Financial Data and Key Metrics Changes - Total revenue grew to over $178 million, up 7.5% year-over-year [28] - Subscription revenue increased by 7%, while services revenue grew by 13% due to accelerated project delivery [28] - Annual recurring revenue (ARR) reached $685 million, up 7.3% [28] - Non-GAAP operating margin was 21.4%, reflecting improved productivity [31] - Free cash flow was $57 million, driven by strong collections execution [31] Business Line Data and Key Metrics Changes - New customer bookings increased by 45%, with the average new deal size more than doubling by 111% [6][7] - Strategic products accounted for 36% of sales, up from 32% last year [30] - Solex channel performance remained steady, accounting for 26% of total revenue [30] Market Data and Key Metrics Changes - Customer count reached 4,424, reflecting a strategic resegmentation away from lower-end customers [29] - Revenue renewal rate was 93%, up from the prior year, driven by strong enterprise performance [29] - Net retention rate for the quarter was 103%, despite a headwind from foreign exchange [29] Company Strategy and Development Direction - The company has re-architected its leadership, go-to-market engine, and technology structures to drive revenue growth and margin expansion [5][6] - Focus on larger, more strategic platform deals, with a new platform-based pricing model accounting for nearly three-quarters of new customer bookings [9] - Continued investment in AI and automation to enhance product offerings and operational efficiency [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustained, profitable growth, with expectations for accelerating revenue growth and margin expansion in 2026 [26][34] - The macro environment is currently stable, with potential tailwinds from corporate job layoffs creating opportunities for efficiency discussions with customers [87] - The strategic transition away from lower-end customers is nearing completion, expected to be largely finished in the first half of next year [11][29] Other Important Information - The company returned approximately $113 million to shareholders through share repurchases, underscoring confidence in long-term value [32] - The planned churn from the strategic de-emphasis of lower-end customers is nearing its conclusion [11] Q&A Session Summary Question: Impact of large customers pausing user adds - Management acknowledged that some deals slipped into Q4, costing a couple of million dollars, but noted an increase in interest and pipeline for larger deals [41][43] Question: Automation and customer attrition - Management explained that success-based attrition is occurring as customers achieve higher efficiency with fewer licenses, which is a positive trade-off for long-term growth [59][60] Question: Factors driving expected bookings growth - Management highlighted the shift in conversations to higher levels within organizations, deeper partnerships, and product-led growth as key drivers for the expected 20% bookings growth next year [71][74] Question: Competitive takeaways - Management confirmed an uptick in competitive wins, attributing it to the company's proven track record, improved implementation quality, and industry-specific expertise [75][76] Question: SAP relationship and pipeline - Management reported a solid relationship with SAP, focusing on joint customer success and reducing attrition through dedicated resources [82][84] Question: Macro environment considerations for 2026 - Management characterized the current macro environment as stable, with potential tailwinds from efficiency needs due to corporate layoffs [86][87]

Financial Data and Key Metrics Changes - Total revenue grew to over $178 million, up 7.5% year-over-year [28] - Subscription revenue increased by 7%, while services revenue grew by 13% due to accelerated project delivery [28] - Annual recurring revenue (ARR) reached $685 million, up 7.3% [28] - Non-GAAP operating margin was 21.4%, and free cash flow margin was 32% [6][31] - Non-GAAP net income attributable to BlackLine was $38 million, representing a 21% margin [31] Business Line Data and Key Metrics Changes - New customer bookings increased by 45%, with the average new deal size more than doubling by 111% [7] - Strategic products accounted for 36% of sales, up from 32% last year [30] - Solex channel performance accounted for 26% of total revenue, remaining steady [30] Market Data and Key Metrics Changes - Customer count reached 4,424, reflecting a strategic resegmentation away from lower-end customers [29] - Revenue renewal rate was 93%, up from the prior year, driven by strong enterprise performance [29] - Net retention rate for the quarter was 103%, despite a headwind from foreign exchange [29] Company Strategy and Development Direction - The company has re-architected its leadership, go-to-market engine, and technology structures to drive revenue growth and margin expansion [5] - Focus on larger, more strategic platform deals, with a new platform-based pricing model accounting for nearly three-quarters of new customer bookings [9] - Continued progress in the public sector, with expectations for FedRAMP approval in early 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustained, profitable growth, supported by a strong pipeline and operational improvements [26][34] - The strategic transition to platform pricing is expected to decouple revenue growth from seat count, aligning revenue with customer value [10] - Anticipated reduction in churn and improved gross bookings growth, projecting a 20% growth rate for the next year [63] Other Important Information - The company returned approximately $113 million to shareholders through share repurchases, totaling over $200 million year-to-date [32] - The migration to a modern technology stack is nearing completion, unlocking significant operating leverage [15][16] Q&A Session Summary Question: Impact of large customers pausing user adds - Management acknowledged that some deals slipped into the next quarter, costing a couple of million dollars, but noted an increase in interest and pipeline for larger deals [41][42] Question: Automation and customer attrition - Management explained that success-based attrition is occurring as customers achieve higher efficiency, requiring fewer licenses, and emphasized the importance of transitioning to platform pricing [59][60] Question: Factors driving expected bookings growth - Management highlighted the shift in conversations to higher organizational levels, deeper partnerships, and product-led growth as key drivers for the anticipated 20% bookings growth next year [71][74] Question: Competitive takeaways - Management confirmed an uptick in competitive wins, attributing it to the company's proven track record, improved implementation quality, and industry-specific expertise [75][76] Question: SAP relationship and pipeline - Management reported a solid relationship with SAP, focusing on joint customer success and reducing attrition through dedicated resources [82][84] Question: Macro environment considerations for 2026 - Management characterized the current macro environment as stable, with potential tailwinds from corporate job layoffs creating opportunities for efficiency discussions with customers [86][88]

