BL - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the First Quarter 2020 BlackLine Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions.] As a reminder, today's program is being recorded.

And now I’d like to introduce your host for today’s program Alexandra Geller, Vice President of Investor Relations. ahead. go Please

Alexandra Geller

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

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

make update statements, ongoing result materially related new and and macro alter information, current responses including events industry, subject risks. by could regional otherwise, report the obligation are COVID-XX reasonable, Commission, risk believe related the forward-looking those a as we and of uncertainties, the While economic actual well private any including to do disclaim applicable except our and Securities because law. not or pandemic as expressly whether We undertake by and on in our as statements government stated may differ are to or expectations based as risks and and future are today our any forward-looking of to we as with the results filed Exchange statements required

and reconciliations our Form financial available results X-K which our why found the use today. will non-GAAP. in non-GAAP may of be press investors.BlackLine.com on stated, regarding is our we otherwise Relations call of release, all measures financial or our A Investor unless website with disclosed measures on filed versus currently SEC this at on Also, be GAAP non-GAAP discussion information

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

Therese Tucker

everyone, and us today. joining afternoon, Good for thank you

affected be the everyone customers around our pandemic. BlackLine thoughts by of been to employees, saying safety our the At with and and has me top prayers ensuring are off that health by partners world. continue priority the start and Let our coronavirus will and

provided BlackLine restricted work-from-home daily. and guidance government creating protocol. in policy agencies executive travel monitor an enabled pandemic Health immediately global mandated Shortly Organization situation restricted virtual workforce We travel, by and a to and the to line our have in-person to quickly all COVID-XX World across nonessential thereafter responded work-from-home international moved task facing all the the with by events one. and force customer we

have to frequent collaboration team a BlackLine and check-ins I'm distributed able business our To we environment operations. rapidly tools. to enable minimal pleased to was utilize with collaboration, to work disruption report shift that

provide continued our customer strong consistent to We BlackLine service support have levels with culture. unique and

and work an shifting many of and are these the the daily unable books. adverse of or of onset suddenly a to offsite a first small closing workforce for the found to accounting teams even on pandemic, handful in office staff themselves could the With remote organizations finance impact time. have Most the

and is incentives changing on basis, frequently, business daily a items impacting other tax complicate To which forecast. regulatory and matters, further assumptions are key sometimes

who Last, as becomes for but the remotely situation exponentially audit conducted are must more multinational This be manually. not well. large least, complex close organizations now managing

we program. customer has these responded our in professionals this relief accounting and serve community, ever. with wanted help grown do global stronger our customers times and our Throughout our to commitment time, BlackLine COVID-XX more than we to to challenging At quickly finance

closing with no-cost their CPAs remote added dollars. thousands curriculum professional and current of when on CPE-eligible accreditations The first workforce even was March We announced at trainings saving includes granted a access so can on focused library. to environment. free we our training hundreds This XX, new a accounting entire keep or courses, live-virtual

From effective months more six enable close. to a also customers a existing product task-management we to for the remote complementary offer reporting and perspective,

one-on-one addition, BlackLine In challenging session BlackLine in complimentary so environment. customers announced optimize instant can we with this Experts, coaching Subject their existing Matter

formally to up help MAP of mid-market our we The the we companies modern over quickly from accounting all following running BlackLine. playbook launched and best incorporates learned week, have or get companies. MAP practices on mid-market X,XXX

the capital limited also time implementations offered in access have to these complimentary on mid-sized We difficult for burden less a to who companies times. reduce

to a available Resource surrounding accounting its to Hub challenges finance and navigate week that, Resource professionals professionals regardless with Hub leading they after close confidence enable practices virtual pandemic. finance and new The It from virtually all is our this BlackLine both accounting and and help or provides to for not. customer BlackLine companies the unveiled to closing in this BlackLine are whether of worldwide world. insight, The guidance partners

continues the seen value free MAP products. had to task We've in management addition strong. measures and interest The than to basis. More already half a and reporting In our response product, on and these MAP complimentary implementations. solution XXX have capacity and the our our have of those of from classes, filled XXX CPE customers of been relief mid- implemented XX% for already with XX realizing nearly the market our we’ve number taken in very more has grow of that enroll advantage weekly than CPA's

I’m support can they that as many our on BlackLine’s and relief uncertainty. relief of additional resonating efforts them we and efforts to working enroll customers. in the customer of BlackLine share customers time how appreciative have are as to have feedback to to our very of are pleased plans we provided are quickly this with really support out

incredibly we neighbors From outreach local of COVID-XX BlackLine who volunteered was a know larger vulnerable employees serve. I core of are BlackLine, checking communities in donations that value individuals, the part to proud in further with and reinforces help to to their of food on the number and community, banks this At to BlackLine’s we crisis.

