BL - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 2020 BlackLine Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ms. Alex Geller, Vice President of IR.

You may begin.

Alex Geller

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

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

materially otherwise GAAP future our unless filed is to at Investor available expectations found believe versus on measures investors.blackline.com, Form statements A discussion While which on Form any expressly our or website and because financial and including of Exchange pandemic related Securities the Also, and otherwise, our are results non-GAAP. as today. alter with any as in required we and the non-GAAP statements or this all forward-looking may filed responses regarding our information, reasonable, in risks. currently applicable stated release, are call uncertainties, information ongoing macro of regional or We and of by periodic disclosed use on SEC update risks on X-K our and law. make undertake related private reports to and economic based we our with are could those subject be reconciliations the current and new Commission events we well not do may the Form why COVID-XX today differ the our actual Relations and press government be particular, our disclaim as a risks including to except industry, XX-K XX-Q obligation forward-looking financial of statements, result in will results as whether by measures as stated, non-GAAP

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

Therese Tucker

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

the have last everywhere. for unusual people several know, you As been companies months and

have was improved quarter the world once market the again pleased to this around throughout and in finance by for and employees believe We demand our our environment. very COVID customers environment, to stay during will a difficult BlackLine execute I facing team's difficult been the drive saw QX. automation companies the mission-critical in Given environment their demand ability challenges focused, We this fund the began as benefit as initiatives. back-end leader performance

BlackLine's a expected. quarter performance As than was result, better the in

their creating remote that and becoming workforce. manual that their pandemic that reality, ever first likely and distributed has become well. new who it challenging remote a many has distributed underwent professionals time, technology is workforce in in them outcome As I remote office, a less operating even sense close. world, considered that processes particularly processes of processes the for and accounting as pre-COVID doubt has year-end a accounting made we paper-based manage historically to and be this accounting many a professionals, close finance even overlooked thought in quarter, and Last a been their still Today, the would initiatives. finance limitations would now and fewer At environment urgency so. These be them new the possibility back increasingly a forced underinvested for a of of are world. continues, put the traditional pandemic sustainable in. normal there weren't manual and circumstances Legacy on This is spotlight is area an for exposed have clear, a

quarter. transform. and companies organizations for work contract, budgets to do our We our by their accounting challenging have for certain of customers automate a continued customer know, BlackLine. companies To and challenges negatively These these prepare outreach that an many are close support finance in outlast however, our the times, and in impacted shift more pandemic. throughout leaders been present to customers industries customers have better continue second Marc outreach legacy will with move programs in supported variety of complementary programs relief these and priorities been have that processes to BlackLine figure how beyond considerably prepared in changes on training We some As nearly to believe products must every opportunity BlackLine from the those department future remote of services. subject sessions by a the and with and efforts that do experts, than even pandemic. span Huffman matter for development shortly. coaching touch education, and not detail will the this out

have I of able platform. support through this not ability BlackLine remote in our are greatly to encouraged and customers BlackLine lead external off-site offered the have package help we audit, financials newest organization, that the auditors effort, these signoff. a access are matter sudden required Our focuses and already the within of processes. and can manual solutions is heavily to efforts. pandemic, processes on traditionally subject package Many am outreach to yet this customers I benefited the for of auditing composed the and auditors the and to seen remote validate the company's a auditor, auditors them work. information the financials audit, give by which We the accounting Remote important limit of in May, and incredibly we it accounting. on-site available world a Similar significantly an and reliant uptick advantage on to capability. in those finance process that became which best to taken Executing access, shift direct complementary grant and improves supporting basis documentation verify is to practice outreach has these outreach am role proud on this with who processes. services customers Aptly named, their and of expertise number

In customers. significant our companies it the goodwill their to close enabling addition books from driving and world, praise also distributed to in is generating

role Mark, take work and the I turn other goal recent scale role with my involved passion, in will BlackLine wanted announced executive change X, has Marc the level. focus I next today. I'll product to help BlackLine and that working grow we He's helping to allow to fantastic. about now and on performance of detail. the toward company forward all excited I'll future with look it Effective call talk XXXX. Mr. to part next about BlackLine's the as over This this customers. and so in plan to discuss more Chair to January been CEO he Executive I'm the Marc the to we've our news phase. chair Marc. time, Huffman Before pleased transitioning the turn joined remain done in succession This since a our I'll be for to business is some And to of I'm over me

