BlackLine (BL) 4 Nov 222022 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the Q3 2022 BlackLine Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded. to conference like speaker to now today. for would turn over the your I sir. ahead go Please

Good you Chief and Officer. this BlackLine afternoon thank Mark call me today. and is on With Marc Chief Huffman Partin, Executive of for Officer Financial joining us

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

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

BlackLine's call Now, over I'll Marc to Marc? Chief Officer, the Executive turn Huffman.

financial solid joining million. you Matt, to delivered today. revenue growing XX% with Thank year-over-year us everyone. BlackLine results afternoon, and this Thank good $XXX for quarter you,

improvement Additionally, due we saw flow and efficiencies operating cash expense further disciplined to continued margin and free management.

environment, interest the cycles, Turning demand and our macro customer we as high. engagement healthy experiencing pipeline broader signals some to of remains we across while are sales elongation seeing are

product solutions Our drive become high portfolio to for momentum, generate positive strategic continues even and that efficiency of top as automation more customers. mind

in our strong the fact quarter, to the our us Additionally, solutions that win rates in the competitive reaffirming differentiate continue market. remained

to engagement as help customer top and noted, to prospects remains leverage and look them As operate activity ring customers successfully to automation of funnel periods uncertainty. healthy software and of

intelligence topics One capital, customers solutions and cash the Group, capital, optimize opportunities. of of A particularly working is working management reduce capital on $X.X the public X,XXX that valuable the had companies associated more found relevant conducted largest and deployed provide tied with that unlock nearly incremental collection improved with automation Hackett and capability and revenue time conversations capital. excess our to recent We trillion to AR that the released base. trapped be organizations receivable flow. accounts data recently reduce working opportunities powerful customers' BlackLine's could the to behavior customers efficiently enable cash times intelligence on more their new leverages payment both study collection in automation by today cash risks capabilities provide customer that up and drive

minimal to recently opportunities. customers for identify incremental that Our their allowing which provide scoring potentially higher customer attractiveness companies risk, credit have within announced base revenue limits, capability, enables

our strategic relevant to companies close whether for have delay Innovation our capability become challenges across with payments customers identified in BlackLine, to strength today's proactively, features, likely be mitigating to financial enabling default environment. these product such the or higher-risk in core are while continues customers portfolio. flow Additionally, it's potential extremely engage their that solutions cash a or as

first legal staff commitment core and range developing total we and offer enhance optimize In recently delivering business process capabilities considerations close intercompany release intercompany In ever. the address functionality designed functionality needs as intercompany, industry's as billing transparency close unmet of and activity. incidents to market hyperautomation to new organization's automate to to develop released and tax we capabilities significantly financial for improve and management. are an and into accuracy. automate accounting entities Leaving tax routes, across how and maximizing overall strong example, a thereby These processes solutions Our control, multiple tax help optimized and that remains continue for solutions, outcomes. efficiency financial new improve our

and For and to increase example, instances be from net BlackLine to which seamless higher across leading revenue base growth connector on to our base themselves proven software customer transfer BlackLine. to to installed important opportunity the both to vital focus extremely are data to We improving multiple have retention. and uptick ERP connectors, our see enhancing ERP our revenue substantial our of

improvement from utilization five favorable retention. to that company-wide NRR average the connector reference, For is our revenue dollar-based points

and our Our commitment to BlackLine's value drive that innovation and delivering steadfast. customers remains real solutions for

how we ourselves. the black are the world's customer further we many more will companies hosting are we where annual week greatest of innovation join learn us about our Next conference differentiating the are delivering to beyond and

application modern and solutions, our innovative event the the expect as accounting accounting We to as And while new announce expanding financial BlackLine's such part analytics cash solution. playbook reporting of Studio, and our excited partnering We're they substantial and transformation participation. customers with and stories your trusting be digital achieved look will BlackLine. forward ROI to next by week about their the to sharing

Average up Notably, up highlights into to the quarter to moment year. and prior upselling customer within ticket XX% sizes increased let's base in this was Total million, third strategic products. the deeper further deal XX% review higher dive our success, $XXX quarter and prior seeing the Now versus QX we results. year our are expanding revenue take versus our a $XXX,XXX.