safety hard emerge are and us, on our of to our that. of will proud to and that confident the leadership team, ensure customers all our really our While I of am working these we employees. times BlackLine are their their dedication trying we're and for customers focus stronger

I'm Marc Huffman that, it business And performance. discuss to going with our recent to over turn to

Marc Huffman

Thank in to we overview you, begin has leadership in good market everyone. go-to-market then the changes quick I’ll early the our the made like with through address our a the QX March of and sales strategy, Therese, I'd afternoon as performance. today. followed trend by seen from

February sales the and very with January quarter, plan. were Starting strong we activity in above operating and was

see However, March early decisions in due COVID-XX. being we began to deferred purchasing to

hardest large In a EMEA to of end the experienced months, of end in meaningful saw the deals quarter. we the two our logo in closing we good in the off first but slowdown the decline and the a saw delay start Globally mid-market North deals business new a hit was We in the in was America. before quarter. near

and postponed SOLEX strong start deals of Our quarter March. the then was get saw the at in also performance

installed and On throughout renewals. note, within business the resilient a positive both base account our remained growth quarter for

work was services addition, projects and to as to our progress continuing flight, implementation minimal In in with there record revenue. disruption scheduled generating

COVID-XX. we virtual early to Our March respond go-to-market motion. teams were to the In sales adopted a impacts quick of

and no is maintain person, meetings in to longer team build they sales customers to and virtual continue but Our through and meet calls. prospects relationships with with customers able

strategy. to shifted remote implementation fully a We

on and reallocated to teams implementation our digital our minimal engagements our same tools Our remote implementation, in prospects to and we lead focus virtual resources connect doing operation. a accustomed sales so time At marketing digital generation are to to reps there disruption help events, the world. was with

were from event to within able a double virtual of and received reviews shifted the InTheBlack we London our our this attendees. a in-person short effort, we In to time. event part participation As time, rave the than spite planned we rate of our turnaround week's event deliver

a partnership, quick smaller for a success faster value BlackLine. with better for move campaign sales S/XHANA. marketing wins include to value a customers in remote preparing sales and deployments deployments, SOLEX time the to shorter position using to and we SAP These time future created virtual faster to and world cycle, For SAP

featured more value. thought EY, to to our Resource in offers by with on certifications, We we strengthened and virtual time faster relationships and prominent as KPMG partners delivery COVID-XX enablement Hub. focusing sessions, RSM joint leaders launched and our sales in additional Deloitte, hosting and created engagement Together partner our response

protocols capacity roles. shifting needs future and plans staff some and activities as experience reallocate well also better roles, they to implementation place put success to as slowdown. redundancies support in this resources if into with One is planned customer of We of a our existing example resources

in fighting are times, of critical Now challenging sales customer is to has for the market the so trends have long leadership invest change weeks. impact less a access past modern seen in Prospects of COVID-XX more and as a the among The to these want capital even other budgets. of account, to and still company some but they result budget in biggest several I'd mission the priorities. list in like address in are

This challenged is gas. impacted for this indefinitely hospitality, deals that new and even such oil prospects believe true and customers acquisition been in and logo be more as We have industries delayed and retail travel, those will in more time.

deals previous significant have transformational of been large in Historically quarters. drivers performance our

that as an we’ve new been In products, get for largest current seen and as of budgets strength we will as Over large grow as addition we accounts this us large deals have with well the years deals. continue past two continued expect are of as area pushed to this land, the climate has strategic our strategic long constrained. our

COVID-XX sales We in performance QX. impact expect our changes meaningfully these related to

result adjusted Partin will shortly. the we've As speak Mark which about for a quarter our expectations

success. at BlackLine customer’s not has changed our What commitment support to our is

business is supportive review for be the to articulated session, efforts teams with Therese, our to and They believe moment address We and stay urgent than global Given this needs mobilized customer spanning customer by and discussions, efforts shine, outbound the been adoption our teams success our success base, ever. customer base. reviews with expansion BlackLine’s recent across quickly to busier relief success coaching the engaged customer demos. have

consistent our As shelter our to with were a follow platform, orders. of seamlessly usage global, can work-from-home immediately result, in transition a we place so model able customers and to

one multiple customer glad customer their told are you today we that who We BlackLine. also with are us success “We lead received so where manager testimonials, to including

month We Our companies for have imagine can't end don't month-end must that close beat. be like was miss BlackLine.” smooth. a I what didn't

we our believe account and expansion can in Over the heavily account. we capture resources two within last we existing around years invested have management global

have Our in around adapt their new this successful marketing, sales support and strategy help our to teams reality. customer customers messaging and aligned be and teams

