BL - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the First Quarter 2022 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] Please be advised that today's conference is being recorded. [Operator Instructions]. to Barry conference Hutton like speaker to now today, for you would turn over the your I may begin.

Barry Hutton

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

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

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

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

Marc Huffman

and the with everyone you great today. kicked us solid off I'm afternoon, pleased consistent Good results. our We and a with and thank year execution joining for quarter

directly to And alongside and points our to our of to fundamentally than tasks. the ever, and and manual exciting the The combination with are Our environment year-over-year our which XXXX in validates marking million, $XXX this robust growth the ongoing path a macro BlackLine. continued QX revenue we in control automate what last on believe and we goals financial our acceleration for the spend. We performance to market saw accounting and BlackLine of and to ahead our controller. for towards top operating bring as up software acceleration proven is automating relying solve, markets their XX% transformations At expectations, modernizing demand investment these growth grow leader further opportunity office industries as many still we addressable continues for Today the to significant transformation line of serve from an healthy customers is back quarter. across opportunity office billion on total quarter the strong departments ahead our the plus from was an was our executing turn work transparency a operations. team $XX accounting demand as in industry QX to time-consuming and in us drive goals. benefit ability long-term and as to global digital accounting stand We greater level, believe for execute greater

results down drilling on success out on see software; call: growth sharing our first, continue our and seeing cover I'll the third, longer-term they're key automation our about the our and areas approach and customers in with what reflects the made investments into thus QX momentum. intercompany encouraged and update BlackLine QX efficiency, performance; strong more as customer our an grow far Our teams that and and choose second, drove we're three our we've to engagement acquisition highlights to FourQ success opportunity. play we momentum and our invest our why today's from quarter on to

Turning now highlights. QX to our

our into from earlier XXX%, versus Our sizes deal QX size continuing the increased we average in quarter. up a rollouts. deal XXXX. expansion QX $XXX BlackLine by strength trend high additional XXX% XXX,XXX to transformation all this rates and saw as QX, million, also average QX mentioned in of QX up the trends, as with was larger customers We as healthy total revenue in our uptick multi-quarter industries I digital demonstrates geographies drove last which XXX,XXX quarter, strategic deployments across and believe prior saw we growth that my the retention products footprint as a was products a XXXX resiliency rate and what more Customer driven to global a expansion BlackLine their of business as environment rest of customer inherent head net see expansive size greater we our of to in This well beyond. user of into and in The XX% reflects higher year scale macroeconomic and the our potentially remarks. revenue uptake in from level renewal uncertain continued to up

highly our achieved of this and playbook an best native a technology, optimized with library notably us. QX start week, companies cloud success strong And solid or X,XXX allowing mid-market saw FourQ. healthy companies, realize Modern growth available to Accounting about customer customer for applying lever new accounting total and our in for reduce intercompany so intercompany and make MAP We has note company pre-configured of implementation Playbook combination a acquisition short model, the helped mid-market our in our mid-market approaching healthy drastically customers. our just time more I'm and to to Asia to accelerate growth across BlackLine them performance Pacific. templates the in amount strong growth Mid-market EMEA and in continues quarter, moment. pleased products By that of delivery midsized and a We're execution here following I'll momentum can to quarterly MAP a great move we also speak and as encouraged, We times again now saw value our a and teams. and serve strategic a and go-to-market a accelerated value. time. modern are last the FourQ our from to larger we performance made we're the of logos, excited in off We saw enterprise in both in history. nearly strategy highest practices by intercompany mid-market

strong employees across here upsell strong environment products adding and new Solid of leadership Hub products in at was higher quarter. execution increase to drove and Intercompany the year-over-year. in FourQ And already both hiring XXX both we representing BlackLine, a uptake what XX% strategic a finally, quarter in experienced record for demand and QX a customers

