BL - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter 2020 BlackLine Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session [Operator Instructions] I would now hand the conference over to your speaker today, Alex Geller, Vice President of Investor Relations.

Alex Geller

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

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

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

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

Marc Huffman

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

maintain that a business to was quickly and tested I’m such proud as the As BlackLine as XXXX, while like began to partners, take leading will drive a of to our our all in year enabled drive of our to adapt. to I customers. towards look that to continued shifted able our initiatives colleagues, back ability accomplish and and on leadership year now the that believe highlight promise, throughout incredibly our what we scale course, growth, XXXX, to an we a and what with I’d our of the strong position, compassion resilience future growth. continue pandemic opportunity success

customers much programs, Throughout grown First, and showcase programs nearly the for just in products supported ever. by from a and spanning relief department to with training our education, variety coaching we of outreach to sessions, has development, our stronger our complimentary and efforts than every serve in year, services. how commitment some we BlackLine, care customers

have received in which difficult proud to customers, enabled pandemic. customer and accolades success, our these to and our of testimonials believe I’m But driven efforts accounts. existing our compassion close of I has and our face unprecedented multiple to in founding this BlackLine true reward times, efforts. from how commitment their very BlackLine. our strengthened serve serve principles will our and to continue relationships customers our expansion to In remain seamless We month for comes an a we these the hearing of the greatest differentiate

across to more with in the not results customer investments alliances, demand acquisition invested in than success a best believe and maintain organization aggressive we organization areas our market services History macro companies to to Rimilia into but our in the product, acquisition capacity an roadmap we senior controller We to our certainly accounts technology and total and ever. our our headcount products, to and have largest account economy our functionality grew BlackLine leaders addressable hiring, of new pace often an a talent, least, that And downturn entry when in capitalize make $XX made our teams we We In respond product new R&D of XXXX, added better and automation such made to customer has sales, long-term marked strategic customer driving R&D. who are retained improving growth. to and these as and our product innovation, last, strategy, recovers. of billion. adding shown stronger position. invest resulting strong in leadership in key investment The M&A equipped and Second, investment product, the our economy our success and in We the well-positioned stronger. increased XXXX. serve on in to adjacent receivables market vision accelerated

to to Third, we with the engage their real a use of discussion scale our you or When a around that cases, continue the to market. value changes corporate goals, use expertise bring strategic and value processes creation. to proven prospect conversation customer

of journey. our step along BeyondTheBlack to with this November, leadership expertise Our is us event uses Playbook of modern value for in the At customers mid-market. our collaborative in every offering MAP framework experience initiative been prospects Accounting its BlackLine Modern growth some and guide example and accounting lever to how accounting of we as has or their introduction the extended one a a strong and

We more the create experiences. leading insights and accelerate from to customer time nearly than that across learnings practices accountants X,XXX have great value into turned and customers XXX,XXX

our finance with strategic topics, and and fourth, we continued to innovative and cache continue that the lead series, the and focused community. generate webinars on world best summits transformation educational accounting events to we as engage to finance urgent virtually connect as further our From to class with generate and ways land forums, and expand customers remote to host such to strengthen ability existing customers, Our up practice optimization. new our and clients And came to with position. accounts, new returns has competitive we goodwill footprint close

was virtual it and largest success. was event a yet event huge BeyondTheBlack Our our

many times XX attracted the last in-person BeyondTheBlack event compared held to we as year. attendees,

the our XXXX With best-in-class XXX community their awareness well representatives to as interest together for resulting we this leaders support event enhance new strong across in degree is future in a finance of accounting customers drive the session, how event and introduced We Promoter of SAP excellence XX% combined expected better will enabled Nearly more broader and and performance the educate as Gartner the And could brand accounting newly to positive momentum enable virtual all within registrants, believe business, hundreds the financial new Cash of and a opportunities. more saw SAP as facets and of Peer prior generated formerly our than customers. the received customers had reviews These years. existing drove existing Track with GX, We a results. event into Insights, and initiatives Application event. of new us continue reach of them close prospects. known more from learn audience tuned to Score X,XXX the in than from touch and bringing recognition about to to goals. Rimilia attendees organizational This Instance. Cash. of in have another modern opportunities continued on These can TrustRadius our demand in quarter participated have our engagement quarter. than X,XXX Net nearly environment We than than XX,XXX improvement had both of for points course, we XX how We from attendees BlackLine Breakout in their

an large see expansion, to continue increasing large both committing we transformation instance, to digital projects. deals new and For trend are companies of suggesting

continue transformation upsells, Our strategic progress journeys customers existing the their on of to finance addition cross-sells products. with and

pipeline large good we transformational deals large deal Following the quarters three for in about consecutive of momentum, feel XXXX.