are we We our drive installed believe growth COVID-XX. positioned well in by customers impacted within for verticals less the to base

customers serve times. our industries, to our impacted support in in teams are available these trying success For and

the change of to multiple strategic transformation this pandemic. they to to is unrelated Transformation the Another QX and easier an made differentiator sell, breaks for generate shifted model we optimization faster are In blitz ROI. to that Specialist, year our into cheaper, Accounting projects project BlackLine implement quicker that smaller to last to

same transformation frame, model manage the still result The have idea make project end away it of for at them. would accounts smaller week project, this the to time-consuming easier the for close they The us was month. large, gets a knowing from to digital help behind per projects one and prioritize longer to but manage least a that serve to step time them customer over for to easier month-end

one these ahead customer, and can current journey. some models, transformation towards optimization finance climate, With long goal pushing implementation successful large continued anticipate in projects our digital hospitality of this keep customers all of straight their We we this are model the exception transformation. get of engaged customers track progress In strategic on engaged, their that pushed. think term on will blitz for

is ecosystem, interest in a our To that remote hearing for our from Webinar was for to EY including financial March partner more that guidance event as continuity, clear we're the there partners, as the SAP close. XX,XXX strong companies to hosted close, around first Moving demand close well business and perspective, their late into in oversubscribed attendees. virtual at a prepared put financial than included,

initiatives support transformation partners the we deals that faster an with as and created partner to of largest value, business. climate together believe postponed. for hearing current involved customers within are mutual also our to are deals, on this ecosystem, to more particularly there seeing and providers BlackLine’s opportunity partner larger, has appetite ERP being drive time we majority digital With smarter a focused in We're working is

QX with this a CapGemini of global new in alliance grew ecosystem as the partner. We addition

of model customers quickly best have second, this partners climate. transformation in Our adapted new today's to to fast, first; support

BlackLine believe and As their certified levels, grow anticipate softness these consultants. that partners of active potential time use in the utilization number we we to can

about excited working partners While this us pipeline are with hasn't to and yet, productive revenue. impacted drive very stay

executives Despite as this to working share help to SAP strengthens customers pertains is although As and accounting it of hearing believe included in interested customers develop. quick-wins crisis, and time we are to has disruption, SAP. further progress BlackLine we COVID-XX transformation. their to our continued help solutions S/XHANA we relationship are its with brand with and This will with this SAP this expect to towards approach its during response part new BlackLine near SOLEX, very this mind take term that

are the These is COVID-XX. the the in trends impact to we're continually business, the response of note landscape please evolving seeing latest in but economic

While opportunities digital accounting the across market modern at long uncertainty, this term creates center remains BlackLine massive of and transformation.

the term for while will through to environment. this navigate we the We manage long endeavor company

brand and for Category goodwill third, forth, infrastructure; in investing as our evaluating employees us For our customers; Advocacy; strengthening loyalty for and Customer opportunities. market technology first with modernizing and that our second, product known the broader the and Leader maintaining means innovation

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

Mark Partin

Thank afternoon everyone. and you, Marc, Therese and good

Before in how I has it Today's playing this role businesses moved CFO central the their financial positioning conditions while pandemic the when stabilizing to to in the for the of near our term, is quarter, role CFO. impacted address I performance a thrive to improve. also wanted

have and environment, team further To operational we keep digitization. productive distributed this in my embraced

able As on reporting; were a in-part software. beat closing result, BlackLine own we our internal to record thanks and to our

informed to next making are and the seeing accurate where reporting, continuity dynamic the initiatives critical are business across crisis base, deemed the We decision normal. in into ensure our business current same customer digital and now

we But we what and term climate get is have normal looks we long As we first, like, uncertainty to current think new about this do. this transformation. all what is to that the through for climate that a exactly believe digital accelerator intend of

January above majority one from plan of of hosted largest a key and well as we XXXX kickoff and of XXXX. yet, all its of company strong we transitioned the Throughout on the QX, number quarter employees For hired the in in record were acceleration we operating to metrics. a influential most plan company events a

impact out indefinitely, the deals the COVID-XX of to impact sales the strong and delay push EMEA number caused quarter the Despite the XX% transformation deals. greatest start, XX% impacted a quarter. in to the sales, large by mid-market of which saw to of roughly or We digital

this be Our current operating today. model have we in informed and guidance for began by mid-March through what QX since experienced will

QX first the volatility million. bookings, to revenue industries. customers in related revenue in reach grew that Total negatively estimated revenue reserves quarter lower increase XX% to and year-over-year was by $XX.X of FX Despite an the are impacted impact an strong performance our impacted

on services revenue. notes include ever growth A XX% total few strongest million of X% quarter other delivered or revenue year-over-year. its represents $X.X This at revenue

in Our and the sales More from than in a to XX% our XX% large quarter of Revenue the represented international XX% of up compared total prior the XX% business revenue revenue from the in our in included prior year. represented deals total SAP partner strategic QX was products XX% for of of quarter. XX% partnership QX in year.

