Summary of BlackLine (BL) 2025 Conference Call Company Overview - **Company**: BlackLine (BL) - **Event**: Baird's Global Consumer Technology and Services Conference - **Date**: June 03, 2025 Key Points Strategic Direction and Leadership Changes - BlackLine's management, led by Co-CEO Owen Ryan and CFO Patrick Villanova, has undergone significant changes over the past 20 months, with most of the leadership team replaced to align with the company's strategic direction [5][6][9] - The focus for 2023 was on defining strategic goals, 2024 was about team building, and 2025 is centered on execution and product improvement [7] Product Development and AI Integration - BlackLine plans to announce significant advancements in AI at the upcoming Beyond the Black Conference in September [7] - The company emphasizes the importance of clean, reliable data for effective AI implementation, positioning itself uniquely at the transaction level within financial systems [15][17][18] Market Position and ERP Migration Opportunities - BlackLine is well-positioned to capitalize on the upcoming ERP migration cycle, with approximately 30,000 upper mid-market and enterprise SAP customers expected to migrate over the next five years [22] - The company promotes a "finance first" approach during ERP migrations, ensuring data integrity and seamless transitions from on-premise to cloud solutions [20][25] Pricing Strategy - BlackLine has transitioned from a user-based pricing model to an unlimited user model, which has been positively received by customers, particularly in the upper mid-market and enterprise segments [46][50] - The new pricing strategy aims to facilitate broader access to BlackLine's platform, encouraging finance transformation within organizations [51][54] Margin Expansion and Cost Management - The company is confident in its ability to expand margins while accelerating revenue growth, driven by cloud optimization, AI integration, and cost-effective operational strategies [59][62] - Investments in AI are expected to enhance efficiency across customer support and back-office operations, contributing to margin improvement [60][61] Industry Focus and Government Opportunities - BlackLine is building a public sector practice to serve government clients, which complements its existing aerospace and defense verticals [39][40] - The company aims to leverage its experience in regulated industries to expand its market presence [41] Customer Engagement and Market Trends - BlackLine's engagement with major clients like ExxonMobil and Delta highlights the importance of data in ERP migration processes [19][21] - The company is actively addressing customer inquiries regarding AI and its applications in financial reporting, ensuring transparency and compliance [64][65] Additional Insights - The management team expressed optimism about the alignment with SAP and the increased interest from SAP representatives in BlackLine's solutions [34][35][36] - The transition to a platform-based pricing model is seen as a strategic move to enhance customer relationships and drive long-term growth [48][52] This summary encapsulates the critical insights and strategic directions discussed during the BlackLine conference call, highlighting the company's focus on execution, product development, and market opportunities.

Group 1 - The market has been volatile, particularly after a turbulent April and an uneven Q1 earnings season, leading to cautious investor sentiment [1] - Stocks have risen following earnings reports that were "better than feared," indicating a potential shift in market confidence [1] - Gary Alexander, with extensive experience in technology and startups, provides insights into current industry trends and themes [1] Group 2 - The article emphasizes the importance of cautious investment strategies in light of recent market fluctuations [1]

Core Insights - BlackLine is enhancing its AI capabilities to empower the Office of the CFO, aiming to streamline operations and enable autonomous finance [1][4][6] - The company's AI innovations focus on improving human decision-making while ensuring accuracy, efficiency, and compliance [2][3] - BlackLine's AI is integrated across major financial workflows, providing real-time insights and reducing manual efforts [4][5] AI Capabilities - BlackLine's AI agents transform raw financial data into actionable insights, generating reports and highlighting trends for strategic decision-making [5] - The platform includes features like anomaly detection in journal entries and automated financial statement commentary, enhancing operational efficiency [5][11] - Upcoming enhancements to agentic AI will further support financial operations, emphasizing the company's commitment to continuous innovation [7] Market Position - BlackLine has over 4,400 customers across various industries, showcasing its strong market presence and commitment to digital finance transformation [9] - The company emphasizes the importance of data quality and integrity, which are crucial for CFOs to make informed decisions [3][6] - Recognition from Forrester for its AR Intelligence highlights BlackLine's competitive edge in AI-driven financial solutions [6]

