BPG - Black Pearl Group

[Left Field]

New IPO for those interested.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BPG/403444/384880.pdf

Clever algorithms and cloud stuff to excite the SAAS tech masses interested in what looks like "Email communications branding' tech.

The financials, profitability and key customer details are rather vague.... Recurring Annual Revenue of $2.8 mill mentioned?? tho' elsewhere 2022 revenue looks less...  IPO valued at $1.25 per share to give a Mkt cap value of around $40 mill.  No real mention of such things as costs or profitability. Lots of talk about future acquisitions so no doubt some further Capital Raising likely.

I'm happy to watch this one from afar.

VTPE Investments, Arizona is the company's largest shareholder with 12.9 per cent. Teamwork Group holds the second largest with 10.2 per cent while Sir Owen Glenn is the fifth largest shareholder with 7.5 per cent.
Blackpearl chair Tim Crown, a co-founder of Arizona-based and Nasdaq listed Insight Enterprises.

I wish them well.

[Mysterion]

Black Pearl Group is a cutting edge high-tech firm out of the midwest awaiting imminent patent approval on the next generation of radar detectors that have both huge military and civilian applications.

[KW]

So basically this is a business that gives money to cash burning businesses that nobody else wants to touch 
https://www.nzherald.co.nz/business/nzx-newcomer-blackpearl-group-targets-orphans/ML2UUKP6LVDPXK3NBPWTRW52CQ/
"So there's a ton of orphan companies out there that were geared up to grow to the moon if they had enough capital, enough resources, enough management and enough time. But with what's happening out there right now, those companies don't really have a lot of options.
"What do they do? Do they continue to do what they're doing? Do they try to seek more capital? And this is where Blackpearl comes in.

https://giphy.com/clips/justin-homer-simpson-bushes-backs-away-cOzyUgoJljvhut2G0E

[Left Field]

Not a good start.... ( and not unexpected IMO)

From NZ Company register....

"The price of BPG has fallen from its $1.25 listing price on 2 December 2022 to $0.40, being the price at 2:15pm on 7 December 2022. This represents a fall of 68% over the four trading days it has been listed.
Given this fall in the price of BPG shares, please advise NZ RegCo whether BPG continues to comply with Listing Rule 3.1.1."

[KW]

I'm interested to hear Simon Henry's take on why the share price tanked after IPO.  Which piece of Eurasian Fluff did they put on page 50 of their Prospectus?

[LoungeLizard]

Another disastrous IPO. Whatever rules there are governing IPO's, they clearly aren't strong enough. NZX doing it's best ambulance at the bottom of the cliff impression yet again.

[Hectorplains]

So basically this is a business that gives money to cash burning businesses that nobody else wants to touch 
https://www.nzherald.co.nz/business/nzx-newcomer-blackpearl-group-targets-orphans/ML2UUKP6LVDPXK3NBPWTRW52CQ/
"So there's a ton of orphan companies out there that were geared up to grow to the moon if they had enough capital, enough resources, enough management and enough time. But with what's happening out there right now, those companies don't really have a lot of options.
"What do they do? Do they continue to do what they're doing? Do they try to seek more capital? And this is where Blackpearl comes in.

https://giphy.com/clips/justin-homer-simpson-bushes-backs-away-cOzyUgoJljvhut2G0E

They've announced a cash raise, and to be fair they had flagged access to equity as key reason for their listing.  So no surprises there but beyond that I struggle to get my head around this? 

The Herald article that KW posted,  says that Blackpearl, "styles itself as an acquisition company" targeting  "a ton of orphan companies out there that were geared up to grow to the moon if they had enough capital, enough resources, enough management and enough time. But with what's happening out there right now, those companies don't really have a lot of options."

However; in the CR document puffery they say that they operate a SaaS recurring revenue model based on their data and sales products. There's no mention at all of acquisitions, orphans or anything at all of that nature. 

So who they are and what they're trying to do is a bit confusing...but wait there's more...

They claim annual recurring revenue of just over $4m from 3800 customers...which means they're pulling the grand total of $1k per annum per customer.  Yet; they also reckon they have "average customer billing" of NZ$308.72/month"  - which would be $11.7m pa.  Maybe it's just my math?

Either way, they're going to need to exponentially increase accounts to make any real cash.  They have increased ARR by nearly 60% for YTD but when you're coming from a $1.5m start base that kind of growth should be expected.  Churn is low at less than 4% but again, you'd expect that with most contracts being newly minted.

