Slide 1: BlackLine Investor Presentation 3Q'23
BlackLine Investor Presentation | 3Q’23 As of November 2nd, 2023
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 & Unpenetrated $39B TAM
Market Leader with Large & Unpenetrated WHO WE ARE $39B TAM Champions of strategic accounting and finance transformation OUR WINNING ASPIRATION To inspire, power, and guide digital finance transformation Compelling Land Durable Business Model with Investment in & Expand Model Profitable Growth 3
Slide 4: BlackLine's Market: The Office of the CFO
BlackLine’s Market: The Office of the CFO Office of the CFO The Controllership Treasury Operations Tax, Audit & Compliance General Ledger Financial Close AR/AP Accounting Management FP&A Corporate Development Cash Liability Tax, Regulatory & Risk Billing Financial Consolidation Management Management
Slide 5: Manual Accounting Processes Are Not Sustainable
Manual Accounting Processes Are Not Sustainable Controller CFO Finance Tax Marketing Statement of Cash Flows External Audit Sales Internal Audit SEC Reporting Income Statement CEO Accounts Receivable Investors People Accounts Payable Equity Balance Sheet Multiple ERPs Reporting Source Systems HRIS P
Slide 6: Market Leader with Large & Underpenetrated TAM
Market Leader with Large & Underpenetrated TAM $39B $18.5B Financial Close Market 1 + $10B Accounts Receivable Market 2 $11B Intercompany Financial Management 3 Comprised of >200,000 Target Customers $574M $473M BlackLine LTM BlackLine revenue LTM Revenue comprised Comprisedofof4,000+ 4,300+customer
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 in realizing its plan to become a platform financial operations solution provider BlackLine BlackLine BlackLine 1.0 2.0 3.0 Single-Product Multi-Product Platform Financial Close Management Financial Close Managemen
Slide 9: A Platform for the Future
A Platform for the Future BlackLine’s Financial Operations Management Platform drives modern accounting & optimizes financial operations Financial Operations Management Platform BlackLine Accounting Studio Financial Close Accounts Intercompany Smart Close Transaction Receivable Financial Matching Ma
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 Direct Sales BlackLine Account Management Global Sales SAP Reseller through SolEx Deployment Partner Ecosystem (Channel, SIs, BPOs, ERP, Consultin
Slide 11: Demonstrated Ability to Drive Land and Expand Platform
Demonstrated Ability to Drive Land and Expand Platform Growth Annualized Revenue by Customer Cohort1 Cohort Multiple 2023 1.1x 2022 1.2x 2021 1.3x 2020 1.3x 2019 1.4x 2018 1.5x 2017 1.7x 2016 1.9x 2015 2.1x 2014 2.4x 2013 4.1x 2012 4.9x 1Reflects annualized subscription and support revenue for the g
Slide 12: Expanding Within Our Customers
Expanding Within Our Customers Enterprise Consumer Retail Customer Enterprise Global Industrials Customer Current ACV of ~$350k Current ACV of ~$1.1M USERS ACV USERS ACV Higher ASPs of Strategic Products Strategic products enable 250 enable significant ACV expansion $500 1,000 significant ACV expans
Slide 13: Extending the Competitive Moat Drives Further Growth
Extending the Competitive Moat Drives Further Growth Indispensable Platform for the Office of the CFO Indispensable • Expanded functionality for the controllership Platform for the • SaaS-based platform Officer of the CFO • End-to-end accounting automation technology • Highly scalable and configurab
Slide 14: Numerous Levers to Drive Sustained Growth
Numerous Levers to Drive Sustained Growth Product Adjacencies 5 Expand to relevant adjacencies with product development & strategic M&A International Expansion 4 Grow existing footprint and leverage partners for ROW distribution 3 Partner Ecosystem Extend and strengthen partner relationships 2 Custo
Slide 15: 3Q'23 Financial Highlights
3Q’23 Financial Highlights 4,300+ Customers 12% Revenue Growth ~ $580M Total ARR1 21% FCF Margin2 In 130+ countries 94% SaaS recurring revenue 12% YoY increase $31M of FCF generated $ $$ $1.5k 80% $768M 105% ARPU3 Gross Margin2 RPO Net Revenue Retention On our 381,000+ user base Highly-profitable b
Slide 16: Highly Visible Subscription Growth Model
Highly Visible Subscription Growth Model Total Revenue Subscription & Support Revenue $M $M $539 $574 $491 15%1 15%1 $399 Y/Y $523 Y/Y Growth Growth $329 $272 $426 $352 2019 2020 2021 2022 LTM 3Q23 Services Revenue $289 $35 $M $32 $27 20%1 $23 Y/Y Growth $17 2019 2020 2021 2022 LTM 3Q23 2019 2020 20
Slide 17: Consistent Customer and User Growth
Consistent Customer and User Growth Customers Users ‘000s 382 367 355 4,368 328 4,188 4,060 3,825 292 3,433 268 3,024 2019 2020 2021 2022 3Q22 3Q23 2019 2020 2021 2022 3Q22 3Q23 17
Slide 18: Continuously Growing Our Customer Wallet Share
Continuously Growing Our Customer Wallet Share More than 525 customers with an ARR1 of $250k+ 55 63% $1M+ 48 36 27 CAGR in customers spending $1M or more 14 25% $250k+ 7 472 429 6 367 2 295 251 203 162 CAGR in customers 112 spending $250K or more 2016 2017 2018 2019 2020 2021 2022 3Q23 18 1ARR refer
Slide 19: Demonstrated Profitability & Cash Flow
Demonstrated Profitability & Cash Flow Non-GAAP Net Income Margin1 Free Cash Flow Margin 25% 21% 13% 13% 10% 9% 9% 8% 7% 5% 2019 2020 2021 2022 3Q23 2019 2020 2021 2022 3Q23 Note: Free cash flow defined as cash flows from operating activities less capex. 19 1 See appendix for GAAP financial measures
Slide 20: Medium-Term Targets & Long-Term Target Model
Medium-Term Targets & Long-Term Target Model Metric 2019 2020 2021 2022 MT1 Target LT Model Primary Drivers Customer expansion, Total Revenue Growth 27% 22% 21% 23% 20% - 25% upsell/cross-sell, new logo growth Completion of cloud-transition, Gross Margin2 83% 83% 80% 79% 80% - 82% 83%+ scaled expans
Slide 21: Appendix
Appendix \Z ‘% BLACKLINE
Slide 22: Non-GAAP Reconciliations, Non-GAAP Gross Profit and Free Cash Flow
NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT AND FREE CASH FLOW ($ IN 000’S) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 2018 2019 2020 2021 2022 Non-GAAP Revenues GAAP Revenues $98,856 $102,122 $109,402 $115,326 $120,236 $128,477 $134,268 $139,957 $138
Slide 23: 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 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 2018 2019 2020 2021 2022 Non-GAAP Income from Operations GAAP Income (Loss) from Operations ($18,705) ($9,672) $5,951 ($16,188)
Slide 24: 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 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 2018 2019 2020 2021 2022 GAAP Sales and Marketing Expense $48,429 $49,182 $48,799 $56,210 $60,027 $66,000 $64,540 $66,295 $61,931 $62,749