BL - Earnings call transcript Q4 2017

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Operator

Good day, ladies and gentlemen, and welcome to the Q4 2017 BlackLine Earnings Conference Call. At this time all participants are in a listen-only mode [Operator Instructions].

As a reminder this conference is being recorded. I would now like to introduce your host for today's conference Ms. Maria Riley with Investor Relations. Ms. begin. now may you Riley,

Maria Riley

Financial Good afternoon me and participation With Partin, for Executive thank the call you Chief Mark on and Founder of your is Officer today. BlackLine; and Officer. Therese Chief Tucker,

Litigation Before the historical certain conference made Act that represent to forward-looking Reform statements expected those including within started, Private regarding we meaning are plans, during statements of not performance, as These objectives I and this get XXXX. that like forward-looking note outlook would call. our call Securities of facts, this of our date the the of future conference are statements only

our forward-looking today. results statements, schedule in applicable on GAAP information, differ any are stated, subject our current While any statements may our forward-looking we We could financial have measures to risks actual materially by call at this or otherwise, measures and X-K on website made use believe whether A not a future investors.blackline.com disclaim all of a statements found why be law. on events our Form required non-GAAP. and press are reconciliation expressly otherwise release, discussed as alter uncertainties. undertake with will the discussion non-GAAP non-GAAP available financial as versus and of or SEC unless is our results on expectations be reasonable, Also, currently we because new showing the which Investor Relations filed except do obligation result and we based or update to are

to to begin. turn will over I Now call Therese the

Therese Tucker

and have of initiatives thank out on a much good year. very we today. progress with in afternoon to that to we able was and we efforts finish tremendous XX% share QX I what you flow. for employees and the strong the like growth income pleased and our proud with net you joining feel back and on I I'm were free for in I achieved us do their New year a XXXX. a highlights. look we cash as I'm the positive Good to XXXX everyone year our accomplish and positive We happy the to revenue of achieved. what would made and in key It Year, set about few quarter with good

enterprise revenue year the the For and from grew full business customers and market broad customers to pleased the the XXXX, that I'm industries for serve managed diverse XXX we full over now near globe. and we XX% year. report We X,XXX breakeven mid added across globally.

trend deals attention We and core where and are the and right still of fourth closure continued rates quarter our meet opportunities had year, good QX that in we in saw seen in in company new success platform quarter the the our quality, initial of in largest last of we history. our This deal land We have a closed trend. of the pipeline good six for is larger out and We two products. we better half Bringing while resources products to efforts. demands products. rebalancing to feel very to our strategic second the pursuing that with position a market challenging is in thanks the strategic a we new core the for strength

to moving the as a for deals pleased number Intercompany I'm the Places Medium packaging pricing a and for in we of QX products The BlackLine. saw sales very working both and relatively Magazine Southern these of List what in Hub We and best Close. in Smart the work We were is good by California, forward. Best Fortune's still make to We convert XX progress also in on best closed place at of strong hard be Work our but to as success named number ball have us encouraged employees U.S. small the Fortune and demand in recognized early place partnership, been the It as XXX work to number the also is three were and our deals

to software NetSuite excited on Marc In for While topic, and at new as software he global to to saw responsible team. and the welcome we exceptional Officer. rapidly leading We In $X scaling announced record afternoon go-to-market strong join Operating an so his a sales to us tenure Chief team. sizeable have that from to has joins This billion. he customer member BlackLine appointment I are that Oracle would like we grow of of track over company, BlackLine. worldwide the facing from activities. Huffman, a $X our addition Marc sales him leadership and BlackLine's he new accounting be believe SaaS Marc's will million role is team and

that announcement alliance is Another we formal made today a with E&Y. strategic

relationship event time and extends a summit. for our so accounts learn up to and thank customers' partners and go-to-market the already during many alliance many E&Y taking strategic is It and more BlackLine. finally QX transformation as user around have rebranded was joint at a and we the was the worldwide years ongoing Conference, see eight kick we and finance to a fantastic the which And first thought marketing the prospects the we about with enterprises quarter, which We you and to of help live, more alone. of conference. to come successful had that collaboration we our have achievement for finance and hosted Many I to great and there to our BlackLine year achieve largest events our vision planned stream you for were the even world. innovation conference us our professionals year to-date enabled long This implementation. leadership InTheBlack This standing to financial great through bring our

is process customers. It accounting continues technologies of disruptive been resonating though voice a as a in overwhelming We feedback changing industry. to leadership see new learning key our forefront some great Namely increasingly has and have such themes. received with at machine is as the the BlackLine and that reinforced recognized our automation