Our ability to and of we gives topline investment priorities look our accelerate hiring year. the new ahead in growth our as while onboarding confidence to in BlackLiners the rest

some share a some I've wanted directly and themes, Before to we take moment into of customer our stories, the heard of recurring customers. you from our with I go

what a that replace all We in the like inefficient offer. deploying remember seeing these are immediate to we accounting BlackLine the manual can highlighting see systems legacy opportunity highly tremendous customers and modern customers don't for to These solution important love realize BlackLine customers greenfield it's most of at front Excel. as have First, part are that the us. benefit

and and visibility complexity multiple immensely BlackLine play customers that customers BlackLine processes these enables Second, makes value transformation our transparency and into whether in digital special, to in and customers being processes on return due close simplifying increased this end-to-end data automate that to trends, of hear systems. to consistency time greater is the from experience field. the greatly and sense manual across quickly accounting this days of all quick The and at their great investments Hours customers We complex saved the resignation departments we and automation across or that they products dynamics lastly, able and again control to saw BlackLine. efficiently our of ongoing quarter. time fragmented the unified close a three valuable visibility them valuable their control offers hear and historic with and systems, in And we transparency process. accounting make providing and

at this reconciliations, than accounting to chose increase deploying brought our BlackLine QX, expanding X,XXX recently automated the company customer launched initially their successful an Incredibly, faster their companies, pilot corporate primarily scale. to reconciliation on everyone footprint more truly For automation. their footprint solution was this cost a example, from tremendously one we at processes. where saving technology largest The of seeing And manual immense world's achieved in this and further BlackLine relying XX% the enterprise-wide to time users, after department. BlackLine pilot and BlackLine in

customer and in expenses in total a their controls operating governance insurance intercompany targeted which entire This a provider Another in with requires transformation their processes processes, is the and deeply governance, chosen we BlackLine. expand we to we covers better legal global they BlackLine grew manual journey footprint strict sold around BlackLine their well company global system, on a entrenched with customer, Since this deployment states globally automates of dramatically QX and something as as now to all covering controls uniquely started When BPO non-trade across their intercompany, service and problem their built shared naturally large billing. technology XXX-plus strategy, deliver. for then drives which company intercompany standardizes with the intercompany they've BlackLine financial believe been positioned entities. has first again intercompany solution and

the BlackLine fully previously, agricultural in material an one finance take improved tremendous accounting journey food And in And yields customer, the deploying QX their cost making deploying this saw BlackLine finally, it automating decision in entries. organization accounting reduction and of and this in manual and and to clear place. reconciliations volume transaction their accounting workload of data via Additionally, with BlackLine built modern reporting largest one chose their XX% companies the we customer matching. rolled a internal in BlackLine out savings, tax saw distribution by Having next their value reconciliations win. existing across world, by their a step all better customer with investment modern

brief strategy. our intercompany a update to and turn FourQ now on Let's

call warm family. wanted last moment and this that employees announced a on acquired FourQ and have in I FourQ BlackLine the once we offer we joined January the on welcome again As a take closed to XXXX. to quarter,

enhance of accelerating is and finance accounting. automation Our goal and our with plan long-term capabilities existing driving by automation and transforming simple intercompany manual for modernizing processes larger accounting end-to-end FourQ BlackLine's

business not, increasingly I'm pleased processes models I've cost, unnecessary new strong to but capital for As significant believe we using performance scrutiny global and are complex and companies it's working close, the QX in most higher opportunities. record manual and still to risks into their repetitive in transformation compliance demand results encouraged manage than this ever as that quarter. intercompany is legacy saw miss business with noted QX. intercompany I'm and exposing to Intercompany are before, hard regulatory headed tax momentum intercompany, challenges our the by To with and

As strong transformation global demand still longer a much I the ahead office. of clear term, back growing large that dynamic for innings digital very the we're with it's early across and look in market,

market advanced our customers, and BlackLine's efforts. and and As always, innovation long-term our committed over so, do customer to in relentlessly our into financial success to and I'll we growth executing now and will our performance Partin, focus remain leader. goals growth turn go-to-market as fuel to Mark our multiyear to our the discuss to strategy position continue it on focus outlook. we product as be And drive to serve durable

