Summary of BlackLine Investor Session Company Overview - **Company**: BlackLine - **Industry**: Financial Software and Automation Key Points and Arguments Strategic Direction and Execution - BlackLine is transitioning into its "platform era" with a focus on execution and strategic direction since the leadership changes over the past two years [4][5] - The company is emphasizing the importance of landing larger deals with strategic companies, resulting in an exponentially growing and selective pipeline [6][7] - A pricing initiative has been rolled out, with early positive results, particularly in the public sector [7] Partnerships and Collaborations - BlackLine is focusing on building a strong partner ecosystem to enhance its global reach, with notable partnerships including SAP [8] - The relationship with SAP is strengthening, which is critical for the evolution of BlackLine's offerings [8] Innovation and Customer-Centric Approach - BlackLine is committed to innovation based on customer feedback, with a focus on operational excellence [9] - The company aims to drive both top-line and bottom-line performance, emphasizing the delivery of outcomes rather than just software sales [10][11] AI and Technology Integration - AI is seen as a significant opportunity, with plans to embed it into the Studio 360 platform to enhance reliability and trustworthiness [12][13] - BlackLine's AI strategy focuses on making the platform better and more reliable for CFOs, ensuring complete auditability and data integrity [12][16] Studio 360 Platform - Studio 360 is positioned as the central platform for the office of the CFO, enabling automation and integration of various data sources [18][19] - The platform has already attracted around 110 customers, with significant automation benefits reported, including a 16% reduction in financial cycle close time [20][21] Cloud Migration and Scalability - BlackLine is nearing completion of its cloud migration, which is expected to enhance innovation speed and operational efficiency [26][27] - The scalable data architecture allows for real-time processing and significant increases in transaction handling capabilities [23][24] AI-Driven Solutions - The introduction of Verity, an AI-driven solution, aims to provide intelligent insights, content generation, and process automation [31][32] - Verity Summarize has a 65% acceptance rate for AI-generated summaries, showcasing the effectiveness of BlackLine's AI capabilities [33] Future Growth and Market Expansion - BlackLine is targeting the invoice-to-cash market with an AI-first strategy, aiming to streamline collections and enhance cash flow [52] - The company is focused on building a robust ecosystem with comprehensive APIs and task libraries to facilitate seamless integration with various systems [53] Go-to-Market Strategy - The new Chief Commercial Officer emphasizes the importance of optimizing go-to-market teams to drive growth and transformation [55][56] - BlackLine aims to position itself as a strategic partner for CFOs, moving beyond point solutions to offer end-to-end capabilities [64][65] Other Important Insights - BlackLine's commitment to trust and auditability in AI solutions is crucial for gaining the confidence of CFOs and CAOs [60] - The company is focused on creating a digital workforce through agentic AI, which will enhance the efficiency of finance teams [49][50] This summary encapsulates the key themes and insights from BlackLine's investor session, highlighting the company's strategic direction, technological advancements, and market positioning.

Core Insights - BlackLine, Inc. has launched Verity, a comprehensive suite of AI capabilities designed to create a new digital workforce for finance and accounting teams, ensuring process integrity and providing intelligent insights for the Office of the CFO [1][10][12] Group 1: Verity's Features and Benefits - Verity is built on BlackLine's Studio360 platform, offering embedded, auditable AI that automates complex processes and provides deep analytical insights [3][5] - The AI team lead, Vera, coordinates a specialized team of digital agents, enabling finance professionals to manage workflows and tasks seamlessly [4][6] - Verity includes a control layer for AI governance, ensuring safety and transparency in financial operations [5][7] Group 2: Strategic Partnerships and Future Vision - BlackLine emphasizes its commitment to data integrity as a foundation for trusted AI, positioning itself to lead the AI revolution in finance [2][8] - The partnership with Google Cloud aims to enhance innovation by integrating Google's AI capabilities with BlackLine's platform, allowing for faster and more confident financial operations [7][8] Group 3: Market Position and Customer Base - BlackLine serves over 4,400 customers across various industries, leveraging decades of process knowledge to enhance its AI capabilities [5][11] - The company focuses on delivering future-ready financial operations through agentic AI, empowering customers to make informed decisions quickly [7][8]

Group 1 - The 2025 Modern Accounting Awards were announced by BlackLine, recognizing companies for significant transformational outcomes [1] - Honorees include American Express Global Business Travel, Wendy's, and Cavco [1]

Group 1 - The market is evolving as companies are resuming their finance transformation journeys after a period of slowdown [1] - Companies are seeking to maximize the value from their technology investments by collaborating with firms like BlackLine [1] - The emergence of AI has raised numerous questions and highlighted both opportunities and threats for businesses [1]