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addition long-term strategy. at made key the shared the for highlights with the We In key wanted about year to initiatives talk to I our shared progress and beginning bit for we they've little five initiatives growth of of our building XXXX. quarter, these you the blocks a that done I the on

our points building during topic, provided data the investing time enhancing areas foremost and we're on has go on and many this focus engagement year We've First ownership, been customer product success and customer to live including leadership, our half, higher other the the customer keep customers-centric by to reducing journey. many culture. aligning

for building acquisition new our consistent that driving our fortune made lasting we're engagements fourth our that quarter key company momentum them ability A sales A product. is included. and As a utilizing completeness uncovering across automation our modernize shows core platform after with and result relationships multiple core to opportunities and attributes standardize its growing with highlight recently customer a of large our has long along of to customers, company our product. and platform resonated focus, entities BlackLine's XXX strategic products. few geographies and scale a cloud most their unified help with and our accounting This of coming that The to journals practices. global with BlackLine platform computing platform technology them were the

BlackLine a vision provide global looking chosen a control. there for Our retail this audit close completely to fortune to operate The is was unique company ability aspects our with with highly seamlessly decrease that to adopting XX different is years great decision. has expansion factor leadership processes company, with and providing systems a acquisitive loyal This ability customer is key Intercompany customer solution manage used a this is financial interface enforcing transparent key highly that a also and core intercompany process helping a and is visibility risk management. is This platform in platform and platform of XX multiple secure journals system biotech also our vision centralized largest one Hub after many of leverage the world's switch. customer globally. ERP story by their key accounting customer a There financial long-term all next BlackLine and to a the was a FYI single into for products. by being

on initiatives helped towards and other year Our We growth goal, a market our initial each organizations want more be deliver the delivered needs. higher initiatives and and term possibly customers our that customers believe our strong again one. you care number the BlackLine. they initiatives customers Taking with for long-term can momentum. case teams go existing platform approach, with our to for invested experience our strategic than will best a the strategy. in longer solid and of of XXXX blocks XXXX enhancing year perusing customer promise key included tangible with plan, to the selling products pursuits we evolve the these have our products, will building the sizes to with extend deal We made In our share is and scale progress accordingly. results we we and to in user the that exit our larger XXXX success us and expanded Once train

support customer team commercial to this and We Last will a a with on took build to year, that XXXX. lavish we viability. our balances approach are build managing we customer relationships striving model in

products. software our be continues customers which priority in We in continue of high will to to ensure speed also helps great XXXX. customer team, Delivering invest also adopt full a our success

of really is a benefits what One large insight having customers of of a our over X,XXX lot into customers of base customer need. the

continue lives add easier. will our make to We enhancements customers that the

and focused are performance. also quality on We improved

and For our greater maintenance matching multicurrency enhancements software transaction deliver example, products strengthen to and we task to and automation administration, management plan interconnectivity. advanced around functionality, our

the evolves sustainable us deliver We will these value. development that other effort invest long-term Hub, and on also that key roadmap focusing initiatives items believe product as We on usage, on customer will performance Intercompany up. supporting scales time help to our

the about clients to ecosystem expanded consulting our KPMG, Deloitte now beginning. industry, this and start and in excited fill but have wave the many of their formal E&Y, have disruption. alliances this at help our transformation digital are is We're and opportunity signed the with We companies partner the with just

