Blackline, Inc. · NASDAQ:BL
Blackline — Investor Day (November 2018)
111 slides from Blackline's investor day presentation, Nov 13, 2018
Slide 1: Analyst & Investor Day
Analyst & Investor Day November 13, 2018 Trust is in the Balance™ 1
Slide 2: Introduction
01 Introduction Mark Partin, Chief Financial Officer Trust is in the Balance™ 2
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 certai n key financial and operating metr
Slide 4: Agenda
Agenda 12:45 PM – 1:00 PM Introduction | Mark Partin, Chief Financial Officer 1:00 PM – 1:20 PM Building for the Long Term | Therese Tucker, Founder & CEO 1:20 PM – 2:20 PM Growth Strategy & Initiatives | Marc Huffman, Chief Operating Officer Karen Flathers, Chief Customer Officer Mark Woodhams, SVP
Slide 5: BlackLine: Building for the Long Term
02 BlackLine: Building for the Long Term Therese Tucker, Founder & CEO Trust is in the Balance™ 5
Slide 6: BlackLine's Journey
BlackLine’s Journey Silver Lake Investment First User Conf Moved into Australia EY August 2013 Feb 2007 May 2012 February 2018 100M+ in Revenue LTM June 2016 First Cloud Customer Moved into the UK 2005 Deloitte 10,000 Users Feb 2012 500 Customers IPO KPMG May 2017 Opened Singapore Sept 2008 Dec 2012
Slide 7: Current: customers, users, revenue
Current ~2,500 214,000+ 216M+ Customers BlackLine Users LTM Revenue 18% 15 850+ 19 Forbes Global 2000 Customers Languages Employees Offices Trust is in the Balance™ 7 As of Sep 30, 2018
Slide 8: Mission
MISSION We transform accounting and finance to build trust in organizations worldwide. Trust is in the Balance™ 8
Slide 9: Manual Processes Are Growing
Manual Processes Are Growing 56 Accountants say they need to automate more, just to keep up with growth. % Trust is in the Balance™ 9 Source: BlackLine Global Research
Slide 10: A False Sense of Security
A False Sense of Security 70 % 70% of CFOs say they trust the numbers. 38 % But just 38% of accountants agree. Trust is in the Balance™ 10 Source: BlackLine Global Research
Slide 11: A False Sense of Security: Bad Data Decisions
A False Sense of Security 69% of accountants say their CFO has made a decision using bad data. 69 % Trust is in the Balance™ 11 Source: BlackLine Global Research
Slide 12: BlackLine eliminates uncertainty in the financial close
BlackLine eliminates uncertainty in the financial close. Trust is in the Balance™ 12
Slide 13: Current Methods Are Inefficient and Error Prone
Current Methods Are Inefficient and Error Prone Trust is in the Balance™ 13
Slide 14: BlackLine Transforms the Financial Close
BlackLine Transforms the Financial Close Trust is in the Balance™ 14
Slide 15: Benefits our Customers Receive
Benefits our Customers Receive Trust is in the Balance™ 15
Slide 16: Continuous Accounting Platform
Continuous TRANSFORMATION Intercompany Hub 4 Accounting Smart Close Platform ADVANCED RECORD–TO–REPORT 3 Transaction Matching Journal Entry INTERNAL CONTROLS 2 Variance Analysis Compliance MODERNIZED RECORD–TO–REPORT 1 Account Reconciliations PLATFORM ELEMENTS Task Management APIs & Connectivity Pla
Slide 17: Continuous Accounting Platform
Continuous TRANSFORMATION Intercompany Hub 4 Accounting Smart Close Platform ADVANCED RECORD–TO–REPORT 3 Transaction Matching Journal Entry INTERNAL CONTROLS 2 Variance Analysis Compliance MODERNIZED RECORD–TO–REPORT 1 Account Reconciliations PLATFORM ELEMENTS Task Management APIs & Connectivity Pla
