Blackline Safety Corp.

Thank you for standing by. This is the conference operator. Welcome to the Black Line Safety Corp fourth quarter 2023 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference calls, You may signal an operator by pressing star, then zero. 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 fourth quarter and year-ended October 31st, 2023, which were issued before market opening 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 fourth quarter. Following that, Shane will discuss the financial highlights of the quarter in greater detail. Cody will 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 investor 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 the company's CDAR Plus filings. During this call, there will be a discussion of IFRS results, non-GAAP financial measures, non-GAAP ratios, and supplementary financial measures. The 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 hand the call over to Mr. Slater.

Thank you, Scott. Good morning, everyone, and welcome to Blackline Safety's fourth quarter 2023 conference call. I'm pleased to share today Blackline's fiscal fourth quarter results, our 27th consecutive quarter of year-over-year revenue growth, and the milestone achievement of $100 million of revenue for the fiscal year. Our $30 million in total revenue for the fourth quarter was also a record for the company and is a 36% increase over the prior year. We saw our annual recurring revenue, or ARR, surpass $51 million, up 40% year-over-year, driven by new hardware sales, as well as our industry-leading net dollar retention of 129%. We continue to achieve greater scale with our service revenue, which grew 38% overall to $15 million for the quarter. And with more customers adopting more value-added services, our service margin hit a new high of 77%, generating $11.6 million of gross profit. Our hardware segment generated a record $4.9 million of gross profit, up 66%. year over year, driven by increased sales and margins of 32%, our highest in three years. Improvements in our pricing, supply chain management, and manufacturing automation will continue to push our margins higher and unlock even greater profitability. With our improving margins, growing ARR, and a step change decrease in cash burn, we exited the quarter in the strongest financial position ever, with total liquidity of $29.2 million in our cash, short-term investments and operating facility, and $50 million available on our lease securitization facility. Five quarters ago, we set out to work towards turning Blackline into a profitable business. I'd like to highlight the dramatic progress we have made since that time. In that quarter, our EBITDA loss represented 78% of our $18.6 million of total revenue, and our cash used in operation activities was 105%. Today, we reported an EBITDA loss of less than 5 percent of our total revenue, an improvement of 82 percent, with cash used in operating activities dropping to just 7 percent, an improvement of 90 percent, all while achieving revenue growth of 36 percent, finishing with a record $30 million in the quarter. Though we did not hit our ambitious goal of reaching positive EBITDA yet, it is clear Blackline has been transformed into an engine that can continue to deliver strong top-line growth with significant profitability in the long run. I will now turn the call over to our CFO, Shane Brennan, to discuss our fiscal fourth quarter results and financial position in more detail.