Blackline, Inc. · NASDAQ:BL
Blackline — Investor Day (March 2021)
105 slides from Blackline's investor day presentation, Mar 9, 2021
Slide 1: BlackLine Investor Day
BlackLine Investor Day March 9, 2021
Slide 2: Agenda
Agenda 1 Introduction Alexandra Geller, VP of IR 2 BlackLine Overview Marc Huffman, CEO 3 Product Strategy Pete Hirsch, CTO 4 BlackLine Accounting Cloud Demo 5 10-Min Break 6 Go to Market Strategy Mark Woodhams, CRO 7 Partner Ecosystem Mel Zeledon, SVP Channels & Alliances 8 Accounts Receivable Auto
Slide 3: 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 4: BlackLine Overview
March 2021 BlackLine Overview Marc Huffman Chief Executive Officer
Slide 5: Built for Sustainability
50 500 3,400+ 60% Built for Sustainability 46% Customers $50M in R&D YoY in 130+ countries 290,000+ 1,325+ Gartner Leader 4 Years Running Users Employees Customers’ Choice 2020 Gartner Peer Insights 2.67x Average ROI Nucleus Research
Slide 6: BlackLine leads the market
BlackLine leads the market 2016 2017 2018 2019 2020 Leader in Leader in Leader in Leader in Customer Finance CPM Cloud Finance CPM Cloud Financial Close Cloud Financial Close Choice Award
Slide 7: The Controller's World
The Controller’s World Corporate Controller GL PAYROLL AP AR BILLINGS REPORTING REGULATORY COMPLIANCE Large Teams Wide Range of Systems
Slide 8: The Financial Close is Chaos. On a Deadline.
The Financial Close is Chaos. On a Deadline. 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 Phon
Slide 9: Traditional manual accounting processes are not sustainable.
Traditional manual accounting processes are not sustainable.
Slide 10: The Benefits of Modern Accounting
The Benefits of Modern Accounting Unified. Automated. Continuous. Integrate systems and data Reduce busy work by automating the ordinary Execute accounting as it happens Standardize your processes Free accountants to analyze the extra-ordinary Deliver real-time information and analysis Unlock global
Slide 11: 2.77x ROI
2.77x ROI BlackLine’s solutions generated $2.77 for every dollar a customer invested in its technology Nucleus Research, December 2020. Analyzed the costs and benefits of six BlackLine ROI case studies ranging from April 2018 – September 2020.
Slide 12: The Back Office has Long Been an Area of Underinvestment
The Back Office has Long Been an Area of Underinvestment 2% 98% OF MARKET OF MARKET EARLY ADOPTERS Defensive Process Mainstream Adoption of Financial Close & AR Automation Companies who Improvement experienced a material Companies who are weakness or looking to improve accounting issue their finance
Slide 13: The Back Office has Long Been an Area of Underinvestment
The Back Office has Long Been an Area of Underinvestment The pandemic has accelerated the global economy’s shift to modern software and put a spotlight on the back office 2% 98% OF MARKET OF MARKET EARLY ADOPTERS COVID AS A CATALYST Defensive Process Mainstream Adoption of Financial Close & AR Autom
Slide 14: Key Initiatives
Key Initiatives Go To Market Execution Customer Success R&D Investment
Slide 15: Building the Most Indispensable Platform for the Controllership
Building the Most Indispensable Platform for the Controllership Product Platform Enhancements Adjacencies Modernization Investing development resources Enabling end-to-end optimization New platform services and to rapidly advance platform and automation of new scalability to support growing function
Slide 16: Large & Underpenetrated Addressable Market
Large & Underpenetrated Addressable Market $28B + $18.5B financial close market 1 $10B accounts receivable market 2 comprised of 165,000 target customers $352M BlackLine LTM revenue comprised of ~3,400 customers 3 1 Source: Frost and Sullivan/2018 TAM for Core Products. Assumes 165,000 target custom