Marc Huffman

and good I CEO at assume everyone. humbled afternoon, you, next am of to and excited the the year. the Thank Therese, start role of

forward on and execute growth strategy. talented make well I BlackLine Therese have so I to work our the to and look reasons largely continuing relying management experienced is together so that this core that to with the market team One opportunity on and values worked special. of untapped

the pleasantly Therese demand environment As were surprised the see improved to we throughout quarter. mentioned,

biggest how COVID ability I of a customers call, resulting prospects April, of last discussed the start say budget happy to long mission-critical amongst was On budgets company despite priorities. I'm from our momentum in for better-than-expected in and the increasing impact and challenge the with win list up slow and for that to June, quarter. budgets May a performance to free other began in the

strong great partner XXXX strategy ecosystem. sales execution benefited and our from If recall, demand, growing and QX, you through growth early a

the The and success of environment, pre-COVID will wanted that priority surprised begins Following large we did to recover. achieve for might we remain market, yet pleasantly of that when defining market automation identify today able that outbreak plan quarter. is possibly COVID, economy indications financial to but a were not us has that the the and expect, you this when in Since end are success. to returned in the even early outline as to we're level, will in the original not the back-end confidence and we growth close our that give accelerate it's to happen well QX. were in quarter At challenging I what top went strategic what deals current how transformation we

with customer was COVID number account our first value in BlackLine It's position mid-market end business, and to other efforts position execs playbook, in hold, start leadership clear reputation our SOLEX team by Our the increasingly BlackLine's or part a This quick mid-market in designed deals leading messaging the were others spot be partner financial new as we organizations to a these on and types response pleased more is included would are accounting practices with to customer to helped logos, drive expert ecosystem we within customers in the delivering change pandemic, the also to the our COVID quarter continued implementation. to have to the MAP, wins. and opportunities. recently with to matter number on the combined were specifically generate purpose-built At in and customer nicely. capital. some relevant modern remote this that around record subject mid-market We speedy with resonating success, effort sales importantly these bright and significant successfully resources and offering. that our the with deals which success SAP growth reticent to and and long-term CFOs for Their experienced customer leveraging for on close our another was teams. progressing was market, SOLEX movement QX. delivered attributed see relationships, outreach positive is in become it's customers because This focused with their SAP's around our pandemic. base large and of existing has been of to pleased, close. our projects proven use of in commit of sales introduced were initial strong improvement our and as the At create time account value however, able us sales view SAP's being our closing quarter that management of of in the

closely As a in these engagements. accounts enablement a globally to have the working in BlackLine value reps visibility and services prospects resulting resulting our delivered across automation, audience, opportunities, base closed door more more more even around while to opening in with remote SAP result, that our of services many target that to attention our path are exciting proposition that is team wider the driving stronger-than-expected interested control benefits is We although greater SAP What's minimal our project. remotely, found alignment close with SOLEX equally the working and S/XHANA and provides. our customer execute across joint implementation disruption getting is to revenue

we We addition indicators course, transformations. the And have gained customer competitive the saw as finance moving direction outreach is accelerated view on value strength. our intangibles. and launched and In customers new This by early are we areas rate progress programs. to relationships market a projects, existing positioning, win many are with transformation. to feedback right from time XX% measure, implementations as plans to digital our and harder where goodwill, the customer successes to for in ongoing uptake positive where rates, accelerate their These evidenced on renewal continued these that of there strong the but customer includes

