Blackbird shares were down heavily on Tuesday after the cloud video editing platform released a disappointing set of first-half results. Revenue fell 36% during the period and EBITDA losses accelerated to £1.5m from a loss of £385k last year.
Blackbird was canned by a major client during the period which had a material impact on their revenue generation. Post-period revenue has continued to decline.
Compounding their problems, Blackbird’s costs have soared while revenue dumps meaning losses are spiralling.
The company has reacted to the poor performance by reducing headcount in sales and marketing to focus on product development.
“The recent cyclical and structural changes in the Media and Entertainment industry (M&E) have been considerable and impacted the professional Media and Entertainment part of our business, most prominently our deal with A+E Networks, which, as previously announced, was terminated at the end of June 2023,” said Ian McDonough, CEO of Blackbird.
“In anticipation of market shifts, we successfully raised money in 2021 to build a product for the Creator space. Therefore, we have reduced headcount in our UK sales and marketing team in order to maximise return on resources by investing in software developers and product specialists.”
Blackbird shares were down 32% at the time of writing.