Slide 17: Strong & Passionate Management Team
Strong & Passionate Management Team Mark Partin Mark Woodhams Marc Huffman Chief Financial Officer Chief Revenue Officer Chief Executive Officer & Board Member Pete Hirsch Tammy Coley Lisa Schrieber Chief Technology Officer Chief Transformation Chief Customer Officer Officer Max Solonski Karole Morg
Slide 18: Product Strategy
March 2021 Product Strategy Pete Hirsch Chief Technology Officer
Slide 19: A Technology Foundation for the World's Largest Enterprises
A Technology Foundation for the World’s Largest Enterprises SaaS One 99.99%+ Cloud Architecture Version for all Customers Uptime Availability Secure 10B 232M Highest ISO, SOC Certifications Transactions Loaded Journal Lines Processed
Slide 20: Product Vision – The Most Indispensable Platform for the Controllership
Product Vision – The Most Indispensable Platform for the Controllership CRM Payroll Systems Specialty Subledgers Modern Accounting Platform Tax System Human Resource Treasury System Information System ERP 1 ERP 2 … ERP n Billing & Procurement Invoicing Systems Inverting the ERP-Centric Ecosystem
Slide 21: Investing to Drive the Future of Accounting
Investing to Drive the Future of Accounting Google Open Functional User Solution Team Cloud Platform Innovation Experience Expansion
Slide 22: Accelerating Product Investment
Accelerating Product Investment 37 44% Organic R&D 152 162 234 Rimilia R&D Organic R&D Capacity Growth 2018 2019 2020 Year-End R&D Headcount
Slide 23: Accelerated Innovation by 125% (2x+ YOY)
Accelerated Innovation by 125% (2x+ YOY) Story Points (Innovation) Q1 Release Q2 Release Q3 Release Q4 Release (short release*) * The Q4 Release has a 2-month release cycle rather than a 3-month release cycle due to year-end close, so it only has 2/3rds the innovation capacity of Q2 and Q3
Slide 24: Major Deliveries in 2020
Major Deliveries in 2020 Open Platform Account Analysis MVP New UX Preview Developer Portal Transaction Classification New UI design APIs Journal Analysis Accessibility 3x Scalability for Journals Enhanced International Support First GCP Customers Performance New support for Japanese SOC Certificati
Slide 25: Top Strategic Themes for 2021
Top Strategic Themes for 2021 Customer Value Platform Modernization Operational and ARR Growth and Scale Excellence • AR products and integration • Building out the next layer of • Quality the platform • Delivering and building on • Operational controls Account Analysis • Massively scalable data • S
Slide 26: Extending the Reconciliation Automation Suite
Extending the Reconciliation Automation Suite How the full Reconciliation Automation suite works together for high-volume, high-risk accounts Transaction Matching High volume automated transaction processing to identify matched and unmatched supporting items. Transaction Matching Account Reconciliat
Slide 27: Evolution of our Reconciliation Automation Suite
Evolution of our Reconciliation Automation Suite With Account Analysis, BlackLine continues to build on its pioneering innovation in reconciliation automation 1 2 Transaction Matching Account Analysis Validates the general ledger balance Substantiates account balances via rules-based automated match
Slide 28: Finance Automation
Finance Automation Finance Automation connects and automates all financial close processes with native, intelligent RPA - leveraging BlackLine solutions, customer ERPs and other 3rd party applications, with the goal of making it a Touchless Close. Orchestration and Workflow Reports ERP Data Touchles
Slide 29: AR Automation
AR Automation • Enhance functionality and scalability for Cash Application • Integrate with Financial Close suite for greater cash management • Bring AR Intelligence to market Sneak Preview of AR Intelligence
Slide 30: From 10B transactions to 100B!
