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Segmental Breakdown
This series of posts to the ghost has omitted what BPG does. That’s partly because it is a ad hoc series of posts and partly because I am a numbers person. If the growth numbers are good, I see that as verifying other stuff like market position, competitive advantage etc. But, I am running out of ideas, so here we go:
Firstly, the original business, Blackpearl Mail. It is described as enabling businesses to centrally manage email branding. They combine email signatures, marketing banners and analytics to turn email into a sales tool. From the segmental numbers on page 67 of the annual report, FY23 Revenue was $1.4m, up from $899k. The average monthly ARR was $168. Can also see churn numbers LTM Oct 22 were 2.13% monthly.
They bought New Oldstamp for $4.9m in Nov 22, mainly in stock at the listing price of $1.25 equivalent. New Oldstamp is described as centrally managing email signatures. FY22 Revenue from the listing document was $916k. The acquisition rational was partly the accumulated data, having created 5m signatures and getting 1m new website visits each year. Monthly ARR average $27. LTM Churn at Oct 22 was 2.3%.
Blackpearl Mail and New Oldstamp had a combined customer base of 3,800 and ARR of $2.8m at 1 November 2022. In March 23 BPG launched Pearl Diver. Pearl Diver gives customers information (40+ categories) about who visits their website. (They say 98% of website visitors leave without engaging). Customers use that information for sales leads. Pearl Diver combines third party date (such as IP addresses) with data accumulated over more than 10 yrs from BPG’s email interactions. I think Pearl Diver has a bit of a unique angle in combining data on website visits with email interactions. Otherwise, visitor tracking is a pretty competitive business and their strategy is to compete initially on price and then add features. A significant feature added later last year was Flows, a filter that allows customers to prioritise the leads generated by likelihood of closure. They said in the November update that churn was reduced from 3.8% in August to 3.3% in September, partly due to Flows.