continues in record MAP record logos traction of MAP gain sales Our new the in in came to commanding offering nearly volume from logo alone. average of earlier higher generated mid-market. price. QX, perspective, MAP From a XXXX logos sheer eclipsing number volume our new and a strong half a the

it another its approach buy quarter for which our is our performer with and mid-market easier in earlier, mentioned was strong sales for greater to largest value customers creating offering SOLEX today. As our selling, is consistency MAP to resulting engine. making aligned

the partnership has started new logo at as year. to In added What’s XXXX. greater adds. XXXX, nearly now of two when add-on partnership account SOLEX to the revenue drive more, more business volume continues twice expansion SOLEX this a we that it our As also is to throughout compared in many with matured, SOLEX new logos years see

experience expand that We customers. generate to is logo of customers have of and the ads, expect SOLEX similar the direct SOLEX very account goal we primary strong growth model, and land a partnership new to our will although,

growth for the a relationship, we Given progress in have setup this believe good XXXX. we with continued

existing new our Our existing deals generated accelerated allowed interest a BPO first contracts application sales to customers. for amount signed extensions product cash of the cycles. We in significant joint which has quarter as among

captured like expansion, trend a market. And saw strong seeing for continues But and course, need also logos short number we’re indicators and of of to what we in time. Cash been the we and available our cash new the continue logos small We quarter. urgent due the surrounding that applications fourth account in new to drive has partner ecosystem cash application a only early are optimization.

value a continual remote partner We customers that marked current albeit QX continue ecosystem help, seen we’ve optimization. Our same with. the that validate level With improvement that with our key XXXX, us pre-COVID. we’re pleased will our activity in makers proposition increasing really and and expectations results decision another influence said, quarter XXXX. partners their environment we to and tell the at urgently of need closing believe cash Throughout experienced exceeded delivered we QX strong not in yet XXXX macro momentum, and

to and January, their where globe, with XXXX, are we I success. customers to around shared future our event, employees Looking company-wide to kickoff in our our how them, the we committed held to

strategy upcoming importantly, for as year. we our laid the Just out

them. with me share with now you I shared Let what

for initiatives accelerated XXXX existing platform to strategy as vision opportunities of adoption close. our to to long-term XXXX, be Our our market and for In sustain functionality, our we touchless will introduce deepen and adjacent processes growth. automate fuel XXXX, product invest to and is our to for product new we in on perspective, assess to vision and investments our In most new build platform. products, discussed indispensable offering we the account a finance accounting the and extend controller for From our and such the drive continuing the is ship. and app and analysis, improve products to cash

As space, seriously. role and leader very the we that take in pioneer our

invest to upcoming workplace. we to than same success customers, CFOs market into such, demand huge to a is opportunity more will drive will organization and year differentiator we positioned controllers confident challenges our serve equitable capitalize ecosystem, advantages. continue strengthening and our we believe move leverage our and with and competitive BlackLine. offerings wrestling use XXXX value and through customer customer our are for make on a increase to in saw than our and environment. were great is of course, ability a continued ever to in time As to framework ahead customer we XXXX, we’re customer success to ago on believe more inclusive, and our to success a our our us. that more the We teams as build XXXX, continue before. these in year as this will we journey The focus to huge accelerate commitment well ensure move XXXX we modern entered And continue stronger partner are diverse experiences. In we expertise accounting, help key Throughout We to and MAP companies we of such improvement the and their this the

in timing However, affect everything. environment this will macro

strategy continually to XXXX come to We Xth. our is on our sharing forward curve March the the long-term Analyst more throughout Day at expectation Our look about year. up and

seat reputation, discuss CEO a became years we financial grateful message. of and past a Therese to When to all life’s performance, we and be I brand, The XX of her and in leading January grow a it strong position and incredibly that work. BlackLine opportunity woke up inaugural years an I’ll ago. I’m now, this turn over have position out our started for was Before reflection our with a on journey BlackLine, are to the first loyalty encouraging on such thank space, excited row person Xst, Therese in to ahead. to supportive Therese and the day customer a products I congratulate company market wanted nearly XX company. this building have reach And of to unique Therese. front my the

Therese Tucker

the afternoon, remind has you, Mr. and long together. nearly that of been deliberate. in three I’d transition working going and now Huffman been to on this are Thank very and everyone. I has Marc, years good works like everyone

feels more step change. this versus So next like big a a natural

seen Over to effective I scale years, several every have phase and this I we drive in Marc these past demonstrate leadership And confidence have change his growth. as BlackLine. BlackLine great of entered ability of next

new to to will Marc. Board in happy areas And years the primary to deepening our offering facilitate am role when product and serving am the continue as upon and by our in and Chair, responsibility my I BlackLine I my come. support is that customers differentiate of Now with that always discussions course, called team, to assist define Executive to

our have analysts I enjoyed a of company supported with you all public who Finally, call with so I Mark I’ll all have learned time working on you and I Partin. journey, have wanted to been a the and the I investors part this you, and have turn success. enjoyed major really my have that, meeting much. CEO BlackLine as over truly thank with And of to