based historically net well-balanced of We remained expansion model, customer comes are revenue strong expansion business from resiliency from rate at QX saw and XX% steady dollar new land-and-expand a fortunate the logo half other a and acquisition. rate customer our XXX%. in of to we In renewal half with have retention where growth

did metrics mentioned, to impact we Marc As not a material QX. in these see

a disappointing new in net One metric our quarter due negatively length were We XX X,XXX the customer was two-thirds these of for added any contracts represents impacted where and support ads. customer metric below however This in total given a lessens to which well customers. of drop off was in of March, number which the in quarter. month additions expectations the for Helping up month average only net our is metrics XX quarter. the of contract renewal new new our for typically customers customers we

large saw also generally years are terms. in three fewer deals, SOLEX deals which We and

in we the quarters. savings million cost driven higher restricted quarter In We to and attributable capture benefit expect by to QX which from phenomenal savings income of net generated $X upcoming the from revenue. those travel realized BlackLine was policy our in

drive operating flow retain flow as the as long quarter. our We well million strategic cash for We in mentioned We to generated $X.X free enable approximately that cash, support our initiatives quarter cash the in cash million million cash marketable strong earlier. securities. and equivalents and term to $X.X in $XXX our with finished position will Marc and customers, continue believe us

wanted We speak near stronger the get to these move and will to our secular strategy. industry overall outlook, our of term climate I trends confident core impacted crisis. Before growth this how has and other to in in side this trends I our on feel the believe investment

feel deal and about demand initiative execute we timing strengthens. term will on better priorities of everything, proceed pragmatism. also great a We With to our visibility good until with ability our the is long we that and have until said, that

measures have top Marc number heard line. You highlight we to protect a of the taken

As he into mentioned, many and the and the of impact continue weeks several saw of the quarter last through trends XXXX in expect today of will we growth. second we QX

are QX expectations strategic on any deals, have large SOLEX reduced for new and we from not our transformational partnership. assumptions Our or the dependent closing

sequentially Additionally, delayed. existing as we and new we projects expect services decrease revenue to complete implementation are work

billing. use may liquidity our impacted customers the terms industries and that QX situations billing strength we of to in payment reduced strong that to uncertain relief has position comes and provide impacted in BlackLine revenue most by extended XX% to in from and request COVID-XX. customers verticals Approximately intend a programs

our create and the reduce meet long to churn and attrition. demand to operational, where goodwill customers keep over term that is plan Our appropriate

flow as our billings. such and to in and metrics our and well free product these by as and programs term risk as customers industries. long key attrition relief relief impacted in our our other expect revenue churn mitigated cash nature mission efforts of critical QX, provide the the We believe stickiness We to willingness contracts, impact to duration calculated is of

term. expenses we income bottom over of of the the in confidence long term. term, adjusted, impact short high which the line, cash are revenue smooth the our protect naturally On the and recurring reduced our in sales Many near that margins business will help model hurting the without have

marketing services T&E example, virtual downshifted. sales been efficient, For hiring and and eliminated, nearly and has highly costly are events less

levers, term, be nimble long once balanced, positioned so in to still plan to well markets cost these disciplined we oriented begin and On term the we near but that are recover.

The areas pandemic the and of cloud that business can to the public roadmap in and not expected accelerate include initiatives change of hiring. investments our and R&D, where light such infrastructure product are we technology

on We available these business. stronger even toward goals are emerge base. to positioned and redeploy also believe capacity excess plan as our existing to an and this with crisis execute from large resources we customer We well

Turning guidance XXXX. the in $X million now GAAP of the the to range revenue in to for of $XX of $XX be revenue million range to is services with million, Total second to expected quarter $X million.

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

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

full we XXXX year, our revenue, surrounding despite are the the impact For of outlook. the of due COVID-XX, level year the ongoing to high full withdrawing recurring uncertainty

your will we now, take And questions.

