BL - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the BlackLine Fiscal Year 2021 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 like to turn the conference over to your speaker host, Barry Hutton from The Blueshirt Group. Please go ahead.

Barry Hutton

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

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

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

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

Marc Huffman

a review XXXX in and joining discuss everyone, our Good of us thank performance and team. year excited our record I’m a pleased consistent and QX I’m close XXXX. demand afternoon, QX very plans which from to our and execution with to strong represented for the increasing for you today. results,

our Our our On continue $XXX macro expectations and total over of across up of the earned as a strong revenue million, segments QX year. all existing demand new digital to from XX% we our level, to both back-office in include performance better plan customers as prior against global see and of dollar came areas In increase ahead our customers expansion three levels we focus transformation. quarter customer continued to our we to and products, rate customer result. few growing success, from priorities, our for go-to-market and success highlights pleased finished renewal XX%, innovation our the demand largely year We XXX%. A from growth. of rate these were execute strong at this the from existing platform our QX, teams. climb and see three and our invest in and presence. strategic in outlined continue our engagement international in the and the growth strong significant business. in was customer customers investments serve front retention to continued our of invest driven a drive We previously execution opportunity long-term of us by to to with net The We markets

revenue. of record, Intercompany partnership range. which new XX% with finished end partnership a SolEx for and one of Hub quarter, Sales at which revenue up Our XXXX, of matching since launch the sales from the strongest strategic its total well our quarters of above the in products, automation, SAP total XXXX. year SAP XX% At our transaction made the include finished our accounts receivable and expected was

in Sales ramp of pleased into our XXXX. are continued help revenue the growth to partnership’s pace the APAC We in with its quarter. EMEA and and going drive momentum

a from and year-end up go-to-market As This reached total capacity. year our resulted investment ecosystem international XXXX, of business, XX% revenue of increased ago. our partner accelerated share in XX% global from

the us further helped global and SAP acquisition in and the existing we Rimilia late partnership completed Additionally, new penetrate XXXX both markets.

complexity International accounts following. partnership. the to Some receivable replaced compliance. in the deals a quarter, manual This accounting audit examples automate fourth include also BlackLine in In of spreadsheet-based were large global their company EMEA them we multinational and competitor looking help through Select added a processes to deal and SolEx SolEx the beverage managing remove They solution.

media has exciting leveraged since help multibillion-dollar and existing This close enterprise the advertising entry journal fourth came been customer. process. quarter close an BlackLine and accelerate has suite financial automate financial their from conglomerate global a customer their Another deal and XXXX, to

than quarter, they application their and with adding visibility improve by scaled BlackLine unapplied much-needed AR deployment to This cash the platform ever Today, intelligence cash before. capabilities across and aggregated units business provide customers we our more provide levels.

public included scale deployment. product and cloud priorities XXXX modernization Our platform

our management strategic We’ve indispensable We mobile solutions, has market, pace focus a is office. customer-focused just bringing are closed in and also few. heightened and believe excellence, enhancements We as focused recently to our more controller’s important adoption an and solutions market, us products to view new of that journals quality, offer continue will made functionality measures partner this operational AR user platform to complete name as and the controls, suite and customers acquisition a financial as position to why innovation have uptime. expanded of upgraded a our platform. a user we such operations an existing security XXXX, In on leadership an in experience of were in interface, driven the that such a on we

we suite and risk well enhanced accounts provides as receivable platform. AR deductions traditional along management dispute with as quarter, This our Intelligence. cash automation, announced management management, the automation During management, and collections credit

