Core Viewpoint - BlackLine Inc reported strong earnings for the fourth quarter but provided a weak earnings forecast for the first quarter [1][2]. Group 1: Earnings Performance - The company posted quarterly earnings of 63 cents per share, exceeding the analyst consensus estimate of 59 cents per share [1]. - Quarterly sales reached $183.181 million, surpassing the analyst consensus estimate of $182.976 million [1]. Group 2: First Quarter Forecast - BlackLine expects first-quarter adjusted EPS to be between 44 cents and 46 cents, lower than market estimates of 55 cents [2]. - The company anticipates sales in the range of $180 million to $182 million, compared to the analyst estimate of $181.418 million [2]. Group 3: Stock Performance and Analyst Reactions - Following the earnings announcement, BlackLine shares fell by 5.4%, trading at $41.95 [2]. - Analysts adjusted their price targets for BlackLine, with Cantor Fitzgerald lowering it from $58 to $50, Citigroup from $70 to $60, and DA Davidson from $56 to $45 [3].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - BlackLine (BL) reported revenue of $183.18 million for the quarter ended December 2025, marking an 8.1% year-over-year increase and a slight surprise of +0.13% over the Zacks Consensus Estimate of $182.95 million [1] - The earnings per share (EPS) for the same period was $0.63, compared to $0.47 a year ago, resulting in an EPS surprise of +7.82% against the consensus estimate of $0.58 [1] Financial Performance Metrics - Total customers reached 4,394, slightly below the average estimate of 4,424 based on two analysts [4] - The retention rate was reported at 105%, exceeding the average estimate of 104% from two analysts [4] - Revenue from professional services was $9.95 million, surpassing the four-analyst average estimate of $8.92 million, reflecting a year-over-year increase of 17.5% [4] - Subscription and support revenues totaled $173.23 million, slightly below the average estimate of $174.1 million, with a year-over-year change of 7.6% [4] - Gross profit from professional services was $2.09 million, in line with the two-analyst average estimate of $2.1 million [4] - Gross profit from subscription and support was $135.64 million, compared to the average estimate of $137.45 million from two analysts [4] Stock Performance - Over the past month, BlackLine's shares have returned -25.2%, while the Zacks S&P 500 composite remained unchanged [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Earnings Performance - BlackLine reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and up from $0.47 per share a year ago, representing an earnings surprise of +7.82% [1] - The company posted revenues of $183.18 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.13%, and an increase from year-ago revenues of $169.46 million [2] Stock Performance - BlackLine shares have declined approximately 22.2% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The current Zacks Rank for BlackLine is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $180.98 million, and for the current fiscal year, it is $2.35 on revenues of $760.96 million [7] - The outlook for the Internet - Software industry, where BlackLine operates, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

Financial Data and Key Metrics Changes - Total revenue grew to $183 million, up 8% year-over-year [28] - Subscription revenue increased by 8%, while services revenue grew by 17% due to accelerated customer go-lives and implementations [28] - Annual recurring revenue (ARR) reached $702 million, up nearly 10%, with a 1.5-point benefit from foreign exchange [28] - Remaining performance obligations (RPO) grew 23% to $1.1 billion, with current RPO accelerating to 13% [29] - Non-GAAP operating margin was nearly 25%, and non-GAAP net income margin was 25% [31] Business Line Data and Key Metrics Changes - Strategic products accounted for 33% of sales, with notable demand for intercompany and invoice-to-cash solutions [30] - The attach rate for strategic products remained healthy, reflecting the effectiveness of the go-to-market strategy [30] - The number of customers paying over $1 million in ARR increased by 20% to 85, while those paying over $250,000 rose by 14% [11] Market Data and Key Metrics Changes - SAP customers represented 26% of revenue at the end of the quarter [31] - The company serves approximately 70% of the Fortune 100, up from 50% in 2022, indicating a strong market position [7] Company Strategy and Development Direction - The company is transitioning to a unified, intelligent platform for CFOs, moving away from transactional subscriptions based on seats [6] - A partner-first approach has been adopted, focusing on larger mid-market and mega enterprise customers [6] - The company aims to drive revenue growth back into double digits while expanding operating margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's structural strength and the ability to execute the strategy effectively [7] - The company anticipates that lower mid-market headwinds will subside, leading to improved retention