BlackLine(US:BL)2023-05-04 16:00Financial Performance - The net loss attributable to BlackLine, Inc. for the quarter ended March 31, 2023, was $12,008 thousand, compared to a net loss of $6,816 thousand for the same period in 2022, indicating a year-over-year increase in loss[36]. - For the quarter ended March 31, 2023, the company reported revenues of $139.0 million, an increase from $120.2 million in the same quarter of 2022, while incurring a net loss of $12.0 million compared to a net loss of $10.0 million in the prior year[114]. - The net loss attributable to BlackLine, Inc. for Q1 2023 was $12.01 million, compared to a net loss of $10.01 million in Q1 2022, reflecting a worsening of approximately 20%[137]. - The company recorded a tax expense of $0.6 million in Q1 2023, a significant decrease from a $12.9 million tax benefit in Q1 2022, primarily due to changes in valuation allowance[136]. Assets and Liabilities - Total current liabilities decreased from $367,821 thousand as of December 31, 2022, to $363,548 thousand as of March 31, 2023, representing a reduction of approximately 0.6%[34]. - The total liabilities decreased from $1,807,893 thousand as of December 31, 2022, to $1,786,510 thousand as of March 31, 2023, indicating a decline of about 1.2%[34]. - Stockholders' equity increased from $111,868 thousand as of December 31, 2022, to $116,992 thousand as of March 31, 2023, reflecting an increase of approximately 4.0%[34]. - Total assets were reported at $1,033.078 million as of March 31, 2023, with total liabilities of $44.655 million[74]. Cash Flow and Investments - Cash provided by operating activities was $22,867,000 for the quarter ended March 31, 2023, a significant increase from $176,000 in the same quarter of 2022[59]. - The company had total cash, cash equivalents, and restricted cash of $222,799,000 at the end of the period, down from $365,769,000 a year earlier[59]. - The company experienced a net increase in cash of $21,592,000 for the quarter ended March 31, 2023, compared to a net decrease of $174,222,000 in the same quarter of 2022[59]. - Investments in marketable securities totaled $875,456,000 with a fair value of $874,083,000 as of December 31, 2022[50]. Market Presence and Operations - The company has international office locations in 12 countries, including Australia, Canada, and the United Kingdom, indicating a broad market presence[41]. - As of March 31, 2023, the company had 369,493 individual users across 4,236 customers, with approximately 94% of revenue derived from subscriptions to its cloud-based software platform[113]. - The company completed the acquisition of FourQ Systems, Inc. on January 26, 2022, aimed at enhancing intercompany accounting automation capabilities[41]. Revenue and Customer Metrics - Total revenue for Q1 2023 was $138.98 million, up from $120.24 million in Q1 2022, representing a year-over-year growth of approximately 15.5%[141]. - Contracted but unrecognized revenue stood at $773.3 million as of March 31, 2023, with an expectation to recognize about 56% over the next 12 months[140]. - The dollar-based net revenue retention rate slightly declined at the end of Q1 2023 compared to Q4 2022, indicating challenges in maximizing customer lifetime value[118]. Expenses and Cost Management - The increase in total cost of revenues for Q1 2023 was primarily driven by a $1.5 million rise in amortization of developed technology and a $1.4 million increase in cloud hosting expenses[128]. - Research and development expenses increased by $4.3 million in Q1 2023 compared to Q1 2022, largely due to higher salaries and benefits from increased headcount[130]. - Sales and marketing expenses rose by $1.2 million in Q1 2023, driven by higher bonuses and commissions, as well as increased trade show expenses[129]. Stock-Based Compensation - Stock-based compensation expense was $20,438,000 for the quarter ended March 31, 2023, up from $15,902,000 in the prior year[59]. - Stock-based compensation expense for the quarter ended March 31, 2023, was $20.438 million, an increase from $15.902 million in the same quarter of 2022[83]. Risks and Challenges - The company’s cash flow management and operational performance are subject to risks and uncertainties, including market acceptance of its solutions and the impact of the COVID-19 pandemic[31]. - The company has seen customers delay purchasing decisions due to economic uncertainty, impacting near-term demand[115]. - The company's ability to maximize the lifetime value of customer relationships is influenced by customers' willingness to purchase additional user licenses and products[119].