transaction case to volumes. proven I but highly against a us. record point This in due customer the large customers. homegrown systems, vendor, their that a decided the The separate ability solution within significantly and optimize of perspective closed of works This world's also transformation June, success But subsidiaries systems, pandemic examples and our been from with deal digital embark with of the entire incumbent COVID validation BlackLine to transactions. provider company consolidate one matching to some the ERP in competitive to organizations. XX business be of a was fact customers, an midst Among hit, Both of was closed company their record-to-report complex instances. with compete XXXX, purchased intercompany multiple strategic massive existing great spring In we're account value subsidiaries proposition, and data a and deal this deliver. only our transformation for BlackLine driving wanted share would had to challenged a our efforts. feared since process had XXXX. BlackLine XXXX. our their been two In We customer been and Now has solution, ERP track on early transformation since deal eliminate compliance. competitors and autonomous They aviation largest company team's efficiencies devoid. the to how since deal they with were accounting our this reconciliation tried multiyear and on finance this the using large and had we deal our a price, BlackLine the chose This

be BlackLine as all project challenging Hub, more and additional As navigate value And tough purchased is that to Variance believe journals, them enabled, Matching, reason millions single the been hard of pandemic, capabilities delayed QX, Transaction exception. this in had. decisions hardships and all year. are the executive know, journey and and of and helping the their of had the Once per time. navigate they realized Their finance dollars we save industry company customer added They the on financial this every was it and hit and Compliance. could with would by pause aviation Intercompany team well. every optimizations through strategic users this push has particularly We button had no they BlackLine to estimated

market, was month close in short down using end processes. no bank on our company's June Moving heavily from challenges close a visibility days. manual XX a close Highly very almost of visibility M&A. strategy introduction remote had automation. motivated purchased dependent They provide with their accounting regional workforce, into This playbook Excel a by in to they growth went and modern to a the

that continue a to building really challenges, deals. closing go-to-market grow. has of and partner In and continue their near-term for on our sales they changed addition to the marketing their for focus to perspective, as BlackLine outside solving much they motion. front chose teams on long-term Not From sales strategic virtual the pipeline as

to messaging We continue pressing remote motion this matter to tweak our optimize and align the at most efforts the hand, our go-to-market close. with

we As been reputation that deliver leader on team has a our result, marketing ensuring remote busy, close. our the thought very in as

customer our XXX a We transformation our virtual quarter. with in finance events for huge event tracks success We InTheBlack continue prospects, and for events APAC in a some Singapore Sydney shift customers successfully and to specific SOLEX. combined series already and conferences the to was attendees with into wins. live virtual The resulted QX

reach marketing at immediate in our the a is audience. of the quarter to of One efforts and ability been broader able attendance record to benefits than We've digital the other virtual more double events. webinars points marketing with touch

accounts with teams, benefit marketing from customer the to very will We're a for of convert one-to-many sales. similar success been we're into this new virtual customer through determine don't and too While consistent enough and at have trend by digital it's points pleased we degree to our and who early effective engaging seeing engagement awareness, how generated large sales a have events. data number pipeline of a

be customer remain huge ever teams us. busier our to differentiator result, and a for continue a than As success

been support COVID. more accommodate have customers by to and customer Our flexible responsive teams impacted

customers' teams innovation outreach programs and get our realize lead and deployed full continue to help the utilization Our from BlackLine customers our success their with accounting solutions. of to

All offers of and at focus specific to activities these relevant teams quick, challenges. are tactical aligning targeted on

expansion continue our very and base is base customer the believe customer future. in receptive adoption we drive this and will to to this, Our within

projects deals call And and Partin. that with I'll be challenges require succeed, focusing year. America, we what into BlackLine spend continue for of the in Mark QX industries International believe qualifications macro we rest companies of year those digital and how additional and of will some process impact accelerated in customers With in to difficult will it's signoff. that, carry predict our We with delay helping that said, around lagging the forward impacted to believe this pandemic. many that the to we from is Moving beneficiary the are once and North deals of demand. the turn on saw forward, remainder firmly will transformation emerge the the over will economy happen the we