Operator

Oliver Baird; Our please. question from [Operator Certainly. line first your from Instructions] the of Rob question comes

Rob Oliver

Great! Thank really for much very appreciate guys taking I my it. you questions,

Marc the hear one appreciate and good Huffman. commentary I for is your you call. to on First Marc,

given able under its you ways leads is how marketing the particularly funnel has the about customers ask go shifted which in happening, your team environment. just and guys sales in new they're to wanted digital qualifying the after how how to the marketing this are events creation behaviors, from handoff I

color If around some you a had I and could then provide that, follow-up. brief

Marc Huffman

Sure, thanks Rob.

companies have to a shift virtual So sales like most we had to motion.

gone obviously been a of or That there's via some person. electronically done shift sales really of portions done good parts organizations have lot for us. that the and has for historically know You are seamlessly it telephone of then in activities

well of time That and We’ve of of world are With in were parts in itself able change early the pandemic the to reach. marketing up and exception infancy of hard over accordingly. there of sort the so there. cleared time adjusted and we’re the guidance, a new of to it's the our sort buyers a function norm; certain period that very

to As how great historically shifted like we've our in-person of view is eyeballs transitioning to in drive We heavy about events you good to that. and that long going we really those you do to the we people we a starting the think pleased success drive offer over and mentioned, lot we’re expertise the a We’ve had but attendance, been what offer to know the events. virtual we've which term in and events, of events interests feel us. and very to got pretty in this people more way we've deal

Rob Oliver

impacted guys things And also but come just, just under why a are budgets customers. than other you going your are current know deal of allocate a you less are be current to a in know gives is evolving In if situation. new going impact than customers guys. follow-up; pressure you you what rapidly on of know confidence of any that I existing lot clearly logos. hold, little that. you're doing and and wouldn't you closures to customers provided But going bit your terms know Thank this words, detail, to you I will resources a be that the to

Marc Huffman

several intimacy none so don't may a our really about and know the value we in to of BlackLine, and model, are we over we to serve able customer what customers what through how so and with to years do that deliver customers our we maintain like through quickly and levels and excess our with staffing thought able and capacity them the is, the exist we crystal they're react we of or them, But core that going them. investments is resources we've past those Well, us have that. ball, interact are a in made allocating success to those the where have ability that value then understanding we know

Therese Tucker

in, I is, they this lot how trying books because close I are remotely. if is mean finding a could just of customers that are valuable their we to – BlackLine And have now jump

Rob Oliver

Thanks guys.

Mark Partin

Thank you.

Operator

Thank you.

the SunTrust. Our of Terry line from Tillman next from comes question

question please. Your

David Unger

This for thanks Tillman. my taking folks, for well question. is Unger I in is David Hi filling Terry everyone tonight. doing hope

this two your points so underserved far and March, revenue to opportunity that And that is have you so, gave think there next offering a based respect seeing data related you and any data size over late customers it's mentioned suggest to rollout. that insights you to signing In the free since rollout trial. Management you're the to Reporting some an you that have? Are in tool six on could might years back I up free for the Task the if one must month

Therese Tucker

should Dave, of Well, that everybody have products. because products our all I underutilized, always are is think you know our this believe Theresa. I

value know that we login have the work to that think you fact to are to their to checklist; really close done, manage number our ability starting However, remotely their value that. a the really I are customers starting get customers of to XX/X

feel to and come got think example a that's like great in opportunity going that could are that when I it's going we anybody's do therefore not this out I foresight shine. that of be. don't We I don't at BlackLine stronger. size this time, for think general to know I but so to

Marc Huffman

know Marc back that that you I Task Management and around if piece, provide supports, use we're customers. add, cases expertise there's able that a and its might David turn I mentioned, to have we as to Huffman, lot of multiple it And

in us geared around like see the you'll some use continue And at so customers weeks, that expertise something deliver to different tasks. for coming cases of

David Unger

if have And follow-up, great! it. That's I one could appreciate just I’d

just industries the versus customers customer that Just versus when about get the books any serve? Thank based last understanding grasp and that year, to can era it site you we this and close thinking this are year So were know on to that good for trying know BlackLine last year. differences efficient you I'm on the notable period you. how if a time you things there size and took work-from-home curious existing

Marc Huffman

sure. for Yeah,

You teams those our know much our automation and environment. we have been to customers and talk about with companies some in how that have customer great our working-from-home how internally success examples this successful

We in this we are I mentioned earlier – that close had environment record a period. great a we example. that

a has functions to through They and all works know began even what environment. I these working usual quarter accountants experience success customer team, up from earlier from from CFO, the earnings and think we in call that Our and home. hear is closed this my I what customers than been has that that this a says this that blessing can our real transparency, that close have tool critical in this environment, collaborative you mission hear

to going new-new. I call they'll use for that a and wake-up that do is of right, and do, even something see real is really this of benefit a good this, Therese be that those feedback companies a good, lot So don't think the for

David Unger

questions. you you. I Thank appreciate very night! Thank great much Have my a answering it for guys.

Operator

Thank you.