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large people our continue As globally We total Intercompany the educating in addressable part largest hire major with for large sales growth scale Smart in core a critical we it market our initiatives, direct long products. on our sales on enterprises the penetrated focus. currently across we remains see sectors will where enhanced lasting Hub today in teams believe are our that interest balance large the markets the and Close growing of and and in that platforms where core important companies largely is market both us to greatest will for mid-market our be for our there and and XXXX, believe market is relationships. We to and the and the and building opportunity we products

footprint newly Our for more expand the product cycles complex. us and the can are and implementation longer sales partnerships and to our formed customers help strategic

a and in learn important that be their careers. work with centric great culture. want enthusiasms BlackLine here product is employees continue me business that retained globally advance to we one grow we as a partners. consistent. and of strong Lastly, our want people we continue we've our grow the is place people work to operate the to and with and environment to team want to vision maintained I our and I customers of the closing, by to and it demand culture BlackLine’s In to seeing We make of are tremendous sure the expanding and QX, them. rapidly every fundamentals In and remained that for scale,

Mark to financials. the Now, turn over to the call I’ll discuss

Mark Partin

Therese, everyone. and good afternoon Thanks,

non-GAAP. As during a remarks mentioned numbers all my are quick reminder, today

accounting ’XX revenue new ASC the year as fiscal XXXX. have standard, adopted historical ended on we required, we the while January affective Additionally, ASC revenue XXX X, XXX standard,

XXX standard. to the So discuss according our recognition to the call expect revenue new our but do certain will QX requires earnings full We I’ll year the to it benefit but standard, ASC of impact forward ASC guidance material to sales results a going not according XXX, have standard and revenue at XXXX our results, provide new historical forward-looking we’ll on commission. capitalization this

QX. will full We comparison publish for purposes a retrospective in

Moving to our results.

consisted were to revenue grew XXXX, the Gross XX% steady at improvement loss million. For XX% margin $XXX from our total loss XX% moving of non-GAAP X% of year to a in and full margins revenue. delivered we operating

from delivered X achieving better results. a in generated strong revenue bottom-line operation. and cash over we than quarter million Additionally, fourth We expected

reach at nicely, XXX XXst following. portfolio to and our our results include both Total mid-market. highlights pleased in the in grew users fourth grow contributed the our driven strong European our flow accelerated continued net announce of number cash The in XXXX. of XXX,XXX approximately sizes, customer XX% goal I’m stated quarter to brings $XX Additionally, to quarter, and grew including December deal customers representing of fourth top-line total global that to deal X,XXX which year-over-year. million, for in again to by positive enterprise expected had and solutions. than XXXX. to growth quarter We factors This Many year-over-year continued the from strength XX% revenue time IPO International our added strategic representing we the product since up revenue XX% non-GAAP representing new will and across been demand once market. XX% free BlackLine XX% better growth a total, globally Key pick-up total year-over-year. larger financial count our

of Close do sizes, and increased Hub metric. our Transaction Smart As overall but Intercompany impact this not users we our have add sales deal discuss previously products growing strategic by and Matching,

revenue was with XXX%, expectations. Our dollar line in retention base net was rate which our

pleased range with in closer XXXX, grow growth XXX% account of ability may year. rate near-term. to sizes off over Looking does our It we initial our impact been into to deal model while to the expect have to we the have past expansion to this our trade XXX% a net be and our

with Importantly, rates stickiness remain level see renewal XXXX the customers. high our continue we QX in this existing in to of underlying high and expect

XX% XX% the subscription XXXX P&L, our In gross expenses revenue areas operating services just revenue model towards margins it as build business, we target decreased X% in anticipate team. we more our returning rapidly drive to and in XX% and consistently from approximately In and reached of margins across Now saw XX% to we leverage of of a over of XXXX to XXXX XXXX. to high-growth mix improving continue the in support continue as trend will operating down our QX. services all our XX%

continue model, across XXXX and our with globally, invest growing target progress sales the pleased business toward platform this customer long-term are We initiatives. in team direct and our enhancing even we software engagement as to our increasing our

