Core Insights - BlackLine, Inc. actively engages with its stockholders, having met with Engaged Capital seven times in the past 12 months, demonstrating a commitment to constructive dialogue with all shareholders [1] Company Overview - BlackLine (Nasdaq: BL) is a platform designed for the Office of the CFO, focusing on digital finance transformation by providing accurate, efficient, and intelligent financial operations [2] - The company utilizes the Studio360 platform to unify data, streamline processes, and deliver real-time insights through automation and AI capabilities powered by Verity [2] Customer Base and Innovation - BlackLine has over 4,400 customers across various industries, indicating a broad market presence and a collaborative approach to innovation [3]

Financial Data and Key Metrics Changes - Total revenue grew to over $178 million, up 7.5% year-over-year [38] - Subscription revenue increased by 7%, while services revenue grew by 13% due to accelerated project delivery [38] - Annual recurring revenue (ARR) reached $685 million, up 7.3% [39] - Non-GAAP operating margin was 21.4%, reflecting improved productivity [43] - Non-GAAP net income attributable to BlackLine was $38 million, representing a 21% margin [44] 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 [42] - SOLEX revenue accounted for 26% of total revenue, remaining steady [42] Market Data and Key Metrics Changes - Customer count reached 4,424, reflecting a strategic resegmentation away from lower-end customers [41] - Revenue renewal rate was 93%, up from the previous year, driven by strong enterprise performance [41] - Net retention rate for the quarter was 103%, despite a headwind from foreign exchange [41] Company Strategy and Development Direction - The company is focused on accelerating revenue growth and margin expansion as it transitions to a platform-based pricing model [6][12] - Emphasis on winning larger, more strategic platform deals against major competitors [7] - Continued progress in the public sector, with expectations for FedRAMP approval in early 2026 [11] - The company is modernizing its technology stack to support scalable, efficient, and AI-powered innovation [18][20] 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 [36][48] - The macro environment is currently stable, with potential tailwinds from corporate job layoffs creating opportunities for efficiency discussions with customers [100] - The strategic transition to platform pricing is expected to take time but is viewed positively for long-term customer commitment [13][72] Other Important Information - The company returned approximately $113 million to shareholders through share repurchases, reflecting confidence in long-term value [44] - The planned churn from the strategic de-emphasis of lower-end market customers is nearing completion [14] 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, but noted an increase in larger enterprise deals [53][54] 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 long-term trade-off [72] Question: Factors driving expected bookings growth - Management highlighted the importance of changing conversations to focus on digital finance transformation and deepening relationships with partners [85][86] Question: Competitive takeaways - Management noted an uptick in competitive wins, attributing it to the company's proven track record and improved implementation quality [88][89] Question: SAP relationship and pipeline building - Management confirmed a solid relationship with SAP, focusing on joint customer success and reducing attrition [96][97] Question: Macro environment characterization - Management indicated that the current macro environment is stable, with no significant impacts from tariffs, and noted potential tailwinds from job layoffs [100]

Group 1 - BlackLine, Inc. will release its financial results for Q3 2025 on November 6, 2025, after market close, followed by a conference call at 2:00 p.m. PT / 5:00 p.m. ET [1] - A live webcast and replay of the conference call will be available on BlackLine's investor relations website [1] - Participants are encouraged to join the conference call fifteen minutes early to avoid delays [1] Group 2 - BlackLine is positioned as a future-ready platform for the Office of the CFO, focusing on digital finance transformation [2] - The company utilizes the Studio360 platform to unify data, streamline processes, and provide real-time insights through automation and AI capabilities [2] - BlackLine has over 4,400 customers across various industries, indicating a strong market presence and collaborative approach [3]

Core Insights - BlackLine, Inc. will host an investor session on September 9, 2025, during its annual customer conference, BeyondTheBlack [1] - The session will be accessible via a webcast on BlackLine's investor relations website [1] Company Overview - BlackLine is a platform designed for the Office of the CFO, focusing on digital finance transformation by enhancing financial operations [2] - The platform addresses critical processes such as record-to-report and invoice-to-cash, providing unified data, optimized processes, and real-time insights through automation and AI [3] - BlackLine has over 4,400 customers across various industries, emphasizing its commitment to innovation and security [3]

Financial Highlights - BlackLine's Q2'25 Annual Recurring Revenue (ARR) reached $677 million, reflecting a 9% year-over-year growth[9] - The company achieved a 22% Non-GAAP Operating Margin in Q2'25[9] - BlackLine's LTM (Last Twelve Months) Free Cash Flow was $144 million, with a 21% margin[10] - Total Revenue for Q2 2025 was $172 million, a 7% year-over-year increase[43] - Total RPO (Remaining Performance Obligations) reached $944 million, an 11% year-over-year increase[43] Market and Customer Base - BlackLine estimates its Total Addressable Market (TAM) at $45 billion[8, 9, 21] - The company serves over 4,400 global customers, with over 389,000 users in 100+ countries[11] - BlackLine is trusted by over 60% of the Fortune 500 companies[11] - BlackLine has 632 customers with an ARR of $250k+[37] Growth Strategy - BlackLine aims for a target model with 13%-16% Total Revenue Growth[55] - The company is expanding into the Public Sector market[29, 35] - BlackLine is focused on deepening relationships with the world's largest and most complex organizations[32]