Modernizing the Platform From 10B transactions to 100B! It all begins with GCP and customer migration But GCP is just the first step! Built out of new platform services: • Big Data transformation service • Text search for matching, analysis, UI typeahead • Data platform, analytics, predictive, ML •
Slide 31: Go To Market Strategy
March 2021 Go To Market Strategy Mark Woodhams Chief Revenue Officer
Slide 32: Strength Across Geographies, Sectors & Sizes
Strength Across Geographies, Sectors & Sizes CONSUMER AND RETAIL TECHNOLOGY INDUSTRIAL AND ENERGY HEALTHCARE SERVICES FINANCIAL SERVICES
Slide 33: Indispensable Platform for the Controller
Indispensable Platform for the Controller Our goal is to be a strategic partner that leads our customers on their accounting transformation journeys Integrated into Business Process STRATEGIC Ideas on How to Improve COLLABORATIVE Best Product PREFERRED Reasonably Priced TRANSACTIONAL
Slide 34: Our Go To Market & Customer Strategy
Our Go To Market & Customer Strategy ENTERPRISE MID-MARKET ACCOUNT EXPANSION >$750M ANNUAL REVENUE $50M-750M ANNUAL REVENUE ~1 YEAR AFTER INITIAL SALE BlackLine Direct Sales BlackLine Account Management Global Sales SAP Reseller through SolEx Deployment Partner Ecosystem (Channel, SIs, BPOs, ERP, Co
Slide 35: 2021 GTM Themes
2021 GTM Themes 1 2 3 AMO $ Global Account New Business Accounts Management Focus Receivable Automation
Slide 36: Customer Expansion in Action
Customer Expansion in Action Mid-Market Customer Enterprise Customer Financial Services Company Current ARR of ~$170K Global Industrials Company Current ARR of ~$900K 180 $175,000 900 $900,000 160 800 $150,000 $750,000 140 700 $125,000 120 600 $600,000 USERS USERS 100 $100,000 500 $450,000 80 $75,00
Slide 37: Fortune 100 Apparel Brand >$1M ARR
Fortune 100 Apparel Brand >$1M ARR First Purchase Purchased Close Process Management for Corporate ARR Accounting to evaluate solution FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Slide 38: Fortune 100 Apparel Brand >$1M ARR
Fortune 100 Apparel Brand >$1M ARR Expansion of Use Additional Matching Transactions based upon expanded use of the platform ARR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Slide 39: Fortune 100 Apparel Brand >$1M ARR
Fortune 100 Apparel Brand >$1M ARR Room to Grow Global Transformation Roll-out of solution globally and purchase of additional products ARR FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Slide 40: Continued Growth in Large Customers
Continued Growth in Large Customers More than 320 customers with an ARR1 of $250K+ 27 14 35% 7 6 295 2 251 CAGR in customers 203 1 spending $250K or more 162 112 72 2015 2016 2017 2018 2019 2020 $250K or more $1M or more 1ARR refers to annual subscription and support revenue.
Slide 41: Customer & User Growth
Customer & User Growth 60% of the Fortune 50 350,000 3,500 46% of the Fortune 500 300,000 3,000 250,000 2,500 200,000 2,000 CUSTOMERS USERS 150,000 1,500 100,000 1,000 50,000 500 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Customers Users 2017 – 2020 includes adopt
Slide 42: BlackLine's TAM by Region
BlackLine’s TAM by Region $5B EMEA $12B NORTH AMERICA $9.5B APAC $28B+ $1.5B Global TAM REST OF THE WORLD Source: Frost and Sullivan/2018 TAM for Core Products
Slide 43: MAP Customer Journey Approach
MAP Customer Journey Approach 200+ MAP continues to drive volume and value for our customers in the Mid-Market MAP New Logos Expansion & Nearly 50% of new Implementation & 3 logo volume in 2020 2 Optimization Finance Roll-out 4 Transformation 2x Shorter Sales Cycles Driving faster sales cycles in th
Slide 44: The Collaborative Accounting Experience
The Collaborative Accounting Experience A community of expertise dedicated to driving modern accounting Guided. Connected. Committed. Clear Path to Modern Accounting Global Community of Expertise Pioneer & Leader in Financial Close Leading practices guide the customer journey 75+ Alliances Partners
Slide 45: Leveraging the BlackLine Partner Ecosystem
Leveraging the BlackLine Partner Ecosystem STRATEGIC GLOBAL REGIONAL SOFTWARE & BPO SOLUTION RESELLER ALLIANCES CONSULTING CLOUD PARTNERS PROVIDERS 45 a sample of BlackLine’s partner ecosystem. Represents
Slide 46: How We Continue to Win
How We Continue to Win BlackLine helps customers unify their data and processes, automate repetitive work, and drive accountability through visibility • Customer centricity • End-to-end accounting automation technology • Unified customer experience • Strong partner ecosystem • Happy, referenceable c
Slide 47: GTM Takeaways
GTM Takeaways 1 2 3 4 Experienced GTM Recognized Market Leader Continued Investment Commitment to Team in Product Innovation Customer Success
Slide 48: Partner Ecosystem
March 2021 Partner Ecosystem Mel Zeledon SVP Channels & Alliances
Slide 49: Mel Zeledon
Mel Zeledon SVP Channels & Alliances PRIOR EXPERIENCE
Slide 50: Organization
Organization SVP Channels & Alliances Global Strategic SAP Center of Software and Regional Alliances Channel Alliances Excellence Cloud Alliances GLOBAL STRATEGIC REGIONAL SOLUTION BPO SOFTWARE & ALLIANCES RESELLER CONSULTING PROVIDERS PARTNERS CLOUD Partner Enablement and Programs Partner Success
Slide 51: Channels & Alliances Mission
CHANNELS & ALLIANCES MISSION Accelerate and scale BlackLine’s business by building, enabling and leveraging a high-quality partner ecosystem that drives sustained growth and customer success.