Mark Partin

to This leader. off good role Marc, resilience able so culture, to to a and has afternoon, adapt, to past unprecedented year. market have strength foundation they for show BlackLine like our and employees such year been and our of of our Marc’s testament in Therese, and the praise how am and I you, reiterating serve lead what our I’d able this by Thank been everyone. over to proud as accomplish a start is challenges.

the to Now on numbers.

the year million. to $XXX.X XX% full total For XXXX, grew revenue

the Given We the solid throughout the a to close recovery that difficult good year. was demand QX and saw and into challenging environment, this out to year result. environment continued end an improving a

million with mandates marketing cash $XX gross net in at achieved and virtual our from operations. the XX% employees profitability flow $XX events in work-from-home for margins we and income Our cash and record of high help and remained with million

fourth decline macro revenue from resulting the prior growth a environment total quarter, year For XX%. grew represents This the from in XXXX. the

to underlying strength of remain the returning deals, of see We long-term for demand are fourth the growth growth improving that success in with as strong with stability demand to seeing and optimistic the business across given progress our and business, and continue We we such progress MAP environment our continued of continued in about an increasing the large the our SOLEX initiatives, elements initiative. fundamentals model quarter. the

with in For represented strategic deals anticipated partnership XX% total total all the come consistent we SAP XX% of instance, partner, go-to-market SOLEX our year. mentioned, -- large and the end to solid partnership the it’s Marc the the from for international our model business in Strategic coming line from of our was revenue, products. XX% in QX, quarter, range from XX% is involve performances saw in prior of as which from in XX% with accelerate products our prior at expectations. of of in of revenue, with up and QX. the sales from up at XX% year totaled XX% high quarter Revenue our revenue in XX%

net on for the including new Moving XXX of for our of key quarter, XXX to customers the the added in the from customers acquisition. a performance customers, approximately we net Rimilia total new X,XXX metrics addition quarter

macro to expect revenue million existing efforts net demand, in end app base our generated near-term and in through to flow We million high approximately with in we our has the cash customers. million. $XX retention XXX%. year down in $X we As the million dollar recovery. especially slightly limited environment cash enterprise anticipated, for rate demand We within market to upon and attributable it $XX at the net equivalents In $XXX BlackLine flow QX We operating generated impacted do a quarter. securities. marketable return free income QX, our and The expansion of the ticked the finished cash year

roadmap, the operating increased compression, and predominantly accelerated XX% driven intend Even we XXXX, in seen and customer as to ramp in the in regulations product the to be X by for make our to investment our associated margin. expect to and virtual Over cloud the with will technology work-from-home our and expenses consistent year years, the due customer leverage. In success, we we’ve we In integration on AR evolving well impact several support to events. cost to infrastructure and automation trend income targeted through public and points and XXXX, mandatory with Rimilia, points net income, product margin the above improvement mix. net past overall primarily savings investments These capture anticipate opportunity and team and margin and growing support out X services near-term. of gross we will large build a

operating with the reset vary basis, events. quarterly and up step Additionally, driven salary a quarter on first increases, in a expenses tax annual by annual kickoff payroll

generate We demand operating the additional leverage we year and as the topline margin expect improves. on to execute environment the throughout and

modeling XXXX are uncertain in modeling as to us our flexibility the of return of business, appropriate but we areas track costs back year We our remains travel on our This to in business. achieve many cost remain half target model. long-term the Finally, develops. the for gives

we we point a where to will when set are ended uncertainty going the in and there’s good Turning still about this feel the cadence. return year economy into up to time, now XXXX. normal broader guidance, regarding though, At

guidance As such, pragmatic. remains our our XXXX approach to

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

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

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

$XXX range expected in year total XXXX, is the $XXX million revenue to be of For to the million. full GAAP

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

the average summary, XX.X the Our capitalizing the we we end question. out momentum and solid close to are share remain an on demand to very pleased now, further environment on company continued and long-term our see take a your be weighted will And approximately in improving diluted focused from In accounting count execution year. We business. transformation for shares. will million to opportunities driving

Operator

is Instructions] Thank [Operator with from BTIG. first Our question Matt you. VanVliet

Your question, please.

