Calgary, AB — Blackline Safety Corp. (TSX Venture: BLN), a leading manufacturer of gas detection and connected safety solutions, announced its best quarter ever.
“Expanding customer adoption of Blackline’s connected safety products and services drove strong revenue growth through our third quarter,” said Cody Slater, Blackline Safety CEO and Chairman. “Overall revenue more than doubled with service revenue up 58% and a 260% jump in product revenue.” He added, “Our latest numbers demonstrate that G7 is revolutionizing the safety industry, helping businesses stay connected with their teams to keep them safe and manage their operations more efficiently. Strong customer adoption has continued into Q4 with the announcement of a $1.9M lease order that displaced obsolete gas detectors while equipping the customer with the latest in connected safety technology.”
Blackline continues to innovate G7’s capabilities through continued product development while expanding its commercialization programs. Mr. Slater said, “G7 products and services have defined the new benchmark for industry, delivering turn-key connectivity, plug-and-play modular design and a deep suite of capabilities. We are increasing market reach by expanding our sales team in the field, plus introducing a new partner portal to support our growing distribution channels.” He added, “Blackline works tirelessly to expand our leading position at the forefront of connected safety. We will begin shipping our new Multi-gas Pump Cartridge this fall, plus we have plans to announce other new, significant capabilities that focus on productivity and product line expansion in the coming weeks.”
Highlights
Financial Highlights
The subsequent values in this release are in thousands, except for percentages and per share data.
| Quarter Ended July 31 | Nine-Months Ended July 31 | |||||
| 2018 | 2017 | Change | 2018 | 2017 | Change | |
| Revenue | $4,676 | $2,302 | 103% | $12,228 | $7,342 | 67% |
| Gross Margin | $1,875 | $1,018 | 84% | $5,227 | $3,241 | 61% |
| Gross Margin Percentage | 40% | 44% | (4)% | 43% | 44% | (1)% |
| Net Loss | $(2,048) | $(2,121) | 3% | $(6,558) | $(5,887) | (11)% |
| Net Loss excluding stock- based compensation expense | $(1,862) | $(2,053) | 9% | $(5,040) | $(5,147) | 2% |
| Adjusted EBITDA | $(179) | $(905) | 80% | $(419) | $(1,339) | 69% |
| Loss per Share | $(0.05) | $(0.06) | $(0.17) | $(0.19) | ||
Key Financial Information
Third quarter revenue was $4,676 compared to $2,302 in the comparable quarter of the prior fiscal year, resulting in an increase of 103% or $2,374. Revenue in both the United States and Europe increased 183% with these regions continuing their strong growth during the quarter.
Product revenue during the third quarter was $1,852, an increase of 260% compared to $514 in the comparable quarter of the prior fiscal year. This increase was driven by shipments of Blackline’s G7c and G7x products across all regions.
Service revenue was $2,824, an increase of 58% compared to $1,788 in the same period last year, attributed to new service activations by end customers from the continued solid growth in product sales and increased adoption of the Blackline Complete leasing program.
Contracted future service revenue, representing the current value of future Blackline Complete lease commitments, was $5,279 as at July 31, 2018, an increase of 32% from Q3 FY2017.
Gross margin for the third quarter was $1,875 compared to $1,018 in the comparable quarter of the prior year, an increase of 84% over the comparable period from the prior year. This increase was driven by the growth of Blackline’s service revenue year over year.
Adjusted EBITDA was $(179) for the third quarter compared to $(905) in the comparable quarter of the prior year. The increase in the Adjusted EBITDA for the quarter was attributable to an increase in revenues and gross margin quarter-over-quarter.
Blackline’s unaudited condensed consolidated interim financial statements and management’s discussion and analysis on financial condition and results of operations for the period ended July 31, 2018 are available at www.sedar.com. All results are reported in Canadian dollars. To learn more about Blackline Safety, visit www.blacklinesafety.com and follow Blackline on Twitter @blacklinesafety.
About Blackline Safety: Blackline Safety is a global connected safety technology leader. Providing comprehensive live-monitoring and wireless gas detection, we help teams working in hazardous environments respond to emergencies in real-time and manage efficient evacuations, accounting for everyone’s safety along the way. With millions invested in technology research and development, Blackline Safety is recognized for quality and innovation. Our talented team of designers and engineers create and manufacture in-house — from wearable technology and personal gas detectors to cloud-hosted infrastructure and web-based interfaces for global industry. We deliver the world’s first turn-key, work-anywhere connected safety monitoring solution with gas detection, 3G wireless, satellite communications, two-way speakerphone, employee messaging and live monitoring to meet the demanding safety challenges of organizations in over 200 countries. For more information, visit www.BlacklineSafety.com.
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