Murphy JP from Morgan; from Our of Mark line please. your question next comes question a

Matt Coss

afternoon. one sure achieved Matt not if given Mark if quarter, total behalf your you say my guys are is teller a of percentage good you inside of Thanks from sales Murphy. what motion of would Coss mix sort versus sales, bookings person. in but off This Hi, you questions. look or on at your in any for head, I'm the know taking this top

Marc Huffman

to the many company, internally. that million $XX know it's we ranges we that a our of years share can in company think externally. We different for that sales at so in range. a Remember a certain a mid-market. probably and think mid-market successful wide team I selling We customer Yeah, dispersion; to don't know number within be as $XXX it's million you

really we enterprise. experience of just could number, that to got when but the not and out was point, never that globe on this roll but marketed the that we had mid-market, that rest enough we So also to it we sort of

Matt Coss

be you'll to Okay, understood. continuing invest And to that it's hear in R&D. great

these that's or that year’s months able think can product thing might And particular time now you to pressing to be a have at the been from or area do identify needs any in six that right time. you I times. more spend

So of it all state? with go and we're of more it, a ready to normal thinking in about sort when sort now then

Therese Tucker

would a put it differently actually, Matt. Well little I

We strategy. product term have a long

a a the of that express year We really of the the goes best cloud, and some in road map that of Part machine company. we were three it available. we trying public tools our plan have do is it’s is what frame. of remarks a learning it proceeding as to thing to all that is is is part mean plan, that the over think longer moving time for that I part utilizing to are

So impacted all COVID-XX doing. terms it's what in at crisis by we're of not this necessarily

Matt Coss

much. good. very Very Thank you

Operator

you. Thank

Our from next from of question Oppenheimer. comes the line Ikeda Koji

please. Your question

Koji Ikeda

for SAP XX% quarter. Great! it According question. my right in Thank Hey of the first the grew here like I segment everyone! the around looks you it question on had taking a our business. model, to

chance even first the the portion be business quarter. if crisis that had So I assume to to safe probably occur, it of speaking, mid-XX’s a or the guess better didn't in in good hypothetically the grow would the ex-SAP

Marc Huffman

a those good if things worked And So, growth out and related. very great yes, our three COVID revenue We for would being as QX on be not growth question. also that talked things there revenue. it's a revenue the then called about rate against

I answer So starts a your just it three. with to say question, would

Koji Ikeda

other that is the for retail out want we that. there in are to gas to hospitality, and thank Got aware there. and it clear on And any some or it, be of troubled just of exposure. XX% exposure the should The verticals be exposure, that oil you verticals travel, absolutely

Marc Huffman

appreciate that There don't Yeah, out we there’s XX% The them. and amongst XX% beverage, entertainment, amongst a of number spread other; company industries, of is mentioned great, industries, number of and hospitality, question. forget, some Mark we're large enterprises. energy, transportation, of within and out those enterprise a food large a spread I a are global of any couple retail, are companies

our through about as taking economic just and industries in very those thoughtful climate. business this impacted approach we're So work a we pragmatic

Koji Ikeda

or did Got RPO question. it, just Mark, then hear and get we if the that it. completely didn’t I that we number, quick one could miss housekeeping

Mark Partin

to of $XXX.X end the months. recognized it's XX% be next it the Yeah, and is in million the XX quarter at

Koji Ikeda

questions. for appreciate it! you Thank I my Got it. taking

Mark Partin

You're welcome.

Operator

you. Thank

line of from your question question please. comes Brent from next Sandler; Piper Bracelin a Our

Brent Bracelin

you. budget start also afternoon! here. exposed it I'll here as the a business now hand have are you sounds new have tailwinds of like Good but with emerging uncertainty one customers, that's challenged headwind, Therese. there to you Thank So some XX% on some definitely

that It close, event. You're the like lot a remote sounds talking there virtual of certainly appetite. audit, oversubscribed is EY about

from it's a have? must It a is but that of like nice today, to seems a to here I think evolve of is, you it to virtual kind a to is opportunity as and audits guess a question must take for that my what kind about remote of kind move to have going there to an promote to and close, have you know have? nice that

Therese Tucker

things makes that in I an that's is carrying we that efficiently that desk see that can the and one and Well, in all they to think of another, spreadsheets opportunity from environment close companies not currently or exactly – with any something that that's sense. this, paper either people do that

Marc? front we way do possible. and the that's that we going in maximize think to that opportunity us of are So every in

Marc Huffman

Brent, experience growth. of we looking in accelerant, a back know invest are out that's we in the the and take financial the prior financial we’d big our for at of came us some a that that my business but we the this time pandemic human we know as systems that our a in and for time. trying so organization terms on impact accelerant way. went very financial the loss, future in as based this sort the this future and out to obviously strength the through you how really of was move that as a company involve at Hopefully cloud just the this it period of relative And doesn't nature the same might be on an to had was was global crisis at crisis, with to catalyst event I playing you of as come

