Blackline Safety (TSE:BLN) Announces Earnings Results

Blackline Safety (TSE:BLN) released its quarterly earnings results on Thursday. The company reported C($0.03) earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$38.85 million for the quarter. Blackline Safety had a negative net margin of 5.76% and a negative return on equity of 10.75%.

Here are the key takeaways from Blackline Safety’s conference call:

• Company-reported ARR rose 28% YoY to CAD 90.5M and service revenue grew 25% to CAD 24.9M, with net dollar retention at 126% for the 11th consecutive quarter.
• Blackline launched the G8 platform and began shipments, reporting outstanding early customer feedback and forecasting the G8 will drive higher ARR per device and ongoing service monetization over the device lifecycle.
• Product revenue fell 22% YoY to CAD 14M as some customers deferred hardware purchases ahead of the G8 launch and last year’s elevated Q1 product sales created a tough comparator, producing a near-term headwind to hardware revenue.
• Adjusted EBITDA was positive at CAD 1.7M (up 12% YoY) with gross margin improving to 65%, and the company exited the quarter with roughly CAD 41.4M cash plus CAD 29.9M available on its credit facility (~CAD 71.3M total liquidity).
• Geopolitical tensions in the Middle East created operational disruptions (including AWS interruptions) and uncertainty; while the ADNOC deployment is scaling, management cautioned the situation could affect order flow or customer priorities.

Blackline Safety Stock Down 1.0%

Shares of BLN opened at C$7.03 on Friday. The company has a debt-to-equity ratio of 16.53, a quick ratio of 3.09 and a current ratio of 2.24. The company has a 50-day simple moving average of C$6.55 and a 200-day simple moving average of C$6.86. Blackline Safety has a 52 week low of C$5.90 and a 52 week high of C$7.97. The firm has a market capitalization of C$611.65 million, a P/E ratio of -70.30 and a beta of 1.05.

Wall Street Analyst Weigh In

Separately, Royal Bank Of Canada set a C$9.00 price target on Blackline Safety and gave the stock an “outperform” rating in a report on Thursday, December 18th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of C$9.33.

About Blackline Safety

Blackline Safety Corp is a connected safety monitoring technology company. It provides wearable safety technology, personal and area gas monitoring, cloud-connected software and data analytics to meet demanding safety challenges and increase productivity of organizations with coverage in more than 100 countries. Blackline Safety wearables provide a lifeline to tens of thousands of people, having reported over 161 billion data-points and initiated over five million emergency responses. Armed with cellular and satellite connectivity, the company ensure that help is never too far away.