BlackLine (BL) 8 Aug 232023 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Q2 2023 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.

to Humphries, conference Relations. Vice like speaker to now Matt today, President would hand over the your I of Investor go ahead. Please

me Financial Executive Officer Good us BlackLine as Owen you thank Mark of and on Partin, as With Chief Ryan Co-Chief afternoon are the Tucker, for Therese well call Officer. and today. joining

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

believe risks uncertainties, any in statements as materially, are with as of particular, are made could reports Exchange periodic during XX-K Form today our expectations our the statements XX-Q. stated these results actual filed Securities forward-looking and Commission, current and the and and reasonable, including to While those call in differ our are Form on based we subject

not undertake or our result disclaim today unless to law. full year, otherwise statements, make the any and obligation we on alter otherwise, a future the to call last of relate required whether update as events noted. information, of asset by expressly forward-looking new corresponding or do as We except All period comparisons

GAAP investors.blackline.com results be our this currently these will our financial regarding today. with earnings Relations non-GAAP found our reconciliations the our X-K filed Finally, information in unless our may SEC disclosed versus website is Investor which non-GAAP. be measures otherwise stated, non-GAAP of at Form Discussion on in measures historical or call available release, financial and on of

turn Owen? call Executive Owen BlackLine over Co-Chief to Now Officer, I'll the Ryan.

Thank you us good and today. for Thank you, joining Matt, afternoon.

were uncertain. enterprise and able revenue and environment key as BlackLine, this to This non-GAAP positioning. as the steps to for targets remains some net expand leadership was a our even software look took and market income We we for solid quarter market competitive and exceed our quarter strengthen

we million existing to Approximately underscoring and of this $XXX with of million. quarter income customers, go $XX XX% Specifically, from deeper expand base. sales our revenue total non-GAAP came our and delivered of net commitment customer

more of As recurring number revenue of part this this, to up with in $XX increased or customers XX%. million $X the quarter, million annual

key market business role. receive five, one, areas If in optimizing promise; network; X messaging am building BlackLine's my and of customer retention. are, that focused the you three, operations; These two, ensuring brand; recall, four, our BlackLine and our across distribution execution there on value customers are I relentless the

through area operating driving each Given going and higher these, are I forward. each will even insights provide we while addressing how on walk some efficiency

our delivered efficient to uncertainty. and more living we non-GAAP of and to these work income done up even quarter more BlackLine. revenue great execution, targets By consistent, is across there On is net this importance, generate execution effective against despite to be market promises

of structure aligns our to goals. strategic right the working our people that the Specifically, right organization in ensure analyzing the ownership and and thoroughly we are to refining accountability ensure we and have roles

change our of quality recently teams continued creation is marketing seamless business generation we from to as to This our example, For success. moved demand the development sales. important and pipeline is vital

activities. same sales ensure under while our business drive more we and By ownership the alignment inefficient leadership, that importantly, desired avoiding into teams integrating development our outcomes can and

to leverage industry Additionally, expertise equipped are industry-agnostic an from and beginning a our more industry deep transition go-to-market to we model approach.

provide can we retail accounting believe financial expertise combination our and automation experience, with key additional sectors services, in customers presence and our manufacturing, strong with in along a financial and growth of industry and history long the a value. that With like domain accelerate

premier message office market is the a brand of clear the CFO, critical. consistent promise the and finance As having for in and automation leader accounting and brand

We voice. are to actively messaging to our one working in better global speak customers to align our

hosted BeyondTheBlack across events. across our event customers' the we and are including become very numerous and that local events Australia numerous quarter, in has clear challenges priorities world, And This markets. our similar it

creating By delivers. optimizing to it make easier of with and, the to and customer the in This globally, and for voice do turn, a efficient value with has our we them BlackLine. aligning message will experience benefit business BlackLine the and easier added one understand customer speak of more to makes better it

holds while expanding customer offer to and time to market competitive leadership expect deliver we The even promise greater BlackLine our immense value, and value we to positioning.

implementation these task management solutions of to accelerate is their as program, X-day This such long-term account and BlackLine. close the tailored core announced specifically starting program with of we a customers part customers. It mid-market efforts, to to customer's new our designed point reconciliations, a by transaction allows journey leveraging financial be matching. value for As time

have X-day a of that customers have already successfully the We program. completed number implementation

into our we challenges even or driven and so as to like Innovative to lead attrition, one of of are this the customer are customers offerings right before quarter-end they implementation an are close. eliminate. monthly Some dissatisfaction, ultimately churn a did can top moved which outcome drivers important to

to opportunity profitable reshaping further see and global partner Moving consistent and network our growth. more performance to deliver distribution. in optimizing We

are expect across return. expect in We greater what to working can BlackLine clearly and our accountability they partners from defining them from we drive what alignment and and

the of enablement from Importantly, partners we are commercialization. accelerating to transition

it consulting new customer cross-sell and great current with for a appropriate As part global both partnership potential via parties our recently for to our of product customers. framework entered provides efforts, and acquisition strategic of we holds reseller as an these and expansion partner. This existing upsell portfolio a into firm agreement blue-chip

they only pride it As we how grow, all if succeed. enable great aware, about customers them take succeed BlackLine. at customer support We they you're and is as our the in we

renewal use key the metrics rates. is of One to track we

peer our While they satisfied relative with broader software are not we levels. current are very strong group, to

we to customers. on more such, a plan As disciplined existing our place focus

resources For onboarding, example, processes experience renewal. we deliver are and and engagement new prioritize to seamless introduce standardize plan implementation friction to programs customers. to realigning for a removing digital to sales customer moving We that through quickly our from transformation to internally

