Blackline Safety — Investor Presentation (April 2024)
28 slides from Blackline Safety's investor presentation, April 2024
Slide 1: Driving the Future of the Industrial Workforce
DRIVING THE FUTURE OF THE INDUSTRIAL WORKFORCE April 2024 Cody Slater, CEO & Chair | cslater@blacklinesafety.com
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements This presentation is for information purposes only and is not intended to, and should not be construed to constitute, an offer to sell or the solicitation of an offer to buy, securities of Blackline Safety Corp. (the "Company"). This presentation and its content
Slide 3: Disclaimer: Non-GAAP Measures
DISCLAIMER Non-GAAP, supplementary financial measures and other industry metrics This presentation presents certain non-GAAP financial measures, supplementary financial measures and industry metrics, namely EBITDA, Adjusted EBITDA, EBITDA margin percentage, gross margin percentage, product gross mar
Slide 4: Vision and Purpose
VISION To transform enterprise workplaces through connected safety technology. PURPOSE To ensure every worker has the confidence to get the job done and return home safe. 2,200+ 165,000+ 7M+ 200+ customers Workers protected alerts billion data points 4 4
Slide 5: BLN Investment Highlights
BLN INVESTMENT HIGHLIGHTS Massive Global § $3.2B industrial connected gas detection market Opportunity § 41% Blackline CAGR over 5 years § 76% service gross margin percentage with $54.2M ARR Scalable fueled by Hardware-enabled SaaS Business Model § 130% Net dollar retention § 761% revenue growth bet
Slide 6: Mega Trends in Industrial Workplace
MEGA TRENDS IN INDUSTRIAL WORKPLACE Driving Increased Investment in Industrial Health & Safety HEALTH & SAFETY DRIVERS RISING PRESSURES § Gas & chemical exposures § HSE legislation & regulations § Lone work (i.e. violence & assaults) § Increased due diligence § Trips, slips & falls § Compliance § Re
Slide 7: The Industry's Only True Connected Solution
THE INDUSTRY’S ONLY TRUE CONNECTED SOLUTION Full suite of wearable & area monitoring CONNECT DETECT RESPOND IMPROVE PREVENT Direct-to-cloud Real-time hazard 24/7 live agent Business analytics and Proactive risk devices detection manages incident data science mitigation with § two-way voice/text § ga
Slide 8: Industry-Leading Services Fuel ARR
INDUSTRY-LEADING SERVICES FUEL ARR Custom Data Analytics Service Every device generates ARR - Push-to-talk 100% attach rate Service Revenue expansion as customers 24/7 Safety Monitoring Service mature, adopt more devices Two-way Voice and services Communication Service Real-time Alert Management Ser
Slide 9: Massive Total Addressable Market
MASSIVE TOTAL ADDRESSABLE MARKET + MARKETS Oil & gas Energy infrastructure Petrochemical $3.18B Renewable energy Utilities Industrial Gas Water & wastewater $1.43B 1 Detection + Recurring $1.75B1 Fire & hazmat Wearables & Area Monitors Services SaaS Transportation & logistics Biotech & pharma Pulp &
Slide 10: Business Model – Lifetime Margin Generator
BUSINESS MODEL – LIFETIME MARGIN GENERATOR HARDWARE GROSS PROFIT WEARABLE HARDWARE $174 $600 29% 100% Average Revenue Gross Margin Per Unit Logo Retention RECURRING SERVICE 5 Year 130%1 $2,200 76% Hardware Net Dollar Retention Average Revenue Per Unit Gross Margin Lifecycle $54.2M1 Annual Recurring
Slide 11: Nick's Story – H2S Tragedy Averted
NICK’S STORY – H2S TRAGEDY AVERTED “ “ My life was not another statistic. When a worker at a pipeline terminal in rural Texas lost consciousness because of suspected H2S gas inhalation, quick action was imperative to ensuring his and his co-workers' survival. Because his co-worker's connected G7 gas
Slide 12: Leading Brands Trust Blackline
LEADING BRANDS TRUST BLACKLINE INDUSTRIAL TRANSPORTATION ENERGY CONSUMER GOODS PROTECTING COMPANIES WORKFORCE IN 70+ COUNTRIES 12
Slide 13: Growing Competitive Moat
GROWING COMPETITIVE MOAT DIFFERENTIATORS: DEEP BARRIERS TO ENTRY BRAND STRENGTH § Established industry-leader, already connecting tens of thousands of workers BRAND STRENGTH BUSINESS MODEL BUSINESS MODEL § HeSaaS requires unique sales strategy, support structure; lock-in advantage, difficult to swit
Slide 14: The Competitive Advantage
THE COMPETITIVE ADVANTAGE 25 INDUSTRY PRODUCT AWARDS SINCE 2017 Competitors Personal and area gas monitors Full Suite of wearable and area gas monitors direct to cloud via 4G and/or satellite “ Stagnant 20-year-old value prop Hardware only business model ü Advancing safety through connectivity, comm
Slide 15: Fastest Growing Gas Detection Player