Slide 18: Continuous Accounting Platform
Continuous TRANSFORMATION Intercompany Hub 4 Accounting Smart Close Platform ADVANCED RECORD–TO–REPORT 3 Transaction Matching Journal Entry INTERNAL CONTROLS 2 Variance Analysis Compliance MODERNIZED RECORD–TO–REPORT 1 Account Reconciliations PLATFORM ELEMENTS Task Management APIs & Connectivity Pla
Slide 19: Competitive Landscape
Competitive Landscape FCPM Focused ERP Niche Strategic Position BlackLine Competitor Competitor Competitor Account Reconciliation Product Strength Financial Close Management Product Strength Office of the CFO – Product Breadth Product Versatility & Platform Strength Customer Experience Trust is in t
Slide 20: Market Opportunity Remains Massive…
Market Opportunity Remains Massive… 165,000 Target Customers $18.5B* All Customers, Core Products ~2,500 Current Customers Current Customers Current Customers Whitespace * Source: Frost and Sullivan/ 2018 TAM for Core Products $216M BLACKLINE LTM REVENUE Trust is in the Balance™ 20
Slide 21: And Continues to Grow
And Continues to Grow Machine Learning & AI Close & Compliance Enhancements ERP Automation Intercompany Accounting Cloud FCPM Trust is in the Balance™ 21
Slide 22: Industry Trends
Industry Trends Accenture EY Gartner 40% of transactional accounting 57% of group CFOs see data and Through 2023, 75% of cloud financial workloads have the potential to be analytics as key capability in close implementations will follow a automated tomorrow’s function multivendor postmodern ERP appr
Slide 23: Building for the Future
Building for the Future Whole Product Offering 2019 2018 FUTURE FOCUS 2017 • • Be the model for CX Execute an effective and • • Be the model for CX Maintain our people and customer centric culture united GTM strategy • Whole Product Offering 2016 • • Enhance the customer journey Tailor S&M initiativ
Slide 24: Whole Product Offering
Whole Product Offering VISION Customer Journey Thought Leadership Digital Transformation Process High Touch Partner Solution Adoption Leading SERVICES Expertise Advisory Services Ecosystem Roadmap Practices Account Reconciliations Journal Entry Connectivity Transaction Matching Variance Analysis Usa
Slide 25: Growth Strategy & Initiatives
03 Growth Strategy & Initiatives Trust is in the Balance™ 25
Slide 26: Go-To-Market
Go-To-Market Marc Huffman, Chief Operating Officer Trust is in the Balance™ 26
Slide 27: My Team
My Team Mark Woodhams Tammy Coley Andres Botero Karen Flathers Anthony Marino Eric Borrmann Nick Gunn SVP Sales Chief Transformation Officer Chief Marketing Officer Chief Customer Officer Senior Director SVP GTM Operations VP GTM Initiatives Business Development Trust is in the Balance™ 27
Slide 28: My Priorities as COO
My Priorities as COO Trust is in the Balance™ 28
Slide 29: Talent
Talent Acquisition & Retention - Sales, Operations, Marketing, Strategic Processes
Slide 30: Alignment
Alignment Combining & Aligning Marketing, Sales, and Services into GTM - Leading Practice for SaaS
Slide 31: Convention
Convention Adoption of industry leading methods and standards across the entire BlackLine GTM and Win by Convention
Slide 32: Customer Lifetime Value
Customer Lifetime Value Engage with those customers that are most likely to benefit and succeed
Slide 33: Minding the Store
Minding the Store Introducing change at a responsible rate
Slide 34: Growth.
