Black Pearl Group Limited Analysis

Overview

Blackpearl Group is a technology company that builds, acquires, and markets data-driven cloud services, consisting of a suite of productivity and demand generation applications for small and medium-sized businesses (SMB).

Blackpearl Group’s proprietary private platform, the Pearl Engine, is the cornerstone of organic growth for both built and acquired technologies. Through leveraging elements or entire components from the Pearl Engine, companies within the Group can access new markets, increase their value proposition, and improve their cost-to-revenue ratio faster and at near zero marginal cost.

Blackpearl Group's first applications focus on the number one business tool in the world today, email. Transforming it from a transactional tool into a demand-generation tool to help SMBs grow their revenue and build stronger relationships with their customers.

Founded in 2012, Blackpearl Group is driven from Wellington, New Zealand, and Phoenix, Arizona.

Performance

The following information was extracted from Blackpearl Group's Full year results, released 29 May 2025

Highlights

• $12.5m ARR, up 70% from $7.4m as at 31 March 2024
• $7.7m subscription revenue, up 91% from $4.1m in FY24
• $17.5k ARPU, up 53% over the last 6 months
• 68% gross margin, reflecting continued platform efficiency
• 17% of revenue from top 10 customers, up from 10% as at 31 March 2024
• Pearl Diver reached ~$10m ARR, only eight quarters after its full launch
• Signed new fixed-fee data supply agreement
• Raised $12.5m in growth capital
• Officially launched Bebop, following the most successful beta in the company’s history
• Pearl Engine scaled 210x, now processing 21B rows/day
• Executed strategic customer transition for Pearl Diver has lifted ARPU
• Funded for ongoing growth, with $6.7m in cash and $4m in non-dilutive loan facility available.

Financial Commentary

Subscription revenue grew 81% to $7.7m, supported by strong ARR uplift and deeper customer relationships. Our customer mix improved as we shifted focus to high-value accounts, resulting in a 50% ARPU lift over the past six months. While churn spiked during our ICP transition in Q3, it stabilised to 5.3% in Q4.

Gross margin held at 68%, down from 71% in FY24, reflecting a temporary overlap in data supply contracts. As legacy providers roll off in FY26, margin expansion is expected to begin from Q2. Beyond that, Blackpearl will start to accrue substantial margin benefit from the new flat fee arrangement, as revenue scales further.

Blackpearl ended the year with $6.7m in cash and retains access to a $4m undrawn non-dilutive loan facility with BNZ. We are sufficiently capitalised and well supported by our banking partner, with resources already in place to support continued product expansion and market growth.