Blackline, Inc. · NASDAQ:BL
Blackline — Investor Day (November 2024)
97 slides from Blackline's investor day presentation, Nov 19, 2024
Slide 1: Investor Day 2024
Investor Day 2024 November 19th, 2024 Orlando, FL
Slide 2: Beyond The Black, November 18-20, 2024
Beyond TheBlack = ef NOVEMBER 18-20, 2024 Y, BLACKLINE
Slide 3: Introduction
Introduction Matt Humphries | VP, Investor Relations 3
Slide 4: Agenda
Agenda Technology & Product Introduction Jeremy Ung | Chief Technology Officer Matt Humphries | VP, Investor Relations Charlie Gaulke | SVP, Product Financial Strategy Innovation Mark Partin | Chief Financial Officer Therese Tucker | Co-Chief Executive Officer Patrick Villanova | Chief Accounting Of
Slide 5: 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 6: Innovation
Innovation Therese Tucker | Co-Chief Executive Officer 6
Slide 7: BlackLine's Winning Aspiration
BLACKLINE’S WINNING ASPIRATION To inspire, power, and guide digital finance transformation 7
Slide 8: Transformation initiatives fail to meet their objectives
% of transformation initiatives fail to meet their objectives. Source: McKinsey
Slide 9: BlackLine's Winning Aspiration: Successful
BLACKLINE’S WINNING ASPIRATION To inspire, power, and guide ^ digital finance transformation SUCCESSFUL 9
Slide 10: A successful transformation project has outputs
A successful transformation project has outputs that include efficient compliance, lower costs, and seamless real-time information. - BRUNY RIOS, CAO DELL 10
Slide 11: Financial Systems Environments are Highly Complex
Financial Systems Environments are Highly Complex… Vendor Data Market Intel Data Commissions Mgmt. System Expense Inventory Mgmt. System Mgmt. System Contract Mgmt. System CRM Revenue Payroll Accounts Mgmt. System System (US) Payable ERP A Payroll System (Intl.) Customer Indirect Tax Employee Data E
Slide 12: …and Filled with Manual Processes
…and Filled with Manual Processes Vendor Data Market Intel Data ERP A Customer Data Employee ERP B ERP C Data Regulatory & Compliance Requirements Financial Institutions 12
Slide 13: Financial Operations
Financial Operations Accurate Efficient Intelligent A solid foundation built on Processes that are streamlined Real-time, AI-powered business trustworthy data and automated insights & anomaly detection 13
Slide 14: BlackLine's Innovation Journey
BlackLine’s Innovation Journey 2023 Consolidation 2014 Intercompany Hub 2020 2022 Invoice-to-cash Financial 2007 market entry with Reporting 2023 Task Management 2016 2024 2001 acquisition of Rimilia Analytics Completed I2C Journal Entry Acquisition of Studio360 BlackLine offering with Data Transact
Slide 15: What Is a Platform?