Growth. Trust is in the Balance™ 34
Slide 35: Industry Experts
Industry Experts EXECUTIVE TEAM Trust is in the Balance™ 35
Slide 36: Industry Experts, Lifetime Value
Industry Experts Lifetime Value EXECUTIVE TEAM ~2 5 0 0 C U S T O M E R S Trust is in the Balance™ 36
Slide 37: Industry Experts, Lifetime Value, Global Expansion
Industry Experts Lifetime Value Global Expansion EXECUTIVE TEAM ~2 5 0 0 C U S T O M E R S GLOBAL PRESENCE Trust is in the Balance™ 37
Slide 38: Industry Experts, Lifetime Value, Global Expansion, Whole Product
Industry Experts Lifetime Value Global Expansion Whole Product EXECUTIVE TEAM ~2 5 0 0 C U S T O M E R S GLOBAL PRESENCE PRODUCT LEADERSHIP Trust is in the Balance™ 38
Slide 39: Vision, Services, Platform
VISION SERVICES Advisory Service Process Expertise Leading Practices Solution Adoption Roadmap P LAT F O R M Purpose Built Reporting Connectivity Usability Contemplated Use Cases Trust is in the Balance™ 39
Slide 40: Aligning The Sales Cycle with the Whole Product
Aligning The Sales Cycle with the Whole Product Marketing Pre Sales Sales Delivery VISION SERVICES PLATFORM Trust is in the Balance™ 40
Slide 41: Solving the Category
Solving the Category + = MARKET CONFLUENCE WHOLE PRODUCT STRATEGIC SUPPLIER Trust is in the Balance™ 41
Slide 42: BlackLine Solution Extension
N A 4 ‘A BLACKLINE Solution Extension
Slide 43: Expanded Partnership, Validation & Access, Global Reach
+ EXPANDED PARTNERSHIP VALIDATION & ACCESS GLOBAL REACH
Slide 44: Global Expansion
Global Expansion Trust is in the Balance™ 44
Slide 45: Current Presence
@ Current Presence
Slide 46: Current Presence, Ongoing Expansion
Current Presence Ongoing Expansion
Slide 47: Current Presence, Ongoing Expansion, Global Reach
Current Presence Ongoing Expansion Global Reach
Slide 48: Customer Engagement
Customer Engagement Our Focus: Lifetime Value of our Client Trust is in the Balance™ 48
Slide 49: Unlocking Lifetime Value and Creating Lifelong Advocates
Unlocking Lifetime Value and Creating Lifelong Advocates Karen Flathers, Chief Customer Officer Trust is in the Balance™ 49
Slide 50: Be the model for superlative customer service in SaaS
Be the model for superlative customer service in the SaaS industry Trust is in the Balance™ 50
Slide 51: Demonstrated Scale and Customer Satisfaction
Demonstrated Scale and Customer Satisfaction Professional Customer Support Training Services Success 32% INCREASE IN 22% DECREASE IN TIME 98% INCREASE ACTIVE USERS, 97% REVENUE RENEWAL PROJECT GO-LIVES TO RESOLVE CASES BLACKLINE U RATE 500+ 3% 129 109% FOLLOW-ON PROJECTS WITH INCREASE IN TRAINING SU
Slide 52: Demonstrated Scale and Customer Satisfaction
Demonstrated Scale and Customer Satisfaction Professional Customer Support Training Services Success 32% INCREASE IN 22% DECREASE IN TIME 98% INCREASE ACTIVE USERS, 97% REVENUE RENEWAL PROJECT GO-LIVES TO RESOLVE CASES BLACKLINE U RATE 500+ 3% 129 109% FOLLOW-ON PROJECTS WITH INCREASE IN TRAINING SU
Slide 53: Demonstrated Scale and Customer Satisfaction
Demonstrated Scale and Customer Satisfaction Professional Customer Support Training Services Success 32% INCREASE IN 22% DECREASE IN TIME 98% INCREASE ACTIVE USERS, 97% REVENUE RENEWAL PROJECT GO-LIVES TO RESOLVE CASES BLACKLINE U RATE 500+ 3% 129 109% FOLLOW-ON PROJECTS WITH INCREASE IN TRAINING SU
Slide 54: Demonstrated Scale and Customer Satisfaction
Demonstrated Scale and Customer Satisfaction Professional Customer Support Training Services Success 32% INCREASE IN 22% DECREASE IN TIME 98% INCREASE ACTIVE USERS, 97% REVENUE RENEWAL PROJECT GO-LIVES TO RESOLVE CASES BLACKLINE U RATE 500+ 3% 129 109% FOLLOW-ON PROJECTS WITH INCREASE IN TRAINING SU
Slide 55: Demonstrated Scale and Customer Satisfaction