$X And or at versus in more end the the customers had XX% up year. ARR, enterprise is quarter increased last year-over-year. that Our deal by size average above we and $XXX,XXX now of million generate XX% XX

Turning and quarter APAC expansion new to to a the America modest was for across in region. wins. an strong saw the in our a sales, North acceleration saw and some year-over-year customer moment. activity great We markets increase deal in leading performance

EMEA seasonal challenges SolEx sales weakness from softer, activity in macroeconomic However, regional and our by was partnership. driven

new We transportation for improve see competitive The new continue the sales and examples our a In deals of to freeing customer uncertain great despite and new great to customers competitive we staff and great the was ridesharing wins efficiencies, business America, was their looking across signed We with operating on and company. strategic more close again as customer innovative performance that process, solid solve problems. unaddressed additional their products, driving quarter. deal large, expansion focus In strategic takeaway solutions demand largest up some and financial this the North value-added while work. to takeaways signed in environment. complex example,

expand previously, to we on were we intercompany Continuing signed also services and partnering financial to insurance a to in example, large EMEA complex of UK one customer the expand able activities. build Having leading and to improve consulting and their high can able the oil time to benefits For with our business labor beyond a based with provider. with of our and multinational their partners, processes. our automating efficiency key announce showcase were we're based relationship, company. improving wanted Working success BlackLine and close seen intercompany, gas solution we automation best-in-class intercompany deliver financial that consuming pleased how intensive to while

In into quickly reputation processes. was manual, customer manufacturer a wins a They away on and looking away strong the labor and debt and bad one move customer longtime customer As BlackLine recognize were AR our that close as our AR what also broader complement tasks partner and efficient for. and automation, from these the they solution unlocking focused beets expense, with AR an solutions was of to go-to-market best end-to-end the priority solutions And looking move a reducing a leading component intercompany example, and out from expansion were path financial customer, high-risk manual success Expanding inefficient and AR offer a we or we new capital process. existing brand a how saw day our DSO, exactly From is one, it's our great strategy. working Whether BlackLine's forward. modern from some network intercompany remains seeking solutions. a and reducing was dusted automobile intensive well. key to partner laid that automated

partnership our global As part Accenture extend of strengthen our partner footprint this, a recently increase to network, and competitive global signed our positioning. we consulting with

and SolEx driving success partnership new deals around world. is Our pipeline seeing opportunities the

However as saw QX SAP. some in attributed noted, weakness seasonal we to

historical experience see heightened QX deal based in visibility. activity to our from expect this near-term with pipeline combined our We partnership on

especially customer's for our other to into wins financial wholesaling global we able for matching process. the accounting upsell example from solution. and examples provided the us Leveraging select bringing with to fit key new designer we relationship manufacturer. multinational further SAP solutions and that with cases perfect focused great SAP for the solution company the leading a could close and long-term luxury with wins see. value with transaction our some our These and Turning a provide An our deal digital good automate an partners, their our request to and previous BlackLine another processes of Dutch to and control automation, EMEA reinforce signed opportunity expansion partnership on financial their their efficiency how The road core were and opportunity to we finance a long-term we we EMEA in retail leverage into win close desire success additional our and use map. transformation were deal demonstrated

geographies it long-term vital value, and customers efforts our the win. is details With success. reason across our globally automation for that, Mark dedication. to key and capture our is Partin thank closing, to to is outlook. continue promise of to to discuss to Our I multiple talented positioned In want efficiency turn BlackLine markets and proven employees driving their deliver opportunities on to our ability our to deliver growth. while I'll customers profitable a performance and delivering all over financial our why we Serving of and drive

few Thank progress account past We're seeing years. you, Marc healthy fronts. over This with on for the and invested solid we've everyone. in was many afternoon, in area BlackLine quarter a growth an momentum good customer

customers product strong from our Our interest base. is strategic portfolio upsell activity with healthy across generating

driving productivity win across generation. successful positioning consistent. healthy flow to competitive ourselves long-term execution And and remains rate Furthermore, free cash and expansion and efficiencies balance leading strong margin business near-term finally, and Our to we're our more growth. we're

customers We're their in organization the budget company. success. scale. the and order As and that our through we're in to across stay our ensuring and and part expected on extending scope. We've investment of focused further optimizing accountability on infrastructure cost We're and BlackLine employees innovation across And on deliver for deeper this, time in competitive market embedded demand. we're enabling finally, and supporting positioning rigor investments driving capacity

let's and compared versus Total solutions to customer provide. services the last Professional Now up some review quarter key year quarter growth Calculated revenue billings sequentially third XX% highlights over embedded year points accelerated the our revenue highlighting grew desire that value a the $XXX from FX. XXXX. three QX. to to million versus prior growth two-point in unlock the headwind and up XX% despite was up was of XX% results for