AR XXXX and the The pipeline, year. million customer the the companies strong capabilities. timeliness our sales. strategies. I’ll product which XQ, company relevance this is in of important of billion more help which platform record example intercompany that complexity XQ, receivable projected we financial a our $XX acquisition automation to govern and in platform, multinational just of demand quarter represents by have end contributed of will apply we another our global our marketing to representing an January, the design moment. management and acquisition payments apply announced tax With sales global a expanded million expansion In of reduce this of $X.X accounts and intercompany As events drew $X scale and and discuss in payments logistics

customer on accelerate will will an control BlackLine finance companies believe management solution collaborating processes. activities financial critical Microsoft, accounting. part Google’s enterprise-sized further financial Through And to and As with This enhanced enable help and better connectivity customer the platform. our conduct such platform, digital we offer to partnerships accelerate our integration. joint of experience formed agreement better finance also expansion over designed are with selling secure partnership our receivable accounting transformation. a joint our cloud integration we to deploy this selling developing their built and partnership customers close, as actions areas recently, customers agreement and accounts Notably, operations with transformation solutions modern go-to-market journey on to announced Google strategic to we and we’ve and to of their help intercompany mid-market gain and

and more to result, customer able processes customers will to year, accounting offer to easily resources and manual we and automate strategic free success. data a capacity up do our work. traditional integrate continued to to As more emphasize Last be time commitment

to all of activities year, for financial we and largest several them guide the unique of transformation. some our the their events world hosted path the in on During including customers, X,XXX-plus to enterprises

matter they customers like experts are provide accruals, experts accounting. and methods leading offer a to optimization in done expertise coaching one-to-one end-to-end processes customers name to adoption automation. just few. where Both clearing, subject This to with sub-ledgers, BlackLine is to session workshops. adopt their and one-to-many automate and and journey amortization, Our modern meet suspense path accounting a through greater deep accounting These practices and help

use a our retention higher Our customer of resulting success products. adoption, strategic program ensures rates of and platform in expanded greater

greatest attendees of regulations trade is interest customer see market management financial for prospects. drew And intercompany management. days event increasing the years educational sessions engagement our and customers. customer of Of of attractive resonated M&A, we’ve success. intercompany previous customer an over the current power thousands platform level of trends, in Hub content significant we XX,XXX prove to conference large from during which customers just only begun market our digital note, our opportunities tax and our than increased Intercompany ago solution valuable our with we user November. hosted over and virtual five management, to focus in over area. Xx reach very level in through on X,XXX large had year. Intercompany is conference to which of were complex attendees BeyondTheBlack, total which the prospects year’s both This intercompany to provide organizations, management to further this transactions. transformation, our by evolving Yet the We financial This create especially volumes excited and three and provided solutions product the global interest our more individuals the session, operations and addressable of in was launched in One vision of customers for annual driven with representing BlackLine. The conference financial financial participation

several part And building Over this the continued evolve. quarters, market in years, our the we’ve business. in of the past seen to has momentum recent

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made back initiatives. XXXX, with the strategic As I look our pleased progress I’m on we on

market, move excited in our our the confident trends to ability into the I’m very recent our and I’m about execute positioning. we As in XXXX, and team,

transformation in and back of we digital seeing a office innings demand for are the early are growing the the We expand. across to large market, continue

remain to We serve multiyear committed to to growth and business our customers, to our outlook and turn support Partin XXXX. focus drive as expanding be sustainable continue a market financial growth the advancing I’ll our accelerate markets and leader. to BlackLine’s in for to discuss scale financial will reach. Mark position our to executing Our strategy long-term over performance our now it combined our

Mark Partin

and Marc, afternoon, good you, Thank everyone.

finished year of a As opportunity with and Marc pleased year. solid performance, about XXXX feel are mentioned, how good for was the our we very beyond. we XXXX we and

our business plan and financial During execute QX, on key strong we and business continued generated metrics. to results across

of For the by our total the the XXXX. international ability compared our our and expansion fourth XX% total grew million. Led partners quarter, customers. to of productivity revenue in In year to deals, to continued the existing to close strategic $XXX XX% further success grew of ongoing large markets, million, and revenue XXXX, $XXX representing fourth quarter our sustained full growth

trend adopt help for X,XXX product margin our partners to to signing record were revenue, total SAP XXX addition, the earlier, of to XX% from subscription net comments number new of and prior leveraging gross the showed in XX% customers up positive year, customers solution In XX%. enterprise the the portfolio. this deals Marc’s by reduce showcasing revenue strategic In our market XX% strength margin to the a the the by their was with bringing our partnership large our of our non-GAAP overall the deals quarter, added that we quarter operational And in We in challenges. include, maintaining XX% in QX, Partners relationship. totaled of of power from gross continue involved valuable our highlights quarter, large ecosystem. new was in partner and of