Demonstrated Scale and Customer Satisfaction Professional Customer Support Training Services Success 32% INCREASE IN 22% DECREASE IN TIME 98% INCREASE ACTIVE USERS, 97% REVENUE RENEWAL PROJECT GO-LIVES TO RESOLVE CASES BLACKLINE U RATE 500+ 3% 129 109% FOLLOW-ON PROJECTS WITH INCREASE IN TRAINING SU
Slide 56: Whole Product Offering and the Customer Team
WHERE THE Whole Product Offering RUBBER and the Customer Team MEETS THE R O A D. Trust is in the Balance™ 56
Slide 57: Transition from Guiding to Leading
Transition from Guiding to Leading Trust is in the Balance™ 57
Slide 58: Advisory Service and Process Expertise
Advisory Service and Process Expertise VISION SERVICES • Accounting Innovation Team Advisory Service Process Expertise Leading Practices • Value Engineering Approach Solution Adoption Roadmap • ERP Knowledgeable PLATFORM Purpose Built Reporting Resources Connectivity Usability Contemplated Use Cases
Slide 59: Leading Practices
Leading Practices VISION • ~2,500 customers SERVICES Advisory Service Process Expertise • 80% of employees Leading Practices Solution Adoption Roadmap accountants with 4+ years of product experience PLATFORM Purpose Built Reporting Connectivity • Accelerated Usability implementation approach Contemp
Slide 60: Solution Adoption Roadmap
Solution Adoption Roadmap VISION • Defined path based on SERVICES Advisory Service business priorities and Process Expertise constraints Leading Practices Solution Adoption Roadmap • Continuous improvement PLATFORM approach Purpose Built Reporting Connectivity Usability • Unlocking the value for all
Slide 61: Customers on a Transformational Journey with BlackLine
Customers on a Transformational Journey with BlackLine Expansion opportunities increase Annualized subscription and support revenue Trust is in the Balance™ As of Sep 30, 2018 61 Year of initial purchase Year with incremental purchase
Slide 62: Customers on a Transformational Journey with BlackLine
Customers on a Transformational Journey with BlackLine Customers getting to $500K or greater in Annualized subscription and support revenue earlier in the Journey Trust is in the Balance™ As of Sep 30, 2018 62 Year of initial purchase Year with incremental purchase Year Customer reached $500K or Gre
Slide 63: Customers on a Transformational Journey with BlackLine
Customers on a Transformational Journey with BlackLine The Journey continues to $1M plus in Annualized subscription and support revenue Trust is in the Balance™ As of Sep 30, 2018 63 Year of initial purchase Year with incremental purchase Year Customer reached $500K or Greater Year Customer reached
Slide 64: Accelerating the Digital Accounting Transformation Journey
Accelerating the Digital Accounting Transformation Journey Decrease Time to Value Reduce Total Cost of Ownership Increase Measurable Business Value Trust is in the Balance™ 64
Slide 65: Creating Lifelong Advocates
Creating Lifelong Advocates Lifelong + + + Advocates Active Customer Customer Customer Community Events Certification Bonding Trust is in the Balance™ 65
Slide 66: Global Sales
Global Sales Mark Woodhams, Senior Vice President, Global Sales Trust is in the Balance™ 66
Slide 67: Customer Strength Across Geographies, Sectors and Sizes
Customer Strength Across Geographies, Sectors and Sizes ~2,500 Global Customers 214,000+ Finance End-Users Trust is in the Balance™ 67 As of Sep 30, 2018
Slide 68: Diversified Customer Base
Diversified Customer Base Manufacturing Hi-Tech Financial Services Healthcare & Bio-Tech Retail 18% 13% 11% 8% 8% Insurance Energy & Utilities Chemicals Consumer Products Hospitality 6% 5% 5% 5% 4% Transportation Telecom Food & Beverage Consulting Media & Entertainment 3% 3% 3% 2% 2% All Others 4% T
Slide 69: Headroom to Grow Globally
Headroom to Grow Globally Fortune 50 Share Fortune 500 Share Global 2000 Share1 46% 34% 18% BlackLine Customers2 Non-BlackLine Customers Trust is in the Balance™ 69 1 Global 2000 list is Forbes Global 2000 2 BlackLine customers as of Sep 30, 2018
