Blackline Safety — Investor Presentation (September 2024)
28 slides from Blackline Safety's investor presentation, September 2024
Slide 1: Driving the Future of the Industrial Workforce
DRIVING THE FUTURE OF THE INDUSTRIAL WORKFORCE September 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 and Industry Metrics
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, Adjusted EBITDA percentage, EBITDA margin percentage, gross margin p
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. 2,250+ 165,000+ 8M+ 250+ customers workers protected alerts billion data points 4 4
Slide 5: Blackline Platform Saves Lives
BLACKLINE PLATFORM SAVES LIVES WORLD’S FIRST CONNECTED SAFETY COMPANY 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 gas, no motion re
Slide 6: Disruptive Solutions Drive Strong Growth
DISRUPTIVE SOLUTIONS DRIVE STRONG GROWTH PROVEN PRODUCT-MARKET FIT AND CUSTOMER ACCEPTANCE $122M TTM1 • Blackline is an EBITDA-positive high-growth industrial Revenue health & safety technology company driving 30 5-Year CAGR: 34% consecutive quarters of year-over-year revenue growth • Blackline’s gr
Slide 7: The Blackline Platform Is an ARPU Machine
THE BLACKLINE PLATFORM IS AN ARPU1 MACHINE 1 Custom Data Analytics Service Every device generates ARR2 - Push-to-talk 100% attach rate Service Revenue expansion as customers 24/7 Safety Monitoring Service mature, adopt more devices Two-way Voice and services Communication Service Real-time Alert Man
Slide 8: The Blackline Connected Worksite
THE BLACKLINE CONNECTED WORKSITE CONNECTING THE WORKSITE DRIVES RECURRING REVENUE WITH VALUE-ADDED SERVICES CUSTOMER PROBLEM TRADITIONAL WAY BLACKLINE PLATFORM Worker injuries due to toxic With beep & flash device worker Emergencies services gases and workplace must self-save dispatched for fa
Slide 9: The Blackline Integrated Platform
THE BLACKLINE INTEGRATED PLATFORM BLACKLINE SAVES LIVES & DRIVES OPERATIONAL PRODUCTIVITY BLACKINE CAPABILITIES LEGACY PARTICIPANTS & GAS DETECTION & EXAMPLES LONE WORKER Real-time hazard detection with integrated sensors WEARABLES & Cellular-based tech, no IT infrastructure Unconnected “dumb”
Slide 10: Blackline's Wide Competitive Moat: High Barrier to Entry
BLACKLINE’S WIDE COMPETITIVE MOAT: HIGH BARRIER TO ENTRY ADVANCED TECHNOLOGY PLATFORM AND CORPORATE CAPABILITIES BLACKLINE CAPABILITIES Low Maturity High Maturity WHY CONNECTIVITY MATTERS Peers Saves lives & increases worker Business Model – HeSaaS safety Peers Engineering maturity Worksite producti
Slide 11: Outpacing the Competition
OUTPACING THE COMPETITION MULTIGAS TAM BY UNIT COUNT BLN IS GROWING 15x FASTER 120K 2,880K 4% Blackline Other Gas Safety Detection Wearables Devices & Area 3M Monitors Total TTM Revenue ($MM) TTM Five-Year Growth (%) 333% Multigas Detection Devices 96% 250.0 240.0 206.0 121.6 TAM BY REVENUE 23% (27%
Slide 12: Business Model – Lifetime Margin Generator
BUSINESS MODEL – LIFETIME MARGIN GENERATOR PRODUCT GROSS PROFIT WEARABLE HARDWARE $204 $600 38% 100% Average Revenue Gross Margin Per Unit Logo Retention RECURRING SERVICE2 5 Year 128%1 $2,200 77% Hardware Net Dollar Retention2 Average Revenue Per Unit Gross Margin Lifecycle $62.1M1 Annual Recurring
Slide 13: Leading Brands Trust Blackline
LEADING BRANDS TRUST BLACKLINE INDUSTRIAL TRANSPORTATION ENERGY CONSUMER GOODS PROTECTING COMPANIES’ WORKFORCES IN 75+ COUNTRIES 13
Slide 14: 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. A co-worker's connected G7 gas detection
Slide 15: Hardware-Enabled SaaS
HARDWARE-ENABLED SaaS GEOGRAPHICALLY DIVERSE 7% 23% 23% 3.9x Five-year service revenue growth 4.9x Five-year product revenue growth 128% Net dollar Retention1 47% (TTM) TTM Q3 2024 Canada United States Europe Rest of World VERTICALLY DIVERSE 18% 42% 39% 1% TTM Q3 2024 Energy Industrial / utilities C
Slide 16: Rapidly Accelerating ARR