Summary of BlackLine (BL) 2025 Conference Call Company Overview - **Company**: BlackLine (BL) - **Date**: September 03, 2025 - **Key Speakers**: Owen (CEO), Matt (Co-CEO) Key Industry Insights - **Market Evolution**: Companies are resuming finance transformation journeys after a slowdown, focusing on maximizing technology investments [3][4] - **AI Opportunities**: AI is viewed as an opportunity rather than a threat, particularly in the office of the CFO [4] - **Geographic Expansion**: Increased opportunities in Europe and parts of Asia, prompting leadership to focus more on these regions [5] Leadership Changes - **CEO Transition**: Therese has transitioned from co-CEO to a founder role, allowing her to focus on customer engagement and innovation [6][8] - **Board Changes**: New board members include former CEOs from consulting and SaaS companies, enhancing strategic guidance [10][11] ERP and Financial Transformation - **ERP Upgrade Cycle**: A notable shift in mindset from ERP players, particularly SAP, towards integrating finance-first approaches [12][13] - **Customer Success Stories**: Positive endorsements from major clients like Exxon and Delta have strengthened BlackLine's market position [14][15] Growth Outlook - **Sales Cycle**: BlackLine's sales cycle is approximately 9-12 months, with expectations for positive results in Q4 2025 and into 2026 [20][21] - **Revenue Guidance**: Full-year growth is projected at around 7%, with expectations for acceleration in subsequent quarters [30][31] Product Innovations - **Studio 360**: A promising product that allows for extensive data analysis and integration across financial systems, gaining traction among senior executives [53][54] - **AI Integration**: Upcoming AI announcements are expected to enhance product offerings, focusing on reliability and auditability [64][66] Federal Market Opportunity - **Public Sector Focus**: BlackLine is targeting federal, state, and local government markets, which are seen as under-penetrated and ripe for technology adoption [39][40] Customer Engagement and Value Proposition - **Customer-Centric Innovation**: A renewed focus on customer needs has driven product development, ensuring relevance and market receptivity [46][48] - **Intercompany Solutions**: Enhancements in intercompany solutions are helping clients minimize tax liabilities and streamline accounting processes [56] Future Expectations - **AI Rollout**: The adoption of AI is expected to be cautious but will accelerate as customers gain confidence in its reliability [72][73] - **Upcoming Announcements**: Anticipated product roadmap updates and implementation tools aimed at driving customer value [76][77] Conclusion - BlackLine is positioned for growth through strategic partnerships, product innovation, and a focus on customer success, with a strong outlook for the upcoming quarters and years.

Core Insights - BlackLine, Inc. will host an investor session on September 9, 2025, during its annual customer conference, BeyondTheBlack [1] - The session will be accessible via a webcast on BlackLine's investor relations website [1] Company Overview - BlackLine is a platform designed for the Office of the CFO, focusing on digital finance transformation by enhancing financial operations [2] - The platform addresses critical processes such as record-to-report and invoice-to-cash, providing unified data, optimized processes, and real-time insights through automation and AI [3] - BlackLine has over 4,400 customers across various industries, emphasizing its commitment to innovation and security [3]

Core Insights - Definitive Healthcare Corp. (DH) is currently positioned as a more attractive investment compared to BlackLine (BL) based on various valuation metrics and earnings outlook [1][7]. Valuation Metrics - DH has a forward P/E ratio of 18.10, while BL has a higher forward P/E of 24.14, indicating that DH may be undervalued relative to BL [5]. - The PEG ratio for DH is 1.98, suggesting a more favorable valuation when considering expected earnings growth, compared to BL's PEG ratio of 3.51 [5]. - DH's P/B ratio stands at 1.37, significantly lower than BL's P/B of 7.75, further indicating DH's relative undervaluation [6]. Earnings Outlook - DH is currently experiencing an improving earnings outlook, which is a key factor in its Zacks Rank of 2 (Buy), while BL holds a Zacks Rank of 4 (Sell) [3][7].