Matt VanVliet

hearing on year SOLEX the job areas with, deal on agreement, what you standpoint involvement expand? more strong Thanks and Hi, Maybe taking land functionality a a the are I out what as common for customers up community, overall most everyone. overall and from at guess, about you demand Yeah. partner and maybe then tremendous you great a question from landing most the of driving closing flow. the are kind looking think as what’s and follow frequently there.

Marc Huffman

you. regard Thank ads. QX, progress With we saw strong to SOLEX, continued in logo

there questions more your are in which and to sidelines activities. what sheet as to have Occasionally, to The time, so We’re was, more we customer question and most and organize some one of customers nice SOLEX that That’s broadly pause visibility, cases improvement seems a their companies a that of as frequently core and and too that’s us. customers case, lands. And early the a land logo type trend itself new there, their it seeing? we’re time some will our base the our transformation some unique substantiation to well return that may have We’re and use there traditional just reassessed seeing driven to we what But reveal digitize provide over seeing investing so during with seems close, of pandemic attributes it of gone to is throughout more are with? answer little are our land. balance That other landing you what digital typical use the landing our and who customers in are had we that month-by-month in priorities base important volume. sort there. land with additional helping

Matt VanVliet

go-to-market we’ve up Marc. following about picked really of backfilling some the you number you in of some hiring talked then And up kind of team, investments, and releases what seen parts the from of about had a the on for responsibility pace

-- Just where market your curious rep in terms of and the an further capacity potential you then the like do carrying side rate increase for the is given increase end feel quarter in on add success, ‘XX? more of you some even you headcount of is sales it nature? in around or demand Do feel there customer like support more Thanks. services to that kind engineers, have things

Mark Partin

question. the Thanks Yeah. for

of gotten good year the hiring very had and that one had and we going the into sales of leaders pandemic people people with cohort around world. So where off we and the into we we go-to-market, a really large them made the is needed a of had pattern benefits the sales started hired

keep really deployed and was Our demand in their as they during could returns. focus work build where our to the help where could with the year them markets they customers, areas partners

we’re proud year, so end group with And at the really the and remain of of we of they the started year. of the that where pretty retention people consistent

the but as organization the customer management so came well. in and the particularly also we account in sales and customers marketing team the the around as and serving area success -- support And for hiring

meet So as was the XXXX, demand. have strength capacity to move the we our to the and goal into

part then of the business this and that teams, success add we’ll through in our with of our then parts be as through in our capacity that So year like of. we’re of we’ll at the tech first pace the the also also we marketing and I’ll equally sort demand year strong returning. parts for enough with sales the year, in and proud very drove other product which leadership leadership tech the was business of move move and hiring hiring

Matt VanVliet

the thanks again. and congrats for Well, Right. questions taking

Marc Huffman

Thank you.

Operator

you. Thank

Oliver question Baird. Rob next from comes with Our

question, please. Your

Rob Oliver

well to and And thanks evening. you Thank very enjoyed you you Good much. as with working Great. just, well. Therese, as

The it’s and building put sounds you. groundwork promotion. start wanted nicely, to continuing then just thank that partner commentary to around evolve up. it I comments Marc your of on say, in Therese partner his really follow Huffman, So also and out on. Mark a lot like congrats and you Woodhams channel, with the early echo one And I’ll to channel

have shown partners And close. remote getting are suite, particularly financial engaged that, some in our of clearly the more checks on

you partners the close you circumstances a caused loyal remote cadre channel So the -- been less just have up. know have with have to the and you around partners guys to more evolving think ecosystem. curious and of partner how your pretty contributing a -- in little I had a But get start and some pain that of follow if maybe active guys some the about that active of do XX? of And I then Thanks.

Marc Huffman

Yeah. Thank you.

So, consistent largest they’re our in percentage performance our quarter. pretty involved the QX, in in a partner in community of consistent and in deals XXXX specifically,

I time think, employees are of in our and areas And I of sought such regarding who employees experience or out expertise in expertise, your that experience. either unique and prospects, partners. general, our customers possess largely people even to of expertise and companies point a think, lot a the

razors close to of And or us remote so customers. expertise I with drove it lot performed eyeballs admirably time, concept who the something towards of on hand and behalf for and possess of think first endure partners, having some our those a of and that the the

I our I I don’t as that’ll take will try be a We over as continue partner well phenomenon community. with time. drive serve talent, think our and don’t own that to that it diminish talent from think broadly to will us. the customers that

on pandemic are to offer during or a either think just that effect third-parties, the The us be help have it year time to it’ll anyone’s the was because customers in consistent digital we’ll in first engaging strategy expertise unique, the think and was I to finance transformation. this who expertise accounting. I

Rob Oliver

Partin, Appreciate Mark you and Great. the gave follow appreciate that. on the you. thought ‘XX. around process for I numbers And the -- I had a of the that detail Marc. lot Thanks, up a

Just color element nice count, if for on here. to wondering if you any relative just that regarding becoming count, inorganic Rimilia, customer the Thanks. which growth you include -- did provide What really customer could a guys nice the and any it’s trend so, again, there? really

Mark Partin

Yeah.