Slide 52: Comprehensive Partner Enablement Program
Comprehensive Partner Enablement Program Partner enablement initiative will facilitate many partner plays 1 2 3 Self-Sufficient Sustained Partner Accelerate Partner Partners Quality Investment
Slide 53: BlackLine's Partner Ecosystem
BlackLine’s Partner Ecosystem Channel (Resellers / Solution Providers / BPO) BlackLine Services Alliances Source, Sell, Co-Sell, Implement, CSM Source, Influence, Co-Sell and Implement Strategic Reseller Partner Global Consulting Strategic Alliances BPO Partners Emerging > $10B Markets Solution Prov
Slide 54: BlackLine + SAP
BlackLine + SAP BlackLine is well positioned to be front and center with SAP SAP’s Cloud Focus RISE Initiative S/4HANA Migration
Slide 55: BlackLine's SAP TAM with SolEx
BlackLine’s SAP TAM with SolEx ~3,500 EMEA ~1,300 North America ~700 APJ ~10,000 SAP Customers > $1B in ~4,500 Revenue Rest of World *No Direct BL Presence Source: Figures provided by SAP
Slide 56: Global SolEx Enablement Efforts
Global SolEx Enablement Efforts 850+ SAP Enabled in EMEA 900+ L1 62 Events 733 Attendees L2 16 Events 174 Attendees L3 3 Events 22 Attendees SAP Enabled in North America L1 25 Events 399 Attendees L2 35 Events 421 Attendees 1,400+ SAP Enabled in APJ L1 L2 L3 L1 L2 L3 3,800+ 3 Events 6 Events 11 Even
Slide 57: BlackLine's Message Became SAP's
BlackLine’s Message Became SAP’s SAP’s 8-Part Blog Series About BlackLine
Slide 58: SolEx Customers
BlackLine SolEx Customers Represent the Largest Companies in the World ~100 • 1 of the Fortune 3 • 3 of the Fortune 15 • 5 of the Fortune 100 • 12 of the Fortune 1000 SolEx Customers • Among growing number of large customers across multiple industries As of 12/31/20
Slide 59: SolEx Partnership Highlights
SolEx 2021 Partnership Initiatives Highlights • Starting third year of SolEx • Industry Positioning partnership • RISE with SAP alignment • High Growth, engagement and • BlackLine field SolEx certification and success rate engagement
Slide 60: Power of 3
Power of 3 Leverage strategic alliances to maximize deal execution and customer success Power of 3 Strategic Consulting Alliances:
Slide 61: Global Consulting Alliances
Global Consulting Alliances Our global consulting partners are key to our success in the enterprise Market Validation C-Suite Access & Influence Complex Deployments
Slide 62: Metrics for Success
Metrics for Success How we determine success with our global consulting partners 1 2 3 Influence & Profitable Growth in Customer Success Recommendation Their BlackLine in All Customer for Top Logo Practices Deployments Pursuits
Slide 63: Global Consulting Alliance Partner quote
“2020 was a challenging year for many companies and CFOs in particular. Many of those challenges continue despite increased confidence in day-to-day operations. As we move into 2021 with brighter days on the horizon, leading companies are accelerating their investments in cloud-based solutions like
Slide 64: Global Consulting Alliance Partner quote
‘“Technology limitations have been central to many of the barriers that F&A teams have faced during the pandemic. Just as companies have recognized that technology is necessary to support virtual meetings and conferences, they should also recognize the value in implementing technology that allows F&
