TIDMBIRD
RNS Number : 4816L
Blackbird PLC
13 September 2021
13 September 2021
Blackbird plc
(the "Company")
Interim results
Blackbird plc (AIM: BIRD; OTCQX: BBRDF), the developer and
seller of the market-leading, patented cloud native video editing
platform Blackbird(R) , announces its interim results for the six
months ended 30 June 2021.
Ian McDonough, CEO of Blackbird plc, commented:
"I am delighted to once again deliver record revenues for the
six-month period of GBP867k, up 21% year on year. We made strong
progress in the period against our sales strategy both in OEM:
signing partnerships with EVS and LiveU and expanding our deal with
TownNews; and Direct: closing deals with, amongst others, Cheddar
News, ODK Media and BT.
"Importantly, in a landmark deal for the Company, we signed our
first 'Powered by Blackbird' licensing contract for the core video
technology post period. As well as being long term and the largest
financial deal to date for the Company at a minimum expected value
of EUR2 million, this is also of strategic importance and provides
substantial evidence of the value of our IP outside of our own
Blackbird product which we have been talking about for some time.
This deal, signed with a global broadcasting company, also provides
the Company with financial upside potential should the product
rollout be successful. It has been made technically possible by the
advancement of our API strategy which also opens up new routes to
market for our existing business as well as new potential
opportunities beyond our core strength of video editing.
"Additionally, in the period we released two strategically
important white papers highlighting Blackbird's sustainability
credentials and Total Cost of Ownership benefits.
"These are incredibly exciting times for the Company and I look
forward to working with the team to deliver further success."
Operational highlights (POST PERIOD)
-- Multi-year licensing deal for Blackbird, the Company's
technology, announced with a global broadcast company, the first of
its kind, for a minimum expected revenue of EUR2.0million
o new route to market for the Company
o opening up further opportunities in new markets beyond editing
and increasing the Company's Total Addressable Market ("TAM")
o rapid scaling opportunities in "on premise" as well as "cloud
centric" broadcasters
o upside potential through a successful global product
rollout
-- Announced our first contract with a major U.S. media company
in signing up CBS Sports, part of ViacomCBS, as a client
-- Contracted with the largest U.S. based Hispanic media
company, Univision, in a multi-year deal to deploy Blackbird to
drive large-scale video production efficiencies across its
streaming and digital media operations
-- Further expansion with TownNews taking the total overall to 75 local U.S. stations
-- Deal closed with Athletes Unlimited who chose Blackbird to
drive fast, flexible and efficient cloud native video workflows in
fast growing minority sports
-- Blackbird commences trading on the OTCQX market in the U.S.
opening up investment to North American
investors in 37 States
-- Blackbird receives the Green Economy Mark from the London Stock Exchange
Financial highlights (POST PERIOD)
-- GBP1,763k* secured revenue for 2021 at 31 August 2021 (2020 comparative: GBP1,453k)
-- Contracted but unrecognised revenues of GBP1,987k* at 31
August 2021. GBP518k relates to 2021 and
GBP893k revenue relates to 2022
* Subject to exchange rate fluctuations
Operational highlights (PERIOD)
-- Partnership launched with EVS to deploy for two international sporting events
o endorsing the OEM go to market strategy and that Blackbird is
a trusted partner for the world's most valuable content
o validating the benefits that Blackbird can bring to the Sports
sector, a key targeted market
-- Expansion of deal with TownNews to 69 local U.S. TV stations
o reaffirming the Company's "land and expand" strategy
-- Contracted with Cheddar News for ultra-efficient, flexible
and sustainable video production
o another high-profile name in one of the Company's core,
targeted sectors
-- BT contracted with the Company for ultra-fast and sustainable
cloud native video editing and publishing
-- Deal closed with ODK Media for flexible and efficient cloud
video production for their new OnDemandLatino service
-- New multi-year deals signed with e-learning companies Typsy and Boclips
-- RTL Deutschland chooses an integrated LiveU/Blackbird
solution to enhance live coverage of two of
this year's German regional elections
-- Strategic white papers released by the Company on:
o Total Cost of Ownership ("TCO"): showing Blackbird's cloud
native solution delivering up to 35% lower TCO than cloud adapted
on premise video editing
o Sustainability: highlighting Blackbird's cloud native workflow
generates up to 91% less carbon than on premise video editing
workflows
Financial highlights (PERIOD)
-- Record revenues of GBP867k for the 6 months to 30 June 2021,
up 21% year on year (6 months to 30 June 2020: GBP714k)
-- Contracted but unrecognised revenues up 6% year on year to
GBP1,974k at 30 June 2021 (GBP1,860k at 30 June 2020)
-- Increased operating costs, excluding LTIP provision, of
