Blackline Safety Corp.

Thank you for standing by. This is the conference operator. Welcome to the Blackline Safety First Quarter Results Conference Call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Scott Boston, Director of Finance. Please go ahead.

Thank you, Charisse. Good morning. Welcome, everyone. Thank you for joining us. I'd like to remind everyone that this call is being recorded today, Wednesday, March 16, 2022. With me today is Cody Slater, CEO and Chair of Blackline Safety Corp. as well as our CFO, Shane Grennan. Before turning the call over to Cody, 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 may 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 the call, there will be a discussion of IFRS results non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures. A reconciliation between IFRS results and non-GAAP financial measures is available on the company's earnings news release and MD&A, both of which can be found on our website, blacklinesafety.com, and on CDAR. All dollar amounts are reported in Canadian dollars unless otherwise noted. Participates are advised that this webcast is live and is also being recorded for playback purposes. An archive of this webcast will be made available on the investor section of our website. Neither this call nor the webcast archive may be re-recorded or otherwise reproduced or distributed without prior written permission from Blackline Safety Corp. With that, I will now hand the call over to Mr. Slater.

Thank you, Scott. Good morning, everyone, and welcome to Blackline Safety's Q1 2022 earnings call. Today, we will be discussing our first quarter results, which were issued before market opening this morning. 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 first quarter in greater detail, and I'll conclude with the company's outlook and some closing remarks before we take a few questions. At a high level, the 47% top-line growth we delivered in the first quarter reflects the continued execution of our Invest to Grow strategy. This plan has involved strategically accelerating investments in sales and marketing and advancing our game-changing product roadmap to further capitalize on the expanding market for connected safety around the world. The 15.7 million we generated in total revenue marked the 20th consecutive quarter of year-over-year revenue growth. This milestone was driven by robust growth in our U.S. and rest of world segments with 80% and 93% total revenue growth respectively. Sales in our Europe region were up 51% in Q1, and based on our current visibility and backlog, we expect the region's growth rates to accelerate in fiscal 2022. High-margin recurring software services increased 9% sequentially and 25% year-over-year to $7.4 million in the first quarter, again demonstrating the stickiness of our hardware-enabled software-as-a-service business model. While hardware margins were challenged during the quarter due to a variety of factors that Shane will discuss, we think it's important to keep in mind that every dollar of G7 wearable hardware sales generates $4 in lifetime recurring service revenue. The recurring service revenue has a substantially higher profit margin profile than the hardware does, such that approximately 92% of the lifetime gross profit is derived after the initial hardware sale. So while we will continue to work on maximizing hardware margins, the majority of our value creation clearly occurs after the initial sale and has been unaffected by these headwinds. I'm incredibly proud of our team's continued success mitigating the supply chain challenges and delivering for our customers, where we continue to see extremely healthy demand for our products and services globally. We are adapting where we can to recapture our hardware margins, but ultimately, we believe this is a short-term challenge that does not affect the long-term higher margin profitability of our service agreements with our customers. I will now turn the call over to our CFO, Shane Grennan, to discuss our first quarter results and financial position in more detail.