Slide 65: Global Accounts Receivable
March 2021 Global Accounts Receivable Kevin Kimber Managing Director – Global Accounts Receivable
Slide 66: Kevin Kimber
Kevin Kimber Managing Director – Global Accounts Receivable PRIOR EXPERIENCE
Slide 67: Cash is Held Hostage By Manual AR Processes
Cash is Held Hostage By Manual AR Processes managing remits cash flow manual workarounds manual reconciliation unallocated cash remote working credit line disengaged employee experience ERP integration remittances waiting for remittances Accounts Receivable days sales outstanding rework (“AR”) lockb
Slide 68: Manual AR Processes Are Not Sustainable
Manual AR Processes Are Not Sustainable $ Time Risk Cost Morale Manual payment processes $1.5 trillion dollars of working Bottom performers spend 34% of productivity is lost consume up to 50% of cash capital is held hostage on global 1,500% more per invoice for actively disengaged application effort
Slide 69: The BlackLine Accounting Cloud
Financial Close Accounting Accounts Receivable Management Automation Automation Drive accountability through visibility. Reporting & Dashboards Build accuracy, control, and consistency into every process. Financial Controls from Order to Cash to the Financial Close & Compliance Automate the repetiti
Slide 70: Intelligent Automation with BlackLine Cash Application
Intelligent Automation with BlackLine Cash Application Removes manual effort and provides a streamlined, efficient, and automated process Automation with No Action Required Customer Any Bank Payments Any Bank File BlackLine Cash BlackLine Financial Application Close Automation Any ERP Customer User
Slide 71: Large & Underpenetrated Addressable AR Market
Large & Underpenetrated Addressable AR Market The Accounts Receivable TAM • AR is one of the largest assets on a business’s balance sheet, but most corporations continue to process transactions manually • Organizations operate significantly in $10B+ arrears in customer cash processing and with an ev
Slide 72: Accounts Receivable Go To Market Initiatives
Accounts Receivable Go To Market Initiatives Sell Into the BlackLine Invest in the AR Team to Leverage the Customer Base & New Logo Support AR Automation BlackLine Partner Acquisition Growth Ecosystem
Slide 73: BlackLine Customer Base
BlackLine Customer Base Focused Efforts in Key Territories and Sectors Regional Focus High Priority Accounts Partner Relationships Drive globally with particular focus on North Focus on high priority accounts in ‘Sweet Leverage existing partner relationships and America and EMEA BlackLine customers
Slide 74: Global AR Support & Resources
Global AR Support & Resources EXISTING BLACKLINE ENTERPRISE MID-MARKET CUSTOMER BASE $750M+ ANNUAL REVENUE $50M - 750M ANNUAL REVENUE UPSELL AND CROSS SELL OPPORTUNITIES Global Sales AR Specialist Overlay Sales Reps Deployment Supporting Global BlackLine Sales Teams Global Digital Value Professional
Slide 75: Leveraging the BlackLine Partner Ecosystem
Leveraging the BlackLine Partner Ecosystem STRATEGIC GLOBAL REGIONAL SOFTWARE & BPO SOLUTION RESELLER ALLIANCES CONSULTING CLOUD PARTNERS PROVIDERS 75 Represents a sample of BlackLine’s partner ecosystem.