were total Lower obligations performance our XXXX. added customer XX new customers current RPO Shifting subscription remained XX%. quarter, XX% Partners from like Sales up ROI and in market high we but Additionally XX% demand XX% this quarter. for total gross high product deals represented was activity Non-GAAP our remained partnership non-GAAP year-over-year. was markets drive middle were seasonally in intercompany overall large and We gross QX growing network financial representing to at customer performance deal soft driven of solid to remaining primary automation our sales opportunities growth count to headwind XX% the leverage customer in margin margin XX% new additional and SAP the and revenue. partner in margin. net of solutions with or steady the bringing by to new revenue of across remained management. Strategic high was as healthy XX% involved geography. RPO

expense in of performance productivity the higher half Our notable X% the a management. and quarter performance representing margin versus utilization was to Non-GAAP million year sales we the in marketing optimize a sharply combination XX%. demand margin in in operating efficiencies further We the income improvement flow our QX delivered flow to impressive in sales services in free operating disciplined appropriate to an driven by margin cash an Non-GAAP as and gross of as taper due quarter continues planned $XX.X the of margin Hiring up flow gains. versus and an teams cash QX $XX.X a attributable million million net teams and free generated with level $XX.X non-GAAP in QX. XX% balancing BlackLine cash income with of quarter was capacity. net second

performance flow billion securities the cash to a XX% on financial of finally $X free today's marketable providing strong we great in up was XX%. and Our and equivalents flexibility year-over-year the And over quarter with market. cash finished operate in rule drove

Turning to growth QX we're FX full out revenue our year called on experience adjusting We given to our guidance. Based in full previously especially revenue macro X-point guidance headwind conditions. volatility a as year slightly. continued

our year moving such margin expected stronger On leverage performance we're than income the bottom are expectations by driven operation favorable as net non-GAAP higher. previously and line full seeing

to quarter approximately fourth XX% XX% of $XXX the million million range in to $XXX XXXX. expect the be revenue growth to GAAP fourth the quarter of For representing total to compared we

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

share average And to XXXX. $XXX weighted year shares. to XX% $XXX diluted Our in the approximately range year total XXXX GAAP XX.X revenue compared of growth full expect million the to XX% we be will million representing million full count for

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

The pleased we're progress face the quarter the this uncertainty. competitive to strengths making forward. we is expect business we successfully performance see. of we're opportunities model average going even positioned are while our BlackLine of be will today, and nature positions count the to delivered position the the and shares. closing, solid execute growth share XX financial diluted In with capturing million weighted with our resilient combined longer-term leverage Our that we leadership in approximately market

to your Session operator the ask the open take discussion to I Now, questions. Question-and-Answer

[Operator Thank from is question James. have Raymond First coming you. Sklar I Instructions] of Alex

open. is line Your

cycles? is big quarter the trend versus of seeing Great. Thank if bookings. in late-stage kind of quarter of you last you in point terms selling you. update pipeline out and Marc Huffman, sales on change what one Any what the called fourth can us you you're curious, through terms headwind in that of the I out know called quarter. October kind I'm for your

question. strong. Thus The our Yeah, been in remained robust Alex has has sales thanks for activity the pipeline throughout. far QX

previously have closing, in of We towards were some opportunities down had of scrutiny good deals which the pipeline slowed examples SolEx. additional including one larger opportunities through that largest closing, had receiving our

with pleased far. that thus So

other about your a headwind. to point As one question

headwind X.X that I our down. talked be FX cycle sales expectation we and elongated revenue from the about Yeah, hence a to that closer X-point think had points might is from guide

However, quarter as are Marc point said, the at going well. in this the sales

calls you guess, third for just given quarter this environment the we when quickly in I of you spend. kind ramp in And team showed happy it. heading of the saw thinking mean, investments Great. what of impressive Are you How you? really opportunities Okay. the margins with about ability kind to kind of a I are the quarter into front overall place in OpEx XXXX? given

into the the Yeah. some force hiring the – organization this second first end did taper sales some and year Thanks. of the expectation last scale We of strong to year rehydrate the really put we the with in part half.

in and measure of to improvement efficiency we've operating course, expected. in rigor. that this And talked discipline So about large operating was in then addition

margin. last a And fourth quarter we see can is business cash this. this is we're our the This spent amounts that our generating of I guidance, in year continue you'll and significant operate think while. where where for Going in to into expecting

So, answer is the yes.

you, Okay. both. Great. Thank

Thanks, Alex.