They have four products, like Blackpearl Mail which, "transforms daily company email into a demand generating marketing tool."  What does that actually mean?  The only one explained in any depth (and that too is mighty scanty) is Diver - which they claim, "uses an identity graph to identify anonymous website traffic."  This is then collated to provide "visitor profile cards" that give "valuable firmographic, demographic and behavioural information" for targeting marketing campaigns etc.  Okay?

A future profitability date of around mid year 2024 to early 2025 is suggested via a hard to read graph, this is apparently modelled on the previous rate of customer gain.  There is nothing by way of evidence beyond this.

I might be being much too cynical for a Saturday afternoon but it kind of gives off those BIG UN vibes..

[winner (n)]

Madison raved that after this interview with BpG CEO share price rocket up to a new high

I haven't listened to

https://www.iheart.com/podcast/1049-continuous-disclosure-89308442/episode/business-spotlight-nick-lisette-from-blackpearl-118809189/?keyid%5B0%5D=Stock%20Takes&keyid%5B1%5D=Business%20Spotlight%3A%20Nick%20Lisette%20from%20Blackpearl%20Group&sc=podcast_widget

[Hectorplains]

Thanks for the link, Winner.  An interesting listen, Mr  Lissette certainly has the gift of the gab.  A grand salesman.

So, potentially they're the next Xero.  NZX's best kept secret even.  Backed by smart money in Sir Owen Glenn and a bevy of savvy Stateside investors... Lots to love, he says. 

Maybe they just need to channel a bit of their fancy AI  into creating cohesive and coherent documentation then they'd be swell. 

[Hectorplains]

Shame about the lack of acquisitions.  Sounds like a golden ESG opportunity that... adopt one of these poor orphan companies - clothe it, feed it, shelter it... Brings a tear to my eye.

[KW]

They have four products, like Blackpearl Mail which, "transforms daily company email into a demand generating marketing tool."  What does that actually mean?  

Basically they host "digital email signatures" that get added to a company email, along with embedded advertising.  

[lorraina]

 From today's stunning result;
Looking forward, Blackpearl Group is positioned for a dynamic future.
https://www.nzx.com/announcements/429526
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BPG/429526/416701.pdf

[Left Field]

Crikey..... demonstrating "hyper growth"

Blackpearl Group (BPG) today presents its results for the fourth quarter ending on 31 March 2024, demonstrating hyper growth and strategic advancements.

KEY HIGHLIGHTS

- Subscription Revenue: Achieved $1.3 million, marking a 184% year-on-year increase and a 10% quarter-on-quarter increase from Q3 FY24.

- Annual Recurring Revenue (ARR): Reached $7.4 million as of 31 March 2024, reflecting a 177% year-on-year increase and a 33% quarter-on-quarter increase from Q3 FY24.

- Gross Profit Margin: Achieved 75% for Q4 FY24, showing significant improvement from 52% in Q4 FY23 and 73% in the previous quarter, Q3 FY24.

- ARR Per Employee: Recorded at $230k as of 31 March 2024, exhibiting a 359% year-on-year increase and a 25% quarter-on-quarter increase from Q3 FY24.

[Minimoke]

Crikey..... demonstrating "hyper growth"

Blackpearl Group (BPG) today presents its results for the fourth quarter ending on 31 March 2024, demonstrating hyper growth and strategic advancements.

KEY HIGHLIGHTS

- Subscription Revenue: Achieved $1.3 million, marking a 184% year-on-year increase and a 10% quarter-on-quarter increase from Q3 FY24.

- Annual Recurring Revenue (ARR): Reached $7.4 million as of 31 March 2024, reflecting a 177% year-on-year increase and a 33% quarter-on-quarter increase from Q3 FY24.

- Gross Profit Margin: Achieved 75% for Q4 FY24, showing significant improvement from 52% in Q4 FY23 and 73% in the previous quarter, Q3 FY24.

- ARR Per Employee: Recorded at $230k as of 31 March 2024, exhibiting a 359% year-on-year increase and a 25% quarter-on-quarter increase from Q3 FY24.

I personally like the ARR Per employee reporting. Because we all know all good pirates on the Black Pearl go "Arr"

[Left Field]

Latest update.....promising progress but some way off profitability..... if ever!

https://www.nzx.com/announcements/431996

KEY FINANCIAL HIGHLIGHTS:

- Subscription Revenue: $4.1m, marking a 183% year-on-year increase.
- Group ARR: Reached $7.4m reflecting a 177% year-on-year increase.
- Pearl Diver Product ARR: $4.9m only 13 months after launch.
- 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 21% year-on-year, however declined as a percentage of revenue to 130% in FY24 from 297% in FY23.
- Cash Burn 3 month Average: Ended the year at $340k, a 42% decrease from its peak during the year.
- Revenue Churn: 4.0% as of March 31, 2024.