BL - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the BlackLine Q2 2019 Earnings Conference Call. [Operator instructions] And as a reminder, this conference is being recorded.

Now it is my pleasure to turn the call to Alexandra Geller, Vice President of Investor Relations.

Alexandra Geller

Good afternoon. your for you thank participation today. And

on Chief Executive me Financial the Mark call and Founder Officer. Tucker, Therese Officer Chief is Partin, With of and BlackLine;

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

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

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

Therese Tucker

of this global the outdated quarter turned CFOs indicators the of closing results was pleased thank momentum progress and to drive joining growth. driven growth We ways to initiatives. good with them across and as QX sustainable execution processes I year long-term by are And today. initiatives our for solutions believe BlackLine early these am positive our everyone. their afternoon, continued for you on Good we demand have made books. help a our us manual transform to our

success leading accounting we how I'd like and driving begin on with their are our for customers to and finance transformations. them

make and strategic by with support for want customers our success. a ongoing mission-critical a partner, them framework best solutions, As practices, we providing to successful,

we Sydney number our of events with in For customers QX, connect globe prospects. events held example, and hosted May. to in in the a and and Singapore around We InTheBlack engage

These to hosted optimize they of also summits hundreds how products, practices different increase the and a discuss products customers prospects to best thought in BlackLine U.S. their engagement We can existing in Europe, with network our for customer opportunities forum bringing happy events to are and derive value. our BlackLine with customers. cities to provide together leadership extend

of fully BlackLine result users proposition. a the these seen deploy events, realize products customers additional we As to and/or have value

were In not investments time number specialists billion BlackLine of we are existing strong we The buying value and change.” conclusion QX, expansion saw are over the opportunities, $XX controller customers, road In detailed additional growth making our table. that a with standardization and success define fully quarter, the the on-site one more to a efficiency leading At believe “We number customers' and digital and we transformation maps recognize We our of innovation a record accelerate said, us tools XX transformation from our driving second team journeys. of accounts digital workshop, company helped products. out automation accounting the real our rolling leaving identify large users a our spend such in BlackLine deals. customer of utilizing global and on

became accounting a drives a finance of proposition Fortune and more a few larger and in first top-tier in strategic A customers population BlackLine reach for a customers customer the include, with across and their Reconciliations company the footprint. our Account employees. purchase of a better extends with small examples value further XX XXXX, healthcare This

as of to ICH, one customers. course additional their Matching, tasks, the users as including they six-year Over largest well become tenure, journal of deployed our additional growing Transaction and products, entries,

now, This quarter, enhanced world have thousands users capacity, finance they controls, of of expanded processes the internal the improved business. and better further, for and around standardization across global analytics

for there Despite is our being BlackLine of customer to one largest this footprint. customers, still their grow opportunity

the technology and companies purchased in of XXXX. world's medical leading Reconciliations One Tasks Account

years, they such journal more with seven and Over footprint the BlackLine entries. users as additional their have products, past expanded

critical have vendor This quarter, most all was around operating they data compliance these the their selected capable to for of ICH intercompany purchased to globe. company was the ERPs across address global on to entities. centralize statutory requirements. across It as of this BlackLine dozens their invoices

benefit, a global ICH access them As secondary transformation further gave their the to platform enabling their financials objectives. digital

Transaction our the a their the capable stemming significant tasks realized became first of food to remaining BlackLine and instance partnership their order revenue to They One products years, largest in product ensure volume of with end-to-end cash with platform BlackLine streams. market identifying evaluation, of close QX, an increased e-commerce addition from recognition, following with proper a Reconciliations. increased a The our financial existing and their beverage inundated with world's BlackLine products. chose streamline to customer of manual transactions this Transaction added automate processes Matching Matching. were to revenue their process. they manufacturers purchased and and core they seamlessly their integrate they Excel global when large After not footprint In a managing their low-value Account XXXX, customer were

company growth strong was is see scale vendor also experience, and BlackLine that expanded close. as to of these controls positioned mandated logos. Their was to gaming with the requisite by as lengthy our that interactive process. serve than customers. to with strategic continue and quarter resources uniquely believe frustrated driven a and the a QX rates more lack finance agile customers as and transformation only global for companies and a new base to partner by a the large in to good our We CFO globe, the large We time customer leading modernized X,XXX close such accounts visibility around

company replaced Excel cross-product BlackLine's Matching. strategic seamless true to Transaction suite, this community, interface, of a platform due user and finance scalability customer all chose partner unique transformation serve with Because products as this core QX, to to their transformational ability and processes our manual extensive integration. user superior In our be and BlackLine including

