Blackline Safety — Investor Presentation (February 2023)
29 slides from Blackline Safety's investor presentation, February 2023
Slide 1: Connecting the Industrial Workforce
CONNECTING THE INDUSTRIAL WORKFORCE February 2023 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 and Supplementary 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 Adjusted EBITDA, Gross Margin percentage, Annual Recurring Revenue (“ARR”) and Net Dollar Ret
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.
Slide 5: Made in Canada: Global Tech Success Story
MADE IN CANADA: GLOBAL TECH SUCCESS STORY Calgary, Canada Headquarters Six offices: UK, France, UAE, Employing ~500 people globally, ~350 in Calgary Houston, Waterloo CSA, UL, ISO certified to produce Intrinsically Safe World Class Manufacturing product for use in hazardous locations. Plant in Calga
Slide 6: The Connected Workforce Leader
THE CONNECTED WORKFORCE LEADER CONNECT MONITOR REAL-TIME CONNECTED 24/7/365 REAL-TIME WEARABLES & AREA MONITORING MONITORS > Cloud-hosted web > The only direct-to-cloud platform and solution reporting RESPOND OPTIMIZE PERSONAL 9-1-1 DRIVING INDUSTIRAL TRANSFORMATION > Custom emergency response proto
Slide 7: Massive Total Addressable Market – 5M Devices
MASSIVE TOTAL ADDRESSABLE MARKET – 5M DEVICES $3.18B Hardware- 1 $1.43B 1 Enabled SaaS (HeSaaS) Model $1.75B Wearables & SaaS Area Monitors 1 – Blackline estimates based on Frost and Sullivan & internal market study-see appendix 1 Wearables Wearables & Area&Monitors Hardware SaaS © 2022 Blacklin
Slide 8: Industry Leading Cloud-Based Products and Services
INDUSTRY LEADING CLOUD-BASED PRODUCTS AND SERVICES Direct-to-cloud seamless connectivity Precise location technology G7 Wearables & EXO Leading cloud software 24/7 Safety Monitoring Center Voice and text communications Most advanced sensor portfolio for gas detection Scalability with c
Slide 9: Customer testimonials
“ “ “If we didn’t have the Blackline device and the AED, I don’t think [our employee] would be alive today. This goes to show the importance of having both lone worker devices and AEDs in place” – Human Resources Manager, Marmon/Keystone “We have implemented Blackline’s safety monitoring devices bec
Slide 10: Services Fueling Recurring Revenue
SERVICES FUELING RECURRING REVENUE Location-enabled data science Full visibility of workforce and workplace Automatic regulatory compliance drives cost savings Real-time response live monitoring saves lives Blackline’s in-house, five diamond certified 24/7 Safety Operations Center or globa
Slide 11: Leading Brands Partner with Blackline
LEADING BRANDS PARTNER WITH BLACKLINE INDUSTRIAL TRANSPORTATION ENERGY CONSUMER GOODS PROTECTING OVER 150,000 PEOPLE IN 70+ COUNTRIES
Slide 12: Fire department testimonials
“ “ “I was confident we all had the critical information we needed to make decisions and target our hazmat response. I was able to monitor the entire situation as it happened remotely from my cell phone.” – Fire Chief, Urban Fire Department “Being able to hear the radio transmissions and see the loc
Slide 13: Recognized Excellence
RECOGNIZED EXCELLENCE CORPORATE & INNOVATION ACCOLADES NEW PRODUCT & DESIGN AWARDS Globe & Mail Canada’s Top Growing Health & Safety Leaders around the world Companies for 8 years advocate for Blackline’s Product & Design Excellence Achieved Deloitte Fast 15, 50 & 500 2022 & 2021 2020 & 2018 2014 -
Slide 14: HeSaaS Model – Lifetime Margin Generator
HeSaaS MODEL – LIFETIME MARGIN GENERATOR HARDWARE MARGIN G7 HARDWARE $131 $525 25% 100%1 Average Revenue Gross Margin Per Unit Logo Retention 5 Year G7 RECURRING SERVICE Hardware 112%1 $2,000 70% Net Dollar Retention Average Revenue Gross Margin Lifecycle Per Unit $36.6M2 Annual Recurring Revenue Va
Slide 15: Financial Snapshot - TTM Q4 FY2022
FINANCIAL SNAPSHOT - TTM Q4 FY2022 + = ANNUAL PRODUCT SERVICE TOTAL RECURRING REVENUE1 Gross Gross Gross Revenue Margin Revenue Margin Revenue Margin $35.2M 17% $37.7M 69% $72.9M 44% $36.6M YoY Growth: 42% (7%) 28% 0% 34% (5%) 35% 34% TOTAL REVENUE GROWTH 1 – Software services revenue excluding oper
Slide 16: Financial Snapshot – Q4 2022 vs Q3 2022