Core Viewpoint - BlackLine, Inc. announces a leadership transition where Therese Tucker will step down as Co-CEO to focus on her role as Founder, effective October 1, 2025, while Owen Ryan will continue as CEO [1][2][3] Leadership Transition - Therese Tucker will remain involved with BlackLine as a member of the executive team, focusing on supporting major customers and enhancing product development [2][3] - Owen Ryan, who has served as Co-CEO and Chairman, will take on the role of CEO [1][3] - David Henshall has been appointed as Lead Independent Director, succeeding Tom Unterman [3][4] Strategic Enhancements - The Board of Directors has made strategic enhancements, including the addition of former CEOs Sam Balaji and Greg Hughes, to support BlackLine's long-term strategy [4] - The leadership transition is seen as a pivotal moment for BlackLine's evolution, with a focus on innovation and execution [3] Company Overview - BlackLine is positioned as a future-ready platform for the Office of the CFO, driving digital finance transformation through efficient financial operations [5][6] - The platform addresses critical processes such as record-to-report and invoice-to-cash, providing real-time insights and automation [6] - BlackLine serves over 4,400 customers across various industries, emphasizing its commitment to innovation and security [6]

Company Overview - BlackLine, Inc. is a platform designed for the Office of the CFO, focusing on digital finance transformation to enhance financial operations [2] - The company serves over 4,400 customers across various industries, emphasizing its role in driving organizations towards future-ready financial practices [3] Financial Results Announcement - BlackLine will release its financial results for the second quarter ended June 30, 2025, after market close on August 5, 2025 [1] - A conference call will follow the results announcement at 2:00 p.m. PT / 5:00 p.m. ET, with a live webcast available on the investor relations website [1] Product and Service Offerings - The platform addresses critical financial processes such as record-to-report and invoice-to-cash, providing unified data, streamlined processes, and real-time insights through automation and AI [3] - BlackLine's approach focuses on continuous transformation, ensuring immediate impact and sustained value for its clients [3]

Core Insights - BlackLine's customer Creditsafe has been awarded the 2025 Nucleus Research ROI Award for achieving a 234% return on investment and a 12.4-month payback period through the deployment of BlackLine's financial operations platform [1][2]. Group 1: Impact of BlackLine's Solutions - The implementation of BlackLine's Invoice-to-Cash solution allowed Creditsafe to automate collections and cash allocation processes, leading to improved efficiency, increased visibility, and greater scalability in international operations [2][3]. - Creditsafe reported reduced operational costs, accelerated cash lifecycle, and enhanced customer experience, enabling the finance team to support rapid global expansion without increasing headcount [3][5]. Group 2: Innovation and Development - BlackLine continues to invest in innovation, recently launching a modernized Cash Application user interface that enhances the Invoice-to-Cash journey by providing a more intelligent and streamlined user experience [4]. - The company emphasizes its leadership in delivering AI-enabled, outcome-focused solutions that empower finance, accounting, and credit teams to operate more strategically and efficiently [5][8]. Group 3: Company Overview - BlackLine is recognized as a future-ready platform for the Office of the CFO, driving digital finance transformation through accurate, efficient, and intelligent financial operations [7][8]. - The platform addresses critical processes such as record-to-report and invoice-to-cash, ensuring unified and accurate data, streamlined processes, and real-time insights through visibility, automation, and AI [8].

Group 1 - BlackLine, Inc. will release its financial results for Q1 2025 on May 6, 2025, after market close, followed by a conference call at 2:00 p.m. PT / 5:00 p.m. ET [1] - The conference call will be accessible via a live webcast on BlackLine's investor relations website, and participants are encouraged to join 15 minutes early to avoid delays [1] Group 2 - BlackLine is a platform designed for the Office of the CFO, focusing on digital finance transformation by providing accurate, efficient, and intelligent financial operations [2] - The platform addresses critical processes such as record-to-report and invoice-to-cash, enabling unified data, streamlined processes, and real-time insights through automation and AI [3] - BlackLine has over 4,400 customers across various industries, showcasing its proven track record of innovation and commitment to continuous transformation [3]

Summary of BlackLine Investor Day Conference Call Company Overview - **Company**: BlackLine - **Industry**: Financial Software and Digital Finance Transformation Key Points and Arguments Innovation and Strategy - BlackLine aims to inspire, power, and guide successful digital finance transformations, addressing the high failure rate of transformation initiatives, which is reported at 70% [7][8] - The company has worked with over 4,400 customers, gaining insights into the transformation journey and pitfalls [9] - BlackLine's platform is designed to provide future-ready financial operations characterized by accuracy, efficiency, and intelligence [15] Financial Systems Landscape - The complexity of financial systems is highlighted, with many companies relying on spreadsheets and manual processes, leading to inefficiencies [12][14] - BlackLine's platform aims to streamline these processes, reducing the time spent on data manipulation and improving the accuracy of financial reporting [14][32] Platform Development - BlackLine is transitioning from a multi-solution era to a cohesive platform era, integrating various functionalities into a single platform [17] - The platform includes five critical components: integration, orchestration, visualization, blueprint, and control [21][27][29] - A partnership with Snowflake enhances data management capabilities, allowing for scalability and improved AI utilization [33] Market Positioning and Opportunities - BlackLine targets a large market opportunity, with 160,000 potential customers in the U.S. alone, focusing on mid-market and enterprise clients [45][51] - The company emphasizes the importance of customer success and long-term relationships, with 50% of customers generating 75% of annual recurring revenue (ARR) [48] - BlackLine is expanding into government markets, recognizing the potential for efficiency improvements in federal and state agencies [75][79] Pricing Strategy - A new pricing model is being developed, moving away from user-based pricing to transaction-based pricing, which aligns with customer growth and success [85][89] - The pricing will consider transaction levels, company revenue, number of ERPs, and number of entities [86] Customer Engagement and Collaboration - BlackLine is enhancing collaboration between sales and product teams to better communicate value to customers [61][70] - The company is focusing on industry-specific solutions and co-creation of ideas with customers to drive value [64][75] Conclusion - BlackLine is committed to delivering value through its innovative platform, focusing on customer success, and expanding its market presence while adapting its pricing strategy to better align with customer needs [56][88]