per net This $XXX generated the ended of net $X $X $X.X under We the million corporate We office our year. last an million. We a long-term Going forward a on investments approximately cash and we which annual expect fourth expanded securities. our reported free of on Timing budget basis completed $X.X from per cash fluctuate operating brings of in million cash space to QX share under equivalents of basis cause or compares on to out and toward flow in for we cash operations. quarterly QX net quarter XX.X and cash on income In to just invested million quarter million $X.X and in income our million shares. and the marketable build flow using using CapEx to loss our of XX model. or $X shares million of approximately $X.XX time, gain with a approximately basis. non-GAAP overall certain leverage million can share

in range reflects rate which XX% previously $XX.X new to expected I'll QX the the of Starting quarter and XXX to the guidance XXXX. based to million to XX.X first is be growth is with GAAP full-year our quarter year-over-year mentioned standard. compared have of revenue ASC million. the a I is to total This Now XXXX, turn of for on first XX%

we of loss bottom the the the to net share we to of range in weighted-average to in million. line, be non-GAAP of loss $X.XX XX.X million expect shares net On million, non-GAAP $X.XX. range Utilizing X.X $X.X per expect

of outlook to to to net million total is a year. Non-GAAP million. is in the of share the XXXX last of our be weighted-average XX.X income breakeven million shares growth $X and $X.XX. rate $XXX XXXX This range expected XX% we net Utilizing to range breakeven be diluted $XXX expect expected cash between expect GAAP income non-GAAP to full-year. for of to we for in over Turning the XX% lastly free year, million. per full-year in be revenue And flow positive reflects to the

Now, I be Therese, and to take questions. would happy your

Operator

William from Our Instructions] Bhavan [Operator Blair. question Suri with comes first

Bhavan Suri

before, announced announced partnership shop guess accounting core user strategic strategic as want I SI announced a Both at what of X the of sort mean first to had you and see you. large driving relationships you reconciliation one conference, the for you don’t another couple more also you mature, in with I inbound offerings. on understand I of activity obviously they sort Global I the and one a dive on sort those in offering,

Just sort in but in of least will of those to see developing obviously sort be pipeline terms some pipeline? at time, and bare in or starting the in the today you're valuable they are how up the show of of fruits

Therese Tucker

question. great a that’s Bhavan,

ago things of We've in that learned actually is got I set mentioned eight marketing it's with already One up events nine. today a that E&Y, QX. the actually few that minutes

actually is accounting thinking customer run collaboration mix and better. finance add well. together people combination is there spread customers, we marketing that things very now can a the able of we Okay, that typically collaboration will and our relationship out a they about usually They And is couple together well, their word partners as that events then to when happen. But there their that right. are with to as to a will do do and potent how

one might really in a it be webinar, in so, But we while to pipeline, tap us is partners them in other I think it via might the is a And on. actually person largest be has via did it tap our of working in we deals, their events. where into mentioned of and with helped building certain the XX things QX, X we ours out network were

seeing can there and I more think there of we is still lot a I -- that the is we're that fruit do. So think that

Bhavan Suri

Great obviously, congrats on and Marc having follow-up then quick joined too. a

love obviously, to board. think understand to a would of while has I additional I he's But and process been your one now sort compliment great team. a there

he sales guys about he going playing thinking he sort to also status Has how of is you is out to term? is while? how changes and How about run longer but potential Just important for little thought sales restructuring that near-term more maybe of territory, team? of or sort quo sort

Therese Tucker

if thing I in, it that Bhavan, and Marc cup. they they do where an I is, don’t they things is pattern. Marc Marc lot would of who follow individual would or a they off the that come anything executive, evaluate, for that is And about but sort improved is measured think would can I experienced stupid anticipate look be very the like the somebody a

Operator

Thank you.

next comes KeyBanc question Our from Brent Bracelin with Capital.