Mark Partin

Thank you, Marc, and everyone. good afternoon

with of and strength products existing key strong BlackLine, QX for healthy mentioned, solid from execution We uptake consistent accounts, on in another global continued was demand customer initiatives. expansion FourQ. performance As continued saw Marc markets, quarter and customer growth in strategic

to the to XXXX, representing million growing to results and $XXX last $XXX some QX. to first now of revenue compared revenue Turning with highlights XX% the XX% year. up Total of subscription million, quarter key growth grew for to compared

up-selling customers healthy QX, in within were large expected Hub products bringing of Partners own and and well as We XX% XX customer sales X,XXX. customers performed had net Strategic solid our in Intercompany new of QX in XQ involved continue additions count and well to record as aided with at with QX sales last XX% consistent We new both to XX% by uptake add from total and ongoing showcases investment execution. This overall customer subscription our team was further driven within of range by provide performance. year. deals, our SAP activity remained were Google intercompany our continues transition expectations success ecosystem, gross to power continued margin In of Revenue the Cloud, was our lever XX% in partner the representing which the initiatives. of XX%, non-GAAP growth in an steady our and our our partnership of revenue that valuable in penetration. additional QX, enterprise driving QX. reflect increased was and margin ramping gross to they

increased meet innovation revenue expenses by prior and the driving greater demand the versus and stated accelerating growth over investment of capacity to and increasing reflecting operating term. Our product our the sustaining year XX% goals long levels

minus cash We We We as also that our direction approximately As $X.X new with saw hiring and flow. million QX efficient generated invest In in $X.X across securities. the a with accelerating us. $X to million. employees while demand attributable and increase continue continuing opportunity generated ahead in our operating in in success in QX, quarter in non-GAAP QX, marketable to our the scaling execution million the year-over-year net results. with right in Coupled we equivalents the result billion customer income in are a net teams, cash XX% go-to-market to top cash growth our invest free aided BlackLine initiatives. of healthy finished saw QX, pleased business by and I'm $X.X in teams. we confident line good in growth our of flow we I'm we

as our our public intend Looking cloud long-term as in will revenue and teams we laser-focused success investment We our planned market. to accelerate on investing in efficiently as forward, customer advancing well position believe growth so our in we infrastructure. doing remain XXXX of pace also while help continue the go-to-market leadership

Turning now to guidance.

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

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

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

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

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

I of diluted and Our approximately weighted employees shares. share in want In for all BlackLine to work count million thank average be effort hard closing, will XX our their QX.

the to transformation build rest market optimism to customers in look increasing a their global in on the our finance the pursue of confidence we continue innovation, attractive we gives office us This ahead the leadership, reducing market us. and our opportunity to the strong front and while forward automation, their As look we by back efficiency year helping fuel modernize demand our to back transform to complexity accounting our opportunity of and in business as digital and office systems. their environment

discussion the take to the your operator ask open I to Now, questions.

Operator

first of comes of Bank America. from the Instructions] Thank Our Koji Ikeda you. line with [Operator question

is open. line Your

Koji Ikeda

questions Mark. my and for Marc Thanks here. Hey, taking

Just couple me. a from

Okay.

in on billings is looks it the the grow big going activity guidance, are at a little second all rev little one you half of And faster a from a question it below half over by deal sounds definitely the half model implying guess guys the first like here pretty -- the the the I like But I So is good. couple It than quarter. second the points. to it bit when look like commentary looks XX%. my bit first came

a maybe guess a year? in from are the acceleration XX% growth for deeper So giving then that's this in demand below second confidence perspective, you what you this this or question And correct? first I pipeline half guess perspective from the seeing is I that of

Mark Partin

Koji. Yes. Great. Thanks,

from in have a You're us. quarter which your for guide. for demand do our in high in seasonal right numbers with variability to the QX quarter-to-quarter, like on We ability billings this is and We particularly environment confidence quarter continuing see execute a year. this

impact growth. renews. future and for billings account on the quarter the able you pleased term fuel also renewal getting we're when where XX full mix in will and forward. an so There's this more drive year the Going And because that it we're helping are expansion the moving months near now sort of And on or with that that number that is that a that shift seeing billings our billing at loads to it not we of look a trailing what growth in we from we're back have to spring when a reducing full in bookings quarter-to-quarter the benefit year. shift, get the on you're then billings, number

