BlackLine(BL) - 2025 Q2 - Quarterly Results

Revenue and Income - Total GAAP revenues reached $172.0 million, a 7% increase compared to Q2 2024[7] - GAAP net income attributable to BlackLine was $8.3 million, or $0.13 per diluted share, down from $76.7 million, or $0.22 per diluted share in Q2 2024[7] - Non-GAAP net income attributable to BlackLine was $37.9 million, or $0.51 per diluted share, compared to $42.9 million, or $0.58 per diluted share in Q2 2024[7] - Total revenues for the quarter ended June 30, 2025, were $172,025,000, up from $160,506,000 in the same quarter of 2024, representing a growth of approximately 9.4%[34] - Net income attributable to BlackLine, Inc. for the quarter ended June 30, 2025, was $8,292,000, down from $76,690,000 in the same quarter of 2024, largely due to a gain on extinguishment of convertible senior notes in the prior year[34] - Basic net income per share attributable to BlackLine, Inc. for the quarter ended June 30, 2025, was $0.13, compared to $1.24 for the same quarter in 2024[34] - Non-GAAP net income attributable to BlackLine, Inc. reached $74.23 million, up from $83.00 million, reflecting a decrease of 10.6% year-over-year[43] - Basic non-GAAP net income per share attributable to BlackLine, Inc. was $1.19, a decrease from $1.34 in the prior year, representing a decline of 11.2%[43] Margins and Operating Performance - GAAP operating margin improved to 4.4%, up from 1.4% in Q2 2024[7] - Non-GAAP operating margin increased to 22.1%, compared to 19.8% in Q2 2024[7] - Non-GAAP gross margin for Q2 2025 was 79.7%, slightly improving from 79.3% in Q2 2024[42] - Operating income for Q2 2025 was $7.545 million, compared to $2.208 million in Q2 2024, representing a substantial increase[42] - Total non-GAAP operating income increased to $72.96 million, up from $58.53 million year-over-year, representing a growth of 24.7%[43] - Non-GAAP operating margin improved to 21.5%, compared to 18.4% in the previous year, indicating a 1.6 percentage point increase[43] Cash Flow and Assets - Free cash flow for the period was $58.01 million, down from $78.06 million, indicating a decrease of 25.7% year-over-year[44] - Total cash provided by operating activities for the six months ended June 30, 2025, was $79.087 million, compared to $91.123 million for the same period in 2024, showing a decline of about 13.2%[39] - Cash, cash equivalents, and restricted cash at the end of the period was $459.402 million, down from $616.867 million at the end of the previous year[40] Customer Metrics - BlackLine had 4,451 customers and 389,559 users as of June 30, 2025[8] - The company achieved a dollar-based net revenue retention rate of 105%[8] - The dollar-based net revenue retention rate is a key metric for measuring long-term customer value, calculated based on subscription revenue from existing customers[29] - The number of customers as of June 30, 2025, is a critical indicator of market penetration and business growth[30] Expenses - Operating expenses for the quarter ended June 30, 2025, totaled $121,858,000, an increase from $117,950,000 in the same quarter of 2024, reflecting increased investment in sales and marketing[34] - Research and development expenses totaled $53.69 million, an increase from $50.74 million, reflecting a growth of 5.8%[44] - Total non-GAAP sales and marketing expense was $114.24 million, compared to $105.45 million, showing an increase of 8.5% year-over-year[43] - General and administrative expenses decreased to $56.48 million from $61.10 million, a reduction of 7.5%[44] - Total non-GAAP operating expenses were $197.02 million, slightly up from $193.10 million, reflecting a marginal increase of 2.0%[44] Future Guidance - Guidance for Q3 2025 indicates total GAAP revenue expected to be between $177 million and $179 million[17] Deferred Revenue and Liabilities - Deferred revenue increased by $10.272 million in Q2 2025, compared to an increase of $4.028 million in Q2 2024, indicating stronger future revenue recognition[39] - Total liabilities as of June 30, 2025, were $1,343,642,000, slightly up from $1,341,884,000 as of December 31, 2024[32]