Blackline, Inc. · NASDAQ:BL
Blackline — Q3 2024 Earnings Presentation
25 slides from Blackline's earnings presentation, Nov 7, 2024
Slide 1: BlackLine Investor Presentation 3Q'24
BlackLine Investor Presentation | 3Q’24 As of November 7th, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance of BlackLine, Inc. (“BlackLine” or the “Company”), the calculation of certain key financial and operating metri
Slide 3: Market Leader with Large & Underpenetrated TAM
Market Leader with Large & Underpenetrated WHO WE ARE $39B TAM Champions of strategic accounting and finance transformation OUR WINNING ASPIRATION To inspire, power, and guide $$$ digital finance transformation Compelling Durable Business Model with Investment Land & Expand in Profitable Growth Mode
Slide 4: BlackLine's Market: The Office of the CFO
BlackLine’s Market: The Office of the CFO Internal External Invoice-to-Cash Reporting Reporting Intercompany Consolidation Financial Planning Financial Close Financial Data By being positioned upstream within the Office of the CFO, BlackLine is uniquely able to ensure comprehensive control, enhanced
Slide 5: Financial Systems Environments are Highly Complex
Financial Systems Environments are Highly Complex Vendor Data Market Intel Data Commissions Mgmt. System Expense Mgmt. System Contract Mgmt. System CRM Payroll Accounts Revenue System (US) Payable Mgmt. System ERP A Payroll System (Intl.) Customer Indirect Tax Employee Data ERP B ERP C Mgmt. System
Slide 6: Market Leader with Large & Underpenetrated TAM
Market Leader with Large & Underpenetrated TAM $39B+ $18.5B Financial Close Market 1 $10B Invoice-to-Cash Market 2 $11B Intercompany Financial Management Market 3 Comprised of >200,000 Target Customers $640M BlackLine LTM Revenue Across 4,400+ Customers 4 Note: Excludes consolidation TAM. 1 Source:
Slide 7: Strength Across Geographies, Sectors & Sizes
Strength Across Geographies, Sectors & Sizes CONSUMER AND RETAIL TECHNOLOGY INDUSTRIAL AND ENERGY HEALTHCARE SERVICES FINANCIAL SERVICES 7
Slide 8: Building an Industry Leading Automation Platform
Building an Industry Leading Automation Platform BlackLine is closer than ever before to realizing its plan to become a platform financial operations solution provider BlackLine BlackLine BlackLine 1.0 2.0 3.0 Single-Solution Multi-Solution Platform Financial Close Management Financial Close Managem
Slide 9: A Platform for the Future
A Platform for the Future BlackLine’s platform drives modern accounting & optimizes financial operations BlackLine’s Financial Operations Management Platform: Unify. Orchestrate. Automate. BlackLine Accounting Studio Embedded Intelligent Automation Financial Close Consolidation & Intercompany Invoic
Slide 10: Our Go-To-Market & Customer Strategy
Our Go-To-Market & Customer Strategy Enterprise Mid-Market Account Expansion >$750M Annual Revenue $100M-750M Annual Revenue After Initial Sale BlackLine Account BlackLine Direct Sales Management Global Sales SAP Reseller through SolEx Deployment Partner Ecosystem (Channel, SIs, BPOs, ERP, Consultin
Slide 11: Proven Ability to Drive Land and Expand Platform
Proven Ability to Drive Land and Expand Platform Growth Annualized Revenue by Customer Cohort1 Cohort Multiple 2023 1.2x 2022 1.2x 2021 1.2x 2020 1.2x 2019 1.4x 2018 1.5x 2017 1.7x 2016 1.9x 2015 2.2x 2014 2.6x 2013 4.3x 2012 5.1x 1 Reflects annualized subscription and support revenue for the group
Slide 12: Expanding Within Our Customers
Expanding Within Our Customers Enterprise Consumer Retail Customer Enterprise Global Industrials Customer Current ACV of ~$540k Current ACV of ~$1.3M USERS ACV USERS ACV Higher ASPs of Strategic Strategic Solutions enable 250 Solutions enable significant ACV $600 1,000 significant ACV expansion $1,5
Slide 13: Extending the Competitive Moat Fuels Growth
