BlackLine(US:BL)2021-08-05 23:53Financial Data and Key Metrics Changes - The company reported a revenue growth of 23% in Q2, marking a fourth consecutive quarter of acceleration in billings growth [30] - Net income attributable to BlackLine was $10 million, with operating cash flow of $12 million and free cash flow of $8 million [34] - The company ended the quarter with approximately $1.17 billion in cash, cash equivalents, and marketable securities [34] Business Line Data and Key Metrics Changes - Strategic products accounted for 18% of sales in the quarter, validating the strength of the platform [32] - The company added 116 net new customers, bringing the total to 3,598 customers [31] - The renewal rate was strong at a blended rate of 98%, with the enterprise business at 99% [32] Market Data and Key Metrics Changes - International revenue grew to 28% of total revenue, up from 25% the prior year, driven by strong demand in Europe and Asia Pacific [13] - The company experienced a record number of large deals, defined as $100,000 or more in ARR, benefiting from the SolEx partnership and digital transformation initiatives [31] Company Strategy and Development Direction - The company is focused on capitalizing on the long-term opportunities for accounting transformation and driving further momentum in the business [37] - Investments in Customer Success are emphasized, with initiatives like the BlackLine Optimization Academy aimed at enhancing customer engagement and product utilization [19][21] - The partnership with SAP and the SolEx initiative are seen as critical for driving international growth and expanding the customer base [10][63] Management's Comments on Operating Environment and Future Outlook - Management noted that demand for finance transformation is stronger than ever, with a significant opportunity to capture that demand [16] - The company is optimistic about the recovery of the market and its leadership position, expecting to see continued growth in the second half of the year [37] - Management acknowledged that while the first half of the year has shown improvement, it has not yet reached pre-pandemic levels [47] Other Important Information - The company is in the process of migrating to Google Cloud, which is expected to enhance product innovation and service delivery [81] - The introduction of AR Intelligence in March has shown initial traction, with plans for further product releases in Q4 [14][82] Q&A Session Summary Question: Insights on new customer growth and net revenue retention - Management highlighted strong performance in both mid-market and enterprise segments, with a focus on the Modern Accounting Playbook and customer expansion initiatives [40] - The net revenue retention rate is expected to improve over time as investments in customer engagement yield results [41] Question: Demand environment and budget growth - Management indicated that the demand environment is improving, with a return of projects that were paused during the pandemic [46] - There is a mix of larger deals and increased attach rates for various modules, particularly in the enterprise segment [55] Question: Updates on partnerships and product innovation - The partnership with Kyriba is focused on enhancing customer value through better integration of finance and accounting functions [50] - The company is seeing success in the SAP channel, with increased strategic deals and recognition for its partnership efforts [63] Question: Metrics on Customer Success initiatives - While specific metrics were not disclosed, management noted positive trends in customer satisfaction and engagement, which are expected to reflect in net revenue retention [75] Question: Billings growth and deal timing - Management confirmed that Q2's strong performance was driven by genuine demand rather than pull-forwards from previous quarters [77]