BlackLine to of time-consuming greater their significant required highly controls, process. and One operation of close manual finance engaged as broader decentralized, a efficiency. by a and which highly future-proof initiative construction was adding largest business Their UK's part to the companies support head count visibility

visibility a to to biggest purchased around platform, balance and existing poor their standardization automation they addition of for In Account QX, was risk, with control connectivity which and and In complicated across by enhance standardization lack consistency challenge of and further Reconciliations Transaction products acquisitions. number control, exposure their BlackLine's their was Matching a sheet ERP.

As the data the they become encountered valued a and make chains role. which the business, as for focused market their world's BlackLine manual on changes company many accounts of the suited vendor our future-proofing largest The would background, happening unreconciled without unrecorded knowledge. their best of chose in one of restaurant instances division leadership Australian

and to their control duties. and and provide process, of improve visibility a they reconciliation complete audit BlackLine of the manage our accurate process, Account to turned close their for segregation around and by trail lack Tasks Overwhelmed Reconciliations

continue Given that of speedy to counterpart process see customer, sale other was spectrum, months. UK BlackLine from strong represented to their the very whole under of in an end mid-market. the three existing we a the demand RFP the close At

their BlackLine BlackLine their in importance data, serve increasing as less-sophisticated who to the grow we the market have Today, and serve will strategic solutions recognize proven, companies of as demands global understand over mid-market apps who demand. chosen they encounter visionary regulation partner and mid-market X,XXX of legacy long-term companies scalable workflow systems can their continue to These partner. invest have companies meet that and not These this a point needs growing will globalization. the and needs.

synchronization critical value a the go-to-market strategic priority an global to strong shorten the remains consulting we top customer seeing account success delivering across with pleased managers, teams, digital reps, our sales managers, positive results a reseller I'm from alignments driving alignment experience to transformation experience positive these teams is the customer excellent and us. Delivering and and and for customer. time for partners are customer

roll and to out are and with our continued reseller greater drive across SAP the We educate alignment in QX go-to-market to partnership our teams. and investments global SAP awareness expanding

reviews with enablement reps. Examples collateral, of account business increased SAP driving enhanced BlackLine sales sales executives engagement quarterly and between and include joint progress

with an number in curated a Additionally, of enable Angeles SAPPHIRE at we joint had our in have SAP for we participated September, engagements May, we prospects where InTheBlack Los SAP Conference event sales. record with to prospects. track content In SAP's will

validate global wins Europe to new early SAP to level, transformation, partnership access Some in and continue proof and accelerated relationships from through cycles in budgets QX, the tapping deals. better points strong sales strong include that into customer some at the the IT larger price for and digital points U.S. customer large strategic

joint there investments practices a our opportunity a growth. we large believe Deloitte remains is their for who with the customer it significant While of global a driving and increased of to it EY engagement are are still number BlackLine engagements. growing consulting early, including of number saw ecosystem, Among make not we continuing and partner and partners, lot points, data in

are sales with in and customer, pleased our initiatives. We and our QX progress against to performance partner date

and focus continue throughout on the growth to scaling will driving year. business We the

I'll to that, turn with the Mark. over And call

Mark Partin

and Therese, good Thank you, everyone. afternoon,

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

experienced quarter particular, of a QX As strong large, and was solutions. mentioned, an Therese ARR $XXX,XXX of customers record our demand existing In our growth of by or with customers in driven expansions in saw number for a strong number more. we the good

financial believe growth We to scale and alongside world. lot companies largest ability effort the support in transformation have of invested in our leadership the demonstrates and and a time this

other pace international year. deals. our with closing grow QX, revenue expectations, quarter performance Higher the in on XX% in revenue revenue, helped the XX% prior in on a quarter, record notes in to earlier total sales reach large second was quarter of business grew strong Total to deals up representing the continues number of a by $XX.X year-over-year the A and XX% few million. from

