “Growth was driven through diversity across industries and geographic sectors with large orders announced during the quarter from the utilities industry and a government safety agency. After the close of Q1, we announced another utilities order — from Yorkshire Water — that affirms our commitment to delivering the best in gas detection for personnel in the field and throughout facilities.”
Blackline’s business model delivered an all-time high of $4.0M in recurring service revenue for the quarter, representing a 73% jump compared to Q1 FY2018. Mr. Slater said, “Blackline delivers the highest value to customers and our quarterly service growth underscores our client’s commitment to G7 connected safety solutions. Approximately 25% of our service revenue is now derived from customers who adopted our three-year Blackline Complete lease. This program bundles our connected safety wearables with a broad range of services, including gas sensors, two-way voice calling and 24/7 live monitoring, into one easy monthly payment. At the end of the quarter, future customer lease commitments stood at $8.3M.”
“Along with our highest service revenue yet, we achieved a record of $2.2M in global product sales, this helped Blackline to achieve a positive Adjusted EBITDA for the first time,” said Mr. Slater. Blackline uses Adjusted EBITDA (a non-GAAP measure) to describe its financial results, excluding the impact of product development costs and stock-based compensation expense. “Combined with Blackline’s robust balance sheet, this milestone reflects the strong trajectory of Blackline’s growth.”
“growth was driven through diversity across industries and geographic sectors with large orders announced during the quarter”
“Blackline continues to invest in expanding its connected safety portfolio with a focus on two key development initiatives,” said Mr. Slater. “Our new multi-gas pump cartridge is nearing certification and will soon begin shipping to customers as part of our revolutionary program for connected confined space entry and leak check surveys. Blackline is the only vendor in the world to offer comprehensive location-based data analytics, capable of providing full visibility of hazardous work being performed by personnel in the field.” He added, “We continue to focus dedicated resources on our G7 Exo area monitoring system that will transform the way that businesses monitor tank farms, fence-lines, facility shutdowns and other locations where temporary gas monitoring is required.”
First quarter revenue was $6,229, an increase of 64% from $3,803 in the comparable quarter of the prior fiscal year. Revenue in the United States increased by 94% and in Europe by 42% respectively with these regions continuing their strong growth from fiscal 2018.