Slide 76: Cash Application Has Pricing Power
Cash Application Has Pricing Power Pricing is based on the number of payments being automated throughout the AR platform $1M Cash Application ARR Range Considerable room to grow with even our largest customers $50k Payment Volume
Slide 77: Customer Success by the Numbers
Customer Success by the Numbers 99% up to 99% reduction 85% reduction in 95% of cash applied 5-10 day reduction in DSO in unapplied cash manual activity upon receipt (Days Sales Outstanding)
Slide 78: Case Study: Customer Efficiency
Case Study: Customer Efficiency BUSINESS GOALS CUSTOMER OVERVIEW REAL RESULTS Increase Efficiency & Reduce Costs 97% Industry Consumer Services Company Size 180,000 Employees Full-Payment Processing Rate (FPPR) Region BENEFITS WITH BLACKLINE Global “Cash Application has allowed the • FTE – 16 to 2.5
Slide 79: Case Study: Customer Expansion
Case Study: Customer Expansion ($000s) CUSTOMER OVERVIEW $1,200 ARR Expansion Potential $1,100 Industry Healthcare $1,000 Company Size 80,000 Employees $800 $700 Region North America $600 Customer Since June 2016 $389 $400 BlackLine Solutions Cash Application ARR Expansion $200 $154 $125 Planned exp
Slide 80: Case Study: Closing the Books Faster
Case Study: Closing the Books Faster CUSTOMER OVERVIEW Industry 7x Faster 80% Happier Customer Base Construction Materials Applied Cash is seven reduction of experienced huge times faster, now maximum levels of improvements in accuracy of Company Size completed daily unapplied funds cash application
Slide 81: AR Automation Solutions
AR Automation Solutions Cash AR Application Intelligence Generally Available Now Expected Availability in Q2’21
Slide 82: Financial Summary
March 2021 Financial Summary Mark Partin Chief Financial Officer
Slide 83: Controller Pains / CFO Pains
Controller Pains Limited Lack of Risk of Volumes of Talent Visibility Ownership & Control Inaccuracy Unapplied Cash Retention Limited Real-Time Inefficiencies, Less Material Concerns Over Overworked Team & Data Analysis & Productivity & More Weakness Liquidity Low Morale Insight Risk CFO Pains
Slide 84: Align to the Strategic Needs of the C-Suite
Align to the Strategic Needs of the C-Suite ACCOUNTING Close the Books Optimize Business & Manage Risk Processes
Slide 85: Key Messages
Key Messages Investment to Large & Compelling Durable Business Model Drive Long-Term Underpenetrated TAM Land and Expand Model Profitable Growth $28Bn greenfield market 3,400+ quality customers with High growth, high margin Ability to leverage high gross opportunity with strong secular high renewal
Slide 86: Consistent Customer and User Growth
Consistent Customer and User Growth Customers Users ‘000s 292 3,433 268 3,024 223 2,631 1,611 197 2,208 1,388 167 1,758 1,149 923 680 1,636 1,822 1,285 1,482 1,078 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Enterprise Mid-Market 86
Slide 87: Large & Underpenetrated Addressable Market
Large & Underpenetrated Addressable Market Enterprise Mid-Market $12B+ $16B+ ~2% attach2 <1% attach2 ~17,000 target Enterprise customers1 ~150,000 target Mid-Market customers1 1 Source: Frost and Sullivan/2018 TAM for Core Products. Assumes 165,000 target customers. 2 As of December 31, 2020
Slide 88: Evolution of the SAP Partnership
Evolution of the SAP Partnership Revenue from SAP Partnerships Sales from SAP Partnerships % of Total EBS Partnership SolEx Partnership 24% 24% Sales Acceleration 23% Driven by SolEx Execution First Year Ramp of 19% SolEx Partnership 16% 2016 2017 2018 2019 2020 2018 2019 2020 Revenue and sales from
Slide 89: Strong Renewal Rate Driving Overall Retention Rate
Strong Renewal Rate Driving Overall Retention Rate Dollar-Based Revenue Renewal Rate Dollar-Based Net Revenue Retention Rate 117% 113% 111% 109% 109% 104% 105% 106% 99% 103% 101% 98% 98% 98% 98% 94% 92% 93% 93% 91% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Enterprise Mid-Market Enterprise Mi
Slide 90: Compelling Land and Expand Model
Compelling Land and Expand Model Growth Annualized Revenue by Customer Cohort 1 Multiple 2020 1.1x 2019 1.3x 2018 1.3x 2017 1.6x 2016 1.7x 2015 1.8x 2014 2.3x 2013 3.6x 2012 4.2x 1Reflects annualized subscription and support revenue for the group of customers that became our customers in each respec