Slide 70: What our Customers Love about BlackLine
What our Customers Love about BlackLine 1 Customer Centricity 2 Increased Visibility into their Processes 3 Platform that Allows Them to be a Value-add to their Organization 4 We Bring Innovation Trust is in the Balance™ 70
Slide 71: Observations
Observations We are evolving the market, whilst we have been here 14 years, we still have not come into the mainstream of the opportunity – We are in the Early Innings! Observations Opportunities 1. Great Product 1. Leverage & Expand our Global Partnerships 2. Great Partners 2. Streamlined Global St
Slide 72: Global Sales Deployment
Global Sales Deployment AMERICAS EMEA APAC ▪ Los Angeles ▪ London ▪ Sydney ▪ Atlanta ▪ Paris ▪ Melbourne ▪ New York ▪ Frankfurt ▪ Singapore ▪ Vancouver ▪ Netherlands ▪ Hong Kong ▪ South Africa ▪ Japan Solutions Consultants / Value Engineering Customer Success Management BlackLine Ecosystem (BPO, Con
Slide 73: Sales Motion
Sales Motion BPO SERVICES CONSULTING SI’S Direct FIRMS Sales CHANNEL ERP PARTNERS PROVIDERS Trust is in the Balance™ 73
Slide 74: Next-Level Sales Initiatives
Next-Level Sales Initiatives 1 Strategic Account Management Team 2 Partner Ecosystem 3 International Expansion (Countries & Headcount) 4 Improved Productivity 5 Enticing Top Talent Trust is in the Balance™ 74
Slide 75: Break
04 Break Trust is in the Balance™ 75
Slide 76: The Hershey Company's Financial Transformation
05 The Hershey Company’s Financial Transformation John Zimmerman, Director of Financial Data Systems, The Hershey Company Moderated by Molly Boyle, Senior Manager, Solutions Marketing Trust is in the Balance™ 76
Slide 77: A Partner's View
06 A Partner’s View Tony Klimas, Principal, Global Performance Improvement Finance Leader, EY Trust is in the Balance™ 77
Slide 78: The CFO Agenda and "The New Normal"
The CFO Agenda and “The New Normal” November 2018
Slide 79: EY Point of View
EY Point of View: EY.com/CFO Can innovative corporate reporting build trust in a How can purpose reveal a path through disruption? volatile world? This EY Beacon Institute’s report explains how volatile, In its 4th year, we surveyed 1,020 CFOs, controllers and uncertain conditions have redefined the
Slide 80: Digital Connected: Transformative Age
Transformative Age - Industry 4.0/Finance 4.0 1700’s 1800’s 1900’s First Industrial Revolution Second Industrial Revolution Third Industrial Revolution Mechanical Electrical Computing Technology was steam and Electricity made possible IT enabled programmable water powering the first the division of
Slide 81: The Transformative Age demands that we become more Agile
The Transformative Age demands that we become more “Agile” Agile finance Responsive … to changing market dynamics, business needs and regulatory requirements Insightful … Transformative age providing accurate, timely and actionable information to stakeholders Efficient … delivering quality service a
Slide 82: Digital Technology is playing a huge role in the changes
Digital Technology is playing a huge role in the changes that are currently taking place… Digital Processes and Internet of Things Blockchain Next Generation ERPs Cybersecurity (IoT) RPA, Machine Advanced Analytics Learning, Artificial Cloud & SaaS and Insight Intelligence Page 82
Slide 83: BlackLine an Important EY Alliance Partner
BlackLine in an Important EY Alliance Partner in helping our clients achieve an Agile Finance Organization ► Proven technology with a track record of success ► Cloud based supports our Agile Finance vision ► Focus on control environment supports EY Trust By Design – Our risk management approach ► Mo
Slide 84: About EY
EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who
Slide 85: Financial Review
07 Financial Review Mark Partin, Chief Financial Officer Trust is in the Balance™ 85