Financial Data and Key Metrics Changes - Total revenue grew to over $178 million, up 7.5% year-over-year [28] - Non-GAAP operating margin was 21.4% and free cash flow margin was 32% [5][31] - Annual recurring revenue (ARR) was $685 million, up 7.3% [28] - Non-GAAP net income attributable to BlackLine was $38 million, representing a 21% non-GAAP net income margin [31] Business Line Data and Key Metrics Changes - Subscription revenue grew 7%, while services revenue grew 13% due to accelerated project delivery [28] - New customer bookings increased by 45%, with the average new deal size more than doubling by 111% [6] - Strategic products accounted for 36% of sales this quarter, up from 32% last year [30] Market Data and Key Metrics Changes - Customer count reached 4,424, reflecting a strategic resegmentation of the market [29] - Revenue renewal rate in Q3 was 93%, up from the prior year and quarter [29] - Net retention rate for the quarter was 103%, including a headwind from foreign exchange [29] Company Strategy and Development Direction - The company has re-architected its leadership team, go-to-market engine, and technology structures to drive revenue growth and margin expansion [5] - Focus on winning larger, more strategic platform deals against major competitors [6] - The transition to platform pricing is designed to decouple growth from seat count and align revenue with the value delivered [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustained, profitable growth, supported by a strong pipeline and operational improvements [27][33] - The macro environment is currently stable, with no significant impacts from tariffs observed [63] - The company expects gross bookings growth of approximately 20% next year, driven by larger enterprise deals [42] Other Important Information - The company has approximately $804 million in cash and cash equivalents, with $895 million in debt [31] - A record quarter for cash flow was reported, with operating cash flow at $64 million and free cash flow at $57 million [31] - The company returned approximately $113 million to shareholders through share repurchases [32] Q&A Session Summary Question: Impact of large customers pausing user ads - Management acknowledged that some deals slipped into Q4, costing a couple of million dollars in late deals at the end of Q3, but noted an increase in interest in AI offerings [36][37] Question: Automation and customer seat versus platform - Management confirmed that they are experiencing success-based attrition, where customers achieve efficiency with fewer licenses, which is a positive trade-off for long-term growth [40][45] Question: Factors driving booking strength into next year - Key drivers include changing conversations to higher organizational levels, deepened partner relationships, and product-led growth [52][55] Question: Competitive takeaways - Management noted an uptick in competitive wins, attributing this to the company's proven track record and improved implementation quality [56][57] Question: SAP relationship and pipeline opportunities - The health of the SAP relationship is solid, with ongoing joint proof of concept work and dedicated customer success teams to reduce attrition [60][61] Question: Macro environment characterization for 2026 - The macro environment is stable, with potential tailwinds from corporate job layoffs creating opportunities for efficiency discussions with customers [63]

Investor Presentation Third Quarter 2025 November 6th, 2025 Safe Harbor This presentation contains forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance of BlackLine, Inc. ("BlackLine" or the "Company"), the calculation of certain key financial and operating metrics, capital expenditures, introduction of new solutions or products, expansion into new markets, plans for growth and future operations, technological c ...

Company Overview - BlackLine, Inc. is a financial operations platform focused on the Office of the CFO, driving digital finance transformation through accurate and efficient financial operations [6][7] - The company serves over 4,400 customers across various industries, emphasizing a collaborative approach to continuous transformation and sustained value [7] Leadership Changes - Greg Hughes has been appointed to BlackLine's Board of Directors effective July 25, 2025, bringing extensive experience in enterprise software and strategic transformation [1][4] - Hughes previously served as CEO of Veritas, where he led significant growth and transitioned the company to a subscription pricing model, culminating in a merger with Cohesity [2][4] - His appointment follows the addition of Sam Balaji, former CEO of Deloitte Consulting, to the board in June 2025, enhancing the board's expertise in enterprise technology and digital transformation [4] Strategic Vision - The leadership at BlackLine, including Co-CEOs Owen Ryan and Therese Tucker, expressed confidence in Hughes' ability to scale companies and navigate inflection points, aligning with BlackLine's strategy to innovate for the Office of the CFO [5] - Hughes emphasized the significant opportunities ahead for BlackLine, indicating a commitment to advancing the company's strategy and maintaining its position as a category leader in financial operations [5]