We operating to in our were and We year, the margins For was is in our the sales QX, as by and to million. cash transition the approximately investments and $X.X million cash resulting Google as gross range free investments which ramping XX%, of billion service In total increased related we securities. $XX.X flow. and and a onetime and cancellation within attributable the cash targeted of in gross year income full Net success margin flow the non-GAAP reflects income targeted activities. and subscription ramp BlackLine generated to generated XX%, our ongoing finished net in events impacted customers customer charge well $XX.X equivalents from in pandemic. million our marketing was $X.X with marketable the of Cloud

have Over we our areas acquisition. Rimilia leverage customer success, earned while was of net our product net from technology, consistently the In increasing years, integrating across this achieved road an in improved XXXX. map past achieving all We investments XXXX, increase several we X%, a the income margin our above strategic which operating business. X% and in non-GAAP income,

favorable the CFO rate opportunity This to market offers saw to invest we leadership our environment advancing XXXX, and accelerating and unique our a the momentum. long-term across for revenue in environment of During digital us office growth position. build continue accelerate transformation the demand

in Given we opportunity our to and The integration material, it team, public the be to the to of recent but investments make to investments XXXX as we front is ramp in acquisition. our intend market impact the of not us, cloud year our the dilutive margins expected of be FourQ in support overall overall revenue to go-to-market integration. in our our targeted will infrastructure

point We by annual expecting guidance develops. XXXX. at us includes business to loss and of a travel of And the our modeling uncertain globally, in the this its related flexibility year while increases, expenses net tax remains appropriate investments, and normal return reset in the in-person events dilutive acquisition costs. as impact are in The the plus driven step-up this FourQ overall annual the cost ramping salary events, operating payroll QX see and kickoff the gives from

we on and margin top as We the throughout execute expect generate operating to additional line. leverage the year

to now Turning guidance.

GAAP in first quarter Our the revenue XXXX. $XXX representing is growth expectations million to of first expected for $XXX million, quarter the of to be include: range XX% to to XXXX Total XX% the of compared

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

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

million, of growth XXXX, million representing For the year in $XXX total the full the to full to to expect we XX% range XXXX. GAAP revenue XX% $XXX compared year

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

approximately their more shares. and strong to as XX effort and Our continue and employees BlackLine their for healthy year be count closing, in hard want see to XXXX. average had share transformation. million work demand office finish diluted I digital the invest more our In and a We companies customer all scale will in to weighted thank back

continue customers platform journey to to acquisition. our that FourQ our We’re excited support by with in expanding

confidence we and platform on us. customer opportunity strong our XXXX, build and strategically attractive invest as momentum the into market pursue to innovation, long-term demand in gives to leadership our growth front our head in growth of we continue As our us the

ask open the the discussion, we I’ll your to and can Now take questions. operator

Operator

Instructions] Now Blair. [Operator Stotler line from question first the of with coming the William Matt

Your line is open.

Matt Stotler

with to customers, stakeholders, how in but for just interesting there FourQ like and are contribute cetera, would maybe have into the in Thanks process, to guess, et in. or some very to to offered I ICH. relatively would that Obviously, a what gradual ICH the that previously kind the of expect given some ramp little been taking it terms but has then the like you value-add And high obviously, key has additive first, the to dig bit of mentioned sales you had more. specific things time, you going over of that gradual meant capabilities questions. acquisition been of number kind terms how FourQ with the maybe understand the of of there for would And kind I of maybe you value layer things better is complements ICH additive forward? replace