Of Thanks, course. Rob.

So customers little Rimilia. numbers. the added as complimentary well, acquisition out the you were about from over as already XXX the included had of customers of were know. some Those in XXX We

growth were acquisition. we QX, net from And pleased very these with. the the customer were in was So in new something logos

Rob Oliver

again, Thanks Great. guys.

Marc Huffman

Thank you, Rob.

Therese Tucker

Thanks, Rob.

Operator

you. Thank

comes Blair. question with next Stotler from Our Matt William

Your question, please.

Matt Stotler

my taking touch you here, guess, a like Hi, question. questions. everybody. I Thank I maybe bigger first, on bigger to the would for picture picture

Rimilia quote So interesting procure really consolidate to there. cash there’s you when a is the report, obviously whether expansion to lot you’re really about solid think and that record that’s looking addition, cycles automate, But process to ultimately and opportunity a there. pay,

partner how important own you can provide customers where for about versus value to think So your optimizing proposition that most you the do and what’s to value?

Marc Huffman

Yeah.

controller. set revolves have we So the of a strategy that really around serving needs the

that space an quite original creating we leading do category our and well. that’s area, so in And obviously,

that both permission great perform. have and through activity ourselves that dimensions, to may further same brand that lens organically look we as we the it. We in well as We build any lens space. provide strategic at product that We

in -- us to of a interest of that mentioned number us. there You are in areas

the and processes that areas, can a just building We’re we’re that future to There’s stay really additional have sure about company looking require that number of controller. serve to automation on excited we we’re great make our and of controller. primarily the close eyes -- that modernization, a optimization we

Matt Stotler

over in environment, significant the operating any interesting a landscape helpful. of months. on behavior the pretty given changes then maybe update a partnership love unique on, in point. you’re an been environment competitive get and that announcements one obviously this you’re to if That’s couple the They’ve especially it’s competitive landscape, seeing And few in just past this we’d at

color So look you’re what there? Thank on update to get or you. any seeing

Marc Huffman

real that change I time, I meaningful out there competitive sure environment. believe the I’m spills so would bucket over in and demand the over environments -- every improving into No that other accrues that us. that that that the to there lot the organizations are who are leader that environment. category a believe market to beneficial We as improving of creator, value demand

tell deal from experience. can based We I landscape, to competitive inertia we standpoint. you manner our the number in our only realistically so quo be on one status that a the thing fair share with continues the competitive And win

win Our has us, really measured of boosted and our playbook XXXXs modern expertise that’s software across in use rates based really this resonating for that of proven companies accounting on current environment. value, sort our

And stand we a where so from we’re standpoint. competitive pleased with

Matt Stotler

Thanks Great. again.

Marc Huffman

Thank you.

Operator

Thank you.

from comes Alex Raymond next Our question with James. Sklar

Your question, please.

Alex Sklar

to want by some of follow here and additional them the I’m can I MAP Thanks. accelerators announcements curious which those tell up made at learnings can conference? program on that catalysts Thanks. bundles some around details of around seemed moving you about also what and kind you the BeyondTheBlack, to taking market. the up at feedback and on that the of early that and any and use you us build

Marc Huffman

Yeah.

versus expansion for win us. the a customer days space, up you market thank as still innings rates tuning things all to that BeyondTheBlack. us, as in to for four us really inertia, us. metric, experience, leader question. it’s in its in these is playbook a for itself The So concept modern are driven you’re accounting initial Appreciate great logo leveraging for reflecting our the close the performance in We’ve added early quarters, for

refer of on same you’ll digital journey you back they off we’re for the with at to to with that in that transformation where us future. packaging, deliverable reception. takes right the too for the right time There So experience finance in collaborative journey in market the them. towards customers experience now are solution will and expertise of we’re the QX hopefully into And that something that leverage you excited where It’s expertise our applying right the way do our then way enterprise. what begin kicking any a taking is the early and us just check on sense give be to realistically for accounting having

Alex Sklar

Is reacceleration and Thanks. bundle any I into guess, of adopters the kind And of the are Okay. kind kind -- part is confidence additional of initial of retention you your net quarters MAP, then, metric? revenue the behind taking of from of we’re early graduate products? Thanks. given that those four seeing

Marc Huffman

looking and coming -- for from terms expansion in yes, them is, answer impact us simple of to The its a on. back

Mark Partin

Yeah. in products matching. influence deal like We strategic transaction in a larger uptake sizes, on is the impact down see mid-market, really of the the positive

to we So that program. those think leadership that happening. from trends comes that Those are are that positive

Alex Sklar

Great. Thank you.