Part I. Financial Information [Item 1. Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) BlackLine, Inc.'s unaudited condensed consolidated financial statements for Q1 2025 report total revenues of **$166.9 million** and net income of **$6.1 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $479,536 | $885,915 | | Total current assets | $1,043,353 | $1,092,404 | | Total assets | $1,781,148 | $1,825,036 | | **Liabilities & Equity** | | | | Total current liabilities | $630,292 | $422,243 | | Total liabilities | $1,327,427 | $1,341,884 | | Total stockholders' equity | $417,903 | $446,669 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $166,931 | $157,461 | | Gross profit | $126,007 | $118,364 | | Income from operations | $3,575 | $1,748 | | Net income attributable to BlackLine, Inc. | $6,055 | $10,829 | | Basic net income per share | $0.10 | $0.18 | | Diluted net income per share | $0.10 | $0.17 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $46,742 | $50,425 | | Net cash provided by (used in) investing activities | ($399,041) | $20,990 | | Net cash used in financing activities | ($54,311) | ($10,925) | | Net (decrease) increase in cash | ($406,370) | $60,278 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, noting a **6% revenue increase to $166.9 million**, a decrease in net income to **$6.1 million**, and a strong liquidity position of **$866.5 million** - Total revenues for Q1 2025 were **$166.9 million**, a **6% increase** from **$157.5 million** in Q1 2024. Net income attributable to BlackLine, Inc. was **$6.1 million**, compared to **$10.8 million** in the same period last year[104](index=104&type=chunk)[123](index=123&type=chunk) - On March 4, 2025, the company initiated a restructuring program, reducing its global workforce by approximately **7% (130 positions)**, incurring **$5.3 million** in restructuring costs[106](index=106&type=chunk)[132](index=132&type=chunk) Key Metrics as of March 31, 2025 | Metric | Mar. 31, 2025 | Mar. 31, 2024 | | :--- | :--- | :--- | | Dollar-based net revenue retention rate | 104% | 105% | | Number of customers | 4,455 | 4,411 | | Number of users | 393,892 | 387,050 | - The company's principal sources of liquidity at March 31, 2025, were **$866.5 million** in cash, cash equivalents, and marketable securities[140](index=140&type=chunk) - During Q1 2025, the company repurchased approximately **0.9 million shares** of common stock for **$45.5 million**, with about **$154.5 million** remaining for future purchases[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including interest rate, foreign currency, and inflation, which could impact its convertible notes, international operations, and customer spending - The company holds **$866.5 million** in cash, cash equivalents, and marketable securities, with a **10% interest rate change** not expected to materially affect its fair value due to short-term nature[164](index=164&type=chunk)[165](index=165&type=chunk) - Foreign currency risk from international operations could result in an approximate **$4.1 million** impact on cash balances from a hypothetical **10% change** in the U.S. Dollar's value[167](index=167&type=chunk) - The fair value of the company's **$905.2 million** in outstanding convertible senior notes (2026 and 2029 Notes) is exposed to interest rate risk, despite having fixed interest rates[162](index=162&type=chunk)[163](index=163&type=chunk)[142](index=142&type=chunk) - Inflationary pressures pose a risk by potentially affecting customers' purchasing power and technology spending, impacting sales cycles and demand[169](index=169&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Disclosure controls and procedures were deemed effective at a reasonable assurance level by principal executive and financial officers as of March 31, 2025[170](index=170&type=chunk) - No material changes occurred in internal control over financial reporting during the quarter ended March 31, 2025[172](index=172&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - As of the filing date, BlackLine is not a party to any litigation expected to have a material adverse