Brent Bracelin

you sale resources repurpose the been as been those follow-up on just success. have those industries? or much Huffman from to of And large Marc of how And customer those that, impacted away resources think a shifted to have other Great! able deals, you sales kind about areas transformational

made Just sales do kind of of all reallocation relative to of resources? how turn? quickly have Is more a now or is you of done that to kind there work still

Marc Huffman

to multiple Yeah, a and parts good that. question thank and you,

in geographic our have model So coverage space. se enterprise per we a

pivot So to you from don't away the one other. resources necessarily

are top of so money, spending the top after create we You marketing, of where there. and your to think planning the you know motion funnel and of with about funnel a how sort starts and that end are going market you

it’s of which In there, is of they industries mostly industry progression large and times our transformation in terms depending a see how pipeline question on question are of and what are you depending a impacted lengthening and the still some rest of cycle a on lengthening, are. your pipeline. that There cycles opportunities

across just are of economic being on recast sort length of the people them the of impact business. time Some as and depth their reassess

Brent Bracelin

change sense. makes the here, in me; about changes March. the for efforts guess you marketing did here I of customer sales? anything to question some Last Mark, you talked last off dropping think additions April one question Totally in and for as about first net

Mark Partin

at activity move been It using what the know Yeah much the Marc in early and as saw still we similar and but consistent thanks. we through It's describe, March. April’s the we it, metrics we're end as but to are something we're end as March. of look, saw can, you of as early. April’s we with data seeing at is quarter we what watching

Brent Bracelin

you. Thank

Operator

you. Thank

of JMP question next please. from Pat Securities; your comes Walravens a Our from line question

Joey Marincek

for I all? conversations. anything the Great, an at then much. was And you thank Thank cab upsell I Marc update Joey you give us Pat, you. so renewal side? it. is just on appreciate these are seen change Have you also, This on approaching you competitive how and wondering,

Marc Huffman

don’t why so Okay, Thank – first the question. thing. you we’ll for start competitive with Joey the

are with things focus what succeed best, when going upon. customers on in customers we to and the these and best are based in we doubt the economic there's the really be of is had types who fortunate position people on, brand really our are my in our and where have that’s opinion moments So

Therese so were we her software had basis, to that pivot invest those And offering had towards comments, an and really customers and as some in and we things. able in expertise mentioned quickly out take resources free our advisory that on that we

we a were But our And we those of to on from as market saw things and we in us a all of standpoint first leader. competitive you competitors ourselves regard. know follow some think that really

what about We we're customers. are is what we're and on focused doing worried our doing

of than a conversations, we're naturally, that, commercial based companies still customer in they relationships terms centricity those about are great we work have on time. your coverage fairly for terms unaffected took activity. in industries. a pause and how They that come of doing amount In finite know especially the of These were second such upsell approaching question and more you good a

to dialogue happening know continuing there's our returned ROI short about rollouts to up-sell things and the things and of some normal you A amount time lot so quicker value people finance have of to of progress, us their and a having their better in with they still transformations how business. can in BlackLine positive get those are now right of time side

Joey Marincek

much. so you Thank

Operator

Thank you.

Goldman line of your Chris from comes from question next Sachs; the Our question please. Merwin

Kevin Kumar

the what or more terms is broad Chris. my the it impacted of business. about on segmented talk bit about I more Kevin Can in [ph] XX% is you of kind mid-market believe industries? This in roughly your had for highly question. the activity for a it's I taking segment. Thanks you're here based deal renewals is and weakest seeing to one Hi! of

Marc Huffman

that, I Yeah, appreciate thanks for it.

about you're QX. sort XX%. mid-market, particular The it's weakness at nothing the end about We the that based, Mark the about same is saw talked percentage broad has right of of there's Our so mid-market.

first On through point and also even also I can in strong, however, tell quarter April through our to impacted the strong you this renewals industries. the that the experienced were renewals

so positive. with companies are but experience it's We early, appropriate, where far conversations pretty been been have our having and has

Kevin Kumar

color. the for Thanks Great!