Mark Partin

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

impacts were our On the business. ramp QX momentum and call, and and risk number COVID-related demand a the both pleased environment in We of to of we May to the throughout see June. build discussed demand quarter, earnings the side strengthening

of While we with pleased demand were side. these attrition in less Revenue with services drivers COVID impacted for not the to expectations customers. risk levels, consistent did other than on reach in and our million normal customers by services our quarter, million. year-over-year scenario to positively large of was revenue on few had $X.X despite revenue modeled, key rates. retention $X performance deals, came Total second A year-over-year greater return than positive to grew In many above our strong the and they and is expectations, internal driving sales better-than-expected challenges the guidance beat $XX.X rate or revenue metrics. in $X execution requesting million revenue total renewal previous fewer financial This represents growth at economic We also our of and COVID-impacted quarter XX% better-than-anticipated a XX% notes renewal relief revenue. X% resulting million. results include:

business than our of Almost quarter large steady America. XX% line international the XX%. to pandemic. XX% deals and pace in QX, the anticipated Revenue the the sales in in North QX, XX% products higher represented year. range QX, SAP was rate of with of strong of XX% with remained XX% up revenue as in of our partnership the revenue our represented from from was XX%. in not Strategic onset Despite at prior Throughout total the partner. growth renewal Our total of demand this international slowed QX, increase, of a In as year. prior included our the quarter XX% for

And As in added initiatives continued future. long-term new count dollar-based with quarter, we rate had customers from came XXX% remain to slightly XX down BlackLine's predicted, committed our total our XXX%. the in our to retention to net customer revenue investment net X,XXX. we We bringing

rent, organization, a and regulations, the with quarter, due of hiring QX, record net BlackLine of QX, we Combined leadership operating with key to We and T&E, realized leaders free we we Following in in marketable million. the and go-to-market, quarter to $XX.X global another virtual $X.X and quarter QX, generated the work-of-home income marketing. alliances, across cash senior flow had in quarter of cost product higher-than-expected in the for cash, cash equivalents million million In mandatory with the areas addition in approximately flow technology. the We finished hiring attributable cash strategy, strong savings securities. and including lower revenue, cost in facility-related generated million $XXX $X.X predominantly including quarter.

the program Before small customers retail that base, I which update a we customer our those of an financial and, anticipated. customers outlook, impacted coming apparel. number and on of in to percent our calculated to seeking represent very impacted billings relief year-over-year move provides wanted relief a from energy, pandemic. by hospitality this basis, our lesser transportation is provide To date, the relief customers by to extent, than the I on better approximately with majority X% total and a to of negatively requests In QX,

risk execution the weigh other on the QX, better-than-expected Despite on metrics, more in remainder impact revenue the relief and the continue demand will free reaction positive risk COVID and billings such cash year are which calculated said, to this We and our and improving environment expect in customer incrementally impact for growth. based of will churn this QX, flow demand as relief to and program, we offer environment the sales that billings. on key will continue and program pandemic. With throughout to we attrition this

pace our on the Our demand and second for and are growth. of prospects assumptions remain customers visibility pragmatic and on based for QX half the macro continued low and continued uncertainty

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

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

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

of to For to range million to or the full to expected in per BlackLine year million in the we report million. bottom $XXX.X $X.XX $XXX.X is of XXXX, $XX.X total to to expect on line, share million the And $X.XX revenue the on $XX.X attributable net be a basis. income GAAP range

will Our take share count million weighted diluted your average XX.X shares. will questions. approximately we be And now

Operator

from Instructions] Thank our you. with Ikeda comes question And [Operator Oppenheimer. first Koji

Your line open. is

Koji Ikeda

you least earnings on I Therese, congratulations his news. Thank Huffman Marc congratulations questions. we call. one And for your promotion at Great. you on think taking Therese, my may more as have to for CEO.

just number So adds, on number, I'm the the any going environment. selling to a XX new a do say goodbyes not there yet. customer have really in I net question tough great

loaded slow then or So customers? Were mid-market enterprise there the from thinking follow-up. that much were starting thinking against value congratulations how durations? back-end there the starting contract deals mostly should during customers it have I And now execution the are balancing just the billings it sales following there? deals the smaller And about about any really with contract a strong at one because pandemic April? smaller that shorter those on then out we delta there. more Were coming and quarter, that the adds be in Is