Operator

question with next Walravens Pat from Our JMP. comes

please. question, Your

Pat Walravens

you. Thank Great. Oh!

question of so I which Marc, in when picture is, good NetSuite, big guys sort I So, really you for covered you a at you, SMB. have the were

You you that need had first way had at at whole market. really a down approach. BlackLine, your the it’s good market, subsidiaries enterprise to And way your But to make right? make up capturing

different you’ve learned and your So I how you’re thoughts what to just applying? love and on what are those hear

Marc Huffman

at Yeah. it’s Thanks, world product, BlackLine of -- the I and premier organizations largest serve the solution a that, would is scale. some say premier in Pat. an a we

I are build finding ways a is wouldn’t set done, same mid-market SMB so what we’ve we of technology taken it to organization. mid-market What And necessarily -- a is a company, strategically and they deliverable and our sort we’re on say experience in that very efficient companies then to finding class. that. to drive that based apply

Pat Walravens

No.

Marc Huffman

a That’s to a company. way inefficient build really

operate And well that win can their customers mid-market get try them high that revenue win are lifespan. for. way sure on great the a logos, the an and size make their up essence companies We we have so are and companies value them try traditional complexity then to that right we to we growth serve -- and backed we segment. we And for in

Pat Walravens

line? exceptions how And that do you, speaking, sort how do generally there’s but I’m of draw just you sure

Marc Huffman

the think, at very, money spending, think, organization. organizations money we spend. SaaS and and our stick spend is we and understanding on a spend and love well, and in have a with how I really, aware probably discipline know spending we’re don’t, long good that very amount marketing, most you after that sales chase decent go-to-market of really good for to going efficient we somebody well you who’s our not I not do and the we Yeah, time to really we’re a Well, Pat, what of -- you what

the do. we in organization they the based ERP really type environment customers’ it. that work think complexity -- of that complexity we’re so of and measured the of and disciplined And it’s Usually on accountants the I at their type

Pat Walravens

Great.

you. Thank Okay.

Operator

you. Thank

Beck KeyBanc. from Our Josh next question with comes

Your question, please.

Josh Beck

it comments probably, like digital team. there. backburner on a wanted question was I around I but got the project, feels of went through of earlier and priority, taking for pandemic put office more think, transformation. to the go your some certainly back Thanks collaboration to it the in front we Certainly, types as early year took maybe there change the

enter pre-COVID. a did you that, an that’s priority -- you the or would area to saw, describe or at because curious you where higher were of you that it you was similar then, if what just certainly, more say felt So less you ‘XX, and it’s like strength, as

your Just would antidotes on topic? customers with some of that feedbacks like that to and you’re the having hear

Marc Huffman

was There money. of I who the if number We basis that sales little the to improving to prospects, sidelines, a that is it team them saw returning spend in over We versus the and having will, Sure. and customers But pre-COVID. return from and and environment the the quarter. went I talking priorities and a start where forward they opportunities. talking to to tell what pipeline on the continue leaders, you to QX. of in existed -- some is looking premature post-pandemic Thanks, our were our improvement their gradual marketplace experience Josh, see beneficiary I it the our customers think from can these where that a it identify time people of it’s to a -- throughout and to to try our and we and demand reprioritizing you

people couple transformation. earlier, our digital people heading XXXX, pause. come the transformation too it a of same trend digital about I excited from important that too virtually having And to heard and prioritize finance customers times teams made having sales because -- and big the words back, statement Our we’ve was into finance

they on have they then were they invest so and pause, and to took reprioritize money returned. spend going what And a

Josh Beck

be that Okay. little be had a Rimilia the the just now under curious umbrella year? curious go And from but very you just with thinking the just it’s synergies of some about know been I we on go-to-market? maybe and it then through maybe And should that there? anything That’s as then how you’ve revenue, share Rimilia, we I’m helpful. can very bit early, longer, has would what

Marc Huffman

as Great. and the of who these you team property and have their and to part mentioned, off still people a buy their team But acquire of when that, Yeah. that an I also, all we team things. business we And focused it. early, application really of really started and their organization, It’s you we you as sales loved say, sort you overlay out first you fashion. on obviously, in a got intellectual brand an of buy, that We our our existing had team in sales around that concentrated and early purposely with collaboration their hands that they sales team market. cash put the with drove the in

as view and organization a we global BlackLine. into have that’s vast more the So to that put distribution nature in product

we seeing the have. by with their pay our sure is And Beyond for that, the and would business, accounts receivable where mentioned there we BeyondTheBlack the that had attendees year, took of we cash BeyondTheBlack, the say, expertise team off I that conference application that to we’re also collaboration transacting with already of and We optimistic, wanted trends of to we we’re BlackLine. that cautiously really we sales our in that highlighted we make advantage us. largest going feel really session at X,XXX

