Blackline, Inc. · NASDAQ:BL
Blackline — Investor Day (November 2022)
97 slides from Blackline's investor day presentation, Nov 8, 2022
Slide 1: Investor Day 2022
Investor Day 2022 November 8th, 2022 Las Vegas, NV
Slide 2: Welcome
1 2 3 4 5 6 7 8 9 10 11 12 13 14 Welcome Matt Humphries | VP of Investor Relations 2
Slide 3: Agenda
Agenda 1 Welcome Matt Humphries | VP of Investor Relations 2 CEO Introduction Marc Huffman | Chief Executive Officer 3 Go-to-Market Strategy Mark Woodhams | Chief Revenue Officer 4 Customer Success Lisa Schreiber | Chief Customer Officer 5 1st Break 6 Product & Technology Strategy Pete Hirsch | Chie
Slide 4: 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 5: CEO Introduction
1 2 3 4 5 6 7 8 9 10 11 12 13 CEO Introduction Marc Huffman | Chief Executive Officer 5
Slide 6: Beyond! heBlack
Beyond! heBlack
Slide 7: BlackLine's Market: The Office of the CFO
BlackLine’s Market: The Office of the CFO Office of the CFO The Controllership Treasury Operations Tax, Audit & Compliance General Ledger Financial Close AR/AP Accounting Management FP&A Corporate Development Cash Liability Tax, Regulatory & Risk Billing Financial Consolidation Management Management
Slide 8: BlackLine's Market: The Office of the CFO
BlackLine’s Market: The Office of the CFO Office of the CFO Product Product Adjacencies Adjacencies The Controllership Treasury Operations Tax, Audit & Compliance General Ledger Financial Close AR/AP Accounting Management FP&A Corporate Development Cash Liability Tax, Regulatory & Risk Billing Finan
Slide 9: 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 10: The Potential Impact of Accounting Errors is Clear
The Potential Impact of Accounting Errors is Clear RECOVERY OF ERRONEOUSLY ACCOUNTING ERRORS TO SMALL ERRORS HOLD BIG AWARDED COMPENSATION COST EXECUTIVES THEIR STAKES IN EXECUTIVE PAY Listed issuers are now required to BONUSES UNDER SEC RULE CLAWBACK RULE adopt, comply with, and disclose a The Wall
Slide 11: BlackLine's Target Customer: The Corporate Controller
BlackLine’s Target Customer: The Corporate Controller Finance executive’s digital transformation goals by 2025… 86% 64% 55% Desire a faster, real time financial close Desire an error-free financial close Are aiming for a completely touchless financial close Where the CFO relies on the controller, th
Slide 12: Market Leader with Large & Underpenetrated TAM
Market Leader with Large & Underpenetrated TAM $39B $18.5B Financial Close Market 1 + $10B Accounts Receivable Market 2 $11B Intercompany Financial Management 3 Comprised of >200,000 Target Customers $498M $473M BlackLine LTM BlackLine revenue LTM Revenue comprised Comprisedofof4,000+ 4,000+customer
Slide 13: Strength Across Geographies, Sectors, and Sizes
Strength Across Geographies, Sectors, and Sizes APAC EMEA 50k+ North America 50k+ Embedded potential BlackLine customers 100k+ Embedded potential BlackLine customers Embedded potential BlackLine customers Underpenetrated TAM Consists of >200,000 Customers 13 Source: 2021 Independent third-party anal
Slide 14: How BlackLine Wins…
How BlackLine Wins… Continued Investment in Innovation Expanded investments in R&D, ongoing Google Cloud modernization and exploration of product adjacencies Execute Along Well- Worn GTM Path Customer Success Leverage best practices Drive customer expansion and acquired over 20+ years, MAP adoption
Slide 15: …When BlackLine Wins
…When BlackLine Wins Stronger Net Retention Moving BlackLine upstream of customer data sources improves strategic use cases and strengthens strategic indispensability to the office of the CFO Drive Sustained Unlock Operational Profitable Growth Enhanced Unit From our underpenetrated Efficiencies at
Slide 16: 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-Product Multi-Product Platform Financial Close Management Financial Close Managemen
Slide 17: Building a Platform for the Future
