Blackline, Inc. · NASDAQ:BL
Blackline — Q4 2022 Earnings Presentation
25 slides from Blackline's earnings presentation, Feb 14, 2023
Slide 1: BlackLine Investor Presentation 4Q'22
BlackLine Investor Presentation | 4Q’22 As of February 14, 2023
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: Market Leader with Large & Unpenetrated TAM
Market Leader with Large & Unpenetrated WHO WE ARE $39B TAM Champions of strategic accounting and finance transformation OUR VISION To be the indispensable platform for the office of the CFO Compelling Land Durable Business Model with Investment in & Expand Model Profitable Growth 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 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 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 Accounts Receivable Market 2 $11B Intercompany Financial Management 3 Comprised of >200,000 Target Customers $523M $473M BlackLine LTM BlackLine revenue LTM Revenue comprised Comprisedofof4,000+ 4,100+customer
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 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 9: A Platform for the Future
A Platform for the Future BlackLine’s Financial Operations Management Platform drives modern accounting & optimizes financial operations Financial Operations Management Platform BlackLine Accounting Studio Financial Close Accounts Intercompany Smart Close Transaction Receivable Financial Matching Ac
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: Demonstrated Ability to Drive Land and Expand Platform
Demonstrated Ability to Drive Land and Expand Platform Growth Annualized Revenue by Customer Cohort1 Cohort Multiple 2022 1.1x 2021 1.4x 2020 1.4x 2019 1.4x 2018 1.5x 2017 1.7x 2016 1.8x 2015 2.0x 2014 2.4x 2013 4.0x 2012 4.8x 1Reflects annualized subscription and support revenue for the group of cu
Slide 12: Expanding Within Our Customers
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 expans
Slide 13: Extending the Competitive Moat Drives Further Growth
Extending the Competitive Moat Drives Further Growth Indispensable Platform for the Office of the CFO Indispensable • Expanded functionality for the controllership Platform for the • SaaS-based platform Officer of the CFO • End-to-end accounting automation technology • Highly scalable and configurab
Slide 14: Numerous Levers to Drive Sustained Growth
Numerous Levers to Drive Sustained Growth Product Adjacencies 5 Expand to relevant adjacencies with product development & strategic M&A International Expansion 4 Grow existing footprint and leverage partners for ROW distribution 3 Partner Ecosystem Extend and strengthen partner relationships 2 Custo
Slide 15: 4Q'22 Financial Highlights
4Q’22 Financial Highlights 4,100+ Customers 21% Revenue Growth ~ $533M Total ARR1 14% FCF Margin2 In 130+ countries 94% SaaS recurring revenue 19% YoY increase >$20M of FCF generated $ $$$ $1.4k+ 80% $773M 107% ARPU3 Gross Margin2 RPO Net Revenue Retention On our ~367,000 user base Highly-profitable
Slide 16: Highly Visible Subscription Growth Model
Highly Visible Subscription Growth Model Total Revenue Subscription & Support Revenue $M $M $491 $523 23%1 $399 Y/Y 23%1 $329 Growth Y/Y Growth $272 $426 $217 $352 2018 2019 2020 2021 2022 $289 Services Revenue $32 $M $27 17%1 $228 $23 Y/Y Growth $17 $10 2018 2019 2020 2021 2022 2018 2019 2020 2021
Slide 17: Consistent Customer and User Growth
Consistent Customer and User Growth Customers Users ‘000s 367 4,188 328 3,825 292 3,433 268 3,024 223 2,631 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 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 98% 108% 110% 109% 107% 97% 97% 97% 97% 106% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Note: Dollar-based revenue renewal rate for each period is calculated by dividin
Slide 19: Continuously Growing Our Customer Wallet Share
Continuously Growing Our Customer Wallet Share More than 470 customers with an ARR1 of $250k+ 70% 48 $1M+ 36 27 ’16-’22 CAGR in customers spending $1M or more 14 27% $250k+ 7 429 6 367 2 295 251 203 162 ’16-’22 CAGR in customers 112 spending $250K or more 2016 2017 2018 2019 2020 2021 2022 19 1ARR r
Slide 20: Demonstrated Profitability & Cash Flow
Demonstrated Profitability & Cash Flow Non-GAAP Net Income Margin1 Free Cash Flow Margin 13% 13% 10% 9% 9% 8% 7% 5% 2% 2% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Note: Free cash flow defined as cash flows from operating activities less capex. 20 1 See appendix for GAAP financial measures a
Slide 21: Medium-Term Targets & Long-Term Target Model
Medium-Term Targets & Long-Term Target Model Metric 2019 2020 2021 2022 MT1 Target LT Model Primary Drivers Customer expansion, Total Revenue Growth 27% 22% 21% 23% 20% - 25% upsell/cross-sell, new logo growth Completion of cloud-transition, Gross Margin2 83% 83% 80% 79% 80% - 82% 83%+ scaled expans
Slide 22: Appendix
Appendix A ‘% BLACKLINE
Slide 23: Non-GAAP Reconciliations: Gross Profit and Free Cash Flow
NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT AND FREE CASH FLOW ($ IN 000’S) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2018 2019 2020 2021 2022 Non-GAAP Revenues GAAP Revenues $82,598 $83,272 $90,157 $95,710 $98,856 $102,122 $109,402 $115,326
Slide 24: Non-GAAP Reconciliations: Operating Income and Net Income
NON-GAAP RECONCILIATIONS NON-GAAP OPERATING INCOME AND NON-GAAP NET INCOME ($000’S) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2018 2019 2020 2021 2022 Non-GAAP Income (Loss) from Operations GAAP Income (Loss) from Operations ($7,337) ($3,326) ($2
Slide 25: 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 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2018 2019 2020 2021 2022 GAAP Sales and Marketing Expense $44,785 $41,826 $42,588 $45,382 $48,429 $49,182 $48,799 $56,210 $60,027