GBP1,444k (6 months to 30 June 2020: GBP1,359k) driven by
additional costs from strengthening of the Company's Sales, R&D
and Product teams
-- EBITDA loss, excluding LTIP provision movement, of GBP661k (6
months to 30 June 2020: GBP714k) -
increased revenue partially offset by higher operating costs
-- EBITDA loss of GBP874k (6 months to 30 June 2020: GBP714k)
with the increased loss year on year due to the increase in LTIP
provision from the rising share price partially offset by the
improvement in EBITDA pre LTIP provision mentioned above
-- Net loss before tax GBP1,168k (6 months to 30 June 2020: GBP942k)
-- Cash burn, excluding proceeds from share issues and transfers
from short term investments, up GBP97k to GBP943k year on year (6
months to 30 June 2020: GBP846k) due to timing of R&D tax
credit payment (GBP25k expected to be received in H2 2021), GBP24k
lower interest income received and the remainder from working
capital movements
-- Cash and short-term investments of GBP5,710k (30 June 2020: GBP7,183k) 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(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
www.youtube.com/c/Blackbirdcloud
Chief Executive Officer's statement
I am pleased to report record revenues for the six-month period
to 30 June 2021 and continued positive momentum against our
strategy.
We have continued our sales momentum, particularly in our core
targeted markets of Sports and News.
In OEM:
-- Signing a partnership with EVS including deployment on two
prestigious Sporting events, one in mid-2021 and one in early 2022.
EVS are synonymous with the production of the world's most emotive
and high value sports content as well as global news and market
leading entertainment shows. It highlights not only the attributes
of the Blackbird technology but also the confidence that EVS has in
the Company's team to deliver on the biggest of stages
-- Further successful expansion of our deal with TownNews to 69
local U.S. TV stations compared to the 2 U.S. TV stations when the
Company started with TownNews back in 2018. This is an excellent
example of the 'Blackbird inside' OEM strategy working and a superb
endorsement of our technology in the fast-paced environment of news
production
-- A new partnership with LiveU, including a joint solution for
RTL Deutschland to enhance live coverage in two of this year's
German regional elections. LiveU is the leader in live video
streaming and remote production solutions. The world is quickly
moving to 'remote first' in its approach to sports and news
production. Quality, speed and ultimately exceptional user
experience are the core principles of both platforms and therefore
ideal for broadcasters and digital publishers alike
-- A further anonymized deal through an existing large OEM
partner together with an expansion of an existing deal in the
period. Both deals fall into the live Sports sector
In Direct:
-- Deal signed with Cheddar News who is a ground-breaking and
industry defining U.S. news brand. Blackbird will allow Cheddar's
distributed news production teams to work flexibly on a single
unified editing and publishing platform either remotely, from the
field or from centralised production locations
-- Contracted with BT for ultra-fast and sustainable cloud
native video editing and publishing. The focus is working with BT
on the fast turnaround of video on demand ("VOD") content produced
from BT's live broadcasts and Blackbird will significantly improve
speed and efficiency - providing end customers access to content in
a shorter time scale. In addition, with BT's increased focus on
remote working and migration to cloud architecture, the
flexibility, resilience and carbon efficiency of the Blackbird
technology make Blackbird an excellent and future-proofed fit
-- Deal closed with ODK Media for flexible and efficient cloud video production for their new OnDemandLatino service. Blackbird is ideally suited to the OTT streaming services market and ODK's workflow is an excellent example of how companies using the platform can seamlessly leverage globally distributed production teams to create, enrich and version content very quickly and conveniently
-- New multi-year deals signed with e-learning companies,
Australian based Typsy and UK based Bo Clips
The Company issued two strategically important and well received
white papers in the period. The first of these, titled "Video
Shouldn't cost the Earth", was on sustainability. It highlights
how, through its cloud native architecture, Blackbird can save up
to 91% carbon emissions compared to traditional on premise video
editors. We are increasingly seeing that "green" credentials is an
important part of the purchasing process for large enterprises as
this can help them achieve their own carbon targets. We received a
strong response from the industry with my own appearance on Sky
News and many other industry platforms. Various large and small
companies reached out to Blackbird to join the Company's campaign
to highlight the need for change in the industry. Post period, we
were delighted to receive the London Stock Exchange's Green Economy
mark, a further endorsement of our green technology. Only around 5%
of listed businesses in the UK have thus far been awarded the mark.