Part I. Financial Information [Item 1. Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents BlackLine, Inc.'s unaudited condensed consolidated financial statements for the quarter and six months ended June 30, 2025 and 2024, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, segment information, and specific balance sheet components [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Presents BlackLine's financial position, detailing assets, liabilities, and equity at specific reporting dates ASSETS (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :------------------ | | Cash and cash equivalents | $459,141 | $885,915 | | Marketable securities | $398,277 | — | | Accounts receivable, net | $175,021 | $178,141 | | Total current assets | $1,056,187 | $1,092,404 | | Total assets | $1,792,689 | $1,825,036 | LIABILITIES (in thousands) | LIABILITIES (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :------------------ | | Accounts payable | $11,520 | $8,463 | | Accrued expenses and other current liabilities | $57,448 | $71,574 | | Deferred revenue, current | $341,549 | $338,615 | | Convertible senior notes, net, current | $229,592 | — | | Total current liabilities | $643,830 | $422,243 | | Convertible senior notes, net, noncurrent | $664,762 | $892,675 | | Total liabilities | $1,343,642 | $1,341,884 | | Total stockholders' equity | $414,047 | $446,669 | - Cash and cash equivalents decreased significantly from **$885.9 million** at December 31, 2024, to **$459.1 million** at June 30, 2025. Marketable securities increased from **$0** to **$398.3 million** during the same period[14](index=14&type=chunk) - Total current liabilities increased from **$422.2 million** to **$643.8 million**, primarily due to current convertible senior notes of **$229.6 million** at June 30, 2025[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Details BlackLine's revenues, expenses, and net income over specific reporting periods (in thousands, except per share data) | (in thousands, except per share data) | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $172,025 | $160,506 | $338,956 | $317,967 | | Gross profit | $129,403 | $120,158 | $255,410 | $238,522 | | Income from operations | $7,545 | $2,208 | $11,120 | $3,956 | | Net income attributable to BlackLine, Inc. | $8,292 | $76,690 | $14,347 | $87,519 | | Basic net income per share | $0.13 | $1.24 | $0.23 | $1.42 | | Diluted net income per share | $0.13 | $0.22 | $0.23 | $0.39 | - Net income attributable to BlackLine, Inc. decreased significantly from **$76.7 million** in Q2 2024 to **$8.3 million** in Q2 2025, and from **$87.5 million** in H1 2024 to **$14.3 million** in H1 2025. This decline is largely due to a **$65.1 million** gain on extinguishment of convertible senior notes in H1 2024 that did not recur in H1 2025[17](index=17&type=chunk) - Total revenues increased by **7%** for both the quarter and six months ended June 30, 2025, compared to the prior year periods[17](index=17&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Reports BlackLine's net income and other comprehensive income components, reflecting total comprehensive earnings (in thousands) | (in thousands) | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Net income | $7,391 | $74,959 | $12,665 | $89,729 | | Other comprehensive income (loss) | $95 | $(173) | $394 | $(971) | | Comprehensive income attributable to BlackLine, Inc. | $6,743 | $74,363 | $11,803 | $88,001 | - Comprehensive income attributable to BlackLine, Inc. decreased significantly from **$74.4 million** in Q2 2024 to **$6.7 million** in Q2 2025, and from **$88.0 million** in H1 2024 to **$11.8 million** in H1 2025, mirroring the trend in net income[20](index=20&type=chunk) [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in BlackLine's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit (in thousands) | (in thousands) | Balance at Dec 31, 2024 | Stock option exercises | Repurchases of common stock | Stock-based compensation | Net income attributable to BlackLine, Inc. | Balance at Jun 30, 2025 | | :------------- | :---------------------- | :--------------------- | :-------------------------- | :----------------------- | :----------------------------------------- | :---------------------- | | Common Stock | $628 | $2 | $(17) | — | — | $619 | | Additional Paid-in Capital | $495,391 | $5,011 | $(89,251) | $45,485 | $2,739 | $450,975 | | Accumulated Deficit | $(48,989) | — | — | — | $11,608 | $(37,381) | | Total Stockholders' Equity | $446,669 | $5,013 | $(89,268) | $45,485 | $14,347 | $414,047 | - Total stockholders' equity decreased from **$446.7 million** at December 31, 2024, to **$414.0 million** at June 30, 2025, primarily due to common stock repurchases totaling **$89.3 million**[24](index=24&type=chunk) - The company repurchased **1.7 million shares** of common stock for **$89.3 million** during the six months ended June 30, 2025[24](index=24&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes BlackLine's cash inflows and outflows from operating, investing, and financing activities (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $79,087 | $91,123 | | Net cash provided by (used in) investing activities | $(414,018) | $506,431 | | Net cash used in financing activities | $(92,224) | $(251,629) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(426,745) | $345,504 | | Cash, cash equivalents, and restricted cash, end of period | $459,402 | $616,867 | - Net cash provided by operating activities decreased from **$9

Core Insights - BlackLine (BL) reported revenue of $172.03 million for the quarter ended June 2025, marking a year-over-year increase of 7.2% [1] - The earnings per share (EPS) for the same period was $0.51, down from $0.58 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $170.77 million, resulting in a surprise of +0.73% [1] - The company achieved an EPS surprise of +2%, with the consensus EPS estimate being $0.50 [1] Financial Performance Metrics - Total customers reached 4,451, slightly below the estimated 4,465 [4] - The retention rate was 105%, surpassing the average estimate of 104.5% [4] - Revenue from professional services was $9 million, exceeding the four-analyst average estimate of $8.54 million, representing a year-over-year change of +3.2% [4] - Revenue from subscription and support was $163.03 million, above the four-analyst average estimate of $162.18 million, reflecting a year-over-year change of +7.4% [4] - Gross profit from professional services was $1.57 million, slightly below the two-analyst average estimate of $1.66 million [4] - Gross profit from subscription and support was $127.84 million, compared to the estimated $128.26 million by two analysts [4] Stock Performance - BlackLine's shares have returned -6.4% over the past month, while the Zacks S&P 500 composite increased by +1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - BlackLine reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, but down from $0.58 per share a year ago, indicating a +2.00% earnings surprise [1] - The company achieved revenues of $172.03 million for the quarter, surpassing the Zacks Consensus Estimate by 0.73% and showing an increase from $160.51 million year-over-year [2] Financial Performance - Over the last four quarters, BlackLine has surpassed consensus EPS estimates three times and topped revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $177.38 million, and for the current fiscal year, it is $2.12 on revenues of $697.95 million [7] Stock Performance - BlackLine shares have declined approximately 12% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Internet - Software industry, to which BlackLine belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]