WHAT IS A PLATFORM? Y, BLACKLINE
Slide 16: BlackLine Studio360 Platform
BlackLine Studio360 Platform Y, BLACKLINE
Slide 17: Studio360: Key Components
Studio360: Key Components Studio360 Control Studio360 Control: Centralized management of financial Studio360 Integrate: hierarchies, policies, and Cleanse and transform data certifications Studio360 Orchestrate Studio360 Integrate Studio360 Visualize through pre-built connectors, APIs, and more Stud
Slide 18: The BlackLine Studio360 Platform
The BlackLine Studio360 Platform APPLICATIONS OUTCOMES PLATFORM DATA SOURCES Identify Risks & Anomalies Studio360 Control ERPs Centralized management of financial hierarchies, policies & certifications • Journal Entry Fixed Assets Intercompany Create • Automate Studio360 Integrate Studio360 Orchestr
Slide 19: Data
Accurate, timely, secure data is the foundation of any REAL platform. Data Data is the new currency. AI needs data. 19 19
Slide 20: Strategy & GTM
Strategy & GTM Owen Ryan | Co-Chief Executive Officer 20
Slide 21: BlackLine's Strategy for Success
BlackLine’s Strategy for Success Refining the Strategy… …Relentlessly Executing Accelerate The Right Markets Innovation Outcomes: Accelerate Growth Optimize the The Right Solutions Enhance Efficiency & Go-to-Market Engine Profitability Generate Strong Free Cash Flow Enhance the The Right Leaders Par
Slide 22: The Right Markets: The Office of the CFO
The Right Markets: The Office of the CFO Internal External Invoice-to-Cash Reporting Reporting Intercompany Consolidation Financial Planning Financial Close Financial Data By being positioned upstream within the Office of the CFO, BlackLine is uniquely able to ensure comprehensive control, enhanced
Slide 23: The Right Markets: Large & Underpenetrated TAM
The Right Markets: Large & Underpenetrated TAM These two process areas, Record to Report and Invoice-to-Cash, represent distinct addressable markets. Record-to-Report Invoice-to-Cash $34B $11B $45B Total Addressable Market Comprised of over 160,000 companies across BlackLine’s target markets in Nort
Slide 24: The Right Markets: Ideal Customer Profile
The Right Markets: Ideal Customer Profile We have carefully defined our target markets and are targeting complex global enterprises and expanding our reach beyond smaller mid-market segments. We see robust new logo and expansion opportunities across our global enterprise and mid-market segments. Ent
Slide 25: The Right Markets: Global Focus
The Right Markets: Global Focus We are focused on deepening and expanding our relationships with the world's largest and most complex organizations. 70%+ DOWJ 20%+ 60%+ 35 %+ Nikkei 225 40%+ Fortune 500 FSTE 100 CAC 40 60%+ 40%+ 30% + DAX 40 ASX 100 NASDAQ (Enterprise) PRIORITY OPPORTUNITY BlackLine
Slide 26: The Right Solutions: Studio360 Platform
The Right Solutions: Studio360 Platform The Studio360 Platform enables financial operations that are accurate, efficient, and intelligent. APPLICATIONS OUTCOMES PLATFORM DATA SOURCES Identify Risks & Anomalies Studio360 Control ERPs Centralized management of financial hierarchies, policies & certifi
Slide 27: Accelerate Innovation: Aligned to Strategy
Accelerate Innovation: Aligned to Strategy From platform to applications and cloud to AI – accelerating innovation supports BlackLine’s growth. Key Innovations/Investments: Financial Reporting Invoice-to-Cash Intercompany Financial Close Analytics (“FRA”) AR Cash Modernization Expanded Non-Trade, Bi
Slide 28: Optimize the GTM Engine: Pillar Alignment
Optimize the GTM Engine: Pillar Alignment BlackLine’s Four Pillars I2C IC FC FRA 1 3 2 Product-Led Growth Process Area “COO” Domain Expertise & Value Articulation 28
Slide 29: Optimize the GTM Engine: Industry
Optimize the GTM Engine: Industry Identify Opportunity Marketing Enhanced Collaboration Training & Sales Enablement GTM Collaboration Augmented Selling Partner Enablement TAM/SAM Segmentation Verticalized Campaigns Alignment Between Industry Industry-Specific Use Cases Enhanced Content Leaders, Pill
