Slide 1: BlackLine Investor Presentation 1Q'24
BlackLine Investor Presentation | 1Q’24 As of May 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: Who We Are and Investment Highlights
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 $608M BlackLine LTM Revenue Comprised of 4,400+ 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 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 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 ~$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: 1Q'24 Financial Highlights
1Q’24 Financial Highlights 4,400+ Customers 13% Revenue Growth $605M Total ARR1 28% FCF Margin2 In 130+ countries 95% SaaS recurring revenue 10% YoY increase $44M of FCF generated $ $$ $1.5k 79% $826M 105% ARPU3 Gross Margin2 RPO Net Revenue Retention On our 387,000+ user base Highly-profitable bus
Slide 16: Highly Visible Subscription Growth Model
Highly Visible Subscription Growth Model Total Revenue Subscription & Support Revenue $M $M $575 $608 $556 $590 $491 13%1 12%1 Y/Y Y/Y $399 Growth Growth $523 $329 $426 2020 2021 2022 2023 LTM 1Q24 $352 Services Revenue $34 $34 $M $32 $27 1%1 $23 Y/Y Growth 2020 2021 2022 2023 LTM 1Q24 2020 2021 202
Slide 17: Consistent Customer and User Growth
Consistent Customer and User Growth Customers Users ‘000s 387 387 367 369 4,398 4,411 4,188 4,236 328 3,825 292 3,433 2020 2021 2022 2023 1Q23 1Q24 2020 2021 2022 2023 1Q23 1Q24 17
Slide 18: Continuously Growing Our Customer Wallet Share
Continuously Growing Our Customer Wallet Share 545 customers with an ARR1 of $250k+ 64 61 60% $1M+ 48 36 27 CAGR in customers spending $1M or more 14 $250k+ 22% 485 484 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 1Q24 18 1ARR ref
Slide 19: Demonstrated Profitability
Demonstrated Profitability Non-GAAP Operating Income Margin1 Non-GAAP Net Income Margin1 25% 25% 17% 17% 13% 12% 9% 9% 9% 6% 2020 2021 2022 2023 1Q24 2020 2021 2022 2023 1Q24 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 28% $128 179%1 Y/Y Growth $99 17% 13% $56 10% $35 5% $26 2020 2021 2022 2023 1Q24 2020 2021 2022 2023 LTM 1Q24 20 Note: Free cash flow defined as cash flows from operating activities less capex. 1 LTM growth as of March 31, 2024.
Slide 21: Medium-Term Targets & Long-Term Target Model
Medium-Term Targets & Long-Term Target Model Metric 2020 2021 2022 2023 MT1 Target LT Model Primary Drivers Customer expansion, Total Revenue Growth 22% 21% 23% 13% 20% - 25% upsell/cross-sell, new logo growth Completion of cloud- Gross Margin2 83% 80% 79% 79% 80% - 82% 83%+ transition, scaled expan
Slide 22: Appendix
Appendix 22
Slide 23: Non-GAAP Reconciliations, Non-GAAP Gross Profit and Free Cash Flow
NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT AND FREE CASH FLOW ($ 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 Q1 2024 2019 2020 2021 2022 2023 Non-GAAP Revenues GAAP Revenues $98,856 $102,122 $109,402 $115,326 $120,236 $128,477 $134,2
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 Q1 2024 2019 2020 2021 2022 2023 Non-GAAP Income from Operations GAAP Income (Loss) from Operations ($18,705) ($9,672)
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 Q1 2024 2019 2020 2021 2022 2023 GAAP Sales and Marketing Expense $48,429 $49,182 $48,799 $56,210 $60,027 $66,000 $64,540 $66,29