Marc Huffman

ago the a just very hence remediate is the broadly, great to of investment in our broken simplify and I’ll large for Matt. us, We It’s value large. closely BlackLine to that strategic of TAM a greenfield Thanks question, accounting intercompany they still identify complex, sort very, space. transactions. the manually. years intercompany then very some are several challenge it’s believe it’s you and accounting. we them, complex is transactions on started accounting. really or Hub. world. coupled what largest, start opposite landscapes Yes. Those it, close maybe in that transactions and of in a and very Intercompany And created in the referencing that most at of go additive the the of the it end of were, To do done planning balance financial in creation helped got let’s call out the FourQ of the side lot

tax landscape think has accounting these close. on transfer entire and highly of the pricing in remediating are you on creation focused they we focusing beneficiaries implications, foreign the through significant upstream complementary, those about concerns, exchange of as this of them, significant really complex completing our identifying the be regulatory customers significant that two planning transactions So and that the things the were will implications, flow we think And future. are transactions, this process, and

Matt Stotler

other all down That’s little took I gross there’s going margins know a I And on of quarter. the and through Subscription move a about helpful. should there, from another step in on get that on the and appreciate that. a move things especially some of us an gross And update on there. to just how Mark we as color bunch just an one for – with super maybe XXXX? Maybe think margins. of dynamics then bit refresh we GCP investment touch the new perspective, the

Mark Partin

Yes. Yes, thanks.

X where X quarter has direction that’s that we that in Google the company investment customer We see investing our with mix product the to base. In at were to was a moves Our Cloud gross Google XX it think Cloud, We’ll related trending investments XX we our confidence similar ramping and in our for to related months. ability few point forward. the and impact our a as to in that in been back our really the year migration, customer our effort team of service we margin finished talking XX-plus that’s finished that the about about think two to and margin return percent. then the up those XXXX quarters, XX% to and a believe that longer-term in We’ve success similarly been another and impact in things. to well-received gross

Matt Stotler

Very helpful. again. Thanks

Operator

coming question next of Matt BTIG. the Our with from line VanVliet

Your line open. is

Matt VanVliet

you Yes. what us I that help guidance? then first, Thanks question. the the for guess, I year? building Mark kind the taking to is of, on expected revenue over can for compression FourQ margins that And much understand Partin, contribution have guess you’re the is of how into

Mark Partin

Yes.

between dilutive that and to in the and estimate And as for The by range as the feel we’ve included in at X in revenue, guidance confident business. very So the the company will full as guidance January. I’ll early the We with year. in saying XXXX. be overall impact and philosophy that to our points. of invest closed X execute it bottom this we our was the Impact it integrate we see FourQ, start year We’ll line, QX through what past. for can start to XXXX we consistent transaction in that done is

Matt VanVliet

success going of continuing in see lot a returns of the Are you you and Okay. additional team you that investment growth, a final years the do the maybe growth know in where with at the to saw investments direct partnerships Helpful. like now quarter? made cycle? fourth expanding terms we still overall and forward? last at international look the continuing of the a And you’re both self-fund lot Are in point of couple up investment feel point the the Where I a then of at of there. go-to-market as you to to sort year growth from ramp the we

Mark Partin

is that’s levels. are really get and and areas that for XX overall our last EMEA to lever the been back markets of lagged started then consistent International drive growth. It’s growth XX the driving consultants SAP operate about business the but APAC, the today, the Major coming it we’ve partner been U.S. one the markets. our those months in where in excited of with that of like pandemic, slightly, pre-pandemic has out helping to Yes. to a we ecosystem, some really

time our after Our in is that period a investments on starting to come now online. of Japan early partnership

there, keep to And will think we we So continue therefore, to to those opportunity markets there’s the us. keep that great continues we’ll and and in accelerating. driving invest return be for

in fact, markets investment sales our of XXXX, In of and us see. around marketing growth that in to is in invest for the into one demand we areas international that major capacity and