Slide 30: Optimize the GTM Engine: Industry Breadth and Depth
Optimize the GTM Engine: Industry INDUSTRY BREADTH INDUSTRY DEPTH 8 5 8 1 7 of the of the of the of the of the Top 10 Top 10 Top 10 Top 10 Top 10 EXAMPLE: HEALTHCARE & LIFE SCIENCES MANUFACTURING CONSUMER RETAIL ENERGY FINANCIAL SERVICES HEALTHCARE & LIFE SCIECNES PHARMA & MEDTECH BIOTECH 4 5 3 6 of
Slide 31: Optimize the GTM Engine: Public Sector Opportunity
Optimize the GTM Engine: Public Sector Opportunity Leveraging domain expertise in Financial Close into the large, underpenetrated Public Sector opportunity. Total Government Software Spend Federal + State + Local & Education $32B Large, Growing, and Sticky Potential Customer Base Enterprise-like opp
Slide 32: Optimize the GTM Engine: Platform & Packaging
Optimize the GTM Engine: Platform & Packaging Platform Packaging with Unlimited Users. Platform & Packaging New Model Supports Retention, Volume Expansion & Adoption Simplified and standardized packaging with unlimited users that scales + - Platform Consumption User Price Model Pricing Robust Cross-
Slide 33: Enhance the Partner Strategy: Align
Enhance the Partner Strategy: Align BlackLine Partnership Organization Global Strategic SAP Center of Excellence Software and Regional Alliances Channel Alliances & Value Architecture Cloud Alliances GLOBAL STRATEGIC REGIONAL SOLUTION BPO SOFTWARE & ALLIANCES RESELLER CONSULTING PROVIDERS PARTNERS C
Slide 34: Enhance the Partner Strategy: Deliver
Enhance the Partner Strategy: Deliver Partner Involvement in Large Deals Percent of large deals with partner involvement 81% 22% Of New Business Sourced Revenue +9% Better Customer Adoption Rate +23% Higher Win Rate 74% Partner-Powered Outcomes 69% +5% 6% Higher 24-Month Account Growth 170% Lower C&
Slide 35: Enhance the Partner Strategy: Accelerate
Enhance the Partner Strategy: Accelerate 1,400+ High SAP Presence Low SAP Presence Medium SAP Presence No SAP Presence Global SAP Customers ~400 SolEx Customers ~350% 4-Yr Customer Count Growth ~$250M+ SolEx TCV BlackLine’s SolEx 1st to market achievements in 2024 110%+ Q2 Financial Review Option Q3
Slide 36: Enhance the Partner Strategy: Accelerate (SAP RISE, GROW)
Enhance the Partner Strategy: Accelerate RISE and S/4HANA SAP BPC AI 25,000+ GROW EPM Package On-premise SAP BlackLine, as an First-ever SAP- Customers must Added AI capabilities ERP customers that SAP SolEx partner, BlackLine solution migrate to new to our SolEx portfolio have yet to start can expe
Slide 37: The Pillar Motion
The Pillar Motion Mike Polaha, Kivanc Pakel, Cheri Hewlett, Andy Lilley | Pillar Leads Chris Kiehn | Senior GVP, Mid-Market Sales 37
Slide 38: The Four Pillars of BlackLine
The Four Pillars of BlackLine BlackLine organizes its solutions by process area and into four distinct pillars: Financial Close, Intercompany, Financial Reporting Analytics and Invoice-to-Cash. INVOICE-TO-CASH RECORD-TO-REPORT Financial Reporting Invoice-to-Cash Intercompany Financial Close Analytic
Slide 39: Pillar Strategy: The Organizational Nerve Center
Pillar Strategy: The Organizational Nerve Center Domain Expertise Solution Architecture • Sales Strategy • Industry Focused Expansion • Solutions Marketing • Innovation – Product/Platform • Partner Enablement • Solution Enhancement Prioritization • Value Articulation & Differentiation Business Line
Slide 40: Go-to-Market as a Unified Front
Go-to-Market as a Unified Front Pillar coordination and integration to offer value to customers as a unified platform offering Financial Close Financial Reporting Analytics Studio360 Control Studio360 Integrate Studio360 Orchestrate Studio360 Visualize Studio360 Blueprint Intercompany Invoice-to-Cas
Slide 41: The Four Pillars: Financial Close