RAPIDLY ACCELERATING ARR $65M $62.1M $60M $5.6M $56.5M $55M $54.2M $2.2M $51.1M $3.1M $50M $4.1M $47.0M $45M $4.6M $42.4M $39.7M $2.7M Net New ARR $40M $36.6M $3.1M Starting ARR $35M $32.9M $3.7M $2.1M $30M $25M $20M $15M Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 32% Gr
Slide 17: Scaling Drives Margin Expansion
SCALING DRIVES MARGIN EXPANSION $20.0M 80% 77% 76% 77% 77% 75% 75% 73% 70% 70% $15.0M 59% 60% 57% 54% 55% 55% 52% 48% 49% 45% $10.0M 40% 38% 34% 32% 29% 29% 26% 26% $5.0M 21% 20% 17% $0.0M 0% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Product Gross Profit Service Gross P
Slide 18: Disciplined Cost Management Drives KPI Improvement
DISCIPLINED COST MANAGEMENT DRIVES KPI IMPROVEMENT $25.0M 100% $20.0M 75% $15.0M 52% 50% $10.0M 40% 41% 37% 36% 38% 37% 35% 33% 31% 33% 26% 25% 28% 23% 25% 26% 24% 22% $5.0M 27% 21% 21% 19% 18% 16% 15% 17% 12% $0.0M 0% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 G&A S&M P
Slide 19: Adjusted EBITDA – Into the Black
ADJUSTED EBITDA1 – INTO THE BLACK 20% $1.0M $0.8M $(1.8M) $(2.0M) 2% 0% $(3.8M) $(3.2M) $(2.0M) $(4.5M) (15%) (6%) $(6.2M) (12%) $(7.7M) (19%) (30%) -20% $(5.0M) $(11.5M) (35%) (62%) -40% $(8.0M) $(11.0M) (74%) -60% $(14.0M) -80% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 202
Slide 20: Financial Snapshot – Q3 2024 vs Q3 2023
FINANCIAL SNAPSHOT – Q3 2024 vs Q3 2023 TOTAL REVENUE GROSS PROFIT OPEX ADJUSTED EBITDA1 Q3 Total: $33.7M $19.9M $21.9M $0.8M YoY $: $8.9M $6.5M $1.8M $4.6M 36% 48% 9% - 2 YoY %: ACHIEVED POSITIVE EBITDA AND ADJUSTED EBITDA IN Q3 2024 1 - See appendix for reconciliation of non-GAAP financial measure
Slide 21: Financial Snapshot – TTM Q3 2024 vs TTM Q3 2023
FINANCIAL SNAPSHOT – TTM Q3 2024 vs TTM Q3 2023 + = ANNUAL PRODUCT SERVICE TOTAL RECURRING REVENUE1 Product Gross Service Gross Total Gross TTM Q3’24 Revenue Margin Revenue Margin Revenue Margin ARR Actual: $56.8M 34% $64.8M 77% $121.6M 57% $62.1M YoY Growth: 32% +800bps2 32% +400bps 32% +600bps 32%
Slide 22: 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 Officer & President & Chief Chief Information Officer & Chief Product & Former IBM VP Former PwC Partner Consulting Law
Slide 23: Corporate Fundamentals
CORPORATE FUNDAMENTALS TSX STOCK SYMBOL: BLN ANALYST COVERAGE ATB Capital Markets - OUTPERFORM Ventum Financial - BUY FISCAL YEAR END: October 31 Martin Toner Amr Ezzat B Riley Securities - BUY Raymond James - OUTPERFORM SHARE PRICE: $5.75 (September 24, 2024) Raj Sharma Frederic Bastien B
Slide 24: On Track to Achieve Rule of 40
ON TRACK TO ACHIEVE RULE OF 40 Strong financial flexibility and liquidity 50% 45% • $14.8M CAD available room on operating 34% 36% 36% facility 25% 31% • $47.5M CAD available room on lease 25% 26% 38% 19% 30% 25% securitization facility 13% • Positive cash flow to follow EBITDA1 2% positivity 0% KPI
Slide 25: New! EXO 8: Advancing Area Monitoring
NEW! EXO 8: ADVANCING AREA MONITORING EXO 8 is the world’s only cloud-connected portable area monitor capable of detecting up to eight gases, plus it includes gamma radiation detection for robust hazard protection and early warning. Key new features: Gas Expansion Module – up to 8 sensors Gamma
Slide 26: Expanding into New & Existing Markets
EXPANDING INTO NEW & EXISTING MARKETS EXO 8: Oil & Gas Water and Wastewater Refineries & Petrochemical Emergency Response EXO 8 w/ Gamma: Emergency Response - Fire & Hazmat Public Safety - Venue Protection GAMMA CAPABILITY DEEPENS APPLICATION IN REFINERES, OPENS PUBLIC SAFETY 26
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 (1) Stock-based compensation expense relates to the Company’s stock compensation plan and stock option expense and is extracted from cost of sales, general and administrative expenses, sales and marketing expenses and product research and development costs (
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