Blackpearl Group Reports 177% Increase In Annual Recurring Revenue For FY24

Black Pearl Group Limited (NZX:BPG) has announced its unaudited preliminary results, showing a 177% increase in Annual Recurring Revenue (ARR) to $7.4 million for FY24. These results place the company on the verge of reaching $10 million ARR target and cash profitability.

Karen Cargill, company Chief Financial Officer, comments: “During an economic downturn, companies get ahead by doubling down on innovation, and these results are a testament to Blackpearl Group’s ability to meet the growing demand for AI-driven sales and marketing solutions.”

Innovation that challenges traditional models

Pearl Diver, one of the flagship products, was the key driver of this year's results. It now stands at the forefront as the industry-leading prospect identification platform. The product's primary function is to create a new flow of prospects from businesses' websites. It achieves this by leveraging AI-driven identity resolution technology to uncover hidden website traffic, thereby reducing a company’s dependency on traditional digital advertising and providing a new pathway to revenue.

Just 13 months after its launch, Pearl Diver is generating $4.9 million in ARR significantly contributing to total ARR growth and improving group Gross Margins. Pearl Diver is now the company’s largest contributor to ARR, accounting for 67%.

“This rapid growth underscores both our commitment to serving the SME market in the USA with industry-leading products and the effectiveness of our go-to-market strategy,” comments Cargill.

The rewards of focus

Key financial highlights include:

• Subscription Revenue: $4.1 million, marking a 183% year-on-year increase.
• Group ARR: Reached $7.4 million, reflecting a 177% year-on-year increase.
• ARR Per Employee: Recorded at $230k, exhibiting a 359% year-on-year increase.
• Gross Profit Margin: Increased to 71% for FY24 from 49% in FY23.
• Expenses: Increased 18% year-on-year, however, declined as a percentage of revenue to 126% in FY24 from 297% in FY23.

Cargill adds that strategic investments and disciplined execution have significantly advanced BPG's growth and profitability. Gross margin increased substantially, rising to 71% in FY24 from 49% in FY23, driven by the scalability of its platform and the higher margin of the Pearl Diver product.

“It is an exciting time for the company. We have laid the groundwork for our next phase of growth. Key achievements include the successful scaling of our infrastructure, the establishment of Pearl Diver's market presence, and the enhancement of our platform's capabilities to meet growing demand,” says Cargill.

Check out Blackpearl Group’s FY24 Results Announcement here: https://www.nzx.com/announcements/431996

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