TIDMBIRD
RNS Number : 5759L
Blackbird PLC
09 September 2019
9 September 2019
Blackbird plc
("Blackbird" or the "Company")
Interim results
Blackbird plc (AIM: BIRD), the developer and seller of the
market-leading cloud video platform Blackbird, announces its
interim results for the six months ended 30 June 2019.
Ian McDonough, CEO of Blackbird, commented:
"The overriding theme for Blackbird in 2019 is momentum. The
first half of 2019 has been an incredibly busy period for Blackbird
and has seen our renewed strategy on sports and news gain traction,
with the Company booking record revenues for the period and
doubling our deferred revenue and contracted order book since 31
December 2018.
"Blackbird is a market leading product and all evidence points
to the industry's large-scale transformation, of moving to the
cloud for its video editing needs, as now being well and truly
underway. Our revised strategy is now 'bedded in' and the sales
traction demonstrated in new sectors with a different breed of
customer demonstrates that we are strongly positioned to capitalise
on this significant industry shift.
"When authorised to do so, and within the regulatory parameters
of our AIM listing, I have continued to increase my holding in the
Company for which I see such great potential."
Operational highlights (POST PERIOD)
-- Blackbird selected to exhibit alongside Google Cloud at IBC
in Amsterdam later this month for the full duration of this major
trade show. Blackbird is the only co-exhibitor focused on cloud
video editing.
o Google Cloud's public policy is that they are strategically
focused on accelerating their penetration of the enterprise base,
which is aligned with Blackbird's own strategy
-- Significant six-figure, multi-year deal signed with A+E
Networks starting post-period end
o Landmark deal on a recurring basis - validating our new
strategy
-- Extension of TownNews deal, adding a further 15 US TV
stations bring the total to 40
o Demonstrating Blackbird's ability to quickly 'land and expand'
within large organisations
Operational highlights
-- Doubling of deferred revenue and contracted order book compared to 31 December 2018
-- Expansion and three-year extension of deal with IMG Media, a
leading global producer and distributor of sports media
-- Extension of contracts with leading media rights companies
Deltatre, MSG Networks and Gfinity
-- Blackbird selected by global fitness technology leader
Peloton to edit its daily virtual spin classes
-- Two-year contract signed with Australia's National Rugby
League, for live video clipping and publishing, following a highly
competitive tender process
-- Achieved Microsoft Azure Co-Sell Partner status
-- Implementation of Blackbird Productions Partnership Program
("BP3") to post-production houses
-- Improved Blackbird platform with JavaScript web-based
editing/clipping and enhanced social media publishing
-- Company name change to Blackbird plc
-- Board strengthened with appointment of Andrew Bentley as
Chairman, Dawn Airey as Non-Executive Director and Stephen White as
Chief Operating and Financial Officer
Financial highlights
-- Record revenues of GBP479k for the 6 months to 30 June 2019,
up 27% year-on-year (6 months to 30 June 2018: GBP377k)
-- Contracted orders and deferred revenue increased by 113% to
GBP1,208k from GBP566k at 31 December 2018
-- Operating costs of GBP1,416k (6 months to 30 June 2018: GBP1,289k)
-- EBITDA loss of GBP1,017k (6 months to 30 June 2018: GBP965k)
-- Net loss before tax GBP1,189k (6 months to 30 June 2018: GBP1,274k)
Enquiries:
Blackbird Plc Tel: +44 (0)20 8879
7245
Ian McDonough, Chief Executive Officer
Stephen White, Chief Operating and Financial
Officer
Allenby Capital Limited (Nominated Adviser Tel: +44 (0)20 3328
and Broker) 5656
Nick Naylor
Nicholas Chambers
About Blackbird plc
Blackbird operates in the fast-growing SaaS and cloud video
market. It has created the world's most advanced suite of
cloud-native computing applications for video, all underpinned by
its lightning-fast codec. Blackbird's patented technology allows
for frame accurate navigation, playback, viewing and editing in the
cloud. Blackbird underpins multiple applications, which are used by
rights holders, broadcasters, sports and news video specialists,
esports, live events and content owners, post-production houses,
other mass market digital video channels and corporations.