The second white paper was about "Total Cost of Ownership", and
highlighted that Blackbird is up to 35% lower cost than other cloud
based solutions due to its patented cloud native architecture.
We have made a strong start to the second half of the year,
onboarding CBS Sports, Univision and Athletes Unlimited.
Additionally, the Company has entered into its first licensing
deal. This is significant for several reasons: it is a 5-year deal
for a minimum expected revenue of EUR2million and the largest
signed by the Company to date, it further endorses the technology,
opens up a new route to market for our existing business but also,
most importantly, offers up much wider market opportunities beyond
the editing sector. The advancement of our API strategy also opens
up further possibilities which we always look to explore.
These are very exciting times for the Company and I look forward
to delivering further future success.
Ian McDonough
Chairman's statement
The Company has made encouraging financial progress in the
period. In the six-month period to 30 June 2021, we continued sales
growth momentum and booked record revenues of GBP867k up 21% year
on year. In North America, our leading market, revenue grew to
GBP554k for the period, up by 33% year on year on a like-for-like
basis, and by a further 10% from a change in a contractual regional
entity on a deal renewal. The growth rate would have been higher
but for the strengthening of the pound vs the dollar which had an
adverse impact of GBP36k or 4% on total revenues. Additionally, in
the UK, it was a tough time for the Post Production sector and due
to lower volumes of production our revenue was down GBP13k year on
year in this sector.
Our commercial success in the first half of the year was built
on our current strategy. Total invoiced sales grew by 20% to
GBP916k year on year (6 months to 30 June 2020: GBP764k). OEM
revenue in the period grew by 17% to GBP405k, with the impact of
the new partnership with EVS including the two International
Sporting events and the further expansion of our TownNews deal to
69 new stations to be seen in future periods. The Company brought
onboard several high-profile customers including BT and Cheddar
News from direct sales. Blackbird's ability to offer efficient
remote working solutions, as well of our usual core strengths, will
hold us in good stead for future growth as companies increasingly
look at hybrid solutions for their employees.
The Company's own operational response has been impressive,
continuing to market, sell and deploy seamlessly whilst working
remotely. We also strengthened the team in the period with
additional resources being brought onboard in the key areas of
R&D and Product to support the Company's growing plans.
Financial
Revenue increased by 21% to GBP867k for the six-month period
compared to the corresponding period last year (six month to 30
June 2020 GBP714k). Contracted but unrecognised revenue was
GBP1,974k at 30 June 2021, an increase of 6% compared to 30 June
2020.
Our focus on the Sports sector and News sectors, continued to
bear fruit with revenue up 37% and 26% year on year respectively at
GBP330k and GBP244k respectively. Year on year revenue growth was
held back by the fall in production volumes in the UK Broadcast
Post sector as well as the strengthening of the pound versus the
dollar as mentioned above.
Operating costs for the period were GBP1,657k versus GBP1,359k
in the corresponding period last year reflecting an increase in: i)
the LTIP provision of GBP213k, as the Company's share price rose
52% year on year and the Company's market capitalisation by
GBP36.6million; and ii) a strengthening of the team in Sales,
R&D and Product. The EBITDA loss for the period was GBP874k
versus GBP714k in the corresponding period last year due to the
increased operating costs. Excluding the increase in the LTIP
provision, the EBITDA loss would have decreased by GBP53k year on
year to GBP661k. The loss for the period was GBP1,168k versus
GBP942k mainly due to the lower EBITDA explained above, but also
from higher amortisation of capitalized R&D costs and higher
share option expenses due to the rising share price.
