Black Pearl Group (BPG) Q1 2025 earnings summary

Executive summary

• Achieved strong growth in Q1 FY25, with average ARR per Pearl Diver customer more than doubling year-over-year and new high-value packages driving a ninefold increase in deal value.

• Nearly NZD $1m in new ARR billed or committed in the first half of July 2024, double the typical pace.

• On track to surpass NZD $10m ARR milestone within weeks, with a goal to reach NZD $20m ARR in the next 12–18 months.

Financial highlights

• Subscription revenue for Q1 FY25 was $1.5m, up 15% from Q4 FY24 and 143% year-over-year.

• Annual recurring revenue (ARR) reached $8.6m as of June 30, 2024, up 16% sequentially and 162% year-over-year.

• ARR per employee rose to $252k, a 9% increase from Q4 FY24 and 308% year-over-year.

• Gross profit margin was 73%, up from 62% in Q1 FY24 but slightly down from 75% in Q4 FY24.

• Revenue churn was 3.4%, up 0.3ppt year-over-year but down 0.6ppt from the previous quarter.

Outlook and guidance

• Anticipates increased demand as Google blocks cookies in January 2025, making first-party data solutions like Pearl Diver more valuable.

• Significant inbound demand for higher-value SME packages ($3,000–$5,000/month) expected to fuel further growth.

• Confident in strategy to capture new market opportunities, with long-term ambitions to reach $100m in revenue.