Slide 91: Growth in ARR Per Customer
Growth in ARR Per Customer ~$160,000 +1.6x ~$100,000 ~$45,000 +1.5x ~$30,000 2016 2020 2016 2020 Average Mid-Market ARR Per Customer Average Enterprise ARR Per Customer
Slide 92: Strategic Product Installed Base Opportunity
Strategic Product Installed Base Opportunity TRANSACTION CASH SMART INTERCOMPANY MATCHING APPLICATION CLOSE HUB Customers who are target candidates 3,400+ 3,400+ ~900 1,800+ Portion of this opportunity currently captured 23% 4% 6% 2% Incremental ARR opportunity Based on number of customers who $150M
Slide 93: Durable Operating Model
Durable Operating Model 22% FY’20 Revenue Growth1 106% FY’20 Dollar-Based Net Revenue Retention Rate 83% FY’20 Non-GAAP Gross Margin 12% FY’20 Non-GAAP Operating Margin High Growth Compelling High Gross Demonstrated Subscription Model Expansion Model Margins Operating Leverage Strong secular tailwin
Slide 94: Highly Visible Subscription Growth Model
Highly Visible Subscription Growth Model Revenue $M Non-GAAP Gross Margin $352 $329 85% 87% 87% 22% 84% 84% 82% 83% 83% Y/Y 81% 81% $289 21% Growth Y/Y $272 Growth $228 $217 $176 $167 $124 $118 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Total Revenue Subscription Revenue Subscription Gross Ma
Slide 95: Demonstrated Operating Leverage
Demonstrated Operating Leverage Non-GAAP Operating Expenses as % of Revenue Non-GAAP Net Income Margin1 91% 13% 17% 80% 80% 77% 8% 16% 17% 71% 16% 16% 15% 2% 13% 12% 1% 13% 58% 14% 51% 51% 48% 42% -13% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 S&M R&D G&A 1 2017-20 are under ASC 606. All pri
Slide 96: Strong Cash Generation
Strong Cash Generation Operating Cash Flow Free Cash Flow $M $55 $M $35 $30 $20 $16 $6 $4 ($2) ($5) ($10) 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 96 2017-20 are under ASC 606. All prior periods are under ASC 605 Standard. Free cash flow defined as cash flows from operating activities less
Slide 97: Investing For Growth
Investing For Growth Non-GAAP Expenses % of Revenue 98% 94% 94% Key Factors 88% 18% • Increased spending from 17% ~20% Google Cloud migration 17% • Continued innovation in product • Investment in Rimilia 51% integration and the AR 48% 42% ~42% automation space • Global expansion of AMO function to b
Slide 98: The COVID Impact to Calculated Billings
The COVID Impact to Calculated Billings Calculated Billings YoY Growth COVID Headwind in 35% March 26% 21% 20% 19% 10% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 98
Slide 99: Target Operating Model
Target Operating Model % of Revenue FY16 FY17 FY18 FY19 FY20 Target Model Gross Margin1 81% 81% 82% 83% 83% ~83% S&M1 58% 51% 51% 48% 42% 38% - 42% R&D1 16% 13% 12% 13% 14% 14% - 16% G&A1 17% 16% 17% 16% 15% 7% - 9% Operating Margin1 (10)% 1% 2% 6% 12% 20%+ 2017-19 are under ASC 606. All prior perio
Slide 100: Key Takeaways
Key Takeaways • BlackLine is uniquely positioned to serve the needs of the controller • Our product vision is to expand on a multi-product platform that enables share of wallet growth and increases stickiness • The pandemic has served as a significant catalyst for digital transformation in the back
Slide 101: Appendix
Appendix \ ‘% BLACKLINE
Slide 102: Non-GAAP Revenue, Non-GAAP Gross Profit, and Free Cash Flow
NON-GAAP RECONCILIATIONS AND DEFINITIONS NON-GAAP REVENUE, NON-GAAP GROSS PROFIT, AND FREE CASH FLOW ($000’S) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2016 2017 2018 2019 2020 Non-GAAP Revenues GAAP Revenues $64,129 $69,664 $74,925 $80,258 $82,598 $83,272 $90,157 $95,710 $123,
Slide 103: Non-GAAP Operating Income (Loss) and Non-GAAP Net Income (Loss)
NON-GAAP RECONCILIATIONS NON-GAAP OPERATING INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS) ($000’S) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2016 2017 2018 2019 2020 Non-GAAP Income (Loss) from Operations GAAP Loss from Operations ($9,323) ($5,978) ($7,861) ($4,737) ($7,337) ($3
Slide 104: Non-GAAP S&M, Non-GAAP R&D, Non-GAAP G&A
NON-GAAP RECONCILIATIONS NON-GAAP S&M, NON-GAAP R&D, NON-GAAP G&A ($000’S) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2016 2017 2018 2019 2020 GAAP Sales and Marketing Expense $35,848 $37,192 $41,848 $43,949 $44,785 $41,826 $42,588 $45,382 $77,810 $103,967 $128,808 $158,837 $174
Slide 105: Thank You
Thank You Y; BLACKLINE