their high. of to blueprints ensure data, milestones backed Leveraging years are these And by along BlackLine designed expect and digital programs as our we time best to touch value. transformation customer and come points to practices to co-create adoption satisfaction remains with success to new accelerate customers customers' and drive to in business, customer BlackLine,

with greater level, of competitive we competitive Further, not customer offered the the and enterprise envision. and an recognized company, workflow existing with expansion a of the solutions level market. the enterprise to seamlessly was signed growth At to connectors recognize the to are and one the BlackLine leading middle demanded. their from ability set who Despite they seeing takeaways they Despite deal of deliver vital via were competitors. ERP the enterprise direct sufficient we their existing a data market customer leverage wins to what support that homegrown uncertainty, partner they has and across key this, automation our the software also partnership both

payments and recognized and that a and in provider. Further, security also time services and to anything known We power technology exceeds customer believe direct strongly focus manual on the of financial consolidation the leading and can inefficient in automation expected compete removing company The signed from market. a ROI, a governance accounting with and resonated the value far the we work. accrue else benefits

global payment with integrated like and provider, Additionally, this provider deals SiP.X, industry. energy a a we leading technology to quarter signed the a customers number of equipment, of services intercompany NOV, and

We by solutions complex for market our middle the also intercompany deal on record for largest processes. signed modern driven need innovative

customer globally. remained number of healthy with new Finally, deal wins quarter SolEx activity a this

SAP companies team example, in American the and drive and journey. the beginning in Anglo long-term of remain about partnership. Holdings just opportunity like Restaurant For our We leadership senior this broadening are excited Europe will their deepening and BlackLine Japan with

fellow her Therese, to With that, Founder Therese? turn my it our thoughts. over I CEO, will discuss and to

Thank you, Owen.

natural role experience given interim listening assumed our Chief founding product fit know, many and out and past Officer my BlackLine recently footprint. As Technology an basis, building I on technology a the

what our can I we let's see the as where going upon and about forward So build strength. talk opportunities

in First truly more going something move efficiency intent faster agility while be able even driving day is I barriers grow. that one in it product today as see the with that delivering scale. we we we have is most we discipline success build on in and place crucial am the the is in enhancing to innovation Removing delight. the and growth every need as the teams and technology our the inside and self-created incredible. we organization forward. structure our I support in We appropriate and I our to see products talent have the But foremost, customers to not likely we to

Speaking seeing product in more from we saw API tremendous value, like we see customers. billion. accounts growth up of in a our to also scale, payment increase we're In set, usage our more $XXX across nearly and receivable. Across QX consumption solutions, our XX% alone,

million than In XXX%. fact, quarter, XX API calls we have this up more alone

can that While need infrastructure place new of the while to also to continue in company to add this these features stats we ensure functionality. support providing and are impressive profitably, the flexibility growth our a size, for

on focus for Officer who we I, scale for infrastructure Chief the turn, in Information platform focus still while early, map. product our road and market While in are new really a can on

turn Now the analytics product let's specifics latest tipped to solutions. expansion our of financial We a reporting moment. recently for

balance has previously our asking resonated If with able as expected, income customers and and data. off statement more. well based you even accounting recall, them we left their has a of to with This for provide were customers real-time sheet

with real-time cash financial given a period their batch-oriented real enthusiastically allows In addition on other time. system. This of by view a This analysis X interconnected and consolidation is flow numbers gives statements. where external any to periods several of at our in customers, unavailable business already discussed comparisons configured consolidation level budget capabilities The customers with system. is real-time statements of bound complete consolidated across all picture visibility

roadmap will in and We and expect that use remains enhancements received market our be innovative this robust. additional cases well for the

Now strategic leveraging AI existing add see moment, what markets. value for that to to and exciting and ahead our like AI. BlackLine, and I'd our generative discuss opportunity We close to a generative by products financial for our customers means

cases efforts, drive our uniqueness we to minimizing risk to the uncover for our and further of efficiency interesting continue while have part that As potential customers.

very recipe not go-forward AI, challenges for and risk have value the end long-term we're on partners been front interested and and governance on but while increasing in appropriately back are game. end is approach inherent here the generative Delivering the long customers a to with our applications security. at the to given cautious success Our related win

security I and market. governance we sensitive should that in Fortunately, to differentiator and surrounding permission, upcoming brand our believe you in combined with user key I that hope our conference our from September, a customer so see BlackLine more you expect BeyondTheBlack attend. that can hear data commitment be us will

Turning to product our strategic portfolio.

unique released multiple delivering intercompany, AI, differentiated and e-invoicing and underpenetrated module. markets. new are and the intelligence features, into for recently our We [indiscernible] using these aforementioned In we non-trade support intercompany innovation example, for large including

module and that In trade ahead lack our our designed physical operate only capable opportunities solve nominated new here industries coming challenges also for us. we module the to by intercompany on automation is new view the solution. for of months, solutions inventory The of large-embedded modern customers reinforces complex intercompany plan This introduce a goods. to for in

we're automation, receivable accounts we our module customer-driven the management to AR innovative in solutions finally, expand on offer. enhance working and innovation And

innovation Importantly, own just one of remains implementing solutions finished own accounts receivable channels feedback. a our our customer-driven of and organization important for and has internal our finance number

to journey. operations forward articulate moving they a modernizing whether deliver customers partnering achieve and are we digital confident have with accounting customers to partner this BlackLine finance it's better driven taking first close, that their transformation, step full value on To with trusted can the be can them the that and by knowing in or guide

to turn the discuss performance to our Partin I'll that, of outlook. financial it our Mark and details With over

Thank you, Therese.

ability our in to market. financial growth an and performance profitability BlackLine's balance highlights quarter this uncertain

second of our a in As growth. highlights of driving focus mind, review long-