Matt VanVliet

Thanks questions. the All right. for Great. taking

Operator

coming is Myers question next Joe Our with line Truist. the of from

open. line is Your

Joe Myers

are much with question. just with hiring wondering the sequentially? currently was Thanks tough broadly, And you increased the you quarter, guys environment. if that across investment in the then hiring I XXX grew more initiative how your And Last so guys that engagement noted here, was headcount. in doing taking customer company the above team for

Marc Huffman

with we And in people learn in the reflect continue invest very you. our Thank investing an product area retention Yes. strategic usage there. our areas. result the so success that was net get strategic invest, it particular growth, having in And really going account rate metrics, this quarter, continue revenue we’ll customer about strong near-term better important performance will and cases and additional how retention those to a think we bid. use the back should it’s start hiring Obviously, of and future the operational products. affect to it’s I’ll the to we’re

great not immune – we hiring – overall as the we’re were resignation. we As to goes, believe far I

many than companies. better fared we think I However,

in headcount and that very us. brand we grew are the that I Our through that our seeing we’re on as accelerating we end demand right strength to the year, last now. Overall, hit about XX%. plan tail capitalize for environment the by the we believe of culture, And year, our investments

Joe Myers

helpful, acceleration. the especially super the That’s color on

that. question in to of the about and plan us the that expand of strategy you be EMEA? for the thanks What’s expand Kind similar more presence game that or from So your APAC plan? remind game how used international. Can may you’ve to in just different

Marc Huffman

Japan. the We’ve customer SolEx, with we usage, in leadership that’s it’s seeing and bring include we’ve It’s drive in performant that but in products. leadership, in region of we’re with not land and Asia benefit playbook, strategy the our dissimilar of help like in which the for accelerating, going locations the a Pacific, is success now we’ve us that our which in and is if investing initiatives, we’re should enhanced drag And very growth progress obviously in things to our added include and used the then exception I utilizing with in proven in the pleased pleased that modern in partnership EMEA expand overall accounting really, strategic international a areas. of some motions, Japan investments the there, scale, and terms a us really recently those tail business the growth performance – in we’re APAC mix that to that think mentioned,

Joe Myers

Excellent.

Operator

with Alex Sklar of James. And the our line next Raymond question from coming

open. line Your is

Alex Sklar

X as haircut? of to Partin, had deferred Mark X revenue Great. points that questions on well. first, does couple a I revenue Thanks. contribution of FourQ factor

Mark Partin

It what that we X does. in the impact our we impact guide, we the stage at points It put what number. to in think will think X factors year, this in be the in

Alex Sklar

way FourQ opportunity you of of the like that seems more a Okay. financial you’re Great. can of you Can financial about of expectations product growth Hoffman, and solution describing period. outside rate outside close kind then help traditional talk kind really And broadly that it’s FourQ? controllership then for the Marc were the close

Marc Huffman

excited can about I’m Well, I first opportunity. you hope sense of the all,

of provide space existing of orders they feedback. really, them itself, are and in who opportunities, Hub confused might with we great pipeline we’ve starting the much been The were, large offerings how – offerings traditionally and very these the just we are what see our with these the areas. Intercompany through we that and an complementary help some organizations with what fact again, can aware Just be strategic and finding that high-risk versus their suffer really FourQ how people that getting come of to

So – highly scalable customers but understand ambitious and and and will the space. a the it we to through intercompany seamless really plans, have for of I time the would remediation leverages work take value say, create solution the side side that joint communicate the creating I our that experience both entire of plan

Alex Sklar

you. Great. Okay. Thank

Operator

from DeGasperi coming line Our next question Berenberg with Andrew Capital.

is Your line open.

Unidentified Analyst

Hi. This taking is [indiscernible] on for Andrew. Thanks for our questions.

as cloud-based on ERP that the of relationship even to particularly execute to its further company its So we room solution? continues with are wondering if improve, for SAP is there rollout

Marc Huffman

trouble a were Well, the we having with little audio.