FASTEST GROWING GAS DETECTION PLAYER TTM Revenue ($M) 200 160 Since the launch of G7 seven years ago, Blackline has grown rapidly— averaging 43% YoY—becoming a 120 significant player in the market. 202 169 174 80 164 163 MSA, having launched its first 143 portable product over 50 years ago, 105 has
Slide 16: Revenue Growth
REVENUE GROWTH GEOGRAPHICALLY DIVERSE 4% 6% 17% 24% 42% 25% 4.3x Five-year service revenue growth 6.8x Five-year product revenue growth 130% Net dollar Retention 37% 45% (TTM) FY2018 FY2024 Canada United States Europe Rest of World VERTICALLY DIVERSE 5% 15% 15% 40% 20% 60% 30% 15% FY2018 FY2024 Ener
Slide 17: Rapidly Accelerating ARR
RAPIDLY ACCELERATING ARR 60,000 55,000 54,245 51,117 3,128 50,000 4,109 47,008 45,000 4,588 42,420 39,672 2,748 40,000 36,597 3,074 Net New ARR 35,000 32,942 3,655 Starting ARR 30,803 2,139 30,000 1,211 25,000 20,000 15,000 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Sequential g
Slide 18: Revenue Growth and Cost Optimization Drive Gross Profit Expansion
REVENUE GROWTH AND COST OPTIMIZATION DRIVE GROSS PROFIT EXPANSION 35,000 30,000 30,035 26,325 25,000 24,830 24,095 22,030 21,046 20,000 18,567 16,665 15,000 10,000 16,452 14,579 12,523 13,422 5,000 10,517 10,383 8,274 7,062 - Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Gros
Slide 19: Scaling Drives Margin Expansion
SCALING DRIVES MARGIN EXPANSION 80% 77% 76% 75% 75% 73% 15,000 69% 70% 70% 60% 54% 55% 55% 52% 48% 49% 10,000 45% 42% 40% 32% 29% 29% 26% 26% 5,000 21% 20% 17% 13% - 0% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Product Gross Profit Service Gross Profit Product Margin % Service
Slide 20: Disciplined Cost Management Drives KPI Improvement
DISCIPLINED COST MANAGEMENT DRIVES KPI IMPROVEMENT 30,000 100% 25,000 75% 20,000 54% 52% 15,000 50% 41% 38% 40% 37% 38% 36% 37% 10,000 37% 35% 33% 28% 27% 25% 26% 26% 23% 24% 25% 19% 18% 5,000 21% 17% 12% - 0% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 G&A S&M PDC G&A % of Rev S
Slide 21: Adjusted EBITDA – Into the Black
ADJUSTED EBITDA – INTO THE BLACK - 5% (1,830) (3,760) (6%) (3,265) (4,500) (12%) (3,000) (6,231) (15%) -15% (19%) (7,652) (30%) (11,516) (6,000) (12,330) (35%) -35% (9,000) -55% (62%) (12,000) (74%) -75% (15,000) -95% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Adjusted EBITDA Ad
Slide 22: Financial Snapshot – Q1 2024 vs Q1 2023
FINANCIAL SNAPSHOT – Q1 2024 vs Q1 2023 TOTAL REVENUE GROSS PROFIT OPEX ADJUSTED EBITDA1 Q1 Total: $26.3M $14.6M $19.9M ($3.3M) QoQ $: $5.3M $4.2M $1.8M $3.0M QoQ %: 25% 40% 10% 48% 48% IMPROVEMENT IN ADJUSTED EBITDA YEAR-OVER-YEAR 22 1 – See appendix for reconciliation of non-GAAP financial measure
Slide 23: Financial Snapshot – TTM Q1 2024 vs TTM Q1 2023
FINANCIAL SNAPSHOT – TTM Q1 2024 vs TTM Q1 2023 + = ANNUAL PRODUCT SERVICE TOTAL RECURRING REVENUE1 Product Gross Service Gross Total Gross TTM Q1’24 Revenue Margin Revenue Margin Revenue Margin ARR Actual: $48.9M 29% $56.3M 76% $105.3M 54% $54.3M YoY Growth: 31% 10% 37% 5% 34% 8% 37% 37% YEAR-OVER-
Slide 24: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM MANAGEMENT TEAM BOARD OF DIRECTORS Cody Slater Sean Stinson Brendon Cook Christine Gillies Cheemin Bo-Linn Robert Herdman Michael Hayduk Chief Executive Office President & Chief Chief Information Officer & Chief Product & Former IBM VP Former PwC Partner Consulting Lawyer
Slide 25: Corporate Fundamentals
CORPORATE FUNDAMENTALS TSX STOCK SYMBOL: BLN ANALYST COVERAGE § ATB Capital Markets - OUTPERFORM § Peters & Co. – SECTOR PERFORM FISCAL YEAR END: October 31 Martin Toner James Gourlay § B Riley Securities - BUY § PI Financial - BUY SHARE PRICE: $4.10 (April 2, 2024) Raj Sharma Jason Zandberg § Beaco
Slide 26: Driving to Rule of 40
DRIVING TO RULE OF 40 Strong financial flexibility and liquidity 50% 45% • $26.2 million of liquidity 34% 34% 36% • $52.9M CAD Lease Securitization facility 31% 25% 25% 25% • Positive cash flow to follow EBITDA positivity 14% 13% KPI’s Moving in the Right Direction 6% 0% • Cost optimization and scal
Slide 27: Cody Slater, CEO & Chair
blacklinesafety.com Cody Slater, CEO & Chair +1 403 397 5300 cslater@blacklinesafety.com Unit 100, 803 24 Avenue SE Calgary, Alberta, Canada, T2G 1P5
Slide 28: Appendix – Reconciliation Adjusted EBITDA
APPENDIX – RECONCILIATION ADJUSTED EBITDA Reconciliation of non-GAAP financial Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 measure (CAD Thousands) Net Loss (7,693) (6,557) (6,821) (4,789) (5,791) Depreciation & Amortization 1,737 2,058 1,800 1,843 1,916 Finance Expense, Net (279) (222) (16) 629 268 Inco
Blackline Safety — Investor Presentation (April 2024) on 6ix