TIDMBIRD
RNS Number : 3406Z
Blackbird PLC
14 September 2022
14 September 2022
Blackbird plc
(the "Company")
Interim results
Blackbird plc (AIM: BIRD; OTCQX: BBRDF ), the technology
licensor, developer and seller of the market-leading cloud video
editing platform, Blackbird(R) , announces its interim results for
the six months ended 30 June 2022.
Ian McDonough, CEO of Blackbird plc, commented:
"I am delighted to again deliver record revenues for the
six-month period of GBP1,547k, up 78% year on year. The main driver
behind this increase in revenue was from development work on our
first technology licensing deal. We have made good progress towards
delivery and it is currently being tested by the licensor together
with their first customer, a major US broadcaster, ahead of a full
launch and promotion later in the year. The product will be
co-branded 'Powered by Blackbird'.
"Post our fundraise last December, we have made good progress in
recruiting key new talent to the business, which was signalled as a
key objective of the raise. This new team will be crucial in
defining and implementing our products and leveraging our
world-class technology, as we enter the sizeable creator economy
market.
"In the period we also released two strategically important
white papers. The first one highlighted Blackbird's unique
architecture and the associated benefits, whilst the second one
reinforced our sustainability credentials and how, amongst other
green technologies, it can help the video industry reduce its
carbon footprint.
"As we develop our enterprise solution and start to introduce
solutions for the creator economy, these are incredibly exciting
times for the Company and I look forward to working with my
colleagues to deliver further success."
Operational highlights (post period)
-- Multi-year deal signed with Next College Student Athlete
(NCSA), who are a part of the IMG group
-- Deal signed with SBS Belgium to produce media assets for its OTT platform
-- Three-year renewal signed with A+E Networks
-- Partnered with both Microsoft and EVS at IBC show in September in Amsterdam
Financial highlights (post period)
-- GBP2,684k* secured revenue for 2022 at 31 August 2022, up 52%
vs prior year (2021 comparative: GBP1,763k)
-- Record contracted but unrecognised revenues of GBP4,047k* at
31 August 2022 (2021 comparative: GBP1,987k). GBP768k relates to
2022 and GBP1,472k revenue relates to 2023 and the remainder to
2024 and beyond
* Subject to exchange rate fluctuations
Operational highlights (during the period)
-- First technology licensing deal nears delivery and with the
first customer a major US broadcaster secured for the product
o endorsing the value that Blackbird's technology can bring to a
third party's infrastructure
-- Successful deployment at the winter games in February 2022,
allowing editors to work remotely from another continent
o validating that Blackbird can be trusted on the most valuable
content
-- Key hires made for Blackbird's creator economy growth focus
-- Expansion within the Univision and 'global financial news service' accounts
o reaffirming our 'land and expand' approach
-- Three-year renewal with IMG group closed with revenue uplift
-- Further successful renewals with Deltatre, Gfinity and Arsenal
-- Successful FIFA deployment and now extensively used on their FIFA+ OTT service
-- LiveU/Blackbird solution used in coverage of a further two German elections
-- One of four partners chosen to be on Microsoft's stand at the
NAB show in April 2022
-- Achieved AWS Technology Partner status and completed
Foundational Technical Review to accelerate AWS engagement
o stepping stone to launching Blackbird in a public cloud which
will open up the Company's addressable market
-- Strategic white papers released by the Company on
o Blackbird architecture: highlighting the 'magic' behind
Blackbird's cloud native solution and the associated unique
benefits
o sustainability: endorsed by Hannah Mills and leading a call
for action to the industry to reduce carbon at source in video
production
-- Multiple award wins, including the 'Queen's Award for
Enterprise' and 'NAB Product of the Year 2021'
Financial highlights (during the period)
-- Record revenues of GBP1,547k for the 6 months to 30 June
2022, up 78% year on year (6 months to 30 June 2021: GBP867k).
