Black Pearl Group Limited Analysis

Overview

Blackpearl Group is a technology company that builds, acquires, and markets data-driven cloud services, consisting of a suite of productivity and demand generation applications for small and medium-sized businesses (SMB).

Blackpearl Group’s proprietary private platform, the Pearl Engine, is the cornerstone of organic growth for both built and acquired technologies. Through leveraging elements or entire components from the Pearl Engine, companies within the Group can access new markets, increase their value proposition, and improve their cost-to-revenue ratio faster and at near zero marginal cost.

Blackpearl Group's first applications focus on the number one business tool in the world today, email. Transforming it from a transactional tool into a demand-generation tool to help SMBs grow their revenue and build stronger relationships with their customers.

Founded in 2012, Blackpearl Group is driven from Wellington, New Zealand, and Phoenix, Arizona.

Performance

The following information was extracted from Blackpearl Group's market update released 16 July 2024:

KEY HIGHLIGHTS

• Subscription Revenue: Achieved $1.5 million, marking a 143% year-on-year increase and a 15% quarter-on-quarter increase from Q4 FY24.
• Annual Recurring Revenue (ARR): Reached $8.6 million as of 30 June 2024, reflecting a 162% year-on-year increase and a 16% quarter-on-quarter increase from Q4 FY24.
• Gross Profit Margin: Achieved 73%, an improvement from 62% in Q1 FY24 and slightly lower than 75% in the previous quarter, Q4 FY24.
• ARR Per Employee: Recorded at $252k as of 30 June 2024, exhibiting a 308% year-on-year increase and a 9% quarter-on-quarter increase from Q4 FY24.

BPG’s Chief Executive Nick Lissette commented on Q1 results, saying: " The secret to our success over the last year has been growing customer numbers while simultaneously increasing the average annual recurring revenue (ARR) of the new customers we acquire. In Q1 of FY25, the average ARR per Pearl Diver customer increased to NZD$10,451, more than double the average deal value per customer from Q1 FY24. However, the most significant achievement in Q1 of FY25 was enhancing our Pearl Diver packages, opening us up to new customer segments with a ninefold increase in deal value.”