Mark Partin

the in revenue expect quarter, was growth. the acquisition material our didn’t wasn’t overall the effective, day to and the it closer to we The quarter of it fourth first be

However, beat our expectations. did it

performance our this rules, expectation. material not We’re out growth pleased that we But the in given get purchase with pretty the of we’ve to and super -- better did the the market in gate period. quick, than been in accounting it’s rate

Josh Beck

Thank helpful. you. Really

Marc Huffman

you. Thank

Operator

Thanks.

-- next Murphy from Mark Mike with JPMorgan. Our comes question

please. question, Your

Matt Coss

afternoon. This on in growth Maybe was Were behalf not follow material talking to of my questions. it’s for for is that you XXXX? Josh’s to your Good or Rimilia, Coss QX up meaningful Murphy. to question you -- on only just Thank about also Mark Matt Hey. said taking rate. about you your

Marc Huffman

it’s purchase XXXX, in we’ll We given XXXX from in Thanks, move expect not Matt. we nor be We’ve end. as it QX the is this to Yeah. material contribution accounting see the said too that before rules. contributor that, at acquisition a meaningful top think do the that into we

move of are as business. a and in is that we We the forward. margin That our investing guide expectation part

Matt Coss

it. it. Got Got

for what historically? we’ve any And of we should to given it component Okay. of in or should the then be seen expect revenue Rimilia, the the acquisition your XXXX services difference of mix similar of kind

Marc Huffman

services model BlackLine, see seen that in range going couple and again customer expect mix, services. same high going we’d which you’re it high whereas that year. and revenue similar, is like It’s to this percentage Rimilia year. It to to very our would renewal, small last this similar our as to and see acceleration the moderate so we mentioned retention of be a high upcoming rate we’ve business as in will that a not the subscription, in revenue We years. this in

Matt Coss

it. Got

any are Mark year, you new you’ve Chief that Revenue put place there to hiring are a but then, Okay. done changes the last And expect last your there I and make any Woodhams of one, -- changes know lot you’ve described in Officer? as

Marc Huffman

leader. hiring new multiyear a to sales no. our is and very going execute initiatives. partnerships answer leader that. to SOLEX, with He’s short He growth Mark large for we a is his that continue disciplined added to to The by our experienced in announced team

in would go-to-market the In through to us the before the of changes, be terms us the More pandemic, XXXX. changes the things that there. or for you’ll pandemic, that worked the get nothing same substantial us that staffing help I things were say, of see things working

Matt Coss

much. very you Thank Okay.

Marc Huffman

Thank you.

Operator

you. Thank

Terry from Our Tillman with comes next question Truist.

question, Your please.

David Unger

filling Unger David is for Terry for This your in time. Tillman. Thanks folks. Hey,

going just talked we’ve So spending, session. in about it a to back Q&A here the bunch

marketing target. know at as thinking I long-term believe the and look being your term months now definitely And opportunities, prudent you’re focusing longer XX months. your on midpoint efficiency also just investing I about we’re but actually out to XX maybe been and growth, G&A we forecast smart. You’ve sales of with

support just Thanks. striking I’m of get to trying So synergy that delicate terms balance? handle side a opportunities in the and on

Mark Partin

Yeah.

I question. good think

it around as we to our synergy infrastructure globe, think the and scale we of economies at we which target class forward. continue and when why is and the is, leverage incremental today that’s move that’s today over support our get think economies we our build versus to look big world global G&A. support, of as is operating scale will of where a look, that time -- growth And in where Our you that’s area

David Unger

and very where Thanks selective, sheet. Understood. you here, a it’s that. And I acquisition, great big do we’re a Okay. and talking just know you’re obviously, healthy you about a then, it balance for did have bunch

wondering in how complement And just out are view set opportunity the in to marketplace offerings? seeing valuations the just the you. broadly, product you’re there this marketplace recovery? generally on at your point the So your in Thank

Mark Partin

that look, Yeah. we well believe opportunity new really that that complete I’ll operate and start, continue close a very and unpenetrated. financial remains large product have to we a with

was transformation. automation ready there’s Marc’s great able headroom in of an in incredible invest what of someone makes So today this earlier us strategy place they he through go to trend the the and for for products example amount described market. you of serve the process close, management us to about That’s exactly cycle that Earlier controller through. are the asked about macro as The would financial in digital go those AR being processes. an within a as

different to a you’re looking that the to are you we of automate ones and controls, from a cycles similar these place financial If them controller, at working do. trying

acquisitions of that in our to is serving customers sense innovation. A strategy to lot -- we’re is drive it to more we ever today. view and makes controller. where Our innovating willing and We’ve serve are investing our are drive do platform to that the of we than that now

David Unger

you Thank very much. Excellent.