Includes GBP426k of non-recurring revenues from development
services for our first 'Powered by Blackbird' licensing deal
-- Contracted but unrecognised revenues up 69% year on year to
GBP3,331k at 30 June 2022 (GBP1,974k at 30
June 2021)
-- Increased operating costs, excluding LTIP charge, of
GBP2,113k (6 months to 30 June 2021: GBP1,444k) driven
predominantly from strengthening of the team, particularly in
R&D, product and marketing; wage inflation; attendance at trade
shows and recruitment costs. GBP183k of these costs relate to the
'Creator' division post last December's fundraise
-- EBITDA loss, excluding LTIP provision movement, of GBP637k (6
months to 30 June 2021: GBP661k) from increased revenue, partially
offset by higher operating costs
-- EBITDA loss of GBP287k (6 months to 30 June 2021: GBP874k)
with the decreased loss year on year predominantly due to the
movement in LTIP charge year on year (2022: GBP350k credit, 2021:
GBP213k expense) resulting from the falling share price and by the
improvement in EBITDA pre LTIP provision mentioned above
-- Net loss before tax GBP604k (6 months to 30 June 2021: GBP1,168k)
-- Cash burn, excluding proceeds from share issues and transfers
from short term investments, up GBP310k to GBP1,253k year on year
(6 months to 30 June 2021: GBP943k) due to higher operating
expenses as explained above and an increase in working capital.
GBP116k of this related to one-off items
-- Cash and short-term investments of GBP11,586k (30 June 2021: GBP5,710k) and no debt
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/ Piers Shimwell (Corporate Finance)
Amrit Nahal (Sales and Corporate Broking)
About Blackbird plc
Blackbird plc operates in the fast-growing SaaS and cloud video
market. It has created Blackbird(R) , the world's most advanced
suite of cloud-native computing applications for video, all
underpinned by its lightning-fast codec. Blackbird plc's patented
technology allows for frame accurate navigation, playback, viewing
and editing in the cloud. Blackbird(R) 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(R) 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 digital
distribution, and ultimately results in much more effective
monetisation.
Blackbird plc is a licensor of its core video technology under
its "Powered by Blackbird" licensing model, enabling video
companies to accelerate their path to true cloud business models.
Licensees benefit from power and carbon reductions, cost and time
savings, lower hardware and bandwidth requirements and easy
scalability.
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
I am pleased to report record revenues for the six-month period
to 30 June 2022. During the period we continued our momentum,
particularly in our core targeted markets of Sports and News.
In OEM:
-- We made good progress on our first Technology licensing deal
which nears delivery and is currently being tested by the licensor
together with their first customer, a major US broadcaster, ahead
of a full launch and promotion later in the year. The product will
be co-branded 'Powered by Blackbird'. As previously explained, our
commercial relationship lasts for a further five years where
Blackbird will financially benefit on the back of the success of
the deployment of the product, and the financials are underpinned
by minimum guarantees.
-- Through EVS we successfully deployed to a second prestigious
global sporting event, on the back of the first one in mid-2021.
This deal reemphasizes that Blackbird is trusted with the world's
most valuable content by industry leading technology partners.
-- Together with LiveU, delivered on fast turnaround news on a
further two German regional elections.
-- Through an unnamed OEM partner, we successfully renewed and
expanded our operations on two deals in the sports sector.
In Direct:
-- Successfully deployed to FIFA on the back of our mid-December
2021 deal. They are using Blackbird extensively on their FIFA+ OTT
service.
-- Expansions with both Univision and our 'global financial news
service' accounts. This reaffirms our 'land and expand'
strategy.
-- Renewals included a three-year extension to our IMG deal
which included a revenue uplift, together with renewals with
Deltatre, Gfinity and Arsenal.
-- Post-period a multi-year deal with NCSA and a new deal with SBS Belgium.
The Company issued two strategically important and well received
white papers in the period. The first one explained some, although
not too much, of the magic behind Blackbird's architecture and how,
being cloud native, can benefit our customers. The second white
paper was focused on 'Decarbonizing Video production' and
reemphasized how cloud native green technologies, such as
Blackbird, can cut out carbon emissions at source rather than
producing them and having to offset them.
