9/14/2021

speaker
Operator
Conference Operator

Good morning, everyone, and welcome to the Black Lion Safety Corp Fiscal 2021 Third Quarter Results Conference Call. At this time, all participants are in listen-only mode. You will have an opportunity to participate in a question and answer session following the formal presentation. Instructions will be provided at that time for you to queue up for questions. I'll now turn the call over to Scott Boston, Black Lion's Corporate Controller. Please go ahead.

speaker
Scott Boston
Corporate Controller

Thank you. Welcome and thank you for joining us. I'd like to remind everyone that this call is being recorded today, Tuesday, September 14th, 2021. Before turning the call over to our CEO and chair, Cody Slater, I would like to note that some of the information discussed in this call is based on information as of today and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings news release, as well as in the company's CDAR filings. During this call, there will be discussion of IFRS results and non-IFRS financial measures. A reconciliation between IFRS results and non-IFRS financial measures is available in the company's earnings news release and MD&A, both of which can be found on our website blacklinesafety.com, and on CDAR. Participants are advised that this webcast is live and is also being recorded for playback purposes. An archive of the webcast will be made available on the Investors section of our website. Neither this call nor the webcast archive may be re-recorded or otherwise reproduced or distributed without prior written consent from Blackline Safety Corp. I will now turn the call over to Cody Slater, Chief Executive Officer and Chair at Blackline Safety Corp. Mr. Slater, please go ahead.

speaker
Cody Slater
Chief Executive Officer and Chair

Thank you, Scott. Good morning, everyone, and welcome to Blackline Safety's first earnings call. Today, we will be discussing our third quarter results, which were issued before market opened this morning. With me on the call is Shane Grennan, Chief Financial Officer. To set the agenda for today's remarks, I will start by providing a broad company overview. Shane will then discuss some of the highlights of our third quarter in greater detail, and I'll conclude with closing remarks and some comments on the path forward. This morning, we were pleased to announce our 18th consecutive quarter of year-over-year quarterly revenue growth, with 35% growth overall and 60% growth outside the Canadian market in Q3 2021 compared to Q3 2020. This represents Blackline's highest quarterly revenue ever at $12.7 million. Our growth has not only been in revenue, but also in our geographic reach, as we now have customers in over 60 countries around the globe, continuing to play an expanding role in keeping workers safe while contributing to the digital transformation efforts of industrial workplaces. Our post-quarter announcements of contract activity and wins speak to the demand for our connected worker products and services, and are encouraging for the continued growth of Blackline. During the quarter, we took several major steps as part of our long-term strategy. Firstly, we completed our graduation to the Toronto Stock Exchange and are now Alberta's largest publicly listed company in the technology sector. The second step was the expansion of the executive team. adding Christine Gillies as Chief Marketing Officer and Brian Sweeney as Chief Technology Officer. Blackline's success depends on and continues to be driven by a highly talented and committed workforce guided by a world-class leadership team. Brian and Christine bring with them a deep experience in high-growth SaaS enterprises, and we look forward to the impact their knowledge will bring to Blackline. The next step was to deepen Blackline's product and services sales momentum and continue our expansion into new markets. Our G7 XOs have gained particular traction and were responsible for two of the largest orders in our company history early in the fourth quarter, one in North America and one in Europe. The XO was also recently recognized with a gold award for design from INT Designs in Europe with a product and the Product of the Year award from Occupational Health and Safety magazine in the United States. The AXA was the first of a series of new, impactful products Blackline intends to bring to the market over the coming years. We were not immune, however, to the continued challenges from COVID-19 and the Delta variant, which hindered our performance during the quarter. Like everyone, I had hoped we would not still be talking about the pandemic with relation to its impact on our business and our lives. But regardless, it has continued to slow many of our industrial customers as they look to return to full capacity. That being said, since the onset of the pandemic five quarters ago, we have seen our overall quarterly revenue grow by 50% globally and 74% excluding the commodity impacted Canadian markets. We may not be out of the woods yet, but I'm happy to see the increase in order activity at the beginning of Q4 as more of our customers return to normal business operations. We expect to see the impact of these increased product deployments on this rate of service revenue growth in the coming quarters. A final strategic step involves our own journey with the release of our first-ever ESG report, detailing our ongoing efforts to support and strengthen both our own workplace and our impact on the larger community. Amongst the highlights were the expansion of Blackline Collective, our forum for businesses to share safety insights and best practices, with the addition of US-based Cocosing Materials Inc. We also announced our partnership with the Calgary Zoo, providing our connected safety solution in support of its conservation efforts. Before moving on, I would like to thank our customers, shareholders, vendors, partners, and especially our 445 employees worldwide for working together to further our vision that every worker has the confidence to get the job done and return home safe. I'll now turn the call over to our CFO, Shane, to discuss our third quarter results and ESG report in more detail.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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