Slide 86: Financial Highlights
Financial Highlights High Growth Compelling High Demonstrated Subscription Land and Expand Gross Operating Model Model Margins Leverage 32% 109% 82% 2% YTD FY18 REVENUE GROWTH1 DOLLAR-BASED NET REVENUE YTD FY18 GROSS MARGIN YTD FY18 OPERATING MARGIN (vs. YTD 2017) RETENTION AT 9/30/2018 (NON-GAAP) (
Slide 87: Consistent Revenue Growth
Consistent Revenue Growth $59 $55 Quarterly non-GAAP Revenue $50 $51 $M Subscription Services $46 $42 $39 $36 $32 $29 $27 $24 $22 $18 $19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY15 FY16 FY17 FY18 Trust is in the Balance™ 87 2018 Revenue under ASC 606 standard/ Prior periods are under ASC 605
Slide 88: Driven By Strong Customer and User Growth
Driven By Strong Customer and User Growth 2,494 2,402 2,208 2,297 2,091 1,978 1,850 1,758 1,625 1,523 1,338 1,411 1,145 1,219 Customers 1,067 25% CAGR Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY15 FY16 FY17 FY18 210 215 197 202 179 186 167 171 157 Users 147 129 137 000’s 111 120 103 22% CAGR Q1
Slide 89: Consistently High Gross Margin
Consistently High Gross Margin Total Non-GAAP Gross Margin % 83% 83% 82% 81% 82% 84% 82% 82% 83% 80% 81% 80% 80% 81% 80% 81% 80% 81% 81% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 FY17 FY18 Trust is in the Balance™ 89 See Appendix for GAAP financial measures and reconcil
Slide 90: Demonstrated Operating Leverage Driving Profitability
Demonstrated Operating Leverage Driving Profitability 11% 2% 0% 1% -2% -1% -10% -8% -21% -14% FY14 FY15 FY16 FY17 FY18 YTD FY14 FY15 FY16 FY17 FY18 YTD Operating Income/(Loss) Margin Free Cash Flow Margin (% of Non-GAAP Revenue) (% of Non-GAAP Revenue) Trust is in the Balance™ 90 2018 under ASC 606
Slide 91: Responsibly Investing to Capture a Large Market Opportunity
Responsibly Investing to Capture a Large Market Opportunity Sales & Marketing Expense Research & Development Expense General & Administrative Expense (% of Non-GAAP Revenue) (% of Non-GAAP Revenue) (% of Non-GAAP Revenue) 61% 58% 54% 21% 20% 51% 48% 17% 17% 17% 17% 16% 16% 13% 12% FY14 FY15 FY16 FY1
Slide 92: Progression towards Long-Term Target Operating Model
Progression towards Long-Term Target Operating Model % of Non-GAAP FY14 FY15 FY16 FY17 YTD LT Target Revenue 2018 Model Gross Margin 82% 81% 81% 81% 82% ~80% S&M 48% 61% 58% 54% 51% 40% - 45% R&D 17% 21% 16% 13% 12% 10% - 12% G&A 17% 20% 17% 16% 17% 7% - 9% Operating Margin 0% -21% -10% -2% 2% 20%+
Slide 93: Good Visibility on Revenue and Profitability
Good Visibility on Revenue and Profitability Non-GAAP Revenue (Strong Execution) Guidance Actuals Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY16 FY17 FY18 Non-GAAP Net Income/(Loss) Guidance Actuals Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY16 FY17 FY18 Trust is in the Balance™ 93 Mid-point of guidance is shown. 2018 Revenue under A
Slide 94: Success in Key Initiatives Influences Metrics
Success in Key Initiatives Influences Metrics Landing Larger Growth in Strategic Customer Mix & Landing Deals Product Sales Larger Deals Customer Growth User Growth Dollar-Based Net Revenue Retention Rate 25% 22% 109% CAGR CAGR Trust is in the Balance™ 94 Customer growth and User growth CAGR from Q1
Slide 95: Growing Revenue across our Customer Base
Growing Revenue across our Customer Base…. Revenue Per Customer – Enterprise ($000’s) Non-GAAP Revenue $124 $116 Revenue Per Customer – Total ($000’s) $98 Non-GAAP Revenue $81 $73 $86 $80 $70 $57 $62 FY14 FY15 FY16 FY17 LTM Revenue Per Customer – Mid-Market ($000’s) Non-GAAP Revenue $34 $31 $27 $25
Slide 96: Strong Growth in Large Relationships
… with Strong Growth in Large Relationships 196 7 168 6 114 2 189 162 73 1 112 41 72 41 FY14 FY15 FY16 FY17 FY18 YTD Trust is in the Balance™ Greater than >$250K Greater than >$1M 96 Annualized Revenue refers to Annualized subscription and support revenue.