Koji Ikeda

it. here guys by I'm and looks lower have expand bit ramp Super down Thanks, guys. increased specifically a And helpful. the Got on like by we I question XX%. just you the units? sales it. kind it headcount Maybe higher that had should that Got It follow-up going the then where could on little Did XX% about comment. of business organization. sales you headcount I break here? how the thinking be than out from or capacity guess was a

Mark Partin

GTM the capacity. was the across part was that the we sales XQ increased. accelerated added and on were our most in in hiring and It close in board to team customer-facing for That employees. the of And Those Yes. then We quarter. significant XX% in have both the business G&A. R&D the

those high-XXs most and in XX% of are the year-over-year. -- is So that

Koji Ikeda

you so much questions. Got it. Thank my for taking

Operator

you. Thank

the Pinjalim JPMorgan. with Bora comes line question of Next from

open. is line Your

Pinjalim Bora

hearing you're tone the of any geos Thank in the that Great. I talked to but any help seems can change macro it you like to various you ask about just seeing there? have, anything, guess business. signs customer conversations coming you I It question. resiliency in of wanted due geopolitical not the kind tiers in from you Europe you. understand sounds or are the like the uncertainties the us

Marc Huffman

Thanks our Pinjalim. we've multiple initiatives. The interactions with that all observations customers across to broad and industries geographies, performance seen in thus far QX the and performance pointed our all

signals are as people's industry in seeing colleagues customer far. own We the in based continued right we're their interest That's telling observations signals transformation about businesses. like thus in us as diminishing will watching of accounting in their our a sure our digital it now are for as be conversations the on I'm any are. not But in those to many desire well that of invest investing pipeline, that

Pinjalim Bora

XXXX, back Understood. follow-up would growth international going And US -- I question has hear I but look in snapped international understand levels divergence back segments Any know -- those the and of But trend your pre-COVID a between was end the factors high-level driving should of seems growth already what pre-COVID just business I we quarter. gotten love and the When one I don't guess to that growth I look growth going have like at your kind international that US perspective. it of to I in when this And think that? way to forward? not. by from how at

Mark Partin

in of in And XX% sort rate. and account seeing our North and much Thank American think the that have expansion we've very customers. seen the with U.S. Pac, we QX growth and U.S.-based now In But growth seen our across out a strategic strategy. growth of the and And includes strong rollouts record XX% flywheel for COVID QX with market. going Yes. then growth that's into globe. this was that's and Europe growth really coming line and also robust products I Asia in user -- in you. is We're accelerated

more has addition that as seeing and base accelerated as will in And through help now that strong FourQ to the QX. large that customers American well. very We're of North American-based customers America. an our more it And are international to North real then we deals grow which North and that's large started able a to portfolio. in have which growth us flywheel we there saw strategic of we'll and our take our begin ecosystem rate at particularly enterprise the customers those We product for

Pinjalim Bora

expecting can if I And thinking the ratcheting more the it's in like help -- FourQ, Understood. are us QX? higher? may. one are was What understand that it you any was I for pretty seems X% you to you still doing -- year? X% well. Or contribution

Mark Partin

Yes.

at to each of to XX%. strategic XX% between in year. quarter and in for overall we expect be total And portfolio we QX Our product this it XX% sales saw

And intercompany fueled sales that And and so the from own intercompany from we're by product, FourQ that more which we'll -- sales now our range. be of forward within and together. existing moving was record both more operating

very roll QX a strong had start to year. will that and we in revenue sales this quarter So out

Pinjalim Bora

you. Understood. Thank I’ll leave the floor.

Mark Partin

Thank you.

Operator

Thank you.

Rob Baird. Oliver Next with question the comes from line of

Your open. line is

Rob Oliver

Good me Great. Can afternoon. hear okay? you guys

Mark Partin

Yes.