Brent Bracelin

Mark, of about even that you number year, for internally? start you help that a externally expanding augment Therese now the on partners how add growing and evaluating you one expanding And talked acquisitions One on obviously Walk you on your Therese, side, to efforts? footprints new product both have I did could. you about introductions for launches? of let's talking that And it internal if the product this balancing also further. you're and then through kind philosophy potential

Mark Partin

see. let’s Bren, Thanks

were and last we products too process the where we got through So right out balance, a of some we year just not focus in cases mature. markets kind strategic much went

rebalancing market sort I we less massive, the year, learned the around that really all at better is part think core got a So right. of and much lessons for us terrific that’s of our

initial Our all deal largest platform feel today only, Largest is core core only. right. is platform today

forgetting going should focus area. that that our core we to our the effort company again mistake make of as we on huge most market So a is not are of and that

when temper my quarter we said, in Now have like strategic had QX. very some always we enthusiasm I our being a to for products, that nice especially did

our contribution think grow, to he So to continue I would math that me of do. tell their Mark XXXX because speak I'll if in will I numbers but let

Mark Partin

me But I you a well think, for Brent. question have as yes,

Brent Bracelin

be largest the on to is Exactly, was I hear excludes look coming up talk let's in 'XX Therese big pro deals more the dose business does understand like XXXX as ramp history a I profile if it's a tend these this for just I some predict big, core difficult which the the rates we how for to about in there's side revenue of about the 'XX? core out know But of contribution revenue in of growth material thinking timing services the level large bake the that revenue understand I the trying I'm apply the business growth start should guide the large healthy on and to partners this are just core focusing XXXX to to opportunity from there by well. just agree just trying retention a guide you deal the as conservatism with of and Mark, guide around slowdown the on as would just obviously historical it that company's encouraging in conservatism to encouraging the she

Mark Partin

that that actually we on for we to So us with would say XX% QX to revenue that in year range guide midpoint we it's let our we we around right haven't the can the one, result say by momentum range confident philosophy feel this the said approach I growth point conservatives with really of that in guidance And execute were initiatives. saw Brent on. a that the is start that, have that on I that prudent we want pleased me we the now. for wouldn't at changed, believe early guide appropriate and saying that Having

I tapered couple there. a of in questions is there you Now, think

somewhere from we saw coming the of of strategic product. last terms that core around and the we would coming with the or balance, over strategic XX% around first this the like to remainder So contribution from growth year view over what our maintain year products in core is is and

So that to you 'XX the think need to in range in we and we see coming core balance order and execute they can that and be right that strategic do term. where so mentioned on to these as large what products. think also is the right doing we that I'll in thing continue the add majority long from that Therese investing the that’s and we are market also for in this we are

We products these those 'XX the to ecosystems are sales and take care expansion few in focus investing we and a term rest new name focus and long itself. just of in the the if the on will on

Brent Bracelin

Last book? exclude just like that if me rent on here contribution Runbook last growth reaccelerate deals? year, revenue seasonality contributions of What we one billings billings look for calculated just large QX. in in growth for it from differed reacceleration does adjusted billings that Mark Was the I drove

Mark Partin

right. Yes, absolutely you are

in pleased that. Runbook one-time larger were We the are about reaccelerate. trend strategic a the those to know of effort activity deal with those We once we good were lead nice all XX% it's again, without came the things us. deal headwind some and from XX% team. for with land saw and and we from been we you variety talk is That Europe which -- in able did forward We move we QX deals that a

really good to things those a led a quarter. combination so of And

Operator

comes question with Raymond Brian from next Our Peterson James.

Brian Peterson

on get deal. to wanted partner the I So

as about deals much quarter largest or sizes? were we bookings on or should mentioned motion, partnering influenced. the help So can a XX there? And think overall this the of the you cadence of go-to-market bookings Any revenue they partners. how maybe Anything the come from X become deal you bigger of with how part help

Mark Partin

question, part that I first think that. of thanks for

of with you where to past last So can XX%, deal, now QX really going deal, say top XX% heard lot assistance or have XX%, quarters really of XX% the kind And the partners of where we we’ve what or think half the deals of the they partner I the in those. of a number, a it’s value part acceleration or where gone to accelerated. has four or use deals were give that And there big partner of over we partners it five it’s generally of the to close assisted that for in us. for us I they’ve

Brian Peterson

you, A additional another it’s the talk just conference. but of the user your lot interesting curious, And at models out maybe, for they Mark, about that purchased on high customers I’m level overtime. would look you based overtime? said what are customer your across broadly today. that base that customer we products of the this into if and amount at penetrated How have they be potential