Slide 97: Consistently High Renewal Rates
Consistently High Renewal Rates 99% 99% 100% 98% 99% 98% 99% 99% 98% 98% 98% 98% 98% 96% 97% 95% 97% 97% 97% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 FY17 FY18 Trust is in the Balance™ 97 Dollar-Based Revenue Renewal Rate for each period is calculated by dividing (a) t
Slide 98: Key Growth Initiatives Driving Opportunities
Key Growth Initiatives Driving Opportunities 1 Strategic Products 2 Global Markets Expansion 3 Partner Ecosystem 4 Whole Product Offering 5 SAP partnership (SolEx) Trust is in the Balance™ 98
Slide 99: Opportunity to Expand Strategic Products
Opportunity to Expand Strategic Products Strategic Products CAGR 42% 8% 18% FY15 LTM 82% 92% Non-User Based Strategic Products User based Core Products Trust is in the Balance™ 99 Percentages are based on Annualized subscription and support revenue. LTM period ending September 30, 2018.
Slide 100: Opportunity to Expand Globally
Opportunity to Expand Globally International CAGR 63% 14% 21% FY15 LTM 79% 86% US CAGR 37% International US Trust is in the Balance™ 100 Percentages are based on non-GAAP Revenue. LTM period ending September 30, 2018 includes 2018 Revenue under ASC 606 standard/ Prior periods are under ASC 605 stand
Slide 101: Digital Transformation Driving Opportunities with Partners
Digital Transformation Driving Opportunities with Partners Partner contribution to top deals 10% 20% FY15 YTD 80% 90% Partner Contribution Others Trust is in the Balance™ 101 Partner attach rate based on involvement in biggest 10 deals in each respective period
Slide 102: Compelling Land And Expand Model
Compelling Land And Expand Model Annualized Revenue By Customer Cohort1 2018 2017 CAGR: 2016 41% 2015 24% 2014 25% 2013 27% 2012 29% 2012 2013 2014 2015 2016 2017 2018 1 Reflects annualized subscription and support revenue for the group of customers that became our customers in each respective cohor
Slide 103: Opportunities to Expand Trusted Relationship with Customers
Opportunities to Expand Trusted Relationship with Customers Initial Current Opportunity Core Product Opportunity User expansion; Higher adoption of core product suite; Value pricing $6M 3.7x $6M $22M 3x - 5x $6M $22M Strategic Products Opportunity ICH; Growth driven by user adds and SmartClose; prod
Slide 104: SAP Partnership - Solution Extension Agreement (SolEx)
SAP Partnership - Solution Extension Agreement (SolEx) 1 SolEx Agreement announced 11/1/2018 2 BlackLine and SAP working through the Go-To-Market process 3 SAP expected to begin adding BlackLine products to its pricelist in Q4 FY18 4 Focus is on execution Trust is in the Balance™ 104
Slide 105: Summary
SUMMARY Trust is in the Balance™ 105
Slide 106: Question & Answer
08 Question & Answer Trust is in the Balance™ 106
Slide 107: Appendix
Appendix Trust is in the Balance™ 107
Slide 108: Non-GAAP Revenue, Gross Profit, and Free Cash Flow
NON-GAAP RECONCILIATIONS AND DEFINITIONS NON-GAAP REVENUE, NON-GAAP GROSS PROFIT, AND FREE CASH FLOW ($ IN 000’S) 1 1 1 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 2014 2015 2016 2017 N o n- G A A P R e v e nue s G A A P R e
Slide 109: Non-GAAP Operating Income (Loss) and Net Income (Loss)
NON-GAAP RECONCILIATIONS NON-GAAP OPERATING INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS) ($ IN 000’S) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 1 Q2 2018 1 Q3 2018 1 2014 2015 2016 2017 N o n- G A A P Inc o m e ( Lo s s ) f ro m O pe ra t
Slide 110: Non-GAAP S&M, R&D, G&A
NON-GAAP RECONCILIATIONS NON-GAAP S&M, NON-GAAP R&D, NON-GAAP G&A ($ IN 000’S) 1 1 1 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 2014 2015 2016 2017 G A A P S a le s a nd M a rk e t ing E xpe ns e $ 11,6 5 7 $ 13 ,2 9 7 $ 14
Slide 111: SAP Partnership – Impact of Solution Extension (SolEx)
SAP Partnership – Impact of Solution Extension (SolEx) Key Area Endorsed Business Solution (EBS) Solution Extension (SolEx) Impact Sales Led by BlackLine and limited to our Led by SAP globally, with high-touch Expanded global footprint Process, reach / markets from BlackLine Better access to SAP cli