FINANCIAL SNAPSHOT – Q4 2022 vs Q3 2022 TOTAL REVENUE GROSS MARGIN OPEX ADJUSTED EBITDA1 Q4 Total: $22.0M $10.5M $20.3M ($7.7M) QoQ $: $3.5M $2.2M ($4.3M) $3.9M QoQ %: 19% 27% (-17%) 34% 34% IMPROVEMENT IN ADJUSTED EBITDA 1 – See appendix 2 for reconciliation of non-GAAP financial measures
Slide 17: Fiscal 2022 – Step Change Toward Profitability
FISCAL 2022 – STEP CHANGE TOWARD PROFITABILITY Q3 2022 vs Q4 2022 Q3 2022 vs Q4 2022 4% 25% 13% (6%) (7,653) (26%) (11,517) (8%) 11,131 10,899 8,910 9,657 9,660 9,034 7,517 6,164 5,678 5,570 34% Product Revenue Service Revenue General & Sales & Marketing Product Research & Adjusted EBITDA1 Administr
Slide 18: Unlocking Liquidity – Lease Portfolio
UNLOCKING LIQUIDITY – LEASE PORTFOLIO Gross Lease Receivables1 Lease Portfolio Summary One blended payment for hardware and software CAGR = 124% Total Number of Contracts 251 Total Units Leased ~25,000 Total Gross Lease Receivable ($M) 1 $36 Total Net Book Value Hardware ($M) 1 ~$13 35,978 W.A. % of
Slide 19: Connectivity – The Competitive Advantage
CONNECTIVITY – THE COMPETITIVE ADVANTAGE Competitors Blackline Safety ✓ Real-time cloud alert management ✓ 24/7 live monitoring “ “ ✓ Walkie-talkie ✓ Two-way voice calling and messaging ✓ Location-enabled gas readings “I can replace anything on the Wearables and area gas monitors ✓ Data science plan
Slide 20: Transforming High-Volume Market with G6
TRANSFORMING HIGH-VOLUME MARKET WITH G6 DOUBLING THE ARPU OF EXISTING 2 MILLION UNIT MARKET1 We’re doing it again – building on the success of G7 and EXO $220M market size, $110 ARPU1 The single-gas market is stagnant and ready for change! First direct-to-cloud single-gas protection device
Slide 21: G6 Land & Expand Opportunity
G6 LAND & EXPAND OPPORTUNITY He-SaaS Model – services fueling recurring revenue 1,000+ global customers Upsell G6 to customers following rental projects Opportunity to increase client ARPU through upcoming real-time safety enhancements As we protect & connect more employees, we can access
Slide 22: Revenue Growth
REVENUE GROWTH GEOGRAPHICALLY DIVERSE 5.1x Five-year service revenue growth 8.3x Five-year product revenue growth 112% Net dollar Retention 4% 10% (TTM) 26% 61% FY2017 TTM Canada United States Europe Rest of World VERTICALLY DIVERSE 5% 15% 15% 35% 20% 60% 30% 20% FY2017 TTM Oil & Gas Industrial / ut
Slide 23: Experienced Team – We've Done It Before
EXPERIENCED TEAM – WE’VE DONE IT BEFORE MANAGEMENT TEAM BOARD OF DIRECTORS Cheemin Bo-Linn Robert Herdman Michael Hayduk Dr. John Finbow Cody Slater Sean Stinson Brendon Cook Christine Gillies Former IBM VP Former PwC Partner Consulting Lawyer Former Co-Founder, Chief Executive Office President & Ch
Slide 24: Investment Fundamentals
INVESTMENT FUNDAMENTALS TSX STOCK SYMBOL: BLN CASH & INVESTMENTS: $31.1M (Oct 31, 2022) FISCAL YEAR END: Oct 31 DEBT: $8.6M (Oct 31, 2022) SHARE PRICE: $2.48 (Jan 25, 2023) AVAILABLE CREDIT FACILITY: $6.4M (Oct 31, 2022) SHARES OUTSTANDING1: 72.0M (Jan 25, 2023) 5 YEAR REVENUE CAGR: 44% (Oct 31, 202
Slide 25: FY2023 – Path to Profitability
FY2023 – PATH TO PROFITABILITY Expected to exit FY2023 generating positive Adjusted EBITDA Sufficient business scale achieved and recently implemented cost rationalization across business units Execute on margin optimization Recent pricing increase and continued design innovation anticipated
Slide 26: Investor Relations Contact
blacklinesafety.com Jeff Grampp, CFA Gateway Investor Relations +1 949 574 3860 BLN@gatewayir.com Unit 100, 803 24 Avenue SE Calgary, Alberta, Canada, T2G 1P5
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 1 - TAM: Hardware + SaaS Analysis
APPENDIX 1 - TAM: HARDWARE + SAAS ANALYSIS TODAY HARDWARE SERVICE TAM: ~5M FROST & SULLIVAN Gas monitor units globally* $35M SOM: 2% Blackline LTM service revenue He-SAAS >100k G7 monitors fielded TAM: $1.43B 2% of Market MARKET SIZE Frost & Sullivan 2022 estimate 10% Compound Annual Growth Rate + T
Slide 29: Appendix 2 – Reconciliation of Adjusted EBITDA
APPENDIX 2 – RECONCILIATION of ADJUSTED EBITDA Reconciliation of non-GAAP financial Q4-22 Q3-22 Q2-22 Q1-22 Q4-21 measure (CAD thousands) Net loss (9,940) (16,291) (14,543) (12,873) (9,606) Depreciation & amortization 1,727 1,755 1,619 1,515 1,459 Finance income, net (107) (38) (58) (64) (31) Income
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