Marc Huffman

loud You're clear Rob. and

Rob Oliver

Hey, Marc. Thanks Only Mark. Okay. Great. for much. so two Hey, me.

which they discussed. one, cylinders. the Historically, on Mark but ran all the just first strategic firing to you to that Partin at So, user flywheel, growth, be on product products current both cross appear a growth now strategic

comment to Thank in start probably Rimilia now happy terms seeing has and So sounds X.X talk if you a strategic we're still I of about any with the wondering aggregate wasn't sure like and to about guys that really And hear rates cash this listened the and a seat-based interested unless it about talk bit did follow-up I you in a as off I to a that. It after But side think I Rimilia. fruition not be I'm was if acquisition. there what so the bit little FourQ you. I little Therese I'd with products missed apologize dynamic? coming now. she's years could Are great are on is attach ICH if or that to

Mark Partin

in of cylinders. is Rob. several team. user product hitting levers Great. both the own with quarters all our with strategic last first they team around really -- this growth value new customers allows over engage And you they customer have that go then the That out products strategic that more know and I'll to the portfolio. driven engage as our Yes. products question the account getting on and teams product with Thanks more adds to have. our we've sell And success management full help of been what invested our of

And lift. not we've of was a so sales in sold is right great user our users. QX XX% we products It seeing third on But of been add And total record great strategic uplift. in QX, saw sort of quarters. you're

In an year-over-year fact was it ago. year increase of XX% a QX against

and so core more And selling on in rolling more platform users out and we're our the existing the customers in close. financial

And two in have been levers investment really that so direct a success result working our teams. and that's customer well those growth are of and engagement the

Marc Huffman

across And about Rimilia then, the we AR, what as geographies, the you've question And of customer is experienced performance We've some initiatives. had you've for this. capabilities amount broadened that we've industries and time, been observed initiatives. BlackLine Rob, to size, following broad your and

wins, getting rates really like them And with there. and out something the it's expansion that. some from some were hard from and customers sort some in value performance call AR high so seeing the additional were like Pleased cash the who application of match the strong incredibly nice to it's we all products great -- and existing business, that

assure it sort performance big, So, the intercompany listening we big -- strategic And you of, pleased it. Therese of performance. the that, is with else, performance like everything rest that was like have broad record just with can and a the intercompany and pleased of But highlight sort when products.

Rob Oliver

very it. Okay. much. guys, Appreciate you, Thank

Marc Huffman

you. Thank

Operator

you. Thank

line from comes the Matt with question of next William Stotler Our Blair.

open. is Your line

Matt Stotler

SAP. Hey. would channels guys you're Appreciate Thanks, the questions. around, love get kind of, off, just of I the Yes. what you specifically seeing starting taking some to with guys. I guess, partner more just outside color

some there. nontraditional Microsoft, relationships You, maybe of and are some Google, think obviously, more have kind we that some of. really what new interesting versus

and So the that these any to development going forward? the expect on business influencing of trend how you relationships update

Marc Huffman

Yes.

that recently new -- some term think growing and the still of in really some influence we've are us spillover makes are So some those things things. in hard demand that. then, long of perfectly great the of who and us rolled digested create strategic, invest easily relatively you out. which and customers ones there We'll organizations they're other And are value in landscape. accounting into we that that to market sticky continue people for our the them and side We these a quantify if them allowing and digital give environmental, transformation, into sort in, of are really a that with we complex things better to that will, solutions financial to invest to experience, are have

partnerships that pleased with the do us which retention. our have that to of net leads Really, been that. that. had to out we've growth there some So just designed renewal usability, up showed And satisfaction that -- rates revenue customer the shows in in

invest lot just a ecosystem in in pleased partnerships. up places I to continuing shows it and of So would describe we're that progress that with the

Matt Stotler

from think of, -- portfolio, you've map lot you've upstream there kind going data you of, a with That's perspective. road the but opportunity look with of at helpful. then, focus, forward, is obviously, kind it. product which move, as interesting FourQ in and everything, about, And been a AR Got this investments made and the

about as what's but product product of, -- kind forward guess, how that commentary organically I on inorganically, that you there think love map some broader would for you strategy expansion? So, think what's road next about

Marc Huffman

and beneficiaries what organic and dispensability always processes the modernizing is of, and accounting, have the opportunities on targeted the and we the partner-led, towards serve. those strategy people controller and of our the eyes versus that lens Well, long-term inorganic specifically, view and, our through sort