Building a Platform for the Future Financial Operations Management Platform BlackLine Accounting Studio Financial Close Transaction Smart Close Intercompany Accounts Matching Financial Receivable Account Reconciliations Management Task Management Journal Entry Cash Application Compliance Credit & Ri
Slide 18: Building Our Platform Through Continued Innovation
Building Our Platform Through Continued Innovation Platform-Driven Product Adjacencies Customer-Driven Innovation Innovation BlackLine Accounting Studio Modern Accounting Financial Reporting Playbook (MAP) for Cash Analytics (2023) Application Connectors 18
Slide 19: Delivering on Go-to-Market Investments
Delivering on Go-to-Market Investments GTM Levers 1 3 2 Proven Land & Expand Sales Force Productivity Model Improvements Targeting Our Embedded S&M efficiency improvement through higher BlackLine’s “Well-Worn” path Whitespace ACV deals and FTE maturity Significant customer expansion MAP for enterpri
Slide 20: Driving Toward Continued Success
Driving Toward Continued Success Positioned for Today Poised for Tomorrow Enable customers to unlock We created the financial close Automating Industry Leading operational efficiencies at a time management category. We when they are most needed “More with Less” Position pioneered it, and we lead it
Slide 21: Medium-Term Growth Model
Medium-Term Growth Model Sustainable Revenue Growth Profitable Business Model 20%-25% 40 Rule of Medium-Term1 Revenue Growth Target Continued progress towards Rule of 40 achievement BlackLine’s profitable growth model is positioned to drive success today and tomorrow 21 1 Medium-Term (“MT”) defined
Slide 22: Go-To-Market Strategy
1 2 3 4 5 6 7 8 9 10 11 12 13 Go-To-Market Strategy Mark Woodhams | Chief Revenue Officer 22
Slide 23: 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 24: Robust Go-to-Market Engine
Robust Go-to-Market Engine 2 New Customers Add new customers on their accounting & finance transformations 1 Customer Expansion 3 International Expansion Drive adoption of strategic Grow existing footprint and products and user expansion leverage partnerships for into BlackLine’s existing distributi
Slide 25: Expanding Within Our Customers
1 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 Products Strategic products enable 250 enable significant ACV expansion $500 1,000 significant ACV expa
Slide 26: Modern Accounting Playbook (MAP)
2 Modern Accounting Playbook (MAP) Enterprise MAP is BlackLine’s strategy to further capture the enterprise market opportunity by applying the lessons learned in mid-market adoption and pursuing a now well-worn go-to-market path MAP’s Winning Attributes MAP for Mid- NEW: MAP for Cash Improved Deal P
Slide 27: Example: Global Enterprise Medical Technology Company
2 Example: Global Enterprise Medical Technology Company BlackLine’s first MAP for Enterprise customer required improved visibility and control over an increasingly complex, global, multi-ERP accounting organization. With MAP for Enterprise’s accelerated implementation and lighting time- to-scale, a
Slide 28: Key International Markets
3 Key International Markets Building another growth engine reaching far into the future EMEA APAC International Business 36% ’18-’21 Revenue CAGR EMEA Opportunity APAC Opportunity BlackLine has achieved strong growth in EMEA markets – Asia-Pacific markets remain an area of growth and gaining additio
Slide 29: Delivering on Go-to-Market Investments
4 Delivering on Go-to-Market Investments 1 Proven Land & Expand Model • BlackLine’s “Well-Worn” path • Unlocked efficiencies through landing of larger deals and FTE maturity 2 Targeting Our Embedded Whitespace GTM • MAP for enterprise and strategic products increasingly serve as a powerful tool of a
Slide 30: Positioned to Drive Sales Efficiency Improvements
Positioned to Drive Sales Efficiency Improvements Maturing sales organization; product adjacencies and recent TAM expansion have added products to sell within our direct and partner channel ecosystems 42% 245 232 217 Sales Force Historical 209 Rehydration 33% 29% Achievement 182 184 32% 22% COVID Hi
