Slide 1: BlackLine Investor Presentation
BlackLine Investor Presentation As of November 3, 2022
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 Our Vision
Market Leader WHO WE ARE with Large & Unpenetrated TAM Champions of strategic accounting and finance transformation OUR VISION To be the indispensable platform for the office of the controller Compelling Land Durable Business & Expand Model Model with Investment in Profitable Growth 3
Slide 4: Our Market Is the Office of the Controller
Our Market Is the Office of the Controller Who is the Corporate Controller? • The Controller plays a critical role in an organization’s financial health • The Controller oversees a large team across many interconnected departments • The status quo for today’s Controllers and their teams is manual pr
Slide 5: The Office of the Controller Has Long Been an Area of Underinvestment
The Office of the Controller 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 Defensive Process Mainstream Adoption of Financial Close & AR Automation C
Slide 6: With Manual Accounting Processes That Are Not Sustainable
With Manual Accounting Processes That 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 Syst
Slide 7: And Significant Challenges That Impact the C-Suite
And Significant Challenges That Impact the C-Suite CON TR OLLE R C H A L L EN GE S 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
Slide 8: BlackLine's Financial Operations Management Platform
BlackLine’s Financial Operations Management Platform Drives Modern Accounting & Optimizes Financial Operations Account Task Reconciliations Management ERP Financial Integrity Variance Transaction Analysis Matching Subledger Maximum Automation Rules & Analysis & Busines Logic Reporting Consistent, F&
Slide 9: And Enables Strategic Accounting & Finance Transformation
And Enables Strategic Accounting & Finance Transformation Financial Close Accounts Receivable Intercompany Management Automation Financial Management Drive accountability through visibility. Reporting & Dashboards Build accuracy, control, and consistency into every process. Financial Controls from O
Slide 10: The Collaborative Accounting Experience Sets BlackLine Apart
The Collaborative Accounting Experience Sets BlackLine Apart Proven land and expand approach that drives expansion and value for our customers Implementation & Expansion & 2 Roll-out 3 Optimization Finance 4 Transformation 1 Initial Sale 10
Slide 11: Proven Go To Market & Customer Strategy
Proven Go To Market & Customer Strategy ENTERPRISE MID-MARKET ACCOUNT EXPANSION >$750M ANNUAL REVENUE $50M-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, Consult
Slide 12: Strength Across Geographies, Sectors & Sizes
Strength Across Geographies, Sectors & Sizes CONSUMER AND RETAIL TECHNOLOGY INDUSTRIAL AND ENERGY HEALTHCARE SERVICES FINANCIAL SERVICES 12
Slide 13: Extending the Competitive Moat Drives Further Growth
Extending the Competitive Moat Drives Further Growth Indispensable Platform for the Controller Indispensable • SaaS-based platform Platform for • End-to-end accounting automation technology Controller • Highly scalable and configurable • ERP agnostic • Expanded functionality for the controller Stron
Slide 14: Multiple Growth Levers
Multiple Growth Levers Product Adjacencies Expand to relevant adjacencies with product development & strategic M&A International Expansion Grow existing footprint and leverage partners for ROW distribution Partner Ecosystem Extend and strengthen partner Customer Expansion relationships Drive adoptio
Slide 15: Financial Highlights
Financial Highlights 23% 109% Q3’22 Revenue Growth1 Q3’22 Dollar-Based Net 80% Q3’22 Non-GAAP Gross Margin 8% Q3’22 Non-GAAP Operating Margin Revenue Retention Rate High Growth Compelling High Gross Demonstrated Subscription Model Expansion Model Margins Operating Leverage Strong secular tailwinds,
Slide 16: Highly Visible Subscription Growth Model
Highly Visible Subscription Growth Model Total Revenue Subscription & Support Revenue $M $M $469 $498 $399 24%(1) (1) Y/Y 23% $329 Growth Y/Y $426 Growth $272 $217 $352 2018 2019 2020 2021 LTM 3Q22 $289 Services Revenue $M $27 $29 $228 $23 10% (1) Y/Y $17 Growth $10 2018 2019 2020 2021 LTM 3Q22 2018
Slide 17: Consistent Customer and User Growth
Consistent Customer and User Growth Customers Users ‘000s 355 4,060 328 3,825 315 3,704 292 3,433 268 3,024 223 2,631 2018 2019 2020 2021 3Q21 3Q22 2018 2019 2020 2021 3Q21 3Q22 17
Slide 18: 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 110% 109% 109% 108% 97% 98% 97% 97% 106% 96% 2018 2019 2020 2021 3Q22 2018 2019 2020 2021 3Q22 Note: Dollar-based revenue renewal rate for each period is calculated by dividin
Slide 19: Compelling Land and Expand Model
Compelling Land and Expand Model Growth Annualized Revenue by Customer Cohort1 Cohort Multiple 2022 2021 1.3x 2020 1.5x 2019 1.5x 2018 1.5x 2017 1.7x 2016 1.8x 2015 2.0x 2014 2.4x 2013 4.0x 2012 4.6x 1Reflects annualized subscription and support revenue for the group of customers that became our cus
Slide 20: 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 USERS ACV (000s) USERS ACV (000s) 200 $200 1,000 $1,000 160 $160 800 $800 120 $120 600 $600 80 $80 400 $400 40 $40 200 $200 -- -- --
Slide 21: Growing Customer Wallet Share
Growing Customer Wallet Share More than 450 customers with an ARR(1) of $250K+ 49 36 28% 27 14 7 414 6 367 CAGR in customers 295 spending $250K or more(2) 2 251 203 162 112 2016 2017 2018 2019 2020 2021 3Q22 $250K or more $1M or more 21 1ARR refers to annual subscription and support revenue. Data as
Slide 22: Demonstrated Profitability & Cash Flow
Demonstrated Profitability & Cash Flow Non-GAAP Net Income Margin(1) Free Cash Flow Margin 13% 13% 10% 9% 8% 7% (2) 5% 2% 2% (2) 1% 2018 2019 2020 2021 YTD 3Q22 2018 2019 2020 2021 YTD 3Q22 Note: Free cash flow defined as cash flows from operating activities less capex. 1 See appendix for GAAP finan
Slide 23: Target Operating Model
Target Operating Model Long-Term % of Revenue FY17 FY18 FY19 FY20 FY21 Target Model Gross Margin(1) 81% 82% 83% 83% 80% ~83% S&M(1) 51% 51% 48% 42% 41% 38% - 42% R&D(1) 13% 12% 13% 14% 16% 14% - 16% G&A(1) 16% 17% 16% 15% 15% 7% - 9% Operating Margin(1) 1% 2% 6% 12% 9% 20%+ Note: 2017-21 are under A
Slide 24: Appendix
Appendix 7 ‘% BLACKLINE
Slide 25: Non-GAAP Revenue, Gross Profit, and Free Cash Flow Reconciliations
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 2017 2018 2019 2020 2021 Non-GAAP Revenues GAAP Revenues $64,129 $69,6
Slide 26: Non-GAAP Operating Income and Net Income Reconciliations
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 2017 2018 2019 2020 2021 Non-GAAP Income (Loss) from Operations GAAP Income (Loss)
Slide 27: Non-GAAP S&M, R&D, G&A Reconciliations
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 2017 2018 2019 2020 2021 GAAP Sales and Marketing Expense $35,848 $37,192 $41,848 $43,949 $44,785 $41,826