Post our fundraise last December, we made good progress in
recruiting key new talent to the business. These included Sumit
Rai, as Chief Product Officer; Mo Volans as Senior Vice President
Product Marketing and Morgan Henry as Vice President Engineering.
They all joined us in June and are already making a great impact on
the business as we look to further refine our Enterprise solution
and develop successful products for the creator economy market.
These are very exciting times for the Company and I look forward
to working with the team to deliver further success.
Ian McDonough
Chairman's statement
The Company made encouraging financial progress in the period.
In the six-month period to 30 June 2022, we continued sales growth
momentum and booked record revenues. The growth was predominantly
on the back of delivering against our first technology licensing
deal and on deploying to FIFA, whose deal was finalized in December
2021.
The value of the technology continues to be recognised and
during the period the Company received numerous awards including
the prestigious 'Queen's Award for Enterprise' and 'NAB Product of
the Year 2021'.
Financial
Revenue increased by 78% to GBP1,547k for the six-month period
compared to the corresponding period last year (six months to 30
June 2021 GBP867k). Contracted but unrecognised revenue was
GBP3,331k at 30 June 2022, an increase of 69% compared to 30 June
2021.
Our focus on the Sports and News sectors continued to bear fruit
with revenue up 32% and 34% year on year at GBP436k and GBP327k
respectively. Our first 'Powered by Blackbird' licensing deal
delivered GBP426k non-recurring revenue relating to development in
the period. Blackbird will financially share in the commercial
success of the product and our share of revenues is underpinned by
annual minimum guarantees with the first one due at the end of
2022.
Operating costs, excluding LTIP charge, for the period were
GBP2,113k versus GBP1,444k in the corresponding period last year
reflecting an increase in: i) a strengthening of the team in Sales,
R&D and Product and a full period of costs relating to 2021
hires; ii) wage inflation; iii) increased marketing costs due to
attending trade shows again post lockdowns; and iv) one-off
recruitment fees of GBP135k in the period (2021:GBP24k). GBP183k of
operating costs related to the 'Creator' area, post the December
fundraise.
EBITDA loss, excluding LTIP provision movement, of GBP637k (6
months to 30 June 2021: GBP661k) from increased revenue
predominantly offset by higher operating costs. There was a GBP563k
difference in the LTIP charge year on year (2022: GBP350k credit,
2021: GBP213k expense) as the Company's share price fell on the
back of the global technology sell off and the war in Ukraine. This
movement in the LTIP charge was the principal driver behind the
improved EBITDA loss of GBP287k for the period (6 months to 30 June
2021: GBP874k).
Cash burn in the period, excluding proceeds from share issues
and transfers from short-term investments, was GBP1,253k versus
GBP943k in the same period in 2021 driven by higher operating costs
including in the 'Creator' area as explained above.
Outlook
The Company made good progress on revenue growth in H1 of this
year driven predominantly by our first technology licensing deal,
co-branded 'Powered by Blackbird' and from infrastructure deals
with revenue in the period from, amongst others, CBS Sports, FIFA
and Univision which was not in the prior year period.
Ian and the team have also made great progress in bringing in
key new talent on the back of the December 2021 fundraise. Their
skillsets and experience will be crucial both in refining our
Enterprise solution and developing and launching new product(s) for
the creator economy where we believe that the potential for
Blackbird is significant.
The future prospects for the Company continue to be very bright
and I look forward to working with the team to deliver these.