The Four Pillars: Financial Close Market Need Significant TAM; Coveted “Real Estate”; Sequentially Significant Deep Domain Expertise Organic Accounting and Technology Capability at Scale; Partner Extended Competitive Differentiation Market Leader; Enviable Customer Roster; Breadth & Depth of Offerin
Slide 42: Financial Close: Tailwinds & Growth Levers
Financial Close: Tailwinds & Growth Levers Tailwinds & Catalysts Growth Levers • Solex focus and reinvigoration ERP cloud migration cycle • Accretive Transformation Sequencing • Drive adoption and expansion in our base Accelerating Product Innovation • AI-enabled, customer driven innovation • Vertic
Slide 43: The Four Pillars: Intercompany
The Four Pillars: Intercompany Market Need Mostly Greenfield; Industry Use Cases Deep Domain Expertise Organic and Specialized Intercompany Experience; Partner Extended Competitive Differentiation Only E2E IFM platform; Purpose-Built Solutions; Deep Install Base Platform Opportunity Client Expansion
Slide 44: Intercompany: Tailwinds & Growth Levers
Intercompany: Tailwinds & Growth Levers Tailwinds & Catalysts Growth Levers • Centralized Governance for Increasing Global Trade Volume Decentralized Operations • Scalable & Compliant Solutions Evolving Global • Transactional-level granularity Regulatory Environment • Dynamic tax ecosystem • Industr
Slide 45: The Four Pillars: Financial Reporting Analytics
The Four Pillars: Financial Reporting Analytics Market Need Significant TAM; Mandated Efficiency; Platform Play Deep Domain Expertise Consolidation and Reporting Experts; Partner Extended Competitive Differentiation Unique Solution; Unified Platform; Solution Flexibility Platform Opportunity Extend
Slide 46: FRA: Tailwinds & Growth Levers
FRA: Tailwinds & Growth Levers Tailwinds & Catalysts Growth Levers • Build out pre-consolidation solutions Existing Product Innovation to meet ongoing customer needs • AI innovation across products • Deliver solutions to meet the Comprehensive Offerings in consolidation challenges faced by Financial
Slide 47: The Four Pillars: Invoice-to-Cash
The Four Pillars: Invoice-to-Cash Market Need Large TAM; International compliance; Demand for Working Capital improvement Deep Domain Expertise Domain expertise in key roles; Practitioner-led implementations; Partner extended Competitive Differentiation Breadth of offering; BlackLine install base; M
Slide 48: Invoice-to-Cash: Tailwinds & Growth Levers
Invoice-to-Cash: Tailwinds & Growth Levers Tailwinds & Catalysts Growth Levers • CFO need for cash flow predictability Economy & Market • Cost of borrowing, Decision Intelligence • Efficiency, and cost reduction • Partner practices focused on I2C Digital Transformation Agenda • Technology + BPO both
Slide 49: Invoice-to-Cash: E-invoicing Regulatory Challenges
Invoice-to-Cash: E-invoicing Regulatory Challenges In recent years, regulatory environments in EMEA and APAC have become increasingly complex with respect to electronic invoicing requirements. Future regulatory additions will increasingly serve as catalysts for enterprises to adopt comprehensive AR
Slide 50: 1st Break
1st Break Y, BLACKLINE
Slide 51: Technology & Product
Technology & Product Jeremy Ung | Chief Technology Officer Charlie Gaulke | SVP, Product 51
Slide 52: BlackLine by the Numbers…
BlackLine by the Numbers… Over Completed Customer Incidents 30PB of data 80% of cloud migrations 77% YoY reduction Completed Released APACRegion build-out 144 New capabilities 52
Slide 53: A Platform for the Office of the CFO
A PLATFORM FOR THE OFFICE OF THE CFO Our solutions are unified, comprehensive, flexible, and scalable. 53
Slide 54: Investment Priorities
Investment Priorities 1 2 3 Strengthen Product Leverage AI Scale the Platform Led Growth Motion Technologies 4 5 6 Public Sector Market Affirm Dominance in Win the Invoice-to- Opportunity Record-to-Report Cash Market 54
Slide 55: Studio360: How it Works