Since it is cloud-native, Blackbird removes the need for costly,
high end workstations and can be used from almost anywhere on
almost any device. It also allows full visibility on multi-location
digital content, improves time to market for live content such as
video clips and highlights for social media distribution, and
ultimately results in much more effective monetisation.
Blackbird(R) is a registered trademark of Blackbird plc.
Websites
www.blackbird.video
Social media
www.linkedin.com/company/blackbird-cloud
www.twitter.com/blackbirdcloud
www.facebook.com/blackbirdplc
Chief Executive Officer's Statement
The overriding theme for Blackbird in 2019 is momentum. The
first half of 2019 has been an incredibly busy period for Blackbird
and has seen our renewed strategy on sports and news gain traction,
with the Company booking record revenues for the period and
doubling our deferred revenue and contracted order book since 31
December 2018.
We have generated considerable sales momentum, signing a number
of key new deals and renewing important contracts. The Company took
the logical step of rebranding itself Blackbird plc during the
period as we consolidate our commercial efforts behind the
Blackbird platform.
The signing of a multi-year deal with A+E Networks, which
started post the period end, is a strategically important
enterprise-scale contract that sees Blackbird unlocking significant
value from thousands of hours of archived footage and empowering
the A+E teams across multiple sites to create relevant and timely
content for their viewers' enjoyment. This is a landmark deal for
Blackbird and we are hard at work with the A+E team bringing their
video workflows into the cloud.
In news, the addition of a further 15 TV Stations to our
TownNews relationship was the third extension in the last year and
has led to Blackbird now being used in 40 US TV stations.
Commercially our partnership is a great example of a successful OEM
strategy where Blackbird and TownNews land and then expand.
We also made good progress in our target market of sports
broadcasting, signing contract extensions with Deltatre, MSG and
Gfinity along with a high-profile deal that sees Blackbird used by
global exercise brand Peloton. Blackbird expanded its footprint
further afield signing contracts with Australia's NRL and Rapid
Rugby.
Our initiatives included the launch of our Blackbird Productions
Partnership Program ("BP3"), signing up 14 post-production houses
in the period. This partnership incentivises post-production houses
to resell Blackbird directly to production companies, freeing up
internal sales resource and reducing internal support and
administration.
The product and development team have continued to evolve the
Blackbird platform. This included making the JavaScript editor,
which enables Blackbird to be accessed via a web-browser, being
made available to all customers and enhancing our social media
publishing options. Continuing to enhance our platform opens up the
addressable market for Blackbird to further potential
customers.
It is very significant that Google has identified Blackbird as a
key partner for the upcoming IBC show in Amsterdam; we will be on
their booth meeting their prospects and customers.
These are exciting times for the Company and I look forward to
working with the team to build on the recent growth momentum and to
delivering more good news to the market.
Chairman's Statement
I am pleased to report on the solid progress that Blackbird has
made over the period in my first set of results as Chairman. In the
six-month period to 30 June 2019, we continued sales growth
momentum and booked record revenues through licensing our Blackbird
cloud video solutions as part of the core media infrastructure for
companies and generating SaaS-based repeatable revenues. The
success of our strategy to move to longer term infrastructure deals
is demonstrated by the growth in share of revenue from such deals
in the period to 84% of invoiced sales compared to 52% in the
corresponding period in 2018.
Our Commercial successes in the first half of the year included
signing up A+E Networks where the use of Blackbird is designed to
deliver major productivity enhancements across the business and
significantly accelerate the visibility, immediacy and management
of A+E Network's video archive for the repurposing of content;
growing and extending the IMG deal for a further three years as
well as deals with MSG Networks, Deltatre and Gfinity; signing a
deal with Peloton, the global fitness technology leader, to provide
editing infrastructure for its on-demand virtual classes; and
signing a two year deal with Australia's National Rugby League for
live clipping, editing and publishing of match highlights. Post
Period we have extended our TownNews deal to 40 US stations by
adding a further 15 TV stations.