Operator

you. Thank

the from from comes Peterson Raymond your please. of Brian Our next question question James; line

Brian Peterson

Hi you safe. hope kind times. all your everyone, taking are and thanks of I crazy the are for question. families These

Marc Huffman

Brian. Thanks

Brian Peterson

up-sell customers, And close that there I’m So natural are than did better maybe pool. into of kind kind that question. sounds people a bit some you use is that up-sales as lot of of remote we It shrink. a you following-up look that a actually one just curious, on more last is or as of like process, maybe your of a point type of motion through modules. those on go all-in two had that there only have for or went the kind already BlackLine at

Therese Tucker

the of the received. well additional coaching a module, sentiment, trying task of validation we seeing training, been this good and had all at also offered And they – close we we're less different BlackLine the using have I to customers things, definitely imagine that Well, you of the BlackLine. extremely number the when know cannot out is Therese our expressed think that that all sessions, of using has or not

use do we’ll I – in will think that that there a are a are new but people their it very term helping up-sell. strength just help see time think we and the those with fully just get right I the through the difference this into long big and maybe now on between So normal, focused is box. it that And those checking over

Brian Peterson

frankly Understood! here at just sitting with my barking environment, my bleak. imagining but hard I'm pretty books those using dog office to in sounds And trying maybe close paper Therese. this going – just I’m that be that Thank me for BlackLine is that and obviously to aren’t and in

there's think real that seeing of time, assume you are but when an funnel. complexity curious, on I'm kind this come the of would are that those impact potential So potentially of in that prospects pressures, I do the funnel budget top Thanks guys. top or Understanding already for seen the start? you in has the would that

Marc Huffman

a that's question, interest so would Yeah, continues. I say and great

our business a can continue constraint. areas economic partnerships, actualize what we interest. to high in We our so The to their fact remains see by gave degree access and they there's to concern you, pipeline. of same and other a and you turn build things want and budgets EY still of the is Interest example to their those continues

have place, headcount imagine budget that a through in when a their they us. human to necessary for period a You where capital pull-off change, gone can people to be and the in the driver and going have this future is

Brian Peterson

Understood. Marc. Thanks

Operator

Thank you.

of Stotler from Our your final Matt comes question line from question William the today please. Blair;

Matt Stotler

for guys, my thanks Hey question. taking

me. for Just of quick ones couple a

obviously SAP of that on traction featuring update kind you those traction where some with We’ll terms First, the you And February, to any specific SAP mentioned in know know you of you what partnership. is seeing pre-COVID, were and January pushed get offerings about deals getting then out. SOLEX COVID look of that BlackLine you side, spoke the there?

Marc Huffman

for thanks the question. Hey,

of sort scenario in January that our the where opportunities. quarter, So relationship quite strong so business like some you've February, a was recast of got in just as and was also part our the those being of normal is SAP of across and the the early business time rest now

about with level BlackLine. then the there customers, and the prospects, Executives, that distribution and are partners the is most learning a SOLEX degree interest rise. importantly more What on that actually There is interest strategy our seeing in Account is conversations of we SAP higher the in

the in have Some to recently of that over stands I so going continued for this enablement like climate relationship been think with awareness of of in interests, economic time, the strengthen uncertainty. other partnership conjunction and way and solution the that and programs oversubscribed, much that we’ve the our launched the thing is SAP's and the the

Matt Stotler

more. then one right, And helpful. just that's Right,

seven seeing The any on spending also You know encouraging. itself, implementation base is quarters thoughts about results point, and it’s seeing within this the spoke as the just accelerated, expansion, very pretty little the a dollar which stability? on been six, the based – you installed net strong, the for stable

Marc Huffman

for the Yeah, thanks question.

Matt Stotler

the The installed you base the spend in forward in stability – going confidence know that future. growth of Thank next kind know how – of in that over and you you foreseeable have you. and how continued much

Marc Huffman

Yeah, question. I timing a think that’s

the transformation of companies. on side future, accelerant in the how this, length think for digital about and So we at other be we’ve this can an talking been

that. lot We in resources a of have invested

we've I short that impact that particularly, think I respect about the think I to just think demand. take the here with it the will talked QX, – things impacted by in let's be term

those be we still talked long program long more sell the things, that number and to frankly that is of and we more things favor these is for industries, strong. that also about think right environment I those believe by do the And accounts do negatively is risk success can and short I a impacted attrition relief term companies are to subscription particularly work impacted accelerate like term in us customer loyalty within planning at for term. bit products this earlier a think doing long like now opportunities But there are in customer term programs. customer and

Matt Stotler

for you Thank absolutely. questions. my Right, taking

Marc Huffman

Thank you.

Operator

to Thank you. Tucker, the This hand the and Therese today's program. like Founder back conclude I'd to session program CEO. of does question-and-answer

Therese Tucker

you Therese I to you our support thank and all a for employees. your special want give It’s Tucker. to very thank ongoing of

together. to believe our During values serve these other. serve we to weather We to to BlackLine to after employees while will banded together customers storm challenging and times another, one this Thank built you. and our each our remaining true last look that have is

Operator

program. and conference. ladies today's you, the Thank does This gentlemen, participation for in your conclude

day! Good disconnect. now may You

BlackLine (BL) 30 Apr 202020 Q1 Earnings call transcript