Marc Huffman

great. Yes,

it think mid-market. the on quarter on you be a nail tend head for with Mid-market this hit I deals record smaller. was the to

mid-market is five figures. in is deal and enterprise six figures in average the Our

large So it. that's in the for reason measure,

them yes, number the So logos, of of in the quality majority mid-market. the of the but with pleased the were we very were and the vast –

Koji Ikeda

And Great. my is for Partin. Mr. then question follow-up you,

is the calculated negative release negative effect? negative of it a Or point that to X effect customer X% Okay, to billings Is said you to absolutely here that effect. absolute on X% was clear I want calculation, just billings? the be growth

Mark Partin

billings have release and Thanks, been course. would came release. of year-over-year, reduced it And billings in form Koji. notwithstanding Yes, Of billings. XX% the delayed that the billings

impact. the that's So

Koji Ikeda

you. Thank Got it.

Mark Partin

you. Thank

Operator

Our with you, Rob Oliver comes Baird. Robert next W. question Thank from

open. is line Your

Rob Oliver

you, taking of forward question. both and with my Thanks you. congratulations also speaking Marc, echo much I'll my for to to both just Great. Therese to and very look

couple a Just of questions.

was Just I retention linearity the net with think, kind the back-end asked so at But was it like in range. loaded just know, I guys curious, existing customers. work it as revenue seems the also were of on doing lot end lower more quarter number, about. expected, Koji, the seems the it you more of as dollar-based a

with if dynamics that environment, So cross-sell then kind a upsell there had move curious or a And on follow-up. being natural just of any I and pressure was in COVID just the what a some were of number?

Marc Huffman

our that the in given just Yes, were And course. hadn't it but our to Look, saw, we pleased demand of with was primarily within logos, not customer the normal. returned expectation, existing environment. in We base. new but what

also slight We attrition number. slightly range on from of higher the and impact expectations, did risk though, within So that churn side. a that saw, our also we have but weighed

Rob Oliver

not pitch Okay. of swing systems. it, very customer a the ERP just juicy large a even XX been the brain exciting. obviously, but having win And my while around to name my was too follow-up to quarter, Racking then in here,

makes real meaningful like and provide for seems large on sense. price there? spot were you Any it process a the So mentioned sales land other Which the taken? could on BlackLine. color in competing know I very win you a products sweet

congrats on other would any that. appreciate color. So I

Marc Huffman

you Sure. I, both to Therese the congratulations And for it. Rob. thank and Appreciate

some a expectation that that larger, sort as remarks like we global really something positioning these want pause. difficult would said, of I state. so might sort in And this have this current Companies reassessed, to we when Those to of And face how example. a especially when And of the you when on with had as we one environments you're well. couple as well-positioned complex in expect more a workforce." pause. of say saw well. was it say invest looked expect, in along time things Companies and in and our you moving So big and you prepared had see And the of this strategic reassessed. that were a I as fragile strategic, previously plans to strong "Hey, you have aware environment our of – and had that's they continue pandemic, during companies those. couple executed a can those a a We would those they're distributed there be across makes that company very we their of quarter, pipeline

Rob Oliver

Thanks guys. Marc. Thanks

Marc Huffman

you. Thank

Therese Tucker

Thank you.

Operator

question Matt comes William from next with Our Stotler Blair.

Your open. line is

Matt Stotler

Hey, guys. Congrats on questions. announcement. the taking congratulations results. congrats all Thanks Marc, on And Congratulations my well. Therese, as around. for

Therese Tucker

Thanks Matt.

Marc Huffman

Thank you.