And capabilities added products, core we're suite, financial to, to the our and going great customers. what's our then, And management. so, I a from of just on we've AR bring value -- we're that laser-focused iteration next going to standpoint next customers would to be continue the platform, to the operations through intercompany

these the as you even end into the our of landscapes. complex complete focused the So our where making orchestrating processes, there with releases, into and in sort accounting technology year, if to near automating operations going, closer. management, our get well, as and more future, that of be you're looking we'll we share capabilities financial digestible we're And integrating, we’ll on

Matt Stotler

for Looking it. forward Thanks color. to the

Marc Huffman

Matt. Thanks,

Operator

with comes of question the from next Our DeGasperi Andrew line Berenberg.

Your line is open.

Ali Yaseen

Hi. my questions. This Yaseen on so Andrew. Thanks much for Ali is for taking

there you So some so what were? that customers communication mentioned offerings last versus been with FourQ in this might confusion quarter terms far be how traditional offerings And had between of explaining with response other how BlackLine's said color more they value the each any of solution. just so a joint customer you if was of you of the quarter the in And product, record sales on but complement far? intercompany it have

Marc Huffman

Yes.

description or buy the really clear. you in messaging product that that is the have confusion is a same make sure of always to space when your in you So adjacent

And think and customer so complementary a in intercompany capabilities. we the nice communications did prospect capabilities nature about FourQ's existing the job to BlackLine of I

I job think The been did nice really has of team feedback really, strong. that. the customer a

evolve. think technology that It's on pipeline this those We there's few our in sustain with performance demand were customers obviously the record know-how deliver the of the pleased about we're with focused area as will and a to our excited throughout the have Some value like accelerated we businesses that in to have. organizations potential intercompany in of that and we QX that in space rest space. very the to And continue year. great

Ali Yaseen

Thanks. That’s helpful.

Operator

Thank you.

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

Your line is open.

Matt VanVliet

I are of it at into office appeal But to Hello, the like locks portfolio step your you CFO competitors other the you've more for broadly. core on as some of quite accounting encroaching bit some added my really of the appreciate and overall targeting a your maybe opportunities look question. sort from to out of there those of just life capabilities. taking it. of beyond guys. competitive sort feels of kind accounting landscape Thanks you I your when guess

competitors just terms best-of-breed the So for still that the to been new there curious buyers holistically use drilling -- down popping doing helping the all really years? at of in over solutions seeing how you're how you've are other versus maybe the looking your And case. are and focused each Are up? conversations on controller detailed platforms

Marc Huffman

in part that a our past in will to and that the business months probably time of pleased I'm we R&D million the business. the materially And our as into these over sticky $XXX and are very the The the receptive. have Yes. it's parts the notion And that got I'll in the company We're value about management to as accrues very it and the especially we of the financial are core architecture. competitive leader of into We've not that accounting automation the happen. enterprise has broad we moat press nearing our in with environment arguably conversations tell largest that And our core you of invested coming a customers. the moving thing mid-market bringing that changed. this X,XXX clear they're these over in offer sure course terms XX business we've very enterprises people do it able we've operations capabilities more the in lead complex established how together for and It's various customers. world. investments, creates in nearly of that got Really we've plugs of clear compelling space. that clients then some

Matt VanVliet

overall have across And to revenue you to look All going might per of That's bag much in using inflation the about of across price very and that the rising opportunities seemingly have much offset other kind of business? that you're customer balance increases looking you what's portion have to of get how -- costs have every tools different economy do the versus when the at the offset right. at sort thought you then you helpful. to you cross-sell kind more

Marc Huffman

Yes.

leverage create So, we basic that and We when value sure successful. think the do, And be the we'll take them opportunistically focus turn that's have in making successful But -- expertise. scenarios. from on Matt laser-focused for on the premise those serving to we priority the remains established our inflationary and some we ability to for making have our pass making of they're a bigger along costs will they we clearly businesses sure and than great them that. -- value many advantage trying culture increase that have value and of we first customers the clients customers

it And on tends BlackLine than just outcomes customer be outcomes. so to focused more our

Matthew VanVliet

right, Thank you. All great.