profiles in 2026 [10] - Management highlighted the importance of trust, partnership, and innovation in driving customer engagement and deal sizes [10] Other Important Information - The company completed its Google Cloud migration, which is expected to unlock further margin potential [12] - A new category of implementation agents has been released to standardize the engagement process, accelerating time to value for customers [27] Q&A Session Summary Question: Drivers behind RPO and customer adds above $250K - Management attributed the increase in RPO to the multiyear renewal strategy and longer contracts from new customers [37][38] Question: AI strategy and automation potential - Management noted that AI can significantly reduce mundane tasks for accountants, with a focus on demonstrating value and accuracy [39][40][41] Question: Customer adoption of AI - Management indicated that there is strong interest in AI adoption, with customers being cautious about policies and controls [41] Question: Dynamics of platform pricing and spending uplift - Management discussed the positive impact of the platform pricing model on average selling prices and longer-term contracts [38][39]

Financial Data and Key Metrics Changes - Total revenue grew to $183 million, up 8% year-over-year [28] - Subscription revenue increased by 8%, while services revenue grew by 17% due to accelerated customer go-lives and implementations [28] - Annual recurring revenue (ARR) reached $702 million, up nearly 10%, with a 1.5-point benefit from foreign exchange [28] - Remaining performance obligations (RPO) grew 23% to $1.1 billion, with current RPO accelerating to 13% [29] - Non-GAAP operating margin was nearly 25%, with non-GAAP net income margin at 25% [11][31] Business Line Data and Key Metrics Changes - Nearly three-quarters of new bookings leveraged the platform, with strategic products representing 33% of sales [14] - Customers paying over $1 million in ARR increased by 20% to 85, while those paying over $250,000 rose by 14% [11] - The strategic products attach rate remained healthy, contributing to sales growth [30] Market Data and Key Metrics Changes - SAP customers accounted for 26% of revenue at the end of the quarter [30] - The enterprise customer cohort maintained a revenue renewal rate of 95% and a net revenue retention rate of 107% [9] Company Strategy and Development Direction - The company is transitioning to a unified, intelligent platform for CFOs, focusing on larger mid-market and mega enterprise customers [6][7] - A shift to a platform model is changing customer relationships from transactional subscriptions to long-term strategic partnerships [10] - The company aims to drive revenue growth back into double digits while expanding operating margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's structural strength and the ability to execute its strategy [7] - The company anticipates that lower mid-market headwinds will subside, improving retention profiles in 2026 [10] - Management highlighted the importance of trust, partnership, and innovation in driving customer investment [10] Other Important Information - The company completed its Google Cloud migration, unlocking further margin potential [12] - A new category of implementation agents has been released to standardize the engagement process, accelerating time to value for customers [26] Q&A Session Summary Question: Drivers behind RPO and customer adds above $250K - Management attributed the increase in RPO to the success of the multiyear renewal strategy and longer contracts from new customers [37][38] Question: AI strategy and automation potential - Management acknowledged the opportunity to automate mundane tasks for accountants and emphasized the importance of demonstrating ROI and reliability in AI solutions [39][40][41] Question: Customer adoption of AI and deal dynamics - Management noted that customers are cautiously adopting AI, focusing on solutions that provide demonstrable value while considering regulatory requirements [44][46] Question: Margin dynamics and expense timing for 2026 - Management explained that Q1 typically has the lowest operating margin due to payroll taxes and sales kickoff costs, with expectations for margin expansion throughout the year [50][51] Question: Shareholder value and governance mechanisms - Management emphasized the board's commitment to fiduciary responsibilities and the importance of delivering performance to benefit shareholders [63][64] Question: Customer feedback and product development - Management highlighted the importance of customer feedback and competitive intelligence in shaping product development and ensuring alignment with market needs [71][73]

