Blackline Safety Corp.

Welcome to Blackline Safety's fiscal third quarter results conference call. This conference is being recorded. I would now like to turn the conference over to Scott Boston, Vice President of Finance. Please go ahead.

Welcome and thank you for joining us. Today we will be discussing our fiscal results for the third quarter ended July 31st, 2023, which were issued before market opened this morning. With me today is Cody Slater, CEO and Chair of Blackline Safety Corp., as well as our CFO, Shane Brennan. I will turn the call over to Cody in just a moment for an overview of our third quarter. Following that, Shane will discuss the financial highlights of the quarter in greater detail. Cody will then close with our outlook and some additional commentary before we take questions. I'd like to remind everyone that an archive of this webcast will be made available on the Investors section of our website. 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 a discussion of these risks and uncertainties, please 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 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. With that, I will now hand the call over to Mr. Slater.

Thank you, Scott. Good morning, everyone, and welcome to Blackline Safety's third quarter 2023 conference call. I'm pleased to share today Blackline's third fiscal quarter results, our 26th consecutive quarter of year-over-year revenue growth. These results demonstrate the successful execution of our plan to deliver positive adjusted EBITDA through revenue growth, margin expansion, and cost disciplines. We saw revenue growth 34% over the prior year, while incurring 18% lower operating costs. Blackline also achieved the highest ever gross margin for the company at $13.4 million, which was driven by product margins of 29%, their highest in over two years, and continued strong service margins of 75%. We also exceeded our target for the key metric of net dollar retention, reaching 125% one quarter ahead of scheduled. This drove our annual recurring revenue, or ARR, to $47 million, up 43% year over year. Our growth combined with our continued cost discipline led to an improvement of $7.7 million in adjusted EBITDA compared with the prior year quarter. The past year has seen Blackline improve every single financial metric as we continue to deliver value to our growing list of customers through our unique and innovative product, data, and communication services. With our improving margins, growing ARR, and decreasing cash burn, we exited the quarter in the strongest financial position ever, with total liquidity of $25.6 million in our cash, short-term investments, and operating facility, and $50 million available on our lease securitization facility. As we continued to win market share, we saw 26% hardware revenue growth year over year, taking business from our competitors and expanding the connected safety market to our industry-leading products and services. In Europe, we saw growth in the water, wastewater, and utility sectors, which led to a 55% revenue increase for that region. Other significant global wins include several orders across the Middle East, totaling $1.3 million in total contract value, and a deal worth $3.2 million to protect 1,000 workers for a large energy company in the U.S. Permian Basin. We continue to see strong customer interest in the G6, especially with our soon-to-be-released enhanced feature levels launching as Protect and Protect+. These feature sets are driving customer adoption as well as higher service revenue. As expected, we have recently started to see the first large opportunities emerge as we demonstrate these enhanced functionalities, illustrating again how data and communication are central to the way that Blackline differentiates its fully connected solutions. I will now turn the call over to our CFO, Shane Grennan, to discuss our fiscal third quarter results and financial position in more detail.