BlackLine(BL) - 2025 Q4 - Annual Results

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]