Marc Huffman

you. Thank

Operator

you. Thank

comes question Piper Sandler. Mauro next with from Our Molina

Your is line open.

Mauro Molina

here. our taking for questions Thanks Great.

so adding relative you'd relates said any far be give there So, initial gone to the you quarter around can expectations? color to as is integration XQ, pace around it has XXX of think last how you I employees. your And

on of platform. be in hear going great terms follow-up. one things in So, it'd are the layering to I'll have how about that front And then

Marc Huffman

Yes. We just passed XX days of the integration.

of a So IP it. like clearly but The most scheme you and capabilities. capabilities combination company pleased things human with grand a early of overall critical this is in the buy really thing

them the tools this all we people so aspects really of to things it's and And human of handling the think a of sure take for what's understand BlackLine understand of they getting that paperwork all what's properly, And benefits. expected giving them granted be priority. the work may the big so to I the the like inside making

So, progress with on I'm pleased are where that. with the we

commercial have team I both the the product technology and objectives from a nice standpoint think we've have standpoint. an and got plan a focused integration around

I think we have a good sales plan.

results So with intercompany saw and the we clearly. we're with happy that progress happy the

Mauro Molina

to then that's seen of momentum about out what's the with just Yes, looking in very you've I'm record pursue Great. about to BlackLine's again seekers hiring hit investments was allowed hiring helpful. new And the you're wondering and far And hear job to that that growing most messaging resonating opportunities kind making headcount. you that's so it great level?

Marc Huffman

pride our I in position. culture and Well, take we mean good our leadership

feedback of that. about is lot get a we So,

people I have which in overlooked durability digital them committed the And to said in I terms making in time office And continued disruptive the their automation back industry specifically the grow of the careers investment for to great has our technology. we in remains it. for to think a space a opportunity culture potential transformation employees and in the -- the the to brand Strong we brand. are that and that strong the strong see -- space we're So with customers that space serve just employees. a feel of long nature been have it's going that's accounting, in and think like people

Mauro Molina

Helpful color. you. Thank

Marc Huffman

you. Thank

Operator

next Our with Alexander comes line of Raymond the Instructions] question [Operator James. Sklar from

is open. line Your

Unidentified Analyst

question. John Hi thanks for is taking for Alex. on the This

one from remainder we look think the Just XXXX? us. versus the new expansion of you. as should about How logos towards from contribution Thank we

Mark Partin

long management you. our new the quarter each balanced very a of profile account growth is then logos expansion. XX and history our from from comes We've a half growth in see had comes Thank to growth of last that and started half And skewing Yes. year months, are we growth. our deeper team including that to number a and able And and our trends with and grow engagement now much the towards team things, it's broader result of positive in level. customer of direct investment account things, success account engage in bigger customers a

then organic invested a product is invested thing of strategic significant in Second we've through and really trends it has large expand accelerating our money large transformation that headroom we in in in And sales. enterprise, a both been products and third digital a enterprise. believe to really we've and the product significant and have is users part in this of acquisitions in our identified portfolio the we've capability amount innovation. that and previous calls to result the of And continue

account and ability from to good to customer that be that investments with towards are ecosystem the and major from those percent to and base. partners the sell our with continue for and And will our then logo. to like us remainder mid-market velocity balance on a that continue so our us our of SAP our are that share, we take market growth our new then And coming drive our into profile and think balance XX-plus growth trends pushing acceleration

a it's will forward. way. that that about trend excited very positive it we're continue So We moving think

Unidentified Analyst

Thank you very much.

Operator

now over Marc other queue. I for no remarks. turn Thank you. in like closing I'm Huffman the to call the showing would questions back to

Marc Huffman

Thank you.

broad very, the with And businesses BlackLine of their quarter a hear sustainable. you. BlackLine. appreciate Many that's As focused. and very not of and those sent customer to you mentioned about them legacy in our and remarks, interact reflection talking who are you employees we'd that see we're the accounting performance all them can you good, really Thank are pleased processes see when being with

Operator

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

disconnect. You may now

BlackLine (BL) 6 May 222022 Q1 Earnings call transcript