Matt Stotler

size be a deals, I I strategic flow expected that customer the quarter. would terms love see and and of of of as demand for QX the especially the there. in Figured thought, ICH obviously, was guys they you kind question, one would move any area of Matching with you a you might interesting weakness products in some or there mentioned, the and just an remaining So get update ICH as Transaction guess first the and whole, products the to through that it given those in that the this have quarters interest just adopting quarter maybe few strategic complexity range deal now. I above on in kind where as tough environment, progress

Marc Huffman

building Sure. Matt, organization of with success the we and the sales accounting it – have really investments really account question. thank I'm proud recent I customer management team, in then what combined the in you. speaks It's past high-performance process of in our making the that expertise, a great specifically history, been And innovation some some investments to think that function.

see you're customer's value drive And the the a things and dramatically the change so most of why environment. great we the and the of think with together in X,XXX reason of most account strategic the products expertise, that our on we bring management, strong think BlackLine I performance to it's to area. really able just do business process part continue technology, that are experience automation And our that companies when great

Matt Stotler

get financial That's hear Obviously, great been companies, close have was at progress then SAP. seeing they've kind update We'd in Got just accounting been your the one more. there, progress an of you this SAP environment. And and It prioritizing what of to the especially that increasingly and helpful. the it. love on big channel something looking guys your firm you're at of four rest outside to partner partners?

Therese Tucker

interesting, because like of a are program our really they've customer things their in – tasks relief partners been get customers It's alongside positioning And our sort Matt, manageable. to our and sort a remote come we've start seen quick to closes really actually reporting. help of place Yes. that's

working right of they're oriented towards sort great them now. quarter. they've some that our them customers And projects I customers. that been nimbleness I out of serving our with on what see really same last had because so We've love And this need

Matt Stotler

it. Thank for my questions. having you Got

Operator

you. Thank

Our with comes Alex Sklar from question Raymond James. next

open. line Your is

Alex Sklar

Great. single-digit pardon, guidance, the retention. exit that about Mark, basically Thank fourth half rate, second with the a half net line looks – you'd growth second wanted to quarter the implied ask I you. is your with high basically kind of like in which

the the so if there? half year really you was and you renewal help healthy. I addressed, that the takes could far of us the walk Given continues rate the and through be puts billings first to wondering in just

Mark Partin

could given happy We've we guidance. incrementally are in course. felt to reinstitute visibility of we full Yes, that. and the year Look, more our do

be we the customers. the have going most it for macro pragmatic And still the to demand approach of to However, always done. with environment by we've economy is what driven a very consistently

So a last bit over to on the approach the year, given demand of record be the we've the a creates year comparable. tendency last a tough a one years the has particularly QX of quarters that us. several QX pragmatic seasonal for taken was and of remainder for strongest for

factored into we've at for as our the – looking the guidance, year. really remainder we're of that's what So

Alex Sklar

then And another channel. question on partner the Great. Okay. just

were terms think XX% I involved you said large think, drove there Or than little a of what deals, the, historically. success? of partners higher in Has that's higher relationships your I I of plus, changed the remember kind XX% with partners? there anything that bit in

Marc Huffman

customer well our have set partners real whole more the just real team lot in larger, a team our opportunities. would we as are that resources, change more involved deals of more organization strong making as our a focused And transformative the as heightened right have obviously Alex, those a a have be larger sure including and process sales Those on transformative, distribution requirements. focus.

our So by I a think and it good reflects skills focus partnership just team.

Alex Sklar

echo you. you my And congratulations also I Therese. Thank and to will Great.

Marc Huffman

Thanks.

Therese Tucker

See, you. we time. even same at the talk Thank

Operator

question [Operator comes with Instructions] Our next from KeyBanc. Beck Josh

is line Your open.

Josh Beck

bit Congrats really happening sales team momentum on efficiency. and what's within COVID to resonated everything. sounded just done those really see well. that's had wanted with some MAP new mid-market, really about the a the you roles. good with metrics But one like difficult and I have to it you It's what of ask

a would So tactic world. if segment, you look just of see in that new maybe or improvement the just to you kind in actually you if the post-COVID I'm an mid-market maybe curious keep want

Marc Huffman

Yes.

