Blackline, Inc. · NASDAQ:BL
Blackline — Q4 2023 Earnings Presentation
25 slides from Blackline's earnings presentation, Feb 13, 2024
Slide 1: BlackLine Investor Presentation 4Q'23
BlackLine Investor Presentation | 4Q’23 As of February 13th, 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 & Unpenetrated 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 Durable Business Model with Investment Land & Expand in Profitable Growth Model 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 Tax, Audit & FP&A Compliance GL Financial Close AR/AP Accounting Management Treasury Operations Corporate Development Forecasting Budgeting Tax, Regulatory Risk Billing Financial Consolidation & Compliance Management Repo
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 Invoice-to-Cash Market 2 $11B Intercompany Financial Management 3 Comprised of >200,000 Target Customers $590M BlackLine LTM Revenue Comprised of 4,300+ Customers 4 Note: Excludes consolidation TAM. 1 Source: F
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-Solution Multi-Solution Platform Financial Close Management Financial Close Managem
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 Invoice-to-Cash Intercompany Smart Close Transaction Financial Matching Manage
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: 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 1.1x 2022 1.2x 2021 1.3x 2020 1.2x 2019 1.4x 2018 1.5x 2017 1.7x 2016 1.9x 2015 2.1x 2014 2.5x 2013 4.2x 2012 5.0x 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 ~$350k Current ACV of ~$1.1M USERS ACV USERS ACV Higher ASPs of Strategic Strategic products enable 250 Products enable significant ACV $500 1,000 significant ACV expansion $1,500
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 Officer of the • End-to-end accounting automation technology CFO • Highly scalable and configurable • ERP
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 Extend and strengthen partner relationships 2 Customer
Slide 15: 4Q'23 Financial Highlights
4Q’23 Financial Highlights 4,300+ Customers 11% Revenue Growth $603M Total ARR1 23% FCF Margin2 In 130+ countries 94% SaaS recurring revenue 13% YoY increase $35M of FCF generated $ $$$ $1.5k 80% $843M 106% ARPU3 Gross Margin2 RPO Net Revenue Retention On our 386,000+ user base Highly-profitable bus
Slide 16: Highly Visible Subscription Growth Model
Highly Visible Subscription Growth Model Total Revenue Subscription & Support Revenue $M $M $556 $590 $491 13%1 13%1 $399 Y/Y Growth Y/Y $523 Growth $329 $272 $426 2019 2020 2021 2022 2023 $352 Services Revenue $289 $34 $M $32 $27 9%1 $23 Y/Y Growth $17 2019 2020 2021 2022 2023 2019 2020 2021 2022 2
Slide 17: Consistent Customer and User Growth
Consistent Customer and User Growth Customers Users ‘000s 387 367 6%1 Y/Y 4,398 Growth 328 4,188 5%1 Y/Y 3,825 Growth 292 3,433 268 3,024 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 17
Slide 18: Continuously Growing Our Customer Wallet Share
Continuously Growing Our Customer Wallet Share 549 customers with an ARR1 of $250k+ 64 $1M+ 64% 48 36 27 CAGR in customers spending $1M or more 14 $250k+ 25% 485 7 429 6 367 295 2 251 203 162 CAGR in customers 112 spending $250K or more 2016 2017 2018 2019 2020 2021 2022 2023 18 1ARR refers to annua
Slide 19: Demonstrated Profitability
Demonstrated Profitability Non-GAAP Net Income Margin1 Non-GAAP Operating Income Margin 25% 17% 13% 12% 9% 9% 9% 8% 6% 6% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 19 1 See appendix for GAAP financial measures and reconciliations. 2019 values have been adjusted for the non-cash, income tax r
Slide 20: Sustained Cash Flow Generation
Sustained Cash Flow Generation Free Cash Flow Margin Free Cash Flow $M 17% $99 13% 10% $56 7% $35 5% $26 $20 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 20 Note: Free cash flow defined as cash flows from operating activities less capex.
Slide 21: Medium-Term Targets & Long-Term Target Model
Medium-Term Targets & Long-Term Target Model Metric 2020 2021 2022 2023 MT1 Target LT Model Primary Drivers Customer expansion, Total Revenue Growth 22% 21% 23% 13% 20% - 25% upsell/cross-sell, new logo growth Completion of cloud- Gross Margin2 83% 80% 79% 79% 80% - 82% 83%+ transition, scaled expan
Slide 22: Appendix
Appendix 22
Slide 23: Non-GAAP Reconciliations, Non-GAAP Gross Profit and Free Cash Flow
NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT AND FREE CASH FLOW ($ IN 000’S) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2019 2020 2021 2022 2023 Non-GAAP Revenues GAAP Revenues $98,856 $102,122 $109,402 $115,326 $120,236 $128,477 $134,268 $139,
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 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2019 2020 2021 2022 2023 Non-GAAP Income from Operations GAAP Income (Loss) from Operations ($18,705) ($9,672) $5,951 (
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 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2019 2020 2021 2022 2023 GAAP Sales and Marketing Expense $48,429 $49,182 $48,799 $56,210 $60,027 $66,000 $64,540 $66,295 $61,93