Financial Data and Key Metrics Changes - Total revenue grew to $183 million, up 8% year-over-year [26] - Subscription revenue increased by 8%, while services revenue grew by 17% due to accelerated customer go-lives and implementations [26] - Annual recurring revenue (ARR) reached $702 million, up nearly 10%, with a 1.5-point benefit from foreign exchange [26] - Remaining performance obligations (RPO) grew 23% to $1.1 billion, with current RPO accelerating to 13% [28] - Non-GAAP operating margin was nearly 25%, and non-GAAP net income margin was 25% [30] Business Line Data and Key Metrics Changes - Nearly three-quarters of new bookings leveraged the platform, with strategic products representing 33% of sales [12][30] - The number of customers paying over $1 million in ARR increased by 20% to 85, while customers paying over $250,000 rose by 14% [10] - The strategic products attach rate remained healthy, reflecting the success of the go-to-market teams [29] Market Data and Key Metrics Changes - SAP customers accounted for 26% of revenue at the end of the quarter [30] - The enterprise customer cohort maintained a revenue renewal rate of 95% and a net revenue retention rate of 107% [8][29] - Demand was notably strong for intercompany and invoice-to-cash solutions, both achieving record years [29] Company Strategy and Development Direction - The company is transitioning to a unified, intelligent platform for CFOs, moving away from transactional subscriptions based on seats to long-term strategic partnerships [4][9] - The focus is on larger mid-market enterprise and mega enterprise customers, with a partner-first approach [4][5] - The company aims to drive revenue growth back into double digits while expanding operating margins in line with multi-year financial targets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's structural strength and the ability to execute the strategy effectively [5] - The company anticipates that lower mid-market headwinds will subside, leading to an improving retention profile in 2026 [9] - Management expects total GAAP revenue for Q1 2026 to be in the range of $180 million-$182 million, representing approximately 8%-9% growth [32] Other Important Information - The company completed its Google Cloud migration, unlocking further margin potential [11] - The acquisition of WiseLayer is seen as a technology buy that will accelerate the company's AI capabilities [76][80] - The company returned approximately $34 million to shareholders through share repurchases in the quarter [31] Q&A Session Summary Question: Drivers behind RPO and customer adds above $250K - Management attributed the increase in RPO to the multiyear renewal strategy and longer contracts from new customers [36][37] Question: AI strategy and automation potential - Management noted that AI can help automate mundane tasks for accountants, with a focus on demonstrating value and ROI [38][39][40] Question: Customer adoption of AI and deal dynamics - The company is seeing increased interest in AI solutions, with customers adopting features like Journal Risk Analyzer and Verity [44][45][46] Question: Margin dynamics and expense timing for 2026 - Management explained that Q1 typically has the lowest operating margin due to payroll taxes and sales kickoff costs, with expectations for margin expansion throughout the year [48][49][50] Question: Shareholder value and governance mechanisms - Management emphasized the board's commitment to fiduciary responsibilities and the importance of delivering performance to benefit shareholders [62][63] Question: Customer feedback and product development - The company gathers feedback from customers and partners to inform product development and ensure alignment with market needs [72][74]

Investor Presentation Fourth Quarter 2025 February 10th, 2026 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 metrics, capital expenditures, introduction of new solutions or products, expansion into new markets, plans for growth and future operations, technological ...

Revenue Performance - Total GAAP revenues for Q4 2025 reached $183.2 million, an increase of 8.1% compared to Q4 2024[6] - Total GAAP revenues for the full year 2025 were $700.4 million, a 7.2% increase from 2024[6] - Billings for Q4 2025 amounted to $226.9 million, reflecting a 9.5% increase year-over-year[6] - Total revenues for the year ended December 31, 2025, reached $700,427, an increase from $653,336 in 2024, representing a growth of approximately 7.2%[33] Profitability Metrics - Non-GAAP operating margin for Q4 2025 was 24.7%, up from 18.1% in Q4 2024[6] - Non-GAAP net income for Q4 2025 was $45.2 million, or $0.63 per diluted share, compared to $34.6 million, or $0.47 per diluted share in Q4 2024[6] - Non-GAAP net income attributable to BlackLine for the year ended December 31, 2025, was $24,518, compared to $161,174 for the year ended December 31, 2024[33] - The diluted net income per share attributable to BlackLine, Inc. for the year ended December 31, 2025, was $0.39, down from $1.45 in 2024[33] - Non-GAAP net income attributable to BlackLine, Inc. for the year ended December 31, 2025, was $157,035 thousand, slightly down from $162,067 thousand in 2024[39] Cash Flow and Liquidity - Free cash flow for the quarter was $19.88 million, a decrease of 45% from $36.53 million in the previous quarter[40] - Total cash provided by operating activities for the year ended December 31, 2025, was $169,567 