Our technology and product development team continue to focus on
supporting our commercial opportunities. As well as enhancing the
core platform the team has made strong progress developing the
Blackbird Player and demonstrated live 1080p video input at NAB in
Las Vegas in April.
I was delighted to welcome Stephen White and Dawn Airey to the
Board during the period. Stephen joins us from Comcast's NBC
Universal in the newly created Chief Operating and Financial
Officer role, whilst Dawn is assisting us in executing our strategy
of growing Blackbird globally through her wealth of international
experience and huge network of contacts. I would also like to thank
David Main, who stepped down as Chairman in May, for his valuable
contribution in the role over the past three years. David continues
to serve on the Board and we continue to benefit from his vast
experience.
Financial
Revenue increased by 27% to GBP479k for the six-month period
ending 30 June 2019 compared to the corresponding period last year.
Deferred revenue and Contracted Order book were GBP1,208k at 30
June 2019, an increase of 86% compared to 30 June 2018 and of 113%
compared to 31 December 2018. Invoiced sales increased 3% to
GBP503k for the six-month period ending 30 June 2019 versus GBP489k
in the corresponding period last year. As we shift our business
model away from short-term project work to longer-term, larger
contracts, this metric has and will continue to become less
important as it is no longer a good indicator of sales activity
within the period.
In North America, revenue for the period increased by 152% year
on year to GBP159k, whilst revenue for the period from the sports
sector increased by 64% year on year to GBP198k reflecting our
strategic focus on the sector.
Operating costs for the period were GBP1,416k versus GBP1,289k
in the corresponding period last year, net of capitalised
development costs of GBP197k (2018: GBP111k). The increase in costs
has been driven through the strengthening of the team which has
been previously communicated. The EBITDA loss for the period was
GBP1,017k versus GBP965k in the corresponding period last year,
whereas the loss for the period was GBP1,189k versus GBP1,274k due
to a lower amortisation charge compared to the prior period.
Cash used in operations in the period was GBP1,044k versus
GBP902k in the same period last year.
Outlook
We started the second half of the year in a strong position with
contracted orders and deferred revenue at the highest level in the
Company's history at GBP1,208k versus GBP566k at 31 December 2018.
This includes the new multi-year deals with A+E Networks, which
started post the period end, and the extensions with TownNews and
IMG, and creates a solid platform for future revenue growth. We
have made a strong start to the second half of the year maintaining
the momentum from the first half.
We continue to progress with our strategy to position Blackbird
as a key infrastructure component in the technology stack of major
media businesses. To this end we have multiple ongoing discussions
with large companies around the globe. As Cloud adoption becomes
more prevalent in larger companies, with our strong Blackbird
platform offering, and with the right commercial team in place, we
are well positioned to exploit this.
