Blackline Safety Corp.

Good morning and welcome to the Black Line Safety fourth quarter 2024 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Elisa Kuang, Vice President, Accounting, Corporate Controller. Please go ahead.

Welcome, and thank you for joining us. On this call today, we will be discussing our fiscal results for the fourth quarter ending October 31st, 2024, which were released earlier this morning. With me today is Cody Slater, CEO and Chair of Blackline Safety Corp. Blackline CFOs, Robin Kooyman, and Sean Stinson, President and Chief Growth Officer. I will turn the call over to Cody for an overview of our fourth quarter and fiscal 2024 results, and Robin will then discuss the financial highlights. 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 these statements. For 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 CEDAR Plus filing. 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 in the company's Earnings News Release and NDNA, both of which can be found on our website, blackmindcp.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, Elisa. Good morning, everyone, and welcome to Blackline Safety's Q4 2024 conference call. I'm proud to provide an update on our progress as we continue to build on our past successes and drive Blackline Safety's growth as a global leader in connected safety devices. I'm especially honored to share that this quarter we achieved several record highs, including a significant jump in EBITDA, and record free cash flow generation during the fourth quarter. Blacklight Safety achieved another record quarter for revenue at $35.7 million in Q4 and $127.3 million for fiscal 2024. For the year, our service revenue was up 31 percent to $69.5 million, while product revenue grew 23 percent to $57.8 million. At Blackline, we have consistently delivered strong top-line growth, and looking at the bottom line this quarter, I am pleased to announce we reached a record $2.5 million in EBITDA in Q4, building on our positive results in Q3. The results were even more impressive when you look at the year-over-year improvement from a loss of $1.5 million for EBITDA reported in Q4 last year. This progress signals we are reaching scale as a business while still having significant growth opportunities ahead of us. Net loss has also significantly decreased, as the fourth quarter net loss was $68,000, compared to a loss of $4.5 million in Q4 2023. This quarter, we reached a record annual recurring revenue of $66.4 million, up from $51.1 million last year, a 30% increase, a testament to the strength of the hardware-enabled SaaS business we have built. Net dollar retention was 127% during Q4 as our clients continued to see value in our services and expand their business with Blackline. We are proud to note that our NDR has been 125% or higher in six consecutive quarters. We're also pleased to report our highest product gross margin ever in Q4 at 41%, topping the previous gross margin record in Q3 of 38%. This record gross margin is ahead of the 40% target margin that the company has mentioned on previous earnings calls. The year-over-year improvement at Q4 represents a 900 basis point increase and is well over double the product gross margin in fiscal 2022 when it was 17%. Service gross margins maintained a record level of 77% established earlier this year supported by high-value services and optimized connectivity costs. Blackline also generated $2.3 million in cash during the fourth quarter, as cash and short-term investments grew to $43.1 million from $40.8 million in Q3. The company generated $3 million in free cash flow, which is a significant milestone and validation of our business model. The company also has $12.3 million available on its senior secured operating facility, which together with the large cash position and the $11.2 million available on its securitization facility provides $66.6 million in total available liquidity as of November 1st. During 2024, we secured several large contracts with new and existing customers, and in the fourth quarter, we continued that momentum with contracts that included a $2.3 million North American energy customer, which included a mix of G7 devices and EXO units, and a four-year service agreement a $3.2 million North American energy customer who purchased over 1,000 G7 units with a 27-month service agreement, as well as a $1.5 million order from a major first responder customer that ordered approximately 1,000 G7 units along with a 52-month service agreement. We're pleased with the many customers that chose Blackline for their safety needs this quarter. However, we did experience some delays in deals that moved out of Q4 and into fiscal 2025. We believe this was reflective of geopolitical uncertainty at the time in some of our markets, as well as M&A activities for some of our larger U.S. customers, and we expect this to stabilize and these orders to close throughout this fiscal year. Our profitability metrics are strong, as we reported record EBITDA margins and strong free cash flow generation. Had the timing of some contracts been different, we would have scored better on our Rule of 40 metric. That said, our ARR growth has been consistently after above 30%, and we anticipate continuing to build our EBITDA momentum in 2025, although quarter-by-quarter fluctuations are likely to occur along the way. Blackline is committed to continual innovation as we efficiently expand our product line while enhancing the capabilities of the current revenue-generating hardware and services. In the fourth quarter, we introduced the new generation X08 Aerium Washer, which is equipped to detect up to eight gases simultaneously and offers gamma radiation detection capabilities. This product is ideally suited for large industrial organizations in the oil and gas, petrochemical, mining, water, and wastewater, as well as fire hazmat sectors alongside Homeland Security Associations. Looking ahead, we at Blackline remain focused on disciplined execution of our proven business model. With our strong financial foundation, dedicated team, and award-winning solutions, we are well positioned to capitalize on growing market demand for our connected safety solutions while delivering sustained value to our shareholders. I would like to now turn the call over to our CFO, Robin Koyman, to go over the financial details for the annual and quarterly results.