effect on its operations, cash flows, or financial position[174](index=174&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including customer acquisition and retention, economic uncertainty, security breaches, reliance on third-party cloud providers, AI/ML integration challenges, intense competition, and a history of losses - **Business & Economic Risks:** Growth depends on attracting new customers and expanding sales to existing ones, with economic uncertainty causing delays in purchasing decisions[177](index=177&type=chunk)[183](index=183&type=chunk) - **Security & Technology Risks:** Security breaches could lead to customer loss and reputational harm, while reliance on third-party cloud providers like GCP poses disruption risks[189](index=189&type=chunk)[243](index=243&type=chunk) - **AI/ML Risks:** Increased focus on AI/ML introduces risks such as implementation failure, reputational harm from incorrect model design, and navigating evolving legal and regulatory environments[196](index=196&type=chunk)[197](index=197&type=chunk) - **Financial Risks:** The company has an accumulated deficit of **$44.1 million** as of March 31, 2025, and quarterly results may fluctuate due to long and variable sales cycles[222](index=222&type=chunk)[224](index=224&type=chunk) - **Third-Party & Competitive Risks:** Business relies on strategic relationships with vendors like SAP, and the market is intensely competitive with some rivals possessing greater resources[240](index=240&type=chunk)[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **920,000 shares** for **$45.5 million** during Q1 2025 under a **$200 million** program, with **$154.5 million** remaining available Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | Approx. Dollar Value Remaining in Program (thousands) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | $200,000 | | Feb 2025 | — | $— | $200,000 | | Mar 2025 | 920 | $49.40 | $154,548 | | **Total** | **920** | | | - The Board of Directors authorized a repurchase program of up to **$200 million** on November 17, 2024, set to expire at the end of Q1 2027[311](index=311&type=chunk) [Item 5. Other Information](index=73&type=section&id=Item%205.%20Other%20Information) Chief Accounting Officer Michelle Stalick terminated a Rule 10b5-1 trading arrangement on March 14, 2025 - On March 14, 2025, Chief Accounting Officer Michelle Stalick terminated a Rule 10b5-1 trading arrangement established on June 14, 2024[312](index=312&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) The Exhibit Index lists all documents filed with the Form 10-Q, including management certifications and compensatory plans - The Exhibit Index lists all documents filed with or incorporated by reference into the Form 10-Q, including management certifications and compensatory plans[313](index=313&type=chunk)[315](index=315&type=chunk)

BlackLine (BL) reported $166.93 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 6%. EPS of $0.58 for the same period compares to $0.54 a year ago.The reported revenue represents a surprise of +0.04% over the Zacks Consensus Estimate of $166.86 million. With the consensus EPS estimate being $0.38, the EPS surprise was +52.63%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Financial Data and Key Metrics Changes - Total revenue grew to $167 million, up 6% year-over-year, despite a slight foreign exchange headwind [36] - Subscription revenue and services revenue both increased by 6% [37] - Annual recurring revenue (ARR) reached $656 million, up over 8%, benefiting from foreign exchange [37] - Remaining Performance Obligations (RPO) increased by 11%, with current RPO up 7% [37] - Non-GAAP operating margin was 21%, driven by cost benefits and foreign exchange [40] - Non-GAAP net income attributable to BlackLine was $36 million, representing a 22% margin [41] Business Line Data and Key Metrics Changes - Strategic products accounted for 27% of sales, with strong performance in Invoice to Cash, Transaction Matching, and Intercompany [39] - The number of customers generating over $1 million in ARR increased to 79, up from 71 in the previous quarter [7] - The revenue renewal rate was 94%, up one point year-over-year, with enterprise renewal rate at 96% [38] Market Data and Key Metrics Changes - The SOLEX partnership outperformed expectations, driven by larger expansion deals [39] - SAP accounted for 26% of total revenue, indicating strong integration and collaboration [40] - The company signed several new deals in international markets, including with Rexel and Japan Tobacco [18] Company Strategy and Development Direction - The company is focusing on enhancing its digital-first marketing