Europe SAP in Asia-PAC. our markets sales SAP This existing total a revenue We and with ago. continue agreements. partnership represents XX% our to direct invest in and year compared from partnership our both was to Revenue QX, under revenue and in support metric customers partner XX% major of in former

in Services strategic products. significant quarter. area revenue is as growth line with to in of we of invest our continue This saw our expectations this the to XX% growth a in support

the of will revenue of half X% both good in line represented which of metric partner for quarter, could in participation. on to balanced accelerate deals year. services basis. tends of and total included than as representing and note strategic XX% for expect More revenue large products quarter Strategic quarterly product much We our the continue with a the XX% sales. through this our partner, fluctuate as a expectations balance a represent core Please to of sales the remains second

digital to are and to our X,XXX the financial with serve over XXX on Consistent Moving as metrics our buying partners. the operating for transformation the we where customers vendor QX, we net for added quarter, now was included of strong with on performance of transformation large a customers new strategic path. include new reasons companies a logos globally. help The quality key and projects, continue

Our renewal nearly dollar-based XX%. rate gross for and in margins at remained Gross at rate with XXX% net line margin with at expectations our the was XX%. high XX% subscription retention our revenue quarter was

operating generated million cash the We cash flow ended the for our and certain BlackLine free We in cash exceeded QX, to $X of approximately million the and of and $X.X to cash over million. $X $XXX marketable generated and in expenses In This shifting the we million the second nearly expectations quarter. quarter timing year. securities. of income with of performance to revenue equivalents net flow the attributable half due

XXXX full-year outlook. on Now third to let's our and move quarter

GAAP For to million. million is of be range revenue quarter XXXX, of $XX.X in the third expected the total to $XX.X

to On $X.X net income the expect share report BlackLine $X.XX or basis. bottom attributable in a line, the $X.XX per to we to range $X.X million to million on non-GAAP of

average be shares. diluted Our million weighted approximately will share count XX.X

$X.XX net XXXX and range Utilizing For attributable the total is $X.XX. million $XXX to shares to between BlackLine share be GAAP Non-GAAP of $XXX million of in million. average the range of the net to non-GAAP XXXX, million. per $XX in full-year diluted revenue million, income expect weighted be income expected XX.X expected to to we is $XX in

Lastly, Day. I'd September now like to participate Relations Investor would Please hosting our your event our be on out Investor if reach I the team you Investor and an XX. ITB Therese conjunction we will announce to that LA to questions. in Day in like take will with

Operator

our with And is William from Bhavan instructions] Blair. question [Operator first Suri

Bhavan Suri

a everybody, Hi, for That congrats. and quarter, really thanks taking solid was nicely my done. question,

Therese Tucker

Hi, Bhavan

Mark Partin

you. Thank

Bhavan Suri

wanted I on, touch – on things so to to guess, I many the touch okay. there's first

There's competitive play then competitors, your some environment, and out of lower traditional Let's you're been just smaller who a of broadly Trintech touch sort end. of update seeing there the first sort and sort get the from an on and noise I where environment. win of at competitors out competitor rates. there speaking the on they like love of, to the bunch

of things the out how couple of you're quarters Just the over an from of view overall environment. last seeing competitive sort play

Thanks. there. start Let's

Mark Partin

Sure. Thanks, Bhavan.

both have say I some to and that. Therese about think will I

we Our we same through and still in We strengthened competitive variety our to been people. a one you Therese, since the investments number we're and competitive market, still want see what field ecosystem say that's But And believe and seeing when of go remains position public, that we've our do and our pretty to… things. remains today. competitor products has that the our consistent Excel time Enertia. still I'll

Therese Tucker

actually that that we've think Bhavan, this a awareness. And making people helps market unpenetrated noise, is build having all we market large the a of noise TAM. very And that having something Yes. in been only is making others more saying along validation

Bhavan Suri

follow customer Maybe as consistent had haven't trend the has would changed? you the they enough. have, at competitors, I you market and enterprise core you sort of your no you are just sort rates large losses There strategic the guess, you at feel of customers you to specifically. sort in like win look Fair look at material core and enough. look base? Fair the and of been

Mark Partin

Well, our win rates are strong. still

good going particularly are feel we very Our our ones about for we're position when salespeople win. that to still the into deals, trying

the companies. with mid-market, and We the mentioned have product. of We earlier, the large a the are strategic at time, over At same provider world. the in as X,XXX we premium and largest Therese companies operate