thousand, compared to $190,836 thousand for the previous year, showing a decline of about 11.1%[38] - Cash and cash equivalents decreased to $390,034 as of December 31, 2025, from $885,915 in 2024, reflecting a significant reduction in liquidity[32] - Net cash provided by operating activities was $26.68 million, down from $43.79 million in the previous quarter, a decrease of 39%[40] Operational Metrics - Remaining performance obligation as of Q4 2025 was $1.1 billion, a 23.5% increase compared to Q4 2024[6] - The company achieved a dollar-based net revenue retention rate of 105% as of December 31, 2025[12] - The dollar-based net revenue retention rate is a key metric for measuring long-term customer value and retention, reflecting the company's ability to maintain and grow existing customer relationships[29] - The number of customers contributing to subscription and support revenue increased, indicating growth in market penetration[27] Expenses - Operating expenses for the year ended December 31, 2025, totaled $501,490, compared to $472,835 in 2024, indicating an increase of approximately 6.1%[33] - Stock-based compensation for the year ended December 31, 2025, was $92,590 thousand, compared to $83,251 thousand in 2024, reflecting an increase of approximately 11.5%[37] - Total non-GAAP operating expenses for the quarter were $100.5 million, down from $104.2 million in the previous quarter, a decrease of approximately 7%[40] - Research and development expenses increased to $28.18 million from $24.59 million in the previous quarter, representing a 10% increase[40] - Sales and marketing expenses decreased to $63.66 million from $64.77 million in the previous quarter, a reduction of approximately 1.7%[40] - General and administrative expenses decreased to $33.05 million from $32.48 million in the previous quarter, a slight increase of 1.7%[40] Guidance - Guidance for Q1 2026 projects total GAAP revenue between $180 million and $182 million[13] - Full year 2026 guidance estimates total GAAP revenue between $764 million and $768 million[13] Acquisitions and Strategic Moves - BlackLine acquired WiseLayer to enhance its AI capabilities and expanded its global cloud footprint to Saudi Arabia[12]

Core Insights - BlackLine, Inc. reported strong financial results for Q4 and full year 2025, highlighting record bookings and a successful strategic transformation initiated over two years ago [2][6]. Financial Highlights Fourth Quarter 2025 - Total GAAP revenues reached $183.2 million, marking an 8.1% increase from Q4 2024 [6]. - GAAP operating margin remained stable at 3.7%, while non-GAAP operating margin improved to 24.7% from 18.1% in Q4 2024 [6]. - GAAP net income attributable to BlackLine was $4.9 million, or $0.08 per diluted share, a decrease from $56.4 million, or $0.79 per diluted share in Q4 2024 [6]. - Non-GAAP net income attributable to BlackLine was $45.2 million, or $0.63 per diluted share, up from $34.6 million, or $0.47 per diluted share in Q4 2024 [6]. - Billings increased by 9.5% to $226.9 million compared to Q4 2024 [6]. - Remaining performance obligation rose by 23.5% to $1.1 billion [6]. - Operating cash flow was $26.7 million, down from $43.8 million in Q4 2024 [6]. - Free cash flow decreased to $19.9 million from $36.5 million in Q4 2024 [6]. Full Year 2025 - Total GAAP revenues for the year were $700.4 million, a 7.2% increase from 2024 [6]. - GAAP operating margin improved to 3.6% from 2.8% in 2024 [6]. - GAAP net income attributable to BlackLine was $24.5 million, or $0.39 per diluted share, compared to $161.2 million, or $1.45 per diluted share in 2024 [6]. - Non-GAAP net income attributable to BlackLine was $157.0 million, or $2.13 per diluted share, slightly down from $162.1 million, or $2.18 per diluted share in 2024 [6]. - Operating cash flow for the year was $169.6 million, down from $190.8 million in 2024 [6]. - Free cash flow decreased to $134.9 million from $164.0 million in 2024 [6]. Customer Metrics and Business Developments - BlackLine had a total of 4,394 customers as of December 31, 2025 [5]. - The company achieved a dollar-based net revenue retention rate of 105% [12]. - BlackLine expanded its global cloud footprint to Saudi Arabia and secured an official listing on the FedRAMP Marketplace [12]. - The acquisition of WiseLayer, an AI-powered accounting and finance automation company, was completed to enhance BlackLine's AI capabilities [12]. Financial Outlook First Quarter 2026 - Total GAAP revenue is expected to be in the range of $180 million to $182 million [13]. - Non-GAAP operating margin is projected to be between 18.5% and 19.5% [13]. - Non-GAAP net income attributable to BlackLine is anticipated to be between $31 million and $33 million, or $0.44 to $0.46 per share [13]. Full Year 2026 - Total GAAP revenue is expected to be in the range of $764 million to $768 million [13]. - Non-GAAP operating margin is projected to be between 23.7% and 24.3% [13]. - Non-GAAP net income attributable to BlackLine is anticipated to be between $172 million and $180 million, or $2.37 to $2.48 per share [13].