Slide 31: Partnership Organization
4 Partnership Organization BlackLine Partnership Organization SAP Center of Global Strategic Software and Excellence & Value Regional Alliances Channel Alliances Cloud Alliances Architecture GLOBAL STRATEGIC REGIONAL SOLUTION BPO SOFTWARE & ALLIANCES RESELLER CONSULTING PROVIDERS PARTNERS CLOUD Part
Slide 32: BlackLine's Partner Ecosystem
4 BlackLine’s Partner Ecosystem Channel (Resellers / Solution Providers / BPO) BlackLine Services Alliances Source, Sell, Co-Sell, Implement, CSM Source, Influence, Co-Sell and Implement Strategic Reseller Partner Global Strategic Consulting Alliances BPO Partners > $10B Software and Cloud Enterpris
Slide 33: SAP Enablement & Achievement
4 SAP Enablement & Achievement North America ~1,300 EMEA ~3,500 APAC ~700 Rest of World ~4,500 ~10,000 BlackLine’s demonstrated Winner EMEA North Winner APAC Partner commitment to Solution SAP customers with partnership success Regional Award for Partner Regional Award for Partner Success >$1B in re
Slide 34: SAP – BlackLine Customer Success Across Industries
4 SAP – BlackLine Customer Success Across Industries Food & Beverage eCommerce Insurance Food & Beverage Global Enterprise Customer Global Enterprise Customer NA Enterprise Customer NA Enterprise Customer 30x Reduction in intercompany 70% 160% 97% Faster monthly close Workload increase absorbed Jour
Slide 35: Exploring Product Adjacencies
5 Exploring Product Adjacencies Recent M&A Enhanced Competitiveness AR/IFM Whitespace Recent acquisitions have focused This expansion serves to round- Unlocked significant whitespace on the strategic expansion into out solution suite and advances and revenue opportunity the highly adjacent Accounts
Slide 36: Powering BlackLine's Growth
Powering BlackLine’s Growth Proven go-to-market motion (well-worn path) GTM Leveraging partners and new markets to Strategy accelerate distribution Expanding into adjacencies to expand TAM and deepen strategic indispensability 36
Slide 37: Customer Success
1 2 3 4 5 6 7 8 9 10 11 12 13 Customer Success Lisa Schreiber | Chief Customer Officer 37
Slide 38: Customer Success Objectives
Customer Success Objectives Business Outcomes Drive Value Realization Healthy and Automation- 1 Adopted customers Build User Confidence & Knowledge Customer 2 Realize faster time-to- value Team Provide Critical Support When Needed Optimization-driven Guide Digital Transformation 3 journey Journey 38
Slide 39: Implement & Onboard
Implement & Onboard Implement Onboard Healthy Customer, Platform Usage & Enabling Automation “Get the Foundation Right” Faster Time- Enhance Customer Confidence & to-Value Knowledge Unlock BlackLine’s Capabilities Customer Success Plan for Future Optimizations Customer Realizes First Value Customer
Slide 40: Training
Training Live Training Optimization Academy 44% Subscription Training 212% YoY Training Revenue 3Q22 Attach Rate Increase1 Workshop-style, live training Live program that delivers Learning portal purpose-built delivered by a BlackLine leading-practice optimization to accelerate learning Subject Matt
Slide 41: Supporting Our Customers
Supporting Our Customers Our Digital Ecosystem & Data-Driven Insights Customer Success for Scale New Customer Service Offerings Data-driven Insights Trigger Outreach Premium Services Intelligence-based Customer Health Monitoring Admin as a Service Communities Optimization Consulting Optimization Aca
Slide 42: Customer Success as a Differentiator
Customer Success as a Differentiator Customer value realization and health bolster DBNRR and generational sales Customer Data-driven intelligence and insights drive engagement with customers and improve Success business outcomes Accelerates revenue growth through enhanced customer engagement and ado
Slide 43: 1st Break