Cash burn in the period, excluding proceeds from share issues
and transfers from short-term investments, was GBP943k versus
GBP846k in the same period in 2020 driven by the timing of R&D
tax credit payment (previously received in H1 2020, whereas GBP25k
is expected to be received in H2 2021), GBP24k lower interest
income received due to falling interest rates and the remainder
from working capital movements.
Outlook
We continue to make good progress against our strategy and have
made a meaningful start to the second half of the year. The recent
direct deals with Univision, Athletes Unlimited and CBS Sports
Digital show that our sector focus continues to bear fruit with a
strong order book and revenue of GBP1,644k secured for the year
which is up 31% against the comparative at 30 June 2020
(GBP1,256k). By the end of August 2021, we had grown 2021 secured
revenue to GBP1,763k (2020 comparative: GBP1,453k) and had GBP893k
of contracted revenue for 2022 which is up 18% versus the 2020
comparative for 2021 (GBP756k).
More excitingly, our recently announced first technology
licensing deal opens up both a quicker expansion opportunity in our
existing market and further potential in new markets outside the
Broadcast sector. This deal clearly demonstrates the adaptability
of our technology and significantly increases the Company's TAM.
The next few years will be most interesting for the Company as our
markets recognize and respond to the flexibility, resilience and
sustainability of our core technology.
In July, we announced that the Company's shares will be traded
on the OTCQX Best Market in the U.S. This will provide enhanced
investor benefits, including easier trading access for investors
located in the U.S., and greater liquidity due to a broader
geographic pool of potential investors .
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 MONTHS
ED 30 JUNE 2021
Unaudited Unaudited Audited
Half year Half year to Year to
to
30 June 30 June 31 December
2021 2020 2020
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 866,644 713,843 1,567,109
Cost of Sales (84,096) (68,731) (163,338)
------------------------------- ------------ ------------- ------------
GROSS PROFIT 782,548 645,112 1,403,771
Operating costs excluding
LTIP provision (1,443,816) (1,359,064) (2,721,465)
------------------------------- ------------ ------------- ------------
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION,
AMORTISATION AND LTIP
PROVISION (661,268) (713,952) (1,317,694)
LTIP provision (212,925) - (98,227)
------------------------------- ------------ ------------- ------------
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION
AND AMORTISATION (874,193) (713,952) (1,415,921)
Depreciation (54,456) (54,342) (108,681)
Amortisation (163,060) (133,184) (275,935)
Employee share option
costs (83,665) (65,649) (138,933)
------------ ------------- ------------
(301,181) (253,175) (523,549)
------------------------------ ------------ ------------- ------------
OPERATING LOSS (1,175,374) (967,127) (1,939,470)
Net Finance income 7,862 25,102 33,451
LOSS BEFORE INCOME TAX (1,167,512) (942,025) (1,906,019)
Income Tax - - 25,415
------------------------------- ------------ ------------- ------------
LOSS FOR THE PERIOD (1,167,512) (942,025) (1,880,604)
TOTAL COMPREHENSIVE LOSS
FOR THE PERIOD (1,167,512) (942,025) (1,880,604)
=============================== ============ ============= ============
Earnings per share expressed
in pence per share:
Basic - continuing and
total operations (0.35p) (0.28p) (0.56p)
=============================== ============ ============= ============
UNAUDITED AND CONDENSED STATEMENT OF FINANCIAL POSITION AT 30
JUNE 2021
Unaudited Unaudited Audited
30 June 30 June 31 December
2021 2020 2020
ASSETS GBP GBP GBP
NON-CURRENT ASSETS
Other intangible
assets 1,152,634 1,048,112 1,105,657
Property, plant
and equipment 276,043 353,786 308,565
1,428,677 1,401,898 1,414,222
------------------------- ------------- ------------- -------------
CURRENT ASSETS
Trade and other
receivables 501,414 498,402 292,834
Stock 895 15,728 15,728
Current tax assets 25,415 - 25,415
Short-term investments 1,214,302 - 1,617,820
Cash and bank
balances 4,495,923 7,182,773 4,928,021
6,237,949 7,696,903 6,879,918
------------------------- ------------- ------------- -------------
TOTAL ASSETS 7,666,626 9,098,801 8,294,040
========================== ============= ============= =============
EQUITY