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME FOR THE SIX MONTHSED 30
JUNE 2019
Unaudited
Half year Unaudited Audited
to Half year Year to
30 June to 31
2019 30 June December
2018 2018
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 479,474 377,438 870,310
Cost of Sales (80,989) (53,800) (125,079)
========================================= ============= ============ ============
GROSS PROFIT 398,485 323,638 745,231
625 - -
Other income
Operating costs (1,415,931) (1,289,026) (2,738,515)
========================================= ============= ============ ============
EARNINGS BEFORE INTEREST, TAXATION,
DEPRECIATION AND AMORTISATION (1,016,821) (965,388) (1,993,284)
Depreciation (37,337) (21,318) (44,432)
Amortisation (122,149) (264,580) (544,889)
Employee share option costs (24,910) (23,832) (32,445)
(184,396) (309,730) (621,766)
OPERATING LOSS (1,201,217) (1,275,118) (2,615,050)
Finance income 16,300 970 15,898
Finance expense on lease liability (3,870) - -
======================================== ============= ============ ============
LOSS BEFORE INCOME TAX (1,188,787) (1,274,148) (2,599,152)
Income Tax - - 24,534
========================================= ============= ============ ============
LOSS FOR THE PERIOD (1,188,787) (1,274,148) (2,574,618)
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD (1,188,787) (1,274,148) (2,574,618)
========================================= ============= ============ ============
Earnings per share expressed
in pence per share:
Basic - continuing and total
operations (0.40p) (0.68p) (1.07p)
========================================= ============= ============ ============
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
30 JUNE 2019
Unaudited Unaudited Audited
at 30 June at 30 June at 31 December
2019 2018 2018
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 822,682 884,060 748,062
Property, plant and equipment 439,609 46,479 32,816
================================ ============= ============= ================
1,262,291 930,539 780,878
=============================== ============= ============= ================
CURRENT ASSETS
Trade and other receivables 298,911 323,350 301,742
Tax receivable - - 24,534
Cash and cash equivalents 3,793,427 6,196,701 5,032,087
-------------------------------- ------------- ------------- ----------------
4,092,338 6,520,051 5,358,363
=============================== ============= ============= ================
TOTAL ASSETS 5,354,629 7,450,590 6,139,241
================================ ============= ============= ================
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 2,363,890 2,363,890 2,363,890
Share premium 21,456,572 21,456,572 21,456,572
Capital contribution reserve 125,000 125,000 125,000
Retained earnings (19,539,103) (17,083,371) (18,375,226)
TOTAL EQUITY 4,406,359 6,862,091 5,570,236
================================ ============= ============= ================
LIABILITIES
NON-CURRENT LIABILITIES
Lease liability 338,731 - -
------------------------------- ------------- ------------- ----------------
338,731 - -
CURRENT LIABILITIES
Lease liability 78,828 - -
Trade and other payables 530,711 588,499 569,005
-------------------------------- ------------- ------------- ----------------
TOTAL CURRENT LIABILITIES 609,539 588,499 569,005
-------------------------------- ------------- ------------- ----------------
TOTAL LIABILITIES 948,270 588,499 569,005
TOTAL EQUITY AND LIABILITIES 5,354,629 7,450,590 6,139,241
================================ ============= ============= ================
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
FOR THE SIX MONTHSED 30 JUNE 2019
Capital
Called up contribution Retained
share capital Share premium reserve earnings Total equity
GBP GBP GBP GBP GBP
Balance at 1
January 2018 1,443,890 16,935,301 125,000 (15,833,053) 2,671,138
Net issue of
Share Capital 920,000 4,521,271 - - 5,441,271
Share based payment - - - 23,832 23,832
Total comprehensive
income - - - (1,274,150) (1,274,150)
---------------------- --------------- -------------- -------------- ------------- -------------
Balance at 30
June 2018 2,363,890 21,456,572 125,000 (17,083,371) 6,862,091
---------------------- --------------- -------------- -------------- ------------- -------------
Changes in equity
Share based payment - - - 8,613 8,613
Total comprehensive
income - - - (1,300,468) (1,300,468)
====================== =============== ============== ============== ============= =============
Balance at 31
December 2018 2,363,890 21,456,572 125,000 (18,375,226) 5,570,236
====================== =============== ============== ============== ============= =============
Changes in equity
Share based payment - - - 24,910 24,910
Total comprehensive
income - - - (1,188,787) (1,188,787)
====================== =============== ============== ============== ============= =============
Balance at 30
June 2019 2,363,890 21,456,572 125,000 (19,539,103) 4,406,359
====================== =============== ============== ============== ============= =============
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
Unaudited Unaudited Audited
Half year Half year Year to
to to 31
30 June 30 June December
2019 2018 2018