1 2 3 4 5 6 7 8 9 10 11 12 13 1 Break st To Resume in 10 Minutes 43
Slide 44: Product & Technology Strategy
1 2 3 4 5 6 7 8 9 10 11 12 13 Product & Technology Strategy Pete Hirsch | Chief Technology Officer 44
Slide 45: Marks of a Category Leader
Marks of a Category Leader From Financial Close Management to Financial Operations Management 14.2B >$200B >200k Total Imported Transactions in Total Value of Payments Processed Total Intercompany Transactions Q1-Q3 2022 Q1-Q3 2022 Processed Q1-Q3 2022 Financial Close Accounts Receivable Intercompan
Slide 46: Embedded at the Core of Our Customers' Workflows
Embedded at the Core of Our Customers’ Workflows Partnerships Interoperability Subledger Access SAP Solution Extension Accounts Payable/ Provider All Major ERPs Receivable, Supply Chain, Microsoft Partnership Inventory, Fixed Assets 46
Slide 47: Investments in Innovation & Platform Modernization
Investments in Innovation & Platform Modernization Growing Investment in Product & Engineering Platform Modernization 17% 16% 14% 13% 12% Central driver and enabler of scale Accelerates pace of product innovation Delivers operational security enhancement Our cloud migration is halfway complete, and
Slide 48: Investment Priorities for the Next Wave of Growth
Investment Priorities for the Next Wave of Growth 1 Financial Close Management • Continued platform modernization • Enhancing current solutions, including big data matching • New: Financial Reporting Analytics 2 Accounts Receivable Automation 2023 • Further integrations with financial close manageme
Slide 49: Defining a New Category: Financial Operations Management
Defining a New Category: Financial Operations Management Redefining financial automation in 2023 and beyond… Solution Solution Solution 1.0 2.0 3.0 BOT More People RPA Financial Operations (Robotic Process Automation) Management We’re creating this new category, and we’ll be the leader in it. We’ve
Slide 50: Introducing BlackLine Accounting Studio
Introducing BlackLine Accounting Studio Embedded Intelligent Automation launching in 2023 1 Unify Orchestrate 2 BlackLine Accounting Studio 3 Automate 50
Slide 51: BlackLine Accounting Studio Evolution
BlackLine Accounting Studio Evolution BlackLine Accounting Studio General Availability Full System Unification Principals Spring 2023 Beyond 2023+ • Unifies accounting systems including multiple ERPs, with unprecedented visibility on status of processes in flight • General availability of BlackLine
Slide 52: Uniquely Positioned to Execute on This Vision
Uniquely Positioned to Execute on This Vision Unify accounting processes across our three pillars Solve for reality of multi-ERP enterprises Product & Unmatched market experience and knowledge Technology Sustained R&D investments at $100m+ run rate We pioneered the automated financial close Poised t
Slide 53: Strategic Products
1 2 3 4 5 6 7 8 9 10 11 12 13 Strategic Products Mike Polaha | SVP Finance Solutions & Technology 53
Slide 54: The Case for Strategic Products
The Case for Strategic Products Positions BlackLine to Capture New Market Opportunity Market Need Moving Upstream Strategic Finance and Expansion in Strategic Accounting Automation Products Move BlackLine Solutions Solve a Pressing Upstream From the Unmet Customer Need Traditional Close Processes St
Slide 55: Strategic Products Offerings
Strategic Products Offerings Financial Close Management Accounts Receivable Intercompany Transaction Matching Smart Close Automation Financial Management High-volume Real-time close Accounts receivable, Central management automated matching automation and order to cash and of global working and reco
Slide 56: Transaction Matching
1 Transaction Matching Enhanced Strategic Indispensability Total Matching Transactions Automated 4.6x Symmetrical product with Journals, extends BlackLine further into upstream data activity, strategic nature deepens solution indispensability Big Transactions Data Enable Insights YoY Increase in Tra