1 Studio360: How it Works The BlackLine Platform enables financial operations that are accurate, efficient, and intelligent. APPLICATIONS OUTCOMES PLATFORM DATA SOURCES Identify Risks & Anomalies Studio360 Control ERPs Centralized management of financial hierarchies, policies & certifications • Jour
Slide 56: Studio360: Key Components
1 Studio360: Key Components Studio360 Control Studio360 Control: Centralized management of financial hierarchies, Studio360 Integrate: policies, and certifications Cleanse and transform data Studio360 Orchestrate Studio360 Integrate Studio360 Visualize through pre-built connectors, APIs, and more St
Slide 57: Extend the Power of our Data
1 Extend the Power of our Data Data at scale across Studio360 to deliver extensibility, decrease cost of implementation, and makes building new use cases easier. Data Lake on Snowflake Connector Ingest APIs for Extensibility Partner with leading data platform Standardize connector ingest to Create a
Slide 58: Operating with Excellence
1 Operating with Excellence Software delivery at a high-bar, leveraging cloud-native technologies to improve performance, maintain security, and lower costs. Cloud Migration Cost to Serve Reliability & Security Predictability Enhancement 80% of data center to Complete new architecture Completed infr
Slide 59: AI Strategy
2 AI STRATEGY BlackLine will put users in control of their AI decision-making, allowing users to build trust to leverage AI technologies to optimize and streamline their future-ready financial operations. 59
Slide 60: Existing AI Capabilities at Scale
2 Existing AI Capabilities at Scale Save time. Improve accuracy. Increase collaboration. • Journals Risk Analyser • Document Description Summarizer • Variance Automation • AR Payment Forecasting • Footnote Generator • ML Remittance Processing • Financial Statement Summaries • Intercompany Predictive
Slide 61: Key Investment: Agentic experiences
2 KEY INVESTMENT Accelerated decision-making & embedded intelligence via agentic experiences. 61
Slide 62: Decision Engine
2 Quickly build AI-enabled workflows Decision Enhance risk management Engine and take action Work efficiently with time-saving customizations 62
Slide 63: Key Investment: Predictive intelligence for forecasting
2 KEY INVESTMENT Predictive intelligence for forecasting future trends 63
Slide 64: AI-Driven Matching
2 Automatically match large volume of transactions AI-Driven Generate rules based on your definition of goals Matching Improve compliance posture 64
Slide 65: Key Investment: Natural language exploration and visualization
2 KEY INVESTMENT Natural language exploration and visualization 65
Slide 66: Journal Risk Analyser
2 Identify patterns that rules alone miss Journal Risk Leverage unstructured data to boost risk assessment Analyser Measure scenarios more accurately 66
Slide 67: Strengthen the Product-led Growth Motion
3 Strengthen the Product-led Growth Motion Consistent and unified user experience to drive adoption, increase account growth, and increase customer satisfaction. Seamless User Experience Self-service Configuration Modernize the look and feel across Streamline and make implementation all products & e
Slide 68: New Market Opportunity: Public Sector
4 New Market Opportunity: Public Sector Capitalize on industry-leading Financial Close solution, existing footprint, and established relationships to win the Public Sector market. Google Cloud Platform FedRAMP Certification Security (GCP) Infrastructure Enhancements Leverage our existing partnership
Slide 69: Charlie Gaulke
Charlie Gaulke 69
Slide 70: New Financial Close Capabilities
5 New Financial Close Capabilities Expand our addressable market by enhancing customer-driven use cases and building capabilities to support high data volumes. High Volume Data Scale Industry Specific Use Cases Expand Market Presence Continue to scale ‘up’ and ‘out’ by Enhance our industry-leading I