JPMorgan Thank you. the the question One next moment I coming for next of from have question. Bora Pinjalim Chase.

line is Your open.

the Would people a you just are be do what seeing of Thank you're little taken down much to you their or macro of in you quarter? Marc a down? I would on so helpful. Any Huffman, of you color that has feel start more questions. like you saw customer a for environment. the it's the Hey. say taking And wanted having, the drill discussions kind bit continuation XXXX step of last budgets terms reassessing environment

say yet Hey, Pinjalim. would continuation. that see macro Thanks, to other the anything a picture, I than the it's previously. deals Yes. extra scrutiny We're described in getting we've

of in still all in of remains that talking our our segments. you with think like will. close things, the the XXXX, With budgets now market and strong. Extra we variety So team most out customers. relates said to business and continue down I velocity. year's on as to as of impact if top the next is close to funnel notable it macro And planning funnel steps remains is impact, regard a to participation what The about before, the prospects right

are As that you that value value in types different products high great know, high climate. we have automation of all provide

some with put having So towards weaknesses recall dynamics, executive out those tied about against being of kinds data. the of comp recently SEC we're people. We're also conversations rule conversations a financial changing in about the having reporting a

So how dollars think those can provide really our that capability going like resonating And associated our to people we're out clients answers the feel and to in with to message fair are we I teams is XXXX. share of things. highlighting get we

Understood. Mark question Okay. One for Partin.

you that at this about starting the last way prior of point? kind slipped that? that is On close guess, in seen flat is we seems favorite which quantify to the everybody's you was to quarter? I headwind subject, But, Any in it than possible timing QX. of the the quarters if billings, prior like it have to the deals understand years sequentially, it to in core reverse stronger out happen -- And which is is that talked

in a Billings XX% headwind QX ago. were And with that's up X-point FX. a Yes. year from from

would was year, And seasonal quarters as seasonality, being our be traditionally of so, positive. was one strongest a and QX for able Last we that sell us. it through which out, to quarter QX called

saw an finished with year XX%, from think we the this I points seasonality. we still Nevertheless, X up QX.

And So are increase we QX, was a at look increase. add then, quarter puts was seasonal pay really from overall in XX-month in and talked particularly attention a of we weakness to it which quarter-to-quarter. believe, a works commitment which aspects the of about. number a that where CRPO on the you which trailing increase customers that us billing QX. an it saw Marc XX% we that that What And did XX% we backlog, was transacting some RPO, of XX%, when a is as out the variability to the from was lot

I’ll Thank Understood. get you. the Okay. queue. back in

you. we next I moment of question next Bracelin have, while for Brent question. Thank prepare Sandler. One coming the is Piper The from that it

Your line open. is

Brent for on jumping Mauro here. is questions. taking Thanks for This Hi. our

So I just two had questions.

to in annual changes radar? any that The certain our preferences one then customer to asking you first prepay maybe I away schedule just the for have on should customers do for follow-up. payment from they seeing are around as preferences or have any one being that way billings timing customers, uptick you we talk generally anything And

we're Mauro, We're not. Yes. not.

quarters of in working one was our QX fact capital In some quite best time.

beginning the had terms request of This like seen the little paying we've importance to extended And in we COVID. would have value on platform it's time. for proposition – to they're that no yet. is of have the customers rely had on payment that think not our that I

you for And me. Thank last it. that. Got then one Okay. for

there seeing chance the you a mid-market into weakness, What Thank causing what with some cited dig are be any more? you might think or could that your you little dynamic I there? you. Is customers. particularly exactly

affected acquisition something out the did in as customer being performance We call mid-market Yes. data. our new that

losing so extra going getting I attitudes again there Not type sort pushed competitors. a funnel scrutiny of buyers. what see that being down on to off wait And away, see and is velocity deals not quarter of

lower high dumbing Our stalling, of sort just win in part remain will the you the up rates if funnel. of down

helpful. you. it. Very Got Thank

have we Joe One is [ph] you. Thank next of next prepare And from Patrick for our question. we Baird. question. our It moment, while coming

line Your open. is

and operational see on the It's Thanks great congrats a to with guys. great Hey, controls. quarter. improvement just expense margins some and

Just question on the channel. one partner

new additional including could you the Accenture mean channel some you've if great some wondering of provide color just on I Just quarters in relationships announced SAP. this recent outside quarter.

these hear relative to So your about in expectations light just the of macro just have progressed curious to how environment?