So getting questions right. this I I’m regarding The SolEx. SAP hope and

for is revenue. had expansion, relationship greater which growth our best our in the since that driving the that performance performant of Adds benefit international quarters the a seen of we’ve for us. engine us we’ve One and highly to accelerating is some share inception,

strong customer it also quarter. has other that, which to the strong addition had the a led some to In larger then was quarter back of that add of contribution, big of attribute And the net deal on in the strength we SolEx. a is

relationship now. So us right highly performant for

Unidentified Analyst

Okay. Thanks.

connectivity the issues. about Sorry

Operator

Beck KeyBanc. of question line And our Josh the coming next from with

open. line Your

Unidentified Analyst

and trends you’re my for of type I Thanks year about sales for on then This macro Modeling-wise, a question thinking guidance? follow-up. you’re into what the and and throughout couple embedding a is XXXX? wanted Josh. have I And Maddie how taking NRR to cycle then assumptions know

Mark Partin

you. Thank Yes. Right.

across now take space. And and back, heading our and start the of macro pipeline of we the are environment. step question a in that around first demand positive in conversations curve latter of that we me six into sort in see with really the XXXX, our quarters strength seen our – on see the demand part – to global markets. We we have demand we believe Let our just that that increasing is continuing the sorry, that

practical, level to we’ve similarly. philosophy visibility range guidance be pragmatic a within been of that to always able And Our has done high guide. on and execute we within through want execute that year the the that then

your think sales quicker expected. strategic strong user We the rate, record bit with record our dollar-based retention momentum. the base than about from I really which revenue question a we base, and of pleased net is got our even sales really were into accelerated that second actually fourth of We had strong our quarter. uplift products our was into

Our investments customer and view team. the team that in and the account is go-to-market engagement efforts management the and success our

Our that us inside be product retention rate. net and that dollar profile portfolio more raise the a of renewal ever with had And built rate of our to levers all retention XX%, drive continuing customers that of high we’ve of expansion XX%. rate gives to on than a

we to it where think move the up. we we prior invest we our move so and above we And – to are as forward, goal drive it rate. can pandemic, is up that continue to was And to

Unidentified Analyst

between office describe digital Awesome. the mid-market environment And yes, just back a and about pre-COVID customers? transformation my for compared to follow-up, enterprise levels, could specifically bit you demand

Marc Huffman

now demand a quarter, very in QX, the believe that primarily demand because demand large like initiatives it’s our and That’s environment. I strong. of larger our why performant us are excited record And for believe increasing the of flowing as quarters exceeding were been mid-market about very all were is our the pandemic acquisition most it in quarter, again, we and which we I levels. the talking six it’s us focus we’re of incremental opportunity Yes, ahead And nature had systems. and about XXXX. on organizations in of resonating this our our deliverables of as as as through well messaging increasingly environment things well in intercompany, a where in in an

Unidentified Analyst

here. you has I been so of far kind if last AR acquisition? are one one just And reception market And could the sneak seeing with what in Rimilia on automation? What the synergies

Marc Huffman

the the in on reason above we strategic question. it’s I other usually the that that that, some products end asking expect. had with to for all AR very performant. excitement of appreciate great of high Yes, automation performance forgot that well you range we we touch in QX, the

we’re leading that cross-sell It’s significant that starting also So of the pleased BlackLine QX. within drive that’s enterprise to and mid-market is with large the year, the installed especially it’s new also customer indication organizations. great in leading creating base. lands and performance we’re for It the customer the pretty to in of to it’s And segments. business seeing value volumes in transaction a

Unidentified Analyst

you. Very Thank helpful.