Issued share capital 2,705,553 2,688,913 2,696,433
Share premium 26,614,950 26,427,733 26,516,613
Capital contribution
reserve 125,000 125,000 125,000
Retained earnings (23,282,609) (21,333,467) (22,198,762)
6,162,894 7,908,179 7,139,284
------------------------- ------------- ------------- -------------
NON-CURRENT LIABILITIES
Lease, Licence,
LTIP 496,576 301,379 324,044
496,576 301,379 324,044
------------------------- ------------- ------------- -------------
CURRENT LIABILITIES
Lease 87,074 96,884 96,905
Trade and other
payables 920,082 792,359 733,807
1,007,156 889,243 830,712
------------------------- ------------- ------------- -------------
TOTAL LIABILITIES 1,503,732 1,190,622 1,154,756
-------------------------- ------------- ------------- -------------
TOTAL EQUITY AND
LIABILITIES 7,666,626 9,098,801 8,294,040
========================== ============= ============= =============
UNAUDITED AND CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2021
Called up Share premium Capital Retained earnings Total equity
share capital contribution
reserve
GBP GBP GBP GBP GBP
Balance
at 1 January
2020 2,681,913 26,371,502 125,000 (20,457,091) 8,721,324
Issue of
share capital 7,000 56,231 - - 63,231
Share based
payment - - - 65,649 65,649
Total comprehensive
income - - - (942,025) (942,025)
---------------------- --------------- -------------- -------------- ================== =============
Balance
at 30 June
2020 2,688,913 26,427,733 125,000 (21,333,467) 7,908,179
---------------------- --------------- -------------- -------------- ------------------ -------------
Changes
in equity
Issue of
share capital
(net of
expenses) 7,520 88,880 - - 96,400
Share based
payment - - - 73,284 73,284
Total comprehensive
income - - - (938,579) (938,579)
====================== =============== ============== ============== ================== =============
Balance
at 31 December
2020 2,696,433 26,516,613 125,000 (22,198,762) 7,139,284
====================== =============== ============== ============== ================== =============
Changes
in equity
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
====================== =============== ============== ============== ================== =============
UNAUDITED AND CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2021
Unaudited Unaudited Audited
Half year Half year
to to Year to 31
30 June 30 June December
2021 2020 2020
GBP GBP GBP
EBITDA (874,193) (713,952) (1,415,921)
Decrease in working capital 216,287 93,241 325,975
Cash used in operations (657,906) (620,711) (1,089,946)
------------------------------------- ---------- ---------- ------------
Interest paid on lease liabilities (6,447) (8,448) (16,059)
Tax received - 32,424 32,424
Net cash from operating activities (664,353) (596,735) (1,073,581)
------------------------------------- ---------- ---------- ------------
Cash flows from investing
activities
Payments for intangible fixed
assets (218,286) (217,301) (425,848)
Payments for property, plant
and equipment (21,934) (17,083) (26,203)
Transfer from/(to) short-term
investments 403,518 - (1,617,820)
Interest received 9,922 33,570 43,172
Net cash from investing
activities 173,220 (200,814) (2,026,699)
------------------------------------- ---------- ---------- ------------
Cash flows from financing
activities
Share issue (net of expenses) 107,456 63,231 159,631
Payment of lease liabilities (48,421) (48,400) (96,821)
Net cash from financing
activities 59,035 14,831 62,810
------------------------------------- ---------- ---------- ------------
(Decrease) in cash and cash
equivalents (432,098) (782,718) (3,037,470)
Cash and cash equivalents
at beginning of period 4,928,021 7,965,491 7,965,491
Cash and cash equivalents
at end of period 4,495,923 7,182,773 4,928,021
===================================== ========== ========== ============
NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED INTERIM
ACCOUNTS
FOR THE SIX MONTHSED 30 JUNE 2021
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 2020. 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 10 September 2021. The information for the year ended
31 December 2020 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
2020.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR GPUPABUPGUBP
(END) Dow Jones Newswires
September 13, 2021 02:00 ET (06:00 GMT)
Blackbird (LSE:BIRD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Blackbird (LSE:BIRD)
Historical Stock Chart
From Jul 2023 to Jul 2024