Yes.

what we – participation that larger well we the think about in oftentimes, attribute XX%. of the we the we data the the on I quarter that was talk it and closed consider partner opportunities

the I as customers engineering The think like ecosystem and referral be. we standpoint, identified non-SolEx were standpoint advisory it is process where standpoint from being important a right from led really for that's to a an for those Accenture We with announced that marketplace are global has been That of success number ripe for that out had digital agreement this transformation. quarters. we to recently. a working casually in

So validation they're management. infrastructure. These large them a big intercompany. right customers these ability excitement support is that Their like lot a with accounting have customers' seeing complex think EY, are of their advise more and really lastly, these going global intercompany of what then financial market it they like it's enterprises super around create and leader. I a really critical to now we're our relationships to larger, opportunity distributed with in on embedded ramping what the are who And us like as a in be Accenture, up is Deloitte deeply think providers and to things

question to next the go please. we can Operator,

while you. Daniel our from next be BMO. Thank Jester One question. moment, question of for will the next prepare we And coming

Your line is open.

please? we the next question can Operator, go to

next shall. moment. you. One Fred The Thank Suisse. Credit is question coming Lee I from of

if wondering pick here. a excited environment. I on the was the from was considering nice questions quarter their few very all I provide gentlemen. to seems progress that that we up installed Very follow of office and how good wondering little for consistent. called my wondering, -- out. have solutions a base. question. here company with rise taking Thank Hey called coverage out afternoon this I initiatives. And the could SAP's you the you overall year-over-year SolEx entire across I their within pretty has was quarter your they about out and business impacted it They And bit discuss back it

SolEx you if total seek the as what to overall filling was I revenues wondering been the at down your pipeline initiative. there's velocity has impact this to it's versus if of a relates last XX%, year that it the percent of year up as

Sure.

So great SAP. question. priority a RISE The is initiative for big

I their you the BlackLine that think that are RISE initiative. well-positioned accounting aligned we the processes of distribution a utilize organization through lot into closely There's as on priority. and bring modernizing with how people great positioning would S/XHANA they about and

and nice QX for We have joint traditionally pipeline. a which up that SAP performance in those our that utilize in had on great SAP, that believe a with prove is its the QX, I That's with I case in describe how then activities Performance customer seasonal. contribution points uptick filling we examples was some of is and frequently we and SolEx. customer sales us. wins positive would And we think have outlook studies

contributes misunderstanding to on -- the certain I aren't In a sure have SolEx that. performance of terms we a a mentioned part portion. don't as business, you -- our we hope of that make I SAP want

that flat No, not to SolEx partnership continue that goal SAP XX% as disclosure flat. would partner the to success right. it on higher in partnership drive of And we to call that be been see no has business. that's with that number our SAP and is and out revenue see year-over-year. We

you're if And about you're demand? seeing where Thank you. little more second is was it. and bit incremental a where where a my bit could talk question you seeing verticals wondering the maybe little various uneven -- I Got strength

Yeah.

to solution itself, applies virtually the complete So our industries. all solution

that horizontal in a deliverable of said, strength parts the we seeing are So have. That it's fairly we business.

we're those transportation don't late things driving think particular gas, of logistics, financial where of of be trends services the that of of now velocity there's I believe think insurance, slowdown Overall great just awareness mid-market. of things, I segments late. macro success. in we're on top continue business notable again late that based happening my any pronounced seeing It's some I all mind somewhat and having industries. on across oil board to back right dynamic all extra is still and the sort deals. Otherwise scrutiny low-funnel are closing

final question the regards priced is close? in Okay. what's And core your And financial automation to my with solutions those Thank of your mix you. your relative pipeline? how solutions to those solutions automation are

Yes.

I strategy. valuable land-and-expand or up about those are of great up pipeline. In of great the make think, of portion mind They Those model when value automation the see No you're strategic products. the keeping are highest talking expansion our in our They a we highest and customer drivers. our would parts really a is generally as one business. you a make our long-term imagine. a of deal pipeline on volume-based priced consumption times

we is We're XX% growth. more a one That's than that gets pay of get automation $X the seen an use of to great in BlackLine. new So consumption XX the within high those. and that have value customers turn year-on-year cases significant their reasons such growth ARR in why customer which The for uptick through introduce capabilities, customers. drives new in as we million that we up

gentlemen. you, Thank right. All

Thank you.