Slide 57: Transaction Matching
1 Transaction Matching Industry-Leading Enablement Through Strengthen Value Operability Automation Proposition of BlackLine 99.9% Ecosystem 191% Flexible Integration Configurable Automation Transactions automatically matched each period 70% Reconcile Multiple Sources ROI each year from integrating T
Slide 58: Smart Close
2 Smart Close SAP Partnership Faster, Better Close Customer Satisfaction 400+ Manual SAP Steps Fully 70% Of Closing Activities Automated1 Manual SAP Steps Fully Automated • Standardize close activities across the organization and 60% Automated SAP ecosystem • Easily monitor tasks & highlight • Nativ
Slide 59: Accounts Receivable Automation Tailwinds
3 Accounts Receivable Automation Tailwinds 83% Cash Is King Ability for customers to unlock cash $ trapped on the balance sheet during uncertain economic times is invaluable Doing More With Less Of users willing to pay for AR applications with modern architecture1 69% With tight labor markets and ri
Slide 60: Accounts Receivable Automation
3 Accounts Receivable Automation Competitive Strong Growth Profile Large Transaction Differentiation Network 33% >$200B Unified platform enables configurable real-time AR process management Data-driven customer and payment insights provide Growth in managed Of total payments managed visibility into
Slide 61: Intercompany Financial Management
4 Intercompany Financial Management Product Differentiation Only Tax-Centric Mitigate Regulatory & Intercompany Reputational Risk Touchless Process Automation Product Automation Complexity of intercompany Increasingly important with accounting is only increasing, Tax Hyperautomation the rise of cros
Slide 62: The Importance of Strategic Products
The Importance of Strategic Products Strategic products are an increasingly important driver of BlackLine’s revenue growth Strategic and upstream nature of the solution enhances stickiness and indispensability to the CFO Strategic Expands BlackLine solution offering into adjacencies Products Expands
Slide 63: Intercompany Financial Management
1 2 3 4 5 6 7 8 9 10 11 12 13 Intercompany Financial Management Mike Polaha | SVP Finance Solutions & Technology 63
Slide 64: Intercompany Processes are Unsustainable
Intercompany Processes are Unsustainable Parent Intercompany Subsidiary Elimination Daily Transactions Accounting Intercompany GRIR Loans Allocations Regulation Subsidiary Plant Tax Intercompany Payables Intercompany Invoices 64
Slide 65: Intercompany Use Cases are Numerous & High-Impact
Intercompany Use Cases are Numerous & High-Impact Project-based costs Support functions Field engineer hours Global or regional HQ Management fees or cost pools (i.e., Legal, HR, EHS) allocations Shared service costs Learning and Expats and mobility Centrally managed IT consumption- classroom payrol
Slide 66: The Importance of Intercompany
The Importance of Intercompany Cost Of Business Clean Books & Regulatory & Administration Records Reputational Risk Not a single dollar of reportable Key closing workstream and pain Large-cap medical device company revenue is generated point within F&A teams fined $1.6B for IC royalty rates not at a
Slide 67: Powerful Market Dynamics Driving Intercompany Adoption
Powerful Market Dynamics Driving Intercompany Adoption Enterprise Dynamics Entity Complexity M&A & FDI Volume1 Globalization2 Many legal entities and Cross-border M&A ~80% of global trade transactions that span has been on the rise, takes place within the multiple jurisdictions with ~10k deals value
Slide 68: The Market Opportunity is Clear, Independently Supported and Prime to Be Seized
The Market Opportunity is Clear, Independently Supported and Prime to Be Seized $11B Intercompany + Financial Management Total TAM Opportunity1 2,000+ BL Customers Fit IFM Experienced GTM Team Recognized Thought Leader Dedicated Partner Support 68 1As per 3rd party market assessments.