approach and operational improvements to drive sales effectiveness [8] - BlackLine aims to position itself as the autonomous finance platform for the Office of the CFO, emphasizing rapid results and measurable returns [11] - The company plans to launch additional industry-specific solutions and strengthen its partnership with SAP [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while continuing to invest in growth initiatives [20] - The company noted that recent policy changes could impact customer investment decisions, but has not yet seen a significant effect on its pipeline [20] - Management highlighted the importance of delivering value quickly to customers, especially in the current economic climate [12] Other Important Information - The company repurchased approximately 920,000 shares for a total of $46 million during the quarter [42] - The updated full-year 2025 revenue guidance reflects a range of 6% to 8% growth, accounting for potential macro uncertainties [43][45] Q&A Session Summary Question: Insights on SOLEX numbers and SAP channel dynamics - Management expressed satisfaction with progress in the SAP channel and expects a robust pipeline as they deepen relationships [48][50] Question: Confidence in margin growth amidst investments - Management indicated that margin growth was achieved without compromising planned investments for growth in 2025 and beyond [53][55] Question: Dynamics of the new platform pricing model - The new pricing model has led to a decrease in user counts as customers transition to an unlimited model, which is resonating well with larger customers [57][62] Question: Renewal rate trends and macro environment impact - Management noted that while the overall renewal rate is slightly down, it remains strong in the enterprise space, with efforts to drive multi-year renewals [70][75] Question: Competitive landscape implications of the pricing model - Management stated that while the pricing model is beneficial, the primary focus remains on the quality and reliability of BlackLine's offerings [80][81] Question: Pipeline dynamics and macro uncertainty - Management reported solid growth in the pipeline and has not seen a decline in size or quality, despite macroeconomic uncertainties [86]

Financial Data and Key Metrics Changes - Total revenue grew to $167 million, up 6% year-over-year, with subscription and services revenue both increasing by 6% [36][37] - Annual recurring revenue (ARR) reached $656 million, up over 8%, benefiting from foreign exchange (FX) [37] - Remaining Performance Obligations (RPO) increased by 11%, with current RPO up 7% [37] - Non-GAAP operating margin was 21%, driven by cost benefits and FX [41] - Non-GAAP net income attributable to the company was $36 million, representing a 22% net income margin [41] Business Line Data and Key Metrics Changes - Strategic products accounted for 27% of sales, with strong performance in Invoice to Cash, Transaction Matching, and Intercompany [39] - The number of customers generating over $1 million in ARR increased to 79, up from 71 in the previous quarter [6] Market Data and Key Metrics Changes - The company saw solid growth in its pipeline and SOLEX partnership, with improved deal qualification processes [7][9] - The revenue renewal rate was 94%, up one point year-over-year, with enterprise renewal rate at 96% [38][39] Company Strategy and Development Direction - The company is focusing on enhancing its digital-first marketing approach and expanding its industry-specific solutions [11][10] - The partnership with SAP is a strategic growth driver, with efforts to align offerings and accelerate joint sales [14][9] - The company is exploring opportunities to develop AI-specific solutions as part of its partnership with SAP [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macro environment, despite potential risks affecting customer investments [21] - The company is focused on delivering value quickly, which has become a critical competitive advantage [12] - Management noted that while they have not seen impacts on the pipeline or renewals, they remain cautious about future conditions [21] Other Important Information - The company repurchased approximately 920,000 shares for a total of about $46 million during the quarter [42] - The updated full-year 2025 financial guidance reflects potential macro uncertainty, with revenue growth expected between 6% to 8% [43][45] Q&A Session Summary Question: Insights on SOLEX numbers and SAP channel - Management noted robust pipeline growth and enthusiasm around BlackLine's offerings within the SAP community, with expectations for continued growth [49][50] Question: Confidence in margin growth despite investments - Management highlighted a notable beat in margins for Q1, achieved without compromising planned growth investments [54][55] Question: Dynamics of the new platform pricing model - The new pricing model has led to a decline in total users as customers transition to an unlimited model, which is resonating well with larger customers [58][62] Question: Renewal rate trends and macro environment impact - Management indicated that while the overall renewal rate is slightly down, it remains strong in the enterprise space, with efforts to drive multi-year renewals [70][75] Question: Competitive landscape implications of the pricing model - Management stated that while the pricing model may help in closing deals, the primary focus remains on the quality and reliability of BlackLine's offerings [80][82] Question: Pipeline dynamics and macro uncertainty - Management reported solid growth in the pipeline, with no observed decline in size or quality, despite macro uncertainties [86]

Company Overview - BlackLine has a total addressable market (TAM) of $45 billion[8,9,21] - The company's Q1 2025 Annual Recurring Revenue (ARR) reached $656 million, representing an 8% year-over-year growth[9] - BlackLine boasts a Q1 2025 Non-GAAP Operating Margin of 21%[9] - Last Twelve Months (LTM) Free Cash Flow reached $153 million[11] Customer Base and Market Position - BlackLine serves over 4,400 global customers, with over 393,000 users in 100+ countries[11] - The company is trusted by over 60% of the Fortune 500, powering digital finance transformation behind over $42 trillion in global market capitalization[11,34] Financial Performance - Total Revenue for Q1 2025 was $167 million, a 6% year-over-year increase[43] - Total Remaining Performance Obligations (RPO) reached $913 million, an 11% year-over-year increase[43] - The company achieved a Net Income of $36 million with a 22% margin in Q1 2025[43]

EXHIBIT 99.1 BlackLine Announces First Quarter Financial Results LOS ANGELES, May 06, 2025 (GLOBE NEWSWIRE) -- BlackLine, Inc. (Nasdaq: BL), today announced financial results for the first quarter ended March 31, 2025. "BlackLine's first quarter delivered solid results with bookings exceeding expectations, driven by improved execution along with continued margin expansion," said Owen Ryan, Co-CEO of BlackLine. "Our key strategic initiatives continue to advance steadily: Studio360 adoption is growing, our ne ...

Core Insights - BlackLine, Inc. reported solid financial results for the first quarter of 2025, with bookings exceeding expectations and continued margin expansion [2][6]. Financial Performance - Total GAAP revenues reached $166.9 million, marking a 6% increase compared to the first quarter of 2024 [6]. - GAAP operating margin improved to 2.1%, up from 1.1% in the same quarter last year [6]. - Non-GAAP operating margin was reported at 20.9%, compared to 17.0% in the first quarter of 2024 [6]. - GAAP net income attributable to BlackLine was $6.1 million, or $0.10 per diluted share, down from $10.8 million, or $0.17 per diluted share in the first quarter of 2024 [6]. - Non-GAAP net income attributable to BlackLine was $36.3 million, or $0.49 per diluted share, compared to $40.1 million, or $0.54 per diluted share in the first quarter of 2024 [6]. - Billings increased by 9% year-over-year to $159.0 million [6]. - Remaining performance obligation rose to $913.2 million, an 11% increase compared to March 31, 2024 [6]. - Operating cash flow was $46.7 million, down from $50.4 million in the first quarter of 2024 [6]. - Free cash flow decreased to $32.6 million from $43.7 million in the same period last year [6]. Customer Metrics - BlackLine had a total of 4,455 customers as of March 31, 2025 [6]. - The number of users reached 393,892, reflecting customer migrations to the new platform pricing model [6]. - The dollar-based net revenue retention rate was 104% as of March 31, 2025 [6]. Strategic Initiatives - The adoption of the Studio360 platform is growing, and the new pricing strategy is gaining traction [2]. - BlackLine is focusing on industry-specific approaches and advancing its public sector business as planned [2]. - The company is integrating advanced AI capabilities across its product ecosystem to enhance innovation [2]. Future Outlook - For the second quarter of 2025, total GAAP revenue is expected to be in the range of $170 million to $172 million [13]. - Non-GAAP operating margin is anticipated to be between 20.5% and 21.5% [13]. - Non-GAAP net income attributable to BlackLine is projected to be between $38 million and $40 million, or $0.51 to $0.53 per share [13].