Marc Huffman

Thank you.

Operator

Thanks.

with Merwin question Chris comes next Sachs. Goldman from Our

Your question, please.

Chris Merwin

my question. Hi. Thanks much for taking very

into financial much that are the the selling core in about this Thank for you customers? automation think where is educating to larger ask about them partners to relationships that area opportunity some more How wanted with have partner now long and invest ecosystems companies you of with Rimilia and Obviously, about right the AR product as can your close? you. opportunity involvement I So helping you? the standing an push you

Marc Huffman

you. Thank Yeah.

Rimilia the and and question So, from was you it’s is, and U.K.-based a in remember, traction the awareness as yes. To may Rimilia and answer Europe. great services our They’re company educating announcement integral your interesting. market had they strategy to expertise. providing and of

and portfolio for really, more more is Close And there about. was ours. aligned here will And the Process with excited There great were about awareness that we expertise we really a that directly with, strength we’re we we BlackLine successful customer to have overlapped slight so the they in provide Automation and partnerships a brand these assist just ability firms synergies North some that some couple reach, of and and our leading productive really something was draw America the of which really was and clients advisory category better nuance to really it organizations to space. being liked not have to organizations, with. start Alternatively, believe work fact what now them

Chris Merwin

Great. Thanks, Marc.

Marc Huffman

Thank you.

Operator

you. And our, question Bracelin and with our Sandler. comes from go excuse Piper me, Thank Please ahead. Brent last

Hannah Rudoff

today. for Rudoff my Hannah is This on you questions. guys. Hi, taking Brent for Thank

BeyondTheBlack out coming our wanted and How thus to like I is to with of in-person pipeline to prior rates about historical years ask relative rates what far? pipeline First, builds close trending conferences? relative

Mark Partin

to -- marketing we’re pipeline behavior, question. started promising, It’s throughout that’s a been put we’ve -- very around and rates that. of see what that we We QX the at efficient COVID. We are we and and feel was great early of look, the good actually it’s QX of saw a the -- and about a a the in pipeline. into we’ve Yeah. virtual. dialog But, great potential, pipelines lot confident through are the improving spent level close organization Look, in interaction, and sales the analytics and time things front demand and that in consistency better year very the beginning still built

Hannah Rudoff

That’s Great. helpful. then… super And

Mark Partin

Yeah.

Hannah Rudoff

cycle. it like to modernize be could seems there’s opportunity this major the here beginning tremendous clearly, XXXX … the upgrade office really and of back a

of year? wondering, do growth XXXX and that for there was underappreciated going levers So I what the are feel you in you into any excited most

Marc Huffman

well. you. think I said that very you Hannah, Thank

The There’s of a this means just against where about know you, or talked going progress year be is made don’t see excited the are change. -- will people about I excited the equally pandemic a it’s tell we be more tremendous first We’re this are year not. I the Perhaps of I really XXXX about, if that. traditional I can to think so and behalf all I’ve step they’re employees opportunity. think our on in continuation, the unique of of return normal the even guess, to employees that really our return demand were a prepared of together, company. or environment. cycle, operate this a for. though and I the as a we to took improving lot that initiatives Everybody cared we’re XXXX, is have in. rallied We of economic effort model in that making around of customers continue working sure

to great around a built environment we bit an the think plans loyalty place. that. I of that have in we execute They’re demand ready for improving and

Hannah Rudoff

Thank Great. you.

Marc Huffman

Thank you.

Operator

Huffman I session this And turn like for you. CEO, today. back our call Q&A would for Thank the concludes Marc his to remarks. final our to

Marc Huffman

we today. Founder, our and and refer care that of your them. you for joining Therese. take established portfolio run tradition like them, by and to will you thank and I’d was companies appreciate ask of as ongoing We good continue all that into BlackLine Thank to with support to BlackLine really you the you us your remind you of

our business. with year We’re and further during We events forward and excited to look other for driving continuing the you. opportunities Analyst momentum at our Thank investor about discussion the Day transformation this accounting you. in

Operator

and ladies today’s gentlemen, in participation you, conference. for thank your And

now You may disconnect.

BlackLine (BL) 12 Feb 212020 Q4 Earnings call transcript