Slide 69: BlackLine Intercompany
BlackLine Intercompany Solution bundles that transform how companies manage their intercompany operations and the transaction lifecycle Balance & Create Net & Settle Resolve Automate, optimize, and Centralize, streamline, and Streamline and automate manage intercompany automate intercompany intercom
Slide 70: Solutions for End-to-End Transaction Automation
Solutions for End-to-End Transaction Automation Create Balance & Resolve Net & Settle Vendor Portal Data Sources Settlement Rules Configuration Recharge Tax & TP Payment Confirmation Reporting & Analytics GL Balancing & Resolution 70
Slide 71: Intercompany Product Differentiation
Intercompany Product Differentiation TAX Touchless Process Tax Business Insights Automation Hyperautomation Reporting Configurable and dynamic billing Dynamic to macro and Centralized, structured and routes jurisdiction changes transparent data End-to-End transaction lifecycles Compliant, transparen
Slide 72: How BlackLine's Customers Go Beyond Zero
How BlackLine’s Customers Go Beyond Zero Average payback within 1 year of go-live1 Improve Operational Gain Global Tax Preservation of Achieve Cash Efficiency Control Operating Margins Precision 50%-60% 85% $15M 50%-60% Efficiency gains and Reduction in net BEAT In reduced tax leakage, Reduction of
Slide 73: Case Study: Mega-Cap Insurance Customer
Case Study: Mega-Cap Insurance Customer Problem Solutions Benefits × 4 shared service centers all ✓ Current-state process map ✓ 45% reduction of performed intercompany assessment intercompany FTE process differently ✓ New global intercompany policy ✓ Automated billing processes that × Manual process
Slide 74: Intercompany Positioned to Drive Growth
Intercompany Positioned to Drive Growth Huge greenfield opportunity targeted at the largest, most complex global enterprises The only tax-focused intercompany solution in the market Intercompany Expansion & cross sell within existing customer base Financial Management Extremely sticky solution with
Slide 75: 2nd Break
1 2 3 4 5 6 7 8 9 10 11 12 13 14 2 Break nd To Resume in 10 Minutes 75
Slide 76: An Accountant's Perspective
1 2 3 4 5 6 7 8 9 10 11 12 13 14 An Accountant’s Perspective Patrick Villanova | Chief Accounting Officer 76
Slide 77: Customer Panel
Customer Panel Hear how our customers have transformed their financial processes with BlackLine… [ [ [ Helene Carrier Vince Garlati Jon Bell Record-to-Report Value VP/Global Controller & Principal Head of Operations Europe & Stream Owner Accounting Officer APAC Business Services 77
Slide 78: Financial Summary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 Financial Summary Mark Partin | Chief Financial Officer 78
Slide 79: Fundamentals of a Compelling Long-Term Opportunity
Fundamentals of a Compelling Long-Term Opportunity Market Leader with Large & Compelling Land & Expand Durable Business Model with Underpenetrated TAM Model Investment in Profitable Growth $39B+ >4,000 customers with high renewal and retention rates combined with large High-growth, high-margin subsc
Slide 80: 3Q'22 Financial KPI Dashboard
3Q’22 Financial KPI Dashboard 4,000+ Customers 23% Revenue Growth ~ $515M Total ARR1 12% FCF Margin2 In 130+ countries 94% SaaS recurring revenue 22% YoY increase >$16M of FCF generated $ $$$ $1.4k+ 80% $685M 109% ARPU3 Gross Margin2 RPO Net Retention On our 350,000+ user base Highly-profitable busi
Slide 81: Medium-Term Targets & Long-Term Target Model
Medium-Term Targets & Long-Term Target Model Metric 2019 2020 2021 3Q22 MT1 Target LT Model Primary Drivers Customer expansion, Total Revenue Growth 27% 22% 21% 23% 20% - 25% upsell/cross-sell, new logo growth Completion of cloud-transition, Gross Margin2 83% 83% 80% 80% 80% - 82% 83%+ scaled expans
Slide 82: Market Leader with Large & Underpenetrated TAM
1 Market Leader with Large & Underpenetrated TAM $39B $18.5B Financial Close Market 1 + $10B Accounts Receivable Market 2 $11B Intercompany Financial Management 3 Comprised of >200,000 Target Customers $498M $473M BlackLine LTM BlackLine revenue LTM Revenue comprised Comprisedofof4,000+ 4,000+custom