Adam One from next question for our moment Hotchkiss is Goldman next of question. coming The Sachs.

line Your is open.

and thanks much Good very the afternoon for question.

Just the strategic product on wanted dig to on a in had you last answer more front. little the

impacting or your to could quick market the little land that's wins? going Is that -- AR a across focus something had management cash to new clear. now. the and about impacting is there But cross-sell given on cash will talk opportunity things customer And impact right like be follow-up. then just bit I a you flow I pretty think with the is the more opportunity

but going bit nice customer new AR cash clients. through well of application. a on volume as management really from which resonate modern -- a amount that think deliverables yes think week seen a the the proven to only is guy with of cash portfolio. some to And the transformation small of land of a we're as bite-size in really also get on the you're approach our And the I have broader based We've resonate. both with this broadly cash a in application time year-on-year of perspective. those focused wins level beyond practices a leading Pleased take that people from for who the AR new value release type experience I why coming Black specifically, accounting I now time. AR to digital great for Yes. is want cash really people performance tracks that with the short value These land really are those times a Not increasingly And of focusing products, Apple one our broader to seeing our right think to management playbook customer of great going going growth who right. of environments sort that is and we're

then check in. professional a wanted broad-based That's understood than great. on side? improvement was profitability the make I And it to the like margin Is looked gross there the Really on sequential to call anything there Thanks. improvement helpful. and wanted pretty to Because improvement out front that. services on we incrementally just other it the sure

of And stream. subscription. had high small relatively We've consistently our Thanks. margins Yes. revenue gross professional part in a services is really overall

the of is the hit XX% to contribution. is ongoing. through transition from a utilization quarter the also Google that effort public revenue margins that drive to really to professional of are the But great we a and migration another that was higher team benefit services in cloud undergoing So and aspect higher

two in points very operated on The again new and of the they public maintaining effort In case to of down good. customers was driving the efficiency efficiency a the it be great positive. they we accountability which expecting X.X over pace while migration a QX, the for our get year. cost, this quarter team did next even months was the be any get in End two-point drive play we've that of materially of in to year migration, when we one of to next to that So was given would year to XX that's the suggested early And the the until about drag would XX end point away. currently that of level end cloud. had migration very following one we're back

that the end migration quarters see have plus the drag XX% minus to on as margin go get or migration. the XX% can We gross around future would to a continue we to until expect will in of we through We XX%. on to

Mark. much, so Thanks helpful. Really

Thank you. question. Appreciate the

One move we prepare our question. final you. moment -- Thank for while

coming Our final is question of from BMO. Daniel Jester

is line Your open.

Hey, question. in Could good you in your then solutions? the And our maybe thinking and afternoon. This Thanks intercompany taking Kyle product for of intercompany on integration maybe demand seeing XQ? AR how Dan. about for the touch you're the you're is on

Yes.

for Thanks the bet. question. You

of contribution would both as product areas, in a So I out from strength QX call those strategic performance-wise.

So both. quite pleased of those

that As complexity. really I previously, all management mentioned I with resonate in and clients is cash these topic that get will all a times think of sizes

some create I real-time on cash we'll We've this really playbook market that. of so well for scoring, will as for just as opportunities risk to customer number credit think focused be have got And into attractive great a and deliverables to come application exposure the for really clients. visibility accounting which that our opportunities modern

hitting this traditionally in to about from out cetera. financial week the just can intercompany together the automation with the take how beyond conference of focus intercompany intercompany identifying et and and sort create of of acquisition had with remediating XQ the able stands bunch management portfolio. We're people that balance the be and they the solution, the billing a great capabilities. value on We've our product routes, pipeline rules, now out focused excited have existing the intercompany on black. to really We'll be concept the that X with to beyond terms balance next tax bringing our intercompany them of business capabilities was where zero the transactions. In highlighting that at We'll and of we're

So, exciting innovation.

think are multinational than more large who pressure complex to I really now with going ever compliance maintain it's globally. under to resonate organizations right

guys. Thanks,

for Thank the you. today. call Q&A That closing concludes for our Marc to remarks. Huffman back would End Q&A of CEO, I session to like over turn

[Audio an thank you executives, learning close that meet ongoing your support great all BlackLine they're Gap] et to them all accounting, And Just you interested on when we our for I that hope of you a know up, about basis. interest way. with lot send modernizing their We to cetera. CFOs, want you Thank and in of evening.

joining conference. all you Thank for today. the conference concludes today's That call

all great a evening. You have