BlackLine(US:BL)2025-11-07 21:07Financial Performance - For the quarter ended September 30, 2025, the company reported revenues of $178.3 million, an increase from $165.9 million in the same quarter of 2024[114]. - For the nine months ended September 30, 2025, revenues totaled $517.2 million, compared to $483.9 million for the same period in 2024[115]. - Total revenues for the quarter ended September 30, 2025, were $178.29 million, representing a 7% increase from $165.91 million in the same quarter of 2024[135]. - Subscription and support revenues increased by 7% to $168.21 million for the quarter ended September 30, 2025, compared to $157.01 million in 2024[135]. - The company generated net income attributable to BlackLine, Inc. of $5.3 million for the quarter ended September 30, 2025, down from $17.2 million in the same quarter of 2024[114]. - Non-GAAP net income attributable to BlackLine for the quarter ended September 30, 2025, was $37.59 million, compared to $44.43 million for the same period in 2024, reflecting a decrease of 15.5%[132]. Customer Metrics - As of September 30, 2025, the company had 385,336 individual users across 4,424 customers[105]. - The number of customers decreased slightly from 4,451 in June 2025 to 4,424 by September 30, 2025[120]. - The total number of customers as of September 30, 2025, was 4,424, remaining relatively flat compared to 4,433 in 2024[136]. - The number of users decreased by 3% to 385,336 as of September 30, 2025, down from 397,095 in 2024, primarily due to a strategic initiative to migrate customers to new pricing models[136]. Profitability and Margins - The GAAP gross profit for the quarter ended September 30, 2025, was $133.9 million, with a gross margin of 75.1%[127]. - Non-GAAP gross profit for the same quarter was $141.5 million, resulting in a non-GAAP gross margin of 79.4%[127]. - The gross profit for the quarter ended September 30, 2025, was $133.90 million, with a gross margin of 75.1%[134]. - Non-GAAP operating income for the quarter ended September 30, 2025, was $38.14 million, compared to $37.62 million in the same quarter of 2024, indicating a slight increase of 1.4%[132]. Expenses and Costs - Sales and marketing expenses for the quarter ended September 30, 2025, were $67.49 million, an increase of 8% from $62.22 million in the same quarter of 2024[139]. - The total cost of revenues for the quarter ended September 30, 2025, was $44.39 million, an increase of 8% from $41.11 million in 2024[137]. - Research and development expenses increased by $1.682 million (7%) for the quarter ended September 30, 2025, compared to the same quarter in 2024, and by $4.635 million (6%) for the nine months ended September 30, 2025, compared to the same period in 2024[140][143]. - General and administrative expenses decreased by $3.631 million (4%) for the nine months ended September 30, 2025, compared to the same period in 2024, while the percentage of total revenues decreased from 18.5% to 16.6%[143]. - Restructuring costs amounted to $2.267 million for the quarter and $8.610 million for the nine months ended September 30, 2025, representing a significant increase of 398% compared to the same period in 2024[144][147]. Cash and Liquidity - As of September 30, 2025, the company had $804.2 million in cash and cash equivalents and marketable securities, indicating strong liquidity[156]. - The company believes its existing cash and cash equivalents, along with cash from operations, will be sufficient to meet its working capital needs for at least the next 12 months[157]. - The company had cash and cash equivalents and marketable securities of $804.2 million at September 30, 2025[182]. - The company has a total buyback capacity of $198.2 million remaining under its stock repurchase program as of September 30, 2025[167]. Debt and Obligations - The company had $905.2 million in aggregate principal amount of convertible senior notes outstanding as of September 30, 2025, with $230.2 million due in March 2026[158]. - The 2029 Capped Calls cover approximately 9.9 million shares of common stock, with an initial strike price of $68.47 per share and an initial cap price of $92.17 per share[159]. - The company has $192 million in purchase obligations, with $61 million payable within the next 12 months[162]. - Unrecognized tax liabilities amount to $19.7 million, with a high degree of uncertainty regarding future cash outflows[163]. Market and Economic Conditions - The company is exposed to foreign currency risks, with a potential impact of approximately $4.4 million on cash balances due to a hypothetical 10% change in the value of the U.S. Dollar relative to foreign currencies[186]. - The company initiated a hedging program to manage cash fluctuations in the British Pound and Euro using foreign currency forward contracts[187]. - The hedging program aims to reduce the impact of currency exchange rate movements, but does not fully eliminate the risks associated with foreign currency fluctuations[188]. - Inflationary pressures may affect customers' purchasing power, potentially leading to delays or reductions in investment in software solutions[189]. - The company has not yet experienced a material inflationary impact on customer engagement or its own operations, but continues to monitor macroeconomic conditions closely[189]. Share Repurchase - The company repurchased approximately 2.1 million shares for $113.0 million during the quarter ended September 30, 2025, and 3.9 million shares for $201.8 million during the nine months ended September 30, 2025[167].