Slide 83: Digital Transformation as a Catalyst for Growth
2 Digital Transformation as a Catalyst for Growth Digitally Transforming1 2 Customers $270k $73k 180+ For Digitally Transforming Customers… Avg. Avg. Annual Avg. 40% BlackLine Customer Base Total ARR Account Growth Total Users 2.3X 2.9X 2.3X Increase in average number of solutions 2 114% YTD 2022 DB
Slide 84: Demonstrated Ability to Drive Land and Expand Platform
2 Demonstrated Ability to Drive Land and Expand Platform Growth Annualized Revenue by Customer Cohort1 Cohort Multiple 2022 1.8x 2021 1.3x 2020 1.5x 2019 1.5x 2018 1.5x Expansion in average new deal size in 2021 vs 2012 2017 1.7x 2016 1.8x 2015 2.0x 2014 2.4x 2013 4.0x 2012 4.6x 84 2 See appendix fo
Slide 85: Continuously Growing Our Customer Wallet Share
2 Continuously Growing Our Customer Wallet Share More than 460 customers with an ARR1 of $250k+, supercharged by customers beginning their digital transformation journey 12% 74% 12% 49 $1M+ 11% 36 10% 10% 27 ’16-3Q22 CAGR in customers 10% spending $1M or more 14 28% 9% $250k+ 7 414 6 367 2 295 251 2
Slide 86: Strategic Product Attach as an Accelerant of Growth
2 Strategic Product Attach as an Accelerant of Growth Strategic products are responsible for an increasing share of customer expansion and new logo growth Strategic Product Attach Rate by Solution1… Transaction Smart Matching Close 22% Strategic Products ARR 19% 20% 26% 7% 13% Cash of total ARR Appl
Slide 87: Dollar-Based Net Retention
3 Dollar-Based Net Retention Account Growth / Land & Expand Strong Net Retention Supports ARR Growth Strong and consistent double-digit 109% 109% account growth serves as a powerful 106% TTM engine for growth in DBNRR and ARR DBNRR Renewal Rate 97% 97% 97% Deliver Unparalleled Value to the Customer
Slide 88: Driving Expansion in Gross Margin
3 Driving Expansion in Gross Margin Market Leader With a High- Consistent Gross Margin1 Achievement Value Product Our products deliver MT2 Target GCP 83% 83% Migration 80%-82% unprecedented and 82% 82% indispensable value to the 81% Customer Team 80% customer 79% Large Recuring Subscription Revenue
Slide 89: Continued Expansion in Profitability at Scale
3 Continued Expansion in Profitability at Scale With scale, BlackLine is positioned to drive margin expansion via efficient G&A, S&M and R&D spend 2022 YTD 1 76% of Revenue G&A Has Reached an Inflection Point MT Target Growth investment momentum to 64% - 68% of Revenue 16% moderate as infrastructure
Slide 90: Fundamentals of a Compelling Long-Term Opportunity
Fundamentals of a Compelling Long-Term Opportunity Market Leader with Large & Compelling Land & Expand Durable Business Model with Underpenetrated TAM Model Investment in Profitable Growth $39B+ >4,000 customers with high renewal and retention rates combined with large High-growth, high-margin subsc
Slide 91: Final Break
1 2 3 4 5 6 7 8 9 10 11 12 13 Final Break To Resume in 5 Minutes 91
Slide 92: Q&A Business Panel
1 2 3 4 5 6 7 8 9 10 11 12 13 Q&A Business Panel All Presenters 92
Slide 93: Appendix
Appendix A ‘% BLACKLINE
Slide 94: Non-GAAP Reconciliations and Definitions: Revenue, Gross Margin
NON-GAAP RECONCILIATIONS AND DEFINITIONS NON-GAAP REVENUE, NON-GAAP REVENUE, NON-GAAP GROSS MARGIN, AND THE ACQUISITION ($ IN 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
Slide 95: Non-GAAP Reconciliations: Operating Income and Net Income
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 96: 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 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
Slide 97: Definitions, Detail & Additional Disclosures
Definitions, Detail & Additional Disclosures Acquisition We operated as BlackLine Systems, Inc., which we refer to as the “Predecessor,” from 2001 until September 2013. On September 3, 2013, BlackLine, Inc., which we refer to as the “Successor,” acquired BlackLine Systems, Inc. in connection with an