BlackLine(BL)2021-11-05 02:40Financial Data and Key Metrics Changes - Total revenue grew 21% year-over-year, led by subscription and support revenue, which increased by 23% [28][30] - Non-GAAP net income attributable to BlackLine was 17.1 million and free cash flow of $9.8 million [31] - Non-GAAP gross margins remained at 80%, despite increased costs associated with Google Cloud migration and the Rimilia acquisition [31] Business Line Data and Key Metrics Changes - The net dollar retention rate improved to 108%, indicating strong account growth as customers expanded their use of BlackLine products [8][30] - Strategic products represented 15% of sales for the quarter, with over 30% growth year-over-year [30] - The company added 106 net new customers in the quarter, bringing the total to 3,704 customers [29] Market Data and Key Metrics Changes - International revenue grew 41% in Q3, now accounting for 28% of total revenue, up from 25% in the prior year [17] - The company experienced strong growth in both the European and Asia Pacific regions, with a healthy mix of new logos and expansions [17][24] Company Strategy and Development Direction - The company is focused on increasing customer engagement, innovating its platform, and expanding its international presence as key growth levers [20][24] - Investments are being made to enhance customer success and drive digital transformation in finance and accounting processes [20][26] - The company aims to be the most indispensable platform for controllers, with plans to introduce new products in financial close and accounts receivable automation [23] Management's Comments on Operating Environment and Future Outlook - Management noted a resurgence in market demand over five consecutive quarters, exceeding pre-pandemic levels [6][32] - The company believes it is in the early stages of a long-term growth opportunity fueled by digital transformation [19][35] - Management expressed confidence in the ability to capitalize on favorable market conditions and maintain focus on customer success [35] Other Important Information - The company will host the BeyondTheBlack event from November 16th to 18th, featuring over 50 hours of content focused on digital finance transformation [83] - The five-year anniversary of BlackLine's IPO was acknowledged, highlighting the company's achievements [27] Q&A Session Summary Question: What drove the record number of new large deals this quarter? - Management indicated that widespread demand and strong execution contributed to the increase in large deals, with a notable wave of investment flowing into accounting departments [38] Question: What is driving the net revenue retention rate? - The increase in net revenue retention rate is attributed to record user expansion and investments in customer success and account management [40] Question: Can you discuss the traction of the AR portfolio and the Rimilia acquisition? - Initial traction has been strong, with the combination of AR and BlackLine being competitive in the market [42][44] Question: How is the international performance trending? - International growth is widespread, with demand patterns similar to those seen in North America, indicating significant opportunities for future growth [71] Question: What are the top priorities for the sales organization moving into 2022? - Key priorities include investing in customer success, platform innovation, and expanding international growth [80]