XX% look, market, target rates think but on strong. like at renewal and We Our XX% on position really are mid-market. lose on focus to customers, that's competitive it enterprise a happens. is don't company the the on to composite, our But we mid-XXs we low there our any and

Bhavan Suri

super shift of of Once quick one sizes driving you've in past That's initial at the deal and larger things helpful. its partners about the the larger follow-up, use talked toward is SAP the companies.

year those you. play of to larger the I'd QX. initial that Just that rest for relationships, do like. which, those might looks in maturing obviously, through to you out, deal continue you and momentum love say, saw of both year drive think some and sort this of But obviously, what size, the we get rest the color of play some on partners what pipeline's out color some SAP of the how terms in Thank and see

Therese Tucker

we are over our And variety them. of are digital that resonating customer really feels different what It whole sort take of to years BlackLine and as like And market. with a been experience customers think the we've inside some good this story about has telling of that continuing of expansion they with user products. seen do can as is something been we and our transformation really lot our base in that I well a expansion, hold. bunch has of developing own a it's stories both see

Mark Partin

we larger large are help in participated deals strategic make partnership. they more really us, XX% both that of partners investing for they those and the deals, in and And

Bhavan Suri

and guys. thanks job. taking my again, awesome, for Awesome, questions, Thanks, nice

Operator

Oliver question next with comes Our from Rob Baird.

Rob Oliver

prepared Great. my you Therese, CFOs your Thank remarks. question. guys a mentioned for you taking lot in

So more into the guys you I traditionally, Mark. your the in that when so, follow-up for process? I just digital that is there bit And enabling know, I that quick transformation about a you with to start how I Recs often? often wasn't And CFO role, have is sales to buyer. that And is Thank changing? touch little thought a buyer? suite the then Account would CFO land And and move you. that talk financial if your becoming that would and

Therese Tucker

Rob. yes, point, Excellent okay. And resoundingly yes,

say that strategic transformation really CFO companies digital start necessary the partners at is to to then realize for are. organizations, in As their their they of that a something look have the wants is health who –

are engagements more we CFO. having with So the absolutely

Now it spend CFO's time. a strategic also to the which well, attention tend correspond projects. projects larger also These to to gets strategic much to happens as correspond and the

is the undergoing. that are companies that transformation with we're it pleased financial movement. So And tied absolutely to

Rob Oliver

Great. Thanks, one. quick a Therese. And Mark I just had

could on of services that and more the the the if taking important I Just you're about on time is? the year. thinking your remind if us just right to of – it most you into what just again. and And process control you how Is of your around engagements revenue uptick it? with larger way partner's that – apologize, half and relative going Is customers? Thank about time that your to demanding not, the back think

Mark Partin

partners nicely. success Yes, We've implementation service Rob. transformation that thanks, and large as customer in and well. in Yes for been and the into products, these strategic digital those investing we're answered bringing engagements you quite

and very time a and help so in value the lot that invested And faster. early we've ramped experience of the capable people make up money customer to

be. acceleration. we and more need of the in these online, get customers expect as that In they to we QX, see initial where people to to come we so, saw the half, And the second

in be where from it which could of would traditionally be half, between X% X% to was the it revenue that up at second X%. believe we So slightly X% and

Operator

with from comes Walravens question JMP next Securities. Pat Your

Joe Goodwin

I question on Pat. is Joe Hi, partnership of the the SAP. kind for had a Goodwin just around this with practices your enablement quick in

Therese Tucker

have to to a you You it? me question? want Or speak

Joe Goodwin

if could is you. speak guess, it. question, I you my to that please. Thank Yes,

Therese Tucker

we number mentioned marketing We've our today right. got in been of events Well, reviews, We've SAP, doing additional that a the are doing business Okay. remarks events. with various quarterly we collateral. joint

counterparts And various I like part We typically sales Mark am to SAP awareness quite doing around as spent to part among year have And of bit on? I the and of then getting sort else place. SAP are educate a of what the travel force. world of over and the the first global. our sort have events the outreach know build these of all

Mark Partin

we see, marketing And reps, also events, in but reviews. and if Yes. ours and are quarterly the these just managements it's more partnerships engaged and the theirs, not field are that marketing pipeline and business sales around you the remember,

enablement is awareness, the so the key education with and the we're SAP. co-selling really And but collateral that and accounts partnering not working on just

it's so very a roots’ of And effort. ground much

Joe Goodwin

Great, thanks.