Operator

question the with Sandler. Bracelin Brent line Our next from of Piper coming [ph]

Your open. line is

Mauro Molina

Brent. Thanks for here. this Mauro taking our Hi, for on questions is

kind the of kind then those going And this on maybe then And one we pace initiatives year? fronts? we investing what some So one on get is your bit It saw to out that more I’ll investment quarter. of be rest really ramp-up stood would you’re a a in thing and color spend of of – behind that expect helpful what here should into the R&D during what of follow-up. the go-to-market have

Mark Partin

pick the then R&D to of out talked Right. Yes. year, And our through QX about QX, we into described sales into sales up, started move it into investments, question. saw in Thanks to demand speak. as business and move you’re QX this that for speaking then included in and we the made increasing of we decline the arrow, year guide. and And put hiring demand. of as choice in the we the as a marketing we and areas international And as and being the that capacity, the including is capacity globe, to behind ramped it’s we around flat so to customer-facing we’ve in all we during and And in hiring it, wood as it QX. our hit, teams. our investment sales accelerate pandemic and When hold were more we the the U.S. inclined started some

and made we’ve investments in Cloud Google the Additionally, efforts the migration. into R&D

investments those into of and will All on continue track those XXXX.

Mauro Molina

products, from is norm? to should just strategic And to see expect it as of revenue a a from to And we see deviation the of that to is that Got Thanks. forward? it. trend that wondering, quite to it signal over Or it’s Yes, notable that’s of continue give what then relates the mix. a more XX% the we’re you’d jump up helpful. expect going

Mark Partin

so operated spike three the of been AR performance, when It you a certainly the we’ve indicative that it’s seeing in the and have Well, four performance transaction range is Right. when all intercompany. in products of quarter at above of record that been discussing. kind record we’ve demand matching what the environment

that up our the the products year, sales the strategic year. prior prior were ranged year, the up from was from For XX% – approximately of full

our and to are expect, will we’re annual these continue would an basis we Those investments it portfolio. basis, But a will the that into making business that quarterly So into on that on vary. increase.

Operator

with next our Morgan. J.P. question Pinjalim the Bora of coming And line from

Your open. is line

Pinjalim Bora

from feedback the opportunity good I partnership? customers? dig into that on Microsoft you’re the It what investors a hearing partnership, And hear. in quarter. Congrats around I how any quarter from like this should to about wanted bookings Great. seems the preliminary think

Marc Huffman

made. It’s a real recent announcement we’ve that

complex a round couple next as a primarily too companies we well, landscape. think attention enterprise the announced very further to better to systems to in similar or on It Microsoft pay great in and have allow in the something and synergies and that expect space. accounting the us of to sort arrangements, technology year ERP of landscape. develop early, should I divisions traction, impact as mid-market reach and but It’s Microsoft that performance we continues quarters, to partnership enterprise material way be allow will of will interoperate the also I our don’t it also in focused our We Google things, that brand companies. technology subsidiaries co-selling and

Pinjalim Bora

Yes. Understood.

for that. Okay, you thank

part there that NRR. a layered in of of Could have to on now. was customers? spend I to saw Rimilia anything that, is, effect terms top a lapped the you Is there kind being any as you NRR? Rimilia, sequential fold, since the of maybe remember on Another second guess, it question parse the uptick. from And you from normalization nice tailwind We of existing of through

Mark Partin

didn’t and I sorry, of that we’ve that XXX% we we’re And quarters, dropped I’m success buy of about had really When hear rate. The XXX% prior making get down. to last uptake then into back that were are to drivers three the retention talk that into the increases to the where products. account are. for last and of our to question, – focused our the sequential investments journey that pandemic customer quarters the strategic teams on me management are we and but the at our customers’ several drivers pandemic, to around let

of the so that growth that’s And levers needle. been moving one great that’s

on price the Another is of a rate, we’ve base. global high all had renewal customer price that also very rollouts year, have a every also coming annual have expansion base. And lever, record within customer one now our increases couple then we quarters of of enterprise. a higher our user from particularly within And we in

driver that’s so the some the been will And so uplift. continue and with us products be also strategic giving to

Pinjalim Bora

it. Got

have is The bad the or going question that misheard net kind other any part does I good you think Rimilia. that or layer retention into forward? of Rimilia didn’t hear effect? of Wouldn’t And

Mark Partin

what in part so we the rate driving that’s in become from with now quarter, being of Rimilia. being cash beyond, we can performance you into of that solution see Yes, and question. and happened. a it. into numbers heard has comp and base, impact about And we in saw and in growth fourth our sold bought right. and we calculated is we portfolio now retention year-over-year. AR acquisition, – that’s Great strategic this BlackLine’s were you the the talked the and much When second company, that And year pretty in and has record are QX Rimilia that gets the the part Yes. Rimilia that the lapped I our first that automation

Pinjalim Bora

Understood.

you. Thank Okay.

