Shares in Calgary-based Blackline dipped following the company’s fiscal year-end results for 2023, despite achieving $30 million in revenue during the fourth quarter and reporting annual revenue above $100M for the first time.
“We are delighted to achieve a significant milestone, reaching $100 million in total annual revenue as we recorded our 27th consecutive quarter of year-over-year total revenue growth,” chief executive officer Cody Slater stated.
The fourth quarter saw a 36% increase in revenues year-over-year, he noted, up from $22M in Q4 2023.
“We are proud of our execution during the year,” the CEO stated, citing higher recurring revenue, more hardware revenue, and lower expenses.
Net loss for the fiscal fourth quarter was $4.5 million, or $(0.06) per share, down from 14 cents per share in the prior year’s quarter—a decrease “due to an increase in total gross margin as well as decreases in product research and development costs,” according to the company.
“In Q3 of last year, we embarked on a path to profitability,” Slater says. “Even though we did not hit our ambitious goal of reaching EBITDA positive results I am confident the Company has transformed itself into an engine that can continue to deliver top line growth in the future and generate significant profitability in the long run.”
Blackline also reported a new record in quarterly gross profit of $16.5 million, which the company says was driven by “strength in both our product and service segments that delivered increases of 66% and 53%, respectively.”
“The improvements in these metrics continue to be driven by our lean manufacturing, increasing scale, value added software services and enhanced pricing model,” stated Slater. “The trend of margin improvements is a key contributor to a sustainable profitable financial model.”
Blackline’s breakthrough technology is cloud-based GPS-enabled safety sensors and devices that leverage the Internet of Things to connect workers to live monitoring. The company’s wearables connect employees with software that pinpoints their location, enables back-and-forth information sharing and collects data, making it possible to detect the exact location of a gas leak or determine how often workers are travelling through high-risk areas, for example.
Last year, Blackline expanded its manufacturing capacity in Alberta. The firm’s expanded manufacturing area now spans 12,000 square feet.