Operator

you. Thank

with Merwin Chris from comes Goldman question Sachs. next Our

Mark Partin

Hi, Chris.

Chris Merwin

that my Just a billings. things for was on could I moved speak on Thanks there guess, healthy just quarter highlight taking know anything nice billings really to touch a the pickup one, XX%. XQ, Was lot. you is you I front. congrats to there? question. great curious around acceleration It demand? Anything from And like really a first of organic looks it's it to in our hoping I there a XQ or quarter. could the on in movement deals to

Mark Partin

within large Therese these QX sure. saw accounts. Yes, in was on our what transformation execution for mentioned really we Yes, results some Yes. as based Thanks.

So a as as well well for quarter we're driving it digital products. new in strategic users, those of as that transformation expansion Many large of sort deals. logos, record was as existing

performance just sales was deals. large from well-rounded to the a it these group So drive

Therese Tucker

executing execution communicated have have last the things all on is year. great about that year. place that in all we been us on very before It put this we we And focused

Chris Merwin

Great. And maybe follow-up, in on new SOLEX sneak could comments the one I if I agreement. the appreciate

more obviously, You, stepping sound there. the like you're investment up

for relative So to helpful. other way say to share contributing to response is the drive that the the force you're the expectations? performing there investments the about guidance in really be internal of to making I SAP And uptick year? can Just mean kind that's any details anything of in initial any can you awareness? been your you would How sales Thanks.

Mark Partin

for early in still Yes, partnership. sure. Look, that really it's

number been we've a pleased So with of things. far,

that that engagements extended people and relationship feedback the and First, We've our working from in talk do the with. we further. we SAP with are to them

awareness things really is the more long was in more people, that that Other we accelerate really it's drive and like help term a such digital it's large their help the challenge to can budgets. relationships really us that Our cycles. does just that transformation. we've IT the sales into for organization. points seen SAP can They customer They tap educate bringing higher can They price process. that the

so do points And with been very data the have. pleased we've that we

into Now effort we and the points see our it and expect expectations more itself, our big build we year, and on we to expectations half so we will on next of some But partnership. sort are as partnership. more second the made the move that and in more that met that success has we've and the see, certainly invest assumptions time it of of out our toward

Chris Merwin

Okay, very Thanks much. great.

Operator

Terry next comes question SunTrust. Our with Tillman from

Eric Lemus

nice so This is the Lemus progressing for in Terry. SAP, Thanks on And question. it obviously, is job for sounds. quarter. well, the Eric taking

other partners. out technology technology specifically while. to even with sort partners, Oracle the the some or other had we on expect Should ERP vendors? any the Connector wanted on With deeper other go-to-market ERP relationship some of touch for side of of Just a you've Oracle, at

Therese Tucker

the with multiple to we partner, Most open customers. Switzerland out our to not ERPs. product. But partnering always larger because out the always they simply are we of to that there can, ERPs ever here's are serve because companies look a partner a as as will ERPs have have Oracle thing, We as many any we with different probably there. become competing

way them benefits. close in having tremendous good movements having connectors, and and support process, of place in really that seamless good of centralize financials data, that their helps customers really gives centralize really sort interfacing a having So their our

Eric Lemus

been of And since CTO months quarter, couple new hired has and last then. thanks. it Great, a you

on So has initiatives some sort update us focus he the of any place? can top of you areas that in give or

Therese Tucker

go is on we're and with focused really general. tech technology the to where the and he Well, going stack our in strategy long-term

of super an and has is great he combination organization. that, things that technical, able the One also scale smart about of rare is being but Pete to super

through certainly and usage really figuring for evaluations is I'm where he He So I'm people pleased. plans his out additional available. at great longer-term different hire. is are of is needed. going He technologies the looking a are And pleased, our that

Eric Lemus

Okay, great. Thank you.

Operator

Our next question is from Mark Murphy with J.P. Morgan.

