All Blacks Sevens will face Samoa in the quarter-finals of the Australian leg of the World Series, after falling 17-14 to South Africa in their final pool match in Sydney on Saturday.
The defeat means the South Africans leapfrog New Zealand to finish first in Pool B.
The Kiwis opened the scoring through Joe Webber in the fifth minute, before Shilton van Wyk leveled the scores in added time to send the teams into the break locked up at 7-7.
The New Zealanders regained the lead courtesy of a pinpoint crossfield kick by Webber for Roderick Solo, who dotted down under the crossbar.
Zain David's try saw the scores deadlocked at 14 apiece, before the Blitz Boks converted a penalty right in front of the posts in the dying seconds to steal victory.
All Blacks Sevens' quarter-final against Samoa kicks off at 9:37pm, Saturday.
Earlier, the men in black blew past Kenya 33-0 to in their first game on day two.
The Kiwis ran in three first-half tries - including two in as many minutes to Akuila Rokolisoa and Sione Molia - at Sydney to take a 19-0 lead into the interval.
Second-half tries to Roderick Solo and Lewis Ormond completed the rout, lifting them above South Africa to the top of Pool B and booking their place in the quarter-finals.
The result comes after Friday's thumping 45-7 victory over Uruguay, when Payton Spencer - son of former All Blacks star Carlos Spencer - stole the show with a try-double.