concerned experiences our wins having number in talk around sort about observations I'll of proven our new And But our clients if specific sort accelerated you we of So let talked so the did customer up. mid-market. in. Mark jump of in difficulties people of segment, were we've financial have being the and some modern about of any the economy. on about X,XXX I'll the recall, that plans method the if this in record metric, We of to based a accounting there's business. And then get playbook, perhaps we COVID which – face

efficiency. this we've and on I CFOs. And market with recognizing collaboration And positioning what it's utility, really on deliver our mid-market really in focused quicker organization. services we're team So at and become proficient think resonated time sales we with and developed our are a economy there, space, has started people lot particular is valued to focused of which in

with we're it. pleased so really And

Josh Beck

the also may Okay. like there to wanted be upside sounds some the adoption nice color any cohorts where Just on there. was Were you products I certain ask, maybe plan. ones Were was there better? strategic that stood out? Great. share versus certain can there

Mark Partin

Matching customers Yes. in trending in their end strong has both tool new efficiency and so at customers. many of the Look, very positively existing both Transaction been and and and were market the Transaction is to of very and value our quarter end for software. drive and customers in a low the It high Matching ICH great the

a was around very robust the us, really So for two quarter. sales it those for just

Josh Beck

it squeeze just is there? I and looking could July share things last like not on you progressed Any like but or if worse? maybe other the positively a Great. comment sounded July June Okay. one it, or you I'm can And one, if quarter. throughout sure Is can lot better color

Mark Partin

the in is we QX. saw quarter you're What trend Yes. see, an we that did right, in improving

pleased set our limited we're and early in very QX that take up that quarter it and finished and that. still we experience strong, apply too and guidance the with to It's QX. data So to

haven't we we side. about risk And overhang on very instead, done side we're a being what on COVID demand the is continued think doing that. So and might the pragmatic be what

So guide. that into we've factored our

Josh Beck

Thank Appreciate total Makes you it. sense. everyone.

Mark Partin

Thank you.

Operator

And last Murphy Mark from question comes JPMorgan. our with

line Your open. is

Matt Coss

about This quick afternoon. Thanks think duration? in to improvement I said in the your behalf the Matt Murphy. we you've in in good is Mark my an for Marc of on user user again, past, question they're as also, And the adds, Partin. paid adds? roles. for congrats change critical taking Any products. or and contract Mark less paid know Hey, increase a on And of Coss there on strategic given growth, A change thinking questions. sale Therese for Was the new

Mark Partin

it. got Yes,

products did add sell don't And contract one length strategic is consistent for It's quarter users. we like have average strong a Our user XX we at adds, about proxy QX, in When measure. remains it months. on one the growth. those and

nine vary basis. standalone, four But attention the within did and in QX given our or go QX. back sort pleased two a this on pay to to we to the key of we the six And we've to quarters, to and good see platform environment. So months. a at we the core number demand sales last expansion three it, quarterly last if can because with look it over been report it's you It's tough on

Matt Coss

getting looks of areas be buy, one is and your of customer but be to think Got year, if for next going that that you focus that Therese. the anything you'll out you're product will to development of then And Since And you, side? what it. on there That's helpful. more do into you full-time focus, product an were what you're a be? – if standpoint not potentially attractive, there technology buying going to M&A from technology, sort think what might exactly

Therese Tucker

and of Matt, serve office we Well, controller the the CFO. the

some to do for that It's time, can How this that that for the or can trying customers we we them. serve future be so entire is companies now, be of newer right? industry our think future my have the and is so forward customer part coming that going industry. exciting finance, what pain I actually shift And but their and our big How work do are change actually of a about you that accounting of to how always sort are out? focus, use tools today a in audit can whether the much can that role how automated not the just available going and also buy from the more to base hold. and remote best first feeling pretty of so we think what's you is can technology build the

on that's actually I so pretty cool. work get that, And and to

Matt Coss

much. you Thank very

Therese Tucker

you. Thank

Mark Partin

Matt. Thanks

Operator

the I'd CEO, And Tucker, Therese back and there like Founder queue. to in closing questions are to remarks. no further for turn it

Therese Tucker

you, everyone, for Thank us safe you. Please joining well. Thank stay today. and stay

Operator

Thank this conference you today's for gentlemen, and call. concludes participating. Ladies

a have great Everyone, day. disconnect. now may You

BlackLine (BL) 8 Aug 202020 Q2 Earnings call transcript