Safety technology firm Blackline's Q3 revenue misses estimates
Blackline Safety's Q3 revenue rose 12% year-over-year but fell short of analyst expectations, reporting C$37.6 million against a consensus of C$39.2 million. The company achieved a record annual recurring revenue (ARR) of C$80.2 million, up 29% year-over-year, and improved adjusted EBITDA by 64% to C$1.3 million. Despite strong demand for connected software services, product revenue declined by 7% due to delayed customer purchases amid trade uncertainties. Analysts maintain a "buy" rating, with a median 12-month price target of C$9.00, reflecting a potential upside from its current trading price.
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Overview
- Blackline Q3 revenue rises 12% yr/yr but misses analyst expectations
- Co reports record ARR of C$80.2 mln, up 29% yr/yr
- Adjusted EBITDA for Q3 improves 64% yr/yr to C$1.3 mln
Outlook
- Company to introduce eight-gas configuration for EXO 8 area monitor
- Company notes continued uncertainty in global economic conditions
Result Drivers
- SERVICE REVENUE - 27% increase driven by strong demand for connected software services
- PRODUCT REVENUE DECLINE - 7% decrease attributed to delayed customer purchase decisions amid trade uncertainties
- EXO 8 TRACTION - Continued market adoption of EXO 8 area monitor, especially in Fire & Hazmat sectors
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Miss C$37.60 C$39.20
Revenue mln mln (6
Analysts
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Q3 EPS -C$0.04
Q3 Net -C$3.20
Income mln
Q3 C$1.30
Adjusted mln
EBITDA
Q3 Gross 64.0%
Margin
Analyst Coverage
- The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 7 “strong buy” or “buy”, no “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the communications & networking peer group is “buy”
- Wall Street’s median 12-month price target for Blackline Safety Corp is C$9.00, about 20.6% above its September 10 closing price of C$7.15
- The stock recently traded at 341 times the next 12-month earnings vs. a P/E of 1,282 three months ago
Press Release: (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
