BlackLine Announces Third Quarter Financial Results

Core Insights - BlackLine, Inc. reported strong financial results for the third quarter of 2025, highlighting increased revenue growth, solid margins, and robust free cash flow, indicating effective execution of strategic changes [2][6]. Financial Performance - Total GAAP revenues reached $178.3 million, marking a 7.5% increase compared to the third quarter of 2024 [6]. - GAAP operating margin was 4.3%, down from 5.0% in the same quarter last year [6]. - Non-GAAP operating margin was 21.4%, compared to 22.7% in the third quarter of 2024, primarily affected by the timing of the BeyondTheBlack customer event [6]. - GAAP net income attributable to BlackLine was $5.3 million, or $0.09 per diluted share, a decrease from $17.2 million, or $0.27 per diluted share, in the third quarter of 2024 [6]. - Non-GAAP net income attributable to BlackLine was $37.6 million, or $0.51 per diluted share, down from $44.4 million, or $0.60 per diluted share, in the same quarter last year [6]. - Billings totaled $161.6 million, a 4.4% increase year-over-year, influenced by a higher mix of customers on quarterly billings [6]. - Remaining performance obligation increased by 12.4% to $964.1 million compared to the third quarter of 2024 [6]. - Operating cash flow was $63.8 million, up from $55.9 million in the third quarter of 2024 [6]. - Free cash flow reached $57.0 million, compared to $49.4 million in the same period last year [6]. Customer Metrics - BlackLine had a total of 4,424 customers as of September 30, 2025 [6]. - The number of users reached 385,336, reflecting ongoing customer migrations to the platform pricing model [6]. - The dollar-based net revenue retention rate was 103%, including a one-point headwind from foreign exchange [6]. Product and Innovation - The company launched Verity, an AI-powered solution tailored for the Office of the CFO [6]. - BlackLine achieved ISO 42001 certification for its AI management system [6]. - The company received an Exemplary rating in the ISG Buyer's Guides for Record to Report, Financial Close & Financial Consolidation [6]. - BlackLine was awarded the SAP Global Finance and Spend Management Partner Excellence Award for 2025 [6]. Financial Outlook - For the fourth quarter of 2025, total GAAP revenue is expected to be between $182 million and $184 million [7]. - Non-GAAP operating margin is projected to be in the range of 24.0% to 25.0% [7]. - Non-GAAP net income attributable to BlackLine is anticipated to be between $42 million and $44 million, or $0.58 to $0.61 per share [7]. Summary of Financial Position - As of September 30, 2025, total assets were $1.703 billion, down from $1.825 billion at the end of 2024 [28]. - Total liabilities were $1.337 billion, slightly decreased from $1.342 billion at the end of 2024 [29]. - Stockholders' equity was $328.3 million, down from $446.7 million at the end of 2024 [29].