Slide 71: Partner Extensibility with Intercompany
5 Partner Extensibility with Intercompany Leverage the power of Studio360 to accelerate the partner selling motion and enable cross-sell and up-sell opportunities. Innovation → Acceleration Financial Close Integration Power of the Platform Deliver partner critical capabilities Deepen the integration
Slide 72: Enterprise-Ready Financial Reporting Analytics
5 Enterprise-Ready Financial Reporting Analytics Leverage emerging AI technologies to deliver a comprehensive set of robust FRA features. Deep Pre-Consolidation Robust FRA Internal Reporting Capabilities Functionality Solution Continue to drive differentiation with Build upon on our Consolidations I
Slide 73: Differentiation of Invoice-to-Cash Solution
6 Differentiation of Invoice-to-Cash Solution Take advantage of market tailwinds and existing market leadership in Financial Close with a unified and comprehensive I2C solution. AI Studio360 AI / ML Fueled Innovation Studio360 Scalability EIPP as a Growth Lever Deepen our functionality fueled by Har
Slide 74: Financial Summary
Financial Summary Mark Partin | Chief Financial Officer Patrick Villanova | Chief Accounting Officer 74
Slide 75: Positioned to Accelerate Profitable Growth
Positioned to Accelerate Profitable Growth 1 2 3 4 Strategic Position, Acceleration to Driving Continued Durable Shareholder Strong Foundation Mid-Teens Growth Margin Expansion Value Creation Global, high-quality Account expansion and Return to best-in-class New target model & enterprise customer ba
Slide 76: Global, Enterprise-Heavy Customer Base
1 Global, Enterprise-Heavy Customer Base Solving the most complex challenges within the Office of the CFO NORTH AMERICA EUROPE ASIA-PACIFIC MM ~3,200 ENT MM ~400 ENT Customers Customers MM ~800 ENT Customers MM MM ~$470M ENT ~$50M ENT ARR MM ARR ~$120M ENT ARR 76
Slide 77: Market Leader with a Large & Underpenetrated TAM
1 Market Leader with a Large & Underpenetrated TAM These two process areas, Record to Report and Invoice-to-Cash, represent distinct addressable markets. Record-to-Report Invoice-to-Cash $34B $11B $45B Total Addressable Market Comprised of over 160,000 companies across BlackLine’s target markets in
Slide 78: Opportunity within Our Established Customers
1 Opportunity within Our Established Customers A significant portion of BlackLine’s TAM and future growth is embedded within our high-quality customer base. Penetration of Solutions Based on Ideal Customer Profiles: Studio360 Journals Invoice-to-Cash Matching Intercompany FRA <1% of the ~4,500 Targe
Slide 79: Compelling Embedded Opportunity
1 Compelling Embedded Opportunity Large and actionable embedded opportunity. Multi-Pillar Customers % of Total Compared with Single-Pillar Customers… Customers with Customers with Two Pillars Three or More Pillars ~2X ~8X 13% 12% 11% the Avg. ACV1 the Avg. ACV1 +5pts +10pts 10% Higher Net Revenue Hi
Slide 80: Scalable Model with Sticky High-Value Customers
1 Scalable Model with Sticky High-Value Customers Expanding within Our Largest Customers Since IPO… 58% $224k $215k $200k 70 $183k 64 $1M+ CAGR in customers $163k 48 spending $1M or more 24% $154k $136k 36 $125k $113k 27 ARR / Customer 14 CAGR in customers $250k+ (Enterprise) 521 spending $250K or m
Slide 81: The Engine of Our Growth Acceleration
2 The Engine of Our Growth Acceleration Strategic Cross-Sell & Account Expansion Pillar strategy Strategic products Accelerate Partners / SAP New Logo Growth Pillar strategy Partners / SAP Industry strategy Platform International markets Innovation & Packaging Public Sector opportunity $ BlackLine S
Slide 82: Patrick Villanova
Patrick Villanova Y, BLACKLINE
Slide 83: Target Model Framework