Mark Partin

what great fixed, that a being talk small uptake nascent believe ICH the When It’s account we purchase, that’s I obviously about question. Analyst core in to Smart -- have when and the is that’s you those has Day add strategic between this early early. products within into and that’s that platform I the mentioned like is think the we’re from that we it’s still penetration remember and such not that’s we Close. and product, in, and one what the used on

Operator

comes question Morgan. JP Murphy next Our with Mark from

Albert Chi

Albert This on for Murphy. Chi is Mark

to are ask, at going more accounting-type wanted solutions, the paying you solutions? do account, little companies the start companies like like a looking to, for department. of from away to So a lot time it XXX, hump sounds of when it’s attention get which buyers accounting have think BlackLine-type when lot adopting ASC I started sounds of start taken over the a is focus bit to

Mark Partin

question. great Yes,

We the about that at also Analyst talk Day.

draw and even effort for that it’s of line a climate us the of really of we between thing and it’s to massive regulation think sort same hard straight time I now. particular said any I that to is can buying. It tell level though

So putting it’s know and departments we effort into minds, we are with ourselves. a for that own working on it it. CFO’s ton We’ve accounting our been of know struggling

I don’t and any expect this particular tailwind wouldn’t we from So model or headwind or

Albert Chi

of last accounting the you automation touched maybe and Day, around RPA, robotic but you say built something right what little Analyst on also that what at unsustainable, for And could my you customers, would really your at is talk about when lot when areas And question from like look sounds process bit look that? it maybe they you perhaps they and a solutions they of who you are internal of are? are sort

Therese Tucker

on there I’ll to interesting different is, are RPA area and of is that. Mark. approach this RPA ways super a Yes, sort take

an old have of macro difficulty approach key had some automation take recording sort equivalent adage garbage right. of the the a out, very, very in, all garbage of do strokes. simply of low was process they We that our level customer it's The is where

automating look you our their Smart month, intelligent with more It's after inside XX of typically, processes. customer the ERP at a used close. year had after manually take that a to Smart if that do run, month week it tell XX the of like epitome or They quarter, and were the that, entity Close those product, able them a after to to companies me I processes However, product. Fortune minutes it in taking do actually quarter single year RPA. Close is

are different to there approaches RPA. So

be focusing product RPA that’s our think should is been kind precisely with BlackLine the I on. that kind implemented the of of company Smart Close

Operator

you. Thank

Our Oliver next question with Rob comes from Baird.

Rob Oliver

hey, questions, quick two So Mark.

to type about were where your drive participatory on might to If bit to more in and guys something that to from to a the trying more get a and bit, clearly rethinking deal sign follow up the attention core. for Analyst might strong ICH my then draw guys Therese, and get a you larger and more help deals at First sort those off starting the did need prepared go-to-market quick guys Mark. you, not break hinted for you of you a little in be a cited might away performance remarks, adoption? ICH you be but fact I maybe that But, bit lot little just in you and large this away wanted maybe little be to you which this a and interpretation, of to Therese, ICH-type sign differently Day sale from body thinking you've and rather the smaller may quarter, it ask. the much apart hinted going

Therese Tucker

way Yes, know. quarter had the By ICH just we saying. I multiple in Rob, deals this

into us for pricing approach. adopt so so size the the think and process we've three sales partners been a and very, a and of takes three of packaging, of there ICH momentum, the is phased pricing that okay and helpful partner packaging people for them bit areas then get course account The influential on approach I have can Okay, organization ICH we that call the the deals. is how P, more network has very helped

going together direction. right in three the think fine that definitely done we I are those the is there tuning So

Rob Oliver

closer a past color. I partnerships get to Great key you've have that’s I I want been picked this. In miss helpful then Mark, think focus if guys clearly we partners our that for real up to apologies the And you. in work and mentioned you

to have I out past break that quarter broken did maybe think you you out. I'm I it, this if of the that sure or the apologize want portion in I you missed SAP not that