Extending the Competitive Moat Fuels Growth Indispensable Platform for the Office of the CFO Indispensable • Expanded functionality for the controllership Platform for the • SaaS-based platform Office of the CFO • End-to-end accounting automation technology • Highly scalable and configurable • ERP a
Slide 14: Numerous Levers to Drive Sustained Growth
Numerous Levers to Drive Sustained Growth Functional Adjacencies 5 Expand to relevant adjacencies through innovation & strategic M&A International Expansion 4 Grow existing footprint and leverage partners for ROW distribution 3 Partner Ecosystem Deepen and extend partner relationships 2 Customer Exp
Slide 15: 3Q'24 Financial Highlights
3Q’24 Financial Highlights 4,400+ Customers 10% Revenue Growth $638M Total ARR1 30% FCF Margin2 95% SaaS recurring revenue 10% YoY increase $49M of FCF generated $ $$$ $1.6k+ 79% $858M 105% ARPU3 Gross Margin2 RPO Net Revenue Retention On our 397,000+ user base Highly-profitable business model 12% Y
Slide 16: Highly Visible Subscription Growth Model
Highly Visible Subscription Growth Model Total Revenue Subscription & Support Revenue $M $M $605 $640 $556 12%1 $491 Y/Y $590 11%1 Growth Y/Y $399 Growth $329 $523 $426 2020 2021 2022 2023 LTM 3Q24 $352 Services Revenue $34 $34 $M $32 $27 (2%)1 $23 Y/Y Growth 2020 2021 2022 2023 LTM 3Q24 2020 2021 2
Slide 17: Expanding our High-Quality Customer & User Base
Expanding our High-Quality Customer & User Base Customers Users ‘000s 397 387 382 367 4,398 4,368 4,433 4,188 328 3,825 292 3,433 2020 2021 2022 2023 3Q23 3Q24 2020 2021 2022 2023 3Q23 3Q24 17
Slide 18: Continuously Growing Our Customer Wallet Share
Continuously Growing Our Customer Wallet Share 591 customers with an ARR1 of $250k+ 70 $1M+ 64 58% 48 36 CAGR in customers 27 spending $1M or more $250k+ 24% 14 521 7 485 429 6 367 295 2 251 203 CAGR in customers 162 112 spending $250K or more 2016 2017 2018 2019 2020 2021 2022 2023 3Q24 18 1ARR ref
Slide 19: Demonstrated Profitability
Demonstrated Profitability Non-GAAP Operating Income Margin1 Non-GAAP Net Income Margin1 27% 25% 23% 17% 13% 12% 9% 9% 9% 6% 2020 2021 2022 2023 3Q24 2020 2021 2022 2023 3Q24 19 1 See appendix for GAAP financial measures and reconciliations.
Slide 20: Sustained Cash Flow Generation
Sustained Cash Flow Generation Free Cash Flow Margin Free Cash Flow $M $163 30% 94%1 Y/Y Growth $99 17% 13% $56 10% $35 5% $26 2020 2021 2022 2023 3Q24 2020 2021 2022 2023 LTM 3Q24 20 Note: Free cash flow defined as cash flows from operating activities less capex. 1 LTM growth as of September 30, 20
Slide 21: Target Model Framework
Target Model Framework Total Revenue Growth Rate Non-GAAP Operating Income Margin 23% 26%-30% 21% 20% 13%-16% 17% 13% 11% 9% 6% 2021 2022 2023 YTD 2024 Target 2021 2022 2023 YTD 2024 Target 21 2021 is under ASC 606. Note: Target Model Framework contemplates a forward-looking 3 to 5-year time horizon
Slide 22: Appendix
Appendix 22
Slide 23: Non-GAAP Reconciliations, Non-GAAP Gross Profit and Free Cash Flow
NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT AND FREE CASH FLOW ($ IN 000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2019 2020 2021 2022 2023 Non-GAAP Revenues GAAP revenues $120,236 $128,477 $134,268 $139,957 $138,984 $144,574 $150,708 $155,730 $15
Slide 24: Non-GAAP Reconciliations, Non-GAAP Operating Income and Net Income
NON-GAAP RECONCILIATIONS, NON-GAAP OPERATING INCOME AND NON-GAAP NET INCOME ($000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2019 2020 2021 2022 2023 Non-GAAP Income from Operations GAAP income (loss) from operations ($25,364) ($12,693) ($21,419) $3,27
Slide 25: Non-GAAP Reconciliations, Non-GAAP S&M, R&D, G&A
NON-GAAP RECONCILIATIONS, NON-GAAP S&M, NON-GAAP R&D, NON-GAAP G&A ($000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2019 2020 2021 2022 2023 GAAP Sales and Marketing Expense $60,027 $66,000 $64,540 $66,295 $61,931 $62,749 $61,576 $56,898 $61,111 $60,24