4 Target Model Framework Metric 2020 2021 2022 2023 YTD Target Model Primary Drivers GTM execution, strategic solutions, Total Revenue Growth 22% 21% 23% 13% 11% 13%-16% partnership strategy, industry strategy, platform/product innovation, gov’t GCP migration completion, Cloud Gross Margin1 83% 80%
Slide 84: Driving BlackLine's Growth Acceleration
2 Driving BlackLine’s Growth Acceleration Key Drivers & Initiatives Total Revenue Growth Rate HISTORICAL MACRO Account Expansion GROWTH RATE SLOWDOWN NORMALIZATION − Pillar strategy 109% 109% 106% 107% 106% 1 − Strategic solution cross-sell 105% NRR − Partners / SAP 23% 22% 21% New Logo Acceleration
Slide 85: Returning to Best-in-Class Gross Margins
3 Returning to Best-in-Class Gross Margins Key Drivers & Initiatives Gross Margin Profile (Non-GAAP) HISTORICAL PLATFORM RETURN TO BEST-IN- Cloud ATTAINMENT INVESTMENT CLASS MARGINS − GCP Migration Completion 87% Sub-GM 84% 83% 82% 82% − Workload Optimization ~85% 83% − License management 80% 79% 79
Slide 86: Expanding Operating Margins
3 Expanding Operating Margins Key Drivers & Initiatives Operating Income Margin Profile (Non-GAAP) HISTORICAL Gross Margin OPERATING OPTIMIZATION CONTINUED EXPANSION MARGIN − Cloud migration & optimization 26%-30% − Scaled customer team investments R&D G&A − Refined services model S&M Sales & Market
Slide 87: Sustained & Expanding Free Cash Flow Generation
3 Sustained & Expanding Free Cash Flow Generation Key Drivers & Initiatives Free Cash Flow | Free Cash Flow Margin $ in M − Return to best-in-class gross 25% margin − Continued operating leverage − Efficient working capital 17% $163 management 13% − Net Interest Income 10% $99 − Tax burden expected
Slide 88: Disciplined Capital Allocation Strategy
4 Disciplined Capital Allocation Strategy DEEPEN AND EXTEND PLATFORM CAPITAL STRUCTURE OPTIMIZATION NEW: Innovation and Growth Investments Tuck-in M&A Share Repurchase Debt Reduction Organic Innovation Deepen / Extend within Opportunistic / Additional paydown Office of the CFO dilution management of
Slide 89: Prudent Stock-Based Compensation Framework
4 Prudent Stock-Based Compensation Framework 16% 15% 13% 11%-12% SBC % of Revenue 2021 2022 2023 Target Model 89
Slide 90: Positioned to Accelerate Profitable Growth
Positioned to Accelerate Profitable Growth 1 2 3 4 Strategic Position, Acceleration to Driving Continued Durable Shareholder Strong Foundation Mid-Teens Growth Margin Expansion Value Creation Global, high-quality Account expansion and Return to best-in-class New target model & enterprise customer ba
Slide 91: 2nd Break
2"¢d Break Y, BLACKLINE
Slide 92: Q&A Panel Session
Q&A Panel Session 92
Slide 93: BlackLine Q&A Panel
BlackLine Q&A Panel Owen Ryan Therese Tucker Mark Partin Jeremy Ung Patrick Villanova Co-Chief Executive Officer Co-Chief Executive Officer Chief Financial Officer Chief Technology Officer Chief Accounting Officer Matt Humphries Charlie Gaulke Mike Polaha Kivanc Pakel Andy Lilley Cheri Hewlett VP, I
Slide 94: Appendix
Appendix A ‘Z BLACKLINE
Slide 95: Non-GAAP Reconciliations, Gross Profit and Free Cash Flow
NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT AND FREE CASH FLOW ($ IN 000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2019 2020 2021 2022 2023 Non-GAAP Revenues GAAP revenues $120,236 $128,477 $134,268 $139,957 $138,984 $144,574 $150,708 $155,730 $15
Slide 96: Non-GAAP Reconciliations, Operating Income and Net Income
NON-GAAP RECONCILIATIONS, NON-GAAP OPERATING INCOME AND NON-GAAP NET INCOME ($000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2019 2020 2021 2022 2023 Non-GAAP Income from Operations GAAP income (loss) from operations ($25,364) ($12,693) ($21,419) $3,27
Slide 97: Non-GAAP Reconciliations, S&M, R&D, G&A
NON-GAAP RECONCILIATIONS, NON-GAAP S&M, NON-GAAP R&D, NON- GAAP G&A ($000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2019 2020 2021 2022 2023 GAAP Sales and Marketing Expense $60,027 $66,000 $64,540 $66,295 $61,931 $62,749 $61,576 $56,898 $61,111 $60,2