Mark Partin

it XX% and miss saw the point XX%, not you for a did from as ago through and year it you quarter. about fourth that, year for a that's and SAP in Thanks I bet. its say you quarter picks it, up didn’t up the Yes, to

Operator

Our Tillman comes question with SunTrust. from next Terry

Terry Tillman

been don’t lot answered, lot of I a but questions more still have have questions. worry A

Therese Tucker

would you I disappointed be know didn’t. if I

Mark Partin

No, think from we need original I quarter. your seven was you first

Terry Tillman

of of to it the the Does planning capacity multiyear thinking your some third help in whether influencing it terms mid its sales terms just of does all in get an or positive impact parties? of very terms out. strategic partner growth? sound about build enterprise -- are on your the that international? change ecosystem and change thinking capacity in do But or the hiring or have it how you you have do Or does Does from really because sales not you of any market pace

Therese Tucker

and an we why, have influence don’t is to I still it and work really wealth bring there is appreciate Terry knowledge process partners even we process through impact and still though the of because the our the a that. that think here has to

still a force So sales very there that’s is much involved.

taken we building. partnerships into that plan our account and are our think I scaling has the

Mark Partin

Yes, sales we large add that into just into been velocity get deals. that’s around our strategic strategic that right, person teaming the I'll and to is too as has

engagement need done. more they they change that people partners doesn’t they the cycles customer fact it to need them need need more we just resources larger So complex these and the get

Terry Tillman

And flow about free got It about Is free year should cash of you positive since on positive. flow to full XX. our I've accurate? where to that but each think cash how good of Mark positive see term make there you've the previously be the also is in will anything sure year? seasonality you there, be free flow quarter models cash you free And committed quarter, is be are cash the we in we you flow for said would

Mark Partin

through wouldn’t Great some quarter. question it's more do business it's things because I occur specific seasonality the we see that say still

So that in it. large QX bonus QX that where have we for can where move have conference things we in like a example a corporate or

the 'XX to us in So by say are XXXX bit will we people, going I working their thought be but our upward And standards. earnings they revenue to us have forward ASC is on benefit having 'XX, to does guidance still in it given. want based for a to sales capitalize a an this because more about for we does It are the drive is to well on models. I'm commissions. But us it here. about impact that. on new for what flow thinking year. have our just insert it we meaningful in XXX question, the if requires on the want similar cash that not QX know through will And I your quarter because talk it going as I wasn’t impact also

our next expect million similar to out of impact that’s a We million around XXXX. And to in will XXXX. million be then filings, benefit then high-level $X details in very in and QX a but something approximately benefit to at just $X we of $X XXXX million $X have the more an in expense

in as guided. we to mind So ’XX we’ve into go that keep it’s important as well that's how

Terry Tillman

capitalizing? that with that is statement sales a Mark But and the an -- flow is cash dynamic there is marketing just Or also dynamic? and income

Mark Partin

the change commission. paying cash because still doesn’t It we’re flow

Operator

last JMP Pat question Securities. from with Walravens our is And

Patrick Walravens

top XXXX? So, your for what’s with all priority that Therese,

Therese Tucker

to journey what and continue from getting making that sure sure our customers value making us, customer are expand and that the from there. we Always relationships our they’re using buying

say couple always on I’m I the different. I think might Now interested be with product. what Mark Pat, next in slightly of sort doing would we’re it’s, Mark And the and I I really and sales. the on doing of and really ecosystem again focused here. we’re the with that the people likes And course, scaling that culture the have things am partner we the

to of got -- there might we’ve small it some differences out. we’ve manage So, but be between work us, sort

Therese Tucker

of Well, especially this your our want evangelism it Okay. XXXX for Therese We and in to keep Thank I of ongoing customers. sharing It you referrals us beyond. up. and new with continues bring to you forward Please thank your to all and you. success look support is BlackLine. and

Mark Partin

you. Thank

Operator

Thank Thank in and gentlemen. the program. does you, participating today’s ladies you This for conference. conclude

disconnect may wonderful day. a have all You and

BlackLine (BL) 15 Feb 182017 Q4 Earnings call transcript