Blackpearl Group's ARR surges to NZD $7.4m on Pearl Diver growth

Blackpearl Group, a data technology company based in Auckland, New Zealand, has reported a substantial increase in Annual Recurring Revenue (ARR) for the fiscal year 2024. The company announced that its ARR has surged by 177% to reach NZD $7.4 million. The significant growth places Blackpearl Group on the cusp of hitting its ambitious NZD $10 million ARR target and achieving cash profitability.

Karen Cargill, Chief Financial Officer of Blackpearl Group, remarked on the company's resilience during economic downturns, attributing their success to a focus on innovation. "During an economic downturn, companies get ahead by doubling down on innovation," she said. "These results are a testament to Blackpearl Group's ability to meet the growing demand for AI-driven sales and marketing solutions."

The company's flagship product, Pearl Diver, has been a significant contributor to this year's remarkable performance. Pearl Diver, launched just 13 months ago, is touted as an industry-leading prospect identification platform. Its primary function is to generate a new flow of prospects from business websites by using AI-driven identity resolution technology to reveal hidden website traffic. This approach reduces a company's reliance on traditional digital advertising, offering a novel pathway to revenue.

Pearl Diver has generated NZD $4.9 million in ARR, which represents a substantial portion of the total ARR growth and has played a crucial role in enhancing the group's gross margins. The product alone accounts for 67% of the total ARR. "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," noted Cargill.

Other key financial highlights for the fiscal year include a 183% year-on-year increase in subscription revenue, which stands at NZD $4.1 million. The Group ARR reached NZD $7.4 million, reflecting a 177% year-on-year increase. ARR per employee was recorded at NZD $230,000, a significant 359% year-on-year increase. Additionally, the gross profit margin improved to 71% for FY24, up from 49% in FY23. While expenses rose by 18% on a year-on-year basis, they decreased as a percentage of revenue to 126% in FY24 from 297% in FY23.

Strategic investments and disciplined execution have been instrumental in advancing the company's growth and profitability, according to Cargill. "Gross margin increased substantially, rising to 71% in FY24 from 49% in FY23, driven by the scalability of our platform and the higher margin of the Pearl Diver product," she elaborated. "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."

Blackpearl Group continues to focus on developing its AI-driven sales and marketing solutions, specifically engineered for small to medium-sized businesses in the US market. Founded in 2012, the company operates out of Wellington, New Zealand, and Phoenix, Arizona, and remains committed to its mantra, "Better Growth Together."