GBP GBP GBP
EARNINGS BEFORE INTEREST, TAXATION,
DEPRECIATION AND AMORTISATION (1,016,820) (965,388) (1,993,284)
Decrease/(increase) in trade
and other receivables 2,831 (102,255) (75,785)
(Decrease)/increase in trade
and other payables (30,766) 166,002 149,435
---------------------------------------------- ---------------- --------------- ----------------
CASH USED IN OPERATIONS (1,044,755) (901,641) (1,919,634)
Tax received 24,534 25,268 25,268
---------------------------------------------- ---------------- --------------- ----------------
NET CASH FROM OPERATING ACTIVITIES (1,020,221) (876,373) (1,894,366)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible fixed
assets (196,769) (110,545) (254,856)
Purchase of tangible fixed
assets (12,142) (8,047) (17,498)
Interest received 11,259 970 11,036
---------------------------------------------- ---------------- --------------- ----------------
NET CASH FROM INVESTING ACTIVITIES (197,652) (117,622) (261,318)
CASH FLOWS FROM FINANCING ACTIVITIES
Share issue (net of expenses) - 5,441,269 5,441,271
Payment of lease liabilities (18,350) - -
Repayment of finance lease (2,437) (2,922) (5,849)
---------------------------------------------- ---------------- --------------- ----------------
NET CASH FROM FINANCING ACTIVITIES (20,787) 5,438,347 5,435,422
(Decrease)/ increase in cash
and cash equivalents (1,238,660) 4,444,352 3,279,738
---------------------------------------------- ---------------- --------------- ----------------
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 5,032,087 1,752,349 1,752,349
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 3,793,427 6,196,701 5,032,087
---------------------------------------------- ---------------- --------------- ----------------
NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED INTERIM
ACCOUNTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
1. Basis of preparation and accounting policies
These interim statements have been prepared on a basis
consistent with International Financial Reporting Standards (IFRS).
They do not contain all of the information required for full
financial statements and should be read in conjunction with the
consolidated financial statements of the Company as at and for the
year ended 31 December 2018. These interim financial statements do
not constitute statutory accounts within the meaning of the
Companies Act.
The interim financial information has not been audited. The
interim financial information was approved by the Board of
Directors on 9 September 2019. The information for the year ended
31 December 2018 is extracted from the statutory financial
statements for that year which have been reported on by the Group's
auditors and delivered to the Registrar of Companies. The audit
report was unqualified and did not contain a statement under s498
(2) or 498(3) of the Companies Act 2006.
The accounting policies applied by the Company in these interim
financial statements are the same as those applied by the Company
in its financial statements for the year ended 31 December 2018.
However, the interim financial statements are prepared in
accordance with IFRS 16, the new accounting standard for leases,
which came into effect from 1 January 2019. Additional disclosure
required by IFRS 16 has been included in the primary financial
statements and note 2.
2. Leases
Short-term leases and leases of low value
The Company leases its head office building. The lease in place
at 31 December 2018 expired during the period. The Company elected
not to recognise a right-of-use asset or lease liability for this
lease due to the short-term nature of the lease. The Company
recognised lease payments associated with this lease as an
operating expense on a straight-line basis over the remaining lease
term.
At the 31 December 2018 the Company also had a finance lease in
place for computer software which was of low value. This lease
expired during the period. The Company elected not to recognise a
right-of-use asset or lease liability due to the short-term nature
and low value of the lease. The full amount of the lease
outstanding at 31 December 2018 was expensed during the period.
Office Building
During the period the Company entered into a new non-cancellable
lease for a period of five years with an option to break after
three years. The Company has determined that it is likely to take
up the final two years of the lease. The Company has recognised a
right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is measured at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date.
The right-of-use asset is subsequently depreciated using the
straight-line method over the five year lease term.
The lease liability is initially measured at the present value
of the lease payments that are not paid at the commencement date
discounted at an estimate of the Company's incremental borrowing
rate.
The Company recognised an initial right-of-use asset of
GBP431,988 and a depreciation charge of GBP15,859 relating to this
asset in the period resulting in a right-of-use asset of GBP416,129
at 30 June 2019.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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