Andrew Bentley
UNAUDITED AND CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHSED 30 JUNE 2022
Unaudited Unaudited Audited
Half year Half year to Year to
to
30 June 30 June 31 December
2022 2021 2021
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 1,546,544 866,644 2,066,271
Cost of Sales (70,886) (84,096) (155,691)
------------------------------- ------------ ------------- ------------
GROSS PROFIT 1,475,658 782,548 1,910,580
Operating costs excluding
LTIP provision (2,112,728) (1,443,816) (3,107,283)
------------------------------- ------------ ------------- ------------
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION,
AMORTISATION, EMPLOYEE
SHARE OPTION COSTS AND
LTIP PROVISION (EBITDA
pre LTIP) (637,070) (661,268) (1,196,703)
Decrease / (increase)
in LTIP provision 350,431 (212,925) (357,712)
------------------------------- ------------ ------------- ------------
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION,
AMORTISATION, EMPLOYEE
SHARE OPTION COSTS (EBITDA) (286,639) (874,193) (1,554,415)
Depreciation (68,169) (54,456) (117,199)
Amortisation (192,542) (163,060) (337,078)
Employee share option
costs (98,356) (83,665) (176,583)
------------ ------------- ------------
(359,067) (301,181) (630,860)
------------------------------ ------------ ------------- ------------
OPERATING LOSS (645,706) (1,175,374) (2,185,275)
Net Finance income 42,015 7,862 18,382
LOSS BEFORE INCOME
TAX (603,691) (1,167,512) (2,166,893)
Income Tax - - 32,167
------------------------------- ------------ ------------- ------------
LOSS FOR THE PERIOD (603,691) (1,167,512) (2,134,726)
TOTAL COMPREHENSIVE
LOSS FOR THE PERIOD (603,691) (1,167,512) (2,134,726)
=============================== ============ ============= ============
Earnings per share expressed
in pence per share:
Basic - continuing and
total operations (0.16p) (0.35p) (0.63p)
UNAUDITED AND CONDENSED STATEMENT OF FINANCIAL POSITION AT 30
JUNE 2022
Unaudited Unaudited Audited
30 June 30 June 31 December
2022 2021 2021
ASSETS GBP GBP GBP
NON-CURRENT ASSETS
Other intangible
assets 1,178,891 1,152,634 1,195,736
Property, plant
and equipment 221,589 276,043 256,655
1,400,480 1,428,677 1,452,391
------------------------- ------------- ------------- -------------
CURRENT ASSETS
Trade and other
receivables 638,602 501,414 395,315
Stock 895 895 895
Current tax assets 32,167 25,415 32,167
Short-term investments 6,684,825 1,214,302 4,169,186
Cash and bank balances 4,901,435 4,495,923 8,670,274
12,257,924 6,237,949 13,267,837
------------------------- ------------- ------------- -------------
TOTAL ASSETS 13,658,404 7,666,626 14,720,228
========================== ============= ============= =============
EQUITY
Issued share capital 2,940,524 2,705,553 2,940,524
Share premium 34,034,228 26,614,950 34,034,228
Capital contribution
reserve 125,000 125,000 125,000
Retained earnings (24,662,240) (23,282,609) (24,156,905)
12,437,512 6,162,894 12,942,847
------------------------- ------------- ------------- -------------
NON-CURRENT LIABILITIES
LTIP - 311,152 -
Lease & License 85,543 185,424 131,908
85,543 496,576 131,908
------------------------- ------------- ------------- -------------
CURRENT LIABILITIES
Lease 91,572 87,074 89,388
Trade and other
payables 1,043,777 920,082 1,556,085
1,135,349 1,007,156 1,645,473
------------------------- ------------- ------------- -------------
TOTAL LIABILITIES 1,220,892 1,503,732 1,777,381
-------------------------- ------------- ------------- -------------
TOTAL EQUITY AND
LIABILITIES 13,658,404 7,666,626 14,720,228
========================== ============= ============= =============
UNAUDITED AND CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Called Share premium Capital Retained earnings Total equity
up share contribution
capital reserve
GBP GBP GBP GBP GBP
Balance
at 1 January
2021 2,696,433 26,516,613 125,000 (22,198,762) 7,139,284
Issue of
share capital 9,120 98,337 - - 107,457
Share based
payment - - - 83,665 83,665
Total comprehensive
income - - - (1,167,512) (1,167,512)
---------------------- ---------- -------------- -------------- ================== =============
Balance
at 30 June
2021 2,705,553 26,614,950 125,000 (23,282,609) 6,162,894