Pinjalim Bora

side-by-side Hi, on guys. like a behalf do more might Mark. those to This I Therese, where become on thing you one complementary it Or I It mean, think do is see Pinjalim time to RPA. of competitive? you How Congrats ask can surge work those tools. wanted RPA BlackLine you tools? is the there's maybe those quarter. you about over RPA tools? seems in with

Therese Tucker

okay. Look, very think And call a BlackLine the actually, we RPA – ongoing to mentioned partnerships, in complement is it's that RPA with I all players, I of the alright. brings, major good that last quarter's that partnerships have think automation we

processes very the Here's how of thing, RPA whatever, focused focused can automating great from ICH sort financial on not where to a really tasks. And process specific efficient end process, at is streamlined we very, having end, close alright. beautiful very be overall different on they're look

most automation is And also its way. has value. in It actually customers cases is in narrow for its It a super-specific we so has And by have very, place. of very the very customers not providing transformation. spectrum. helped That the our by bots tasks. our RPA are vendors certain digital That

don't So do all. they're and they both what what partners. And conflict see at a we I customers do between and

Pinjalim Bora

I come it as about level? to be ramp margin that to clear. you the I down margin guidance. the services the same the margin that. on about Should think And second I How side, the half. anything will the then the what pretty for gross Mark, second the XX% And Awesome, we FCF in said gross Thanks guess, expect we half? should for before? have in didn't hear back mean,

Mark Partin

the question, the On gross thank for yes. margins,

think of slightly on at long-term trend, down mentioned approximately our half It second model mentioned, emphasis you will to our due tick I toward that as will move the the in level. XX%. you services the what target

On margin, still before free we mentioned something range. range are looking the flow X% the cash the for in that in X% we to

so profile nature that of the And business consistent. is

Pinjalim Bora

Understood.

sure make to it. I Just understand

half, tick XX% down tick said versus level level? below current the it You or second the will down in

Mark Partin

Yes, will it towards XX% tick from Sorry. XX%. slightly down

look on would or close X% – that. to forward on we plus So me, a excuse something minus a

Pinjalim Bora

it. Got much. so you Thank

Mark Partin

Yeah.

Therese Tucker

you. Thank

Operator

next Our Koji question Ikeda comes from from Oppenheimer.

Koji Ikeda

questions, bit dig in my question, on quarter. too. of I billings. a taking the Really to just a wanted great off quarter, a toughest guys. for Thanks I had impressive this really more little an and that clip year at the It comp grew

you bifurcate I the billing hiring quarter, accountant if right. was some and correct the that's is evolved the But wrong. there strength quarter the good hiring between deal think in Could seasonality I second season, I typical Please seasonality guess. that's second wondering me commentary? if

Mark Partin

draw know Interesting. I can line. that I that don't straight

spoke very online. coming QX logos Let that in about and is are is seasonal drove And new think we expansion. QX me really our large what and good feel initiatives we our billings a I happening. what say quarter success as both was our before.

move we we toward half As on second don't of because the year, the guide it billings varies.

I is hiring. to more versus see large to what we related in related deals think variance

quarter traditionally, had I more kind would QX, of seasonality. think sort is there from to However, a that of the overall year how question in think It quarter. second Koji, varies half but your we've that terms in Maybe of I understand, to build that's weighted I year, good I think it. QX, through about

Koji Ikeda

mean, say with the taking too. and seeing this could to that for, has for It upcoming Thanks super Mark. really quarters I the be revenue quarters? my the start that's commentary retention success the expansion for net row that. here is a a follow-up, in helpful, Thanks in wins No, great three like expand it sounds bottom just looks safe here questions. customer in good quarter, I is there at it like, metric guess, And XXX% we some been XXX% now. could

Mark Partin

Sure.

some For needle did or the execution more though it minus. quarter, of that be of the talked point continued on really move our can quarter. We and in what have portfolio, And – are against strategic land feel are the your product even we given back what that will through slightly. base focused a But I enterprise same we've pull the of work and that how things sort the impact that that about about those it, that take really in to as the the as our opportunity consistent, numbers metric that strategic full plus to to have rate, it's buildup At the kind a good we mid-market, need we great are number in which we positively. XX% remains and more our success initiatives strong, being and more there large revenue it is year, particularly really from tend digital transformation, that renewal time, of calculated.

So the look our plus minus pleased again, year for good. full fact QX with about how talk expansion we're XXX% so deals or is And it. that we the in

Koji Ikeda

quarter, again for you. Thanks Thank taking guys. Great my questions.