Operator

of from line Ikeda question Koji Bank of And our coming with America. next the

Your open. line is

Unidentified Analyst

Tameka Thanks taking increases? for you. were mid-market [ph] finance more color on Koji. as for Hi, what international automation gain out the on and question. and you’re hoping for landscape, We is seeing competitive our to specifically this Thank there, demand

Marc Huffman

change material in. they’re you. we primarily, environments companies that competitive But working see. that to takeaways it’s manual some that level We off Thank perform. No unsustainable landscape of still in to spreadsheet-based we’re and see continue or able competitive coming the

the leader of intercompany is A capabilities. category. We capabilities continue expanding likely lot platform. us capabilities We accruing the in focus I market anyone to else value The moat, believe, is AR in feel our our more space. demand us our filling the on although many now the And gives our of expands than enhanced the like to capabilities, as boats.

Unidentified Analyst

you. Thank

Marc Huffman

you. Thank

Operator

Oliver next from Baird. with our And coming of question Rob line the

open. is line Your

Shrenik Kothari

This is Shrenik Hey, Rob. for thanks. on

So following I mid-market. question had on – on a the just

of around really wanted just gaining a kind Just going MAP, sense product of that. really the What’s color not? get it’s So traction. to What’s some where well?

Marc Huffman

believe to of only getting well with customer Yes. I we continued and It’s well-warned a year landscape, value to approach, our the of sales. to from expansion. a last a Mid-market them companies delivers is into drive modern driven of but accounting by of accounting controllers want on leadership customers cases feedback very best in it put specific their very we’re value are it’s who pervasive performant the use visibility the executed was path mid-market great not playbook. believe and automation quarter. delivery to path CFOs and it them. quick lot and for efficacy great that time our It’s the new for the a on very use The a land cases in creating being mid-market

Shrenik Kothari

Thanks. one it. follow-up helpful. on Got quick Really And SAP. just

typical came XX%, higher contribution SAP super of your strong. is So the international in at range end at

to – pipeline. So the are a just wanted the kind SAP, around get regarding drivers sense of what of

related some so of of transformation as are to We digital kind and just forth. type opposed to deals budget bigger accounting seeing

Mark Partin

in part the partnership, the about old. where about deals, And SAP have years a to partnership off markets start that great which really project, bringing lifetime digital in and validate not SolEx of a off. because SolEx the at of and of with without which level, but traction strategic partner drivers on programs can in high ago and them continued SAP think now operate that was training from your efforts and program, markets three transformation the I large where that long-term has are value sometimes saw as We the strategic most time sometimes initiative outside a paid sales with our I QX, is direct a a reseller from we have trend a the on year success and traction just trend we customers gives believe and us great a question global partnership Sure. those efforts continuation seen them. in in that of really would The very RISE the not we us. customer. operate we to is us a customer SAP

believe been best, and XXXX. So quarter can into has our of one we SAP continue trend this that with fourth

Shrenik Kothari

Got a it. Appreciate lot. it, thanks

Operator

further any back like to this showing questions not now to remarks. time. I turn over would I’m any at call Huffman closing Mr. the for

Marc Huffman

attending and interest you your all of today thank and for support We BlackLine.

all to who record pleased great our follow of very refer like help a you vision we’ll you to results and the see soon. we share encourage Thank the a us them clients and portfolio for us by founder to quarter We’re set experience. future and the precedent you our can so and continue give your –

Operator

participation. conference Thank for your for today. you gentlemen, and that Ladies our does conclude

You disconnect. now may

BlackLine (BL) 11 Feb 222021 Q4 Earnings call transcript