---------------------- ---------- -------------- -------------- ------------------ -------------
Changes
in equity
Issue of
share capital
(net of expenses) 234,971 7,419,278 - - 7,654,249
Share based
payment - - - 92,918 92,918
Total comprehensive
income - - - (967,214) (967,214)
====================== ========== ============== ============== ================== =============
Balance
at 31 December
2021 2,940,524 34,034,228 125,000 (24,156,905) 12,942,847
====================== ========== ============== ============== ================== =============
Changes
in equity
Issue of - - - - -
share capital
Share based
payment - - - 98,356 98,356
Total comprehensive
income - - - (603,691) (603,691)
====================== ========== ============== ============== ================== =============
Balance
at 30 June
2022 2,940,524 34,034,228 125,000 (24,662,240) 12,437,512
====================== ========== ============== ============== ================== =============
UNAUDITED AND CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Unaudited Unaudited Audited
Half year Half year
to to Year to 31
30 June 30 June December
2022 2021 2021
GBP GBP GBP
EBITDA (286,639) (874,193) (1,554,415)
(Increase) / Decrease in
working capital (711,255) 216,287 653,349
Cash used in operations (997,894) (657,906) (901,066)
------------------------------------- ------------ ---------- ------------
Interest paid on lease liabilities (4,363) (6,447) (11,979)
Tax received - - 25,415
Net cash outflow from operating
activities (1,002,257) (664,353) (887,630)
------------------------------------- ------------ ---------- ------------
Cash flows from investing
activities
Payments for intangible fixed
assets (183,947) (218,286) (443,657)
Payments for property, plant
and equipment (33,103) (21,934) (65,288)
Transfer (to)/ from short-term
investments (2,515,639) 403,518 (2,551,366)
Interest received 14,651 9,922 25,393
Net cash (outflow)/ inflow
from investing activities (2,718,038) 173,220 (3,034,918)
------------------------------------- ------------ ---------- ------------
Cash flows from financing
activities
Share issue (net of expenses) - 107,456 7,761,706
Payment of lease liabilities (48,544) (48,421) (96,905)
Net cash (outflow)/ inflow
from financing activities (48,544) 59,035 7,664,801
------------------------------------- ------------ ---------- ------------
(Decrease)/ Increase in cash
and cash equivalents (3,768,839) (432,098) 3,742,253
Cash and cash equivalents
at beginning of period 8,670,274 4,928,021 4,928,021
Cash and cash equivalents
at end of period 4,901,435 4,495,923 8,670,274
===================================== ============ ========== ============
NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED INTERIM
ACCOUNTS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
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
financial statements of the Company as at and for the year ended 31
December 2021. 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 13 September 2022. The information for the year ended
31 December 2021 is extracted from the statutory financial
statements for that year which have been reported on by the
Company'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
2021.
2. Divisional breakdown
Enterprise Creator Total
Unaudited Unaudited Unaudited
Half year to Half year to Half year
to
30 June 30 June 30 June
2022 2022 2022
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 1,546,544 - 1,546,544
Cost of Sales (70,886) - (70,886)
------------------------------- ------------- ------------- ------------
GROSS PROFIT 1,475,658 - 1,475,658
Operating costs excluding
LTIP provision (1,930,220) (182,508) (2,112,728)
------------------------------- ------------- ------------- ------------
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION,
AMORTISATION, EMPLOYEE
SHARE OPTION COSTS AND
LTIP PROVISION (EBITDA
Pre LTIP) (454,562) (182,508) (637,070)
LTIP provision 350,431 - 350,431
------------------------------- ------------- ------------- ------------
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION,
AMORTISATION, EMPLOYEE
SHARE OPTION COSTS (EBITDA) (104,131) (182,508) (286,639)
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END
IR GPUMWBUPPGQW
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