Therese Tucker

you. Thank

Operator

you. Thank

James. Raymond next from Peterson with question Our comes Brian

Brian Peterson

quarter Mark. Mark. Therese. Congrats for the Hi, question. on Hi, Thanks the taking

me. So just one question for

picked helping win pretty that think, the it's terms really partners you. pretty works. with clear So is curious are Thank partners how think And you new with quarter. work the how dynamic up that how activity strategic potentially that of partners momentum if happening and and helping large the existing But on with deal this it's I intuitive does deals customers? you that some logos. Just I in

Therese Tucker

specialize their in instances. We customers helping actually optimize have BlackLine who partners our

them, different everybody itself and opportunity So it's partner someone areas BlackLine purchase, where having for they're actually much for and When is much that full that they of they not because stickiness value, go consulting a more if of and out that's gets in getting the the that's can revenue dollars utilize through walk great value, them for because has a customer to involved. for purchased all more and what a in value if get of sort us. it more win there

there but different firms are absolutely built absolutely practices – have are So BlackLine this, yes, around to there optimizing different usage. approaches

Brian Peterson

Got it. Thanks Therese.

Operator

question Our comes KeyBanc. with Brent Bracelin last from

Clarke Jeffries

Clarke is Brent. for on this Hi,

could the Firstly, UK color then, what of I terms you're several to last quarters. EMEA? in international adding get seeing mix the in of You've pipeline specifically that, demand was deals two I the highlighted for or And if quarter. wondering large internationally, any

So market. understand how success your you looking attribute in that to

Mark Partin

Sure yes.

Our international in to mix ticked across up XX% quarter. Europe. from Asia-PAC both XX% and And the that's

good We in the last both over growth. years. seeing there investing momentum number of We've been markets, good are

invested has pleased both that been excuse the Asia-PAC Europe. mentioned, the team that in, we've you've in As made year strong. particularly – we've me and with last We're

And have our we with ecosystems with that us, forward. move helped partnerships SAP, the our to partnerships consulting believe, ball

expected. So and where we with is we're it's what that pleased mix

Therese Tucker

yes. Beginning to grow,

Mark Partin

Yes.

Clarke Jeffries

of the into top Therese, could imagine when about based your be maintaining organization. is comments talking different you're And I priority. or success on that across experience could customer Great. a customer across and difficult partners more

and handoff are BlackLine have I for how between, was success we XXXX example, that a to you handling of give SAP XXXX the could enabling those since still… So expansion wondering customers view and terms to in anecdotes around been you're of that if the into get

Therese Tucker

That's a have making and Thanks focusing specifically that mentioned calling for one getting And right I be that right not consulting Because implementation. have SAP it's and sure that communications, alignment and you because on. because between great we've a SAP been be be that sure set doing right, question then going that. of It the well. out. that's BlackLine to making involved as the And and there the of could that that's areas been might handoffs, just BlackLine. a partner BPO you the really

they to because that don't the in-house don't level be you sideways, go at, off want what involved we to so you right, customer And need right forget things want just because having about know that own it people relationship. it hand and

proud in that what So customer something they're of getting accounting has those, the much I'm the better seeing been terms right, working internal innovation really over how of that year. on getting to how bring possible we team, really I'm out group, of at last of customer. best the experience we've that all success, together, all to did our right call today, been focused And the because actually

partners have, the for it very customer, better that, involvement think much make type the type So customer. to got working do much, of I that has project, are with best successful the to the who what we this, at and much are we've of and level on it how of

just that's And a good body that that of I really feel expertise we're getting.

Clarke Jeffries

Alright, perfect. Thank you.

Therese Tucker

Thank you.

Operator

final the Thank remarks. for Executive and turn I Chief Session. call the Therese like Founder you. Officer, to Q&A the And her back concludes this Tucker, would to

Therese Tucker

Thank you, you do new up, and ongoing and it for you joining today. Thank your evangelism customers. thank bring It to of continues us us and referrals for keep support BlackLine. your everyone. Please

Operator

program and all that gentlemen, may you a the disconnect. with wonderful ladies and you program. day. today’s participating And thank we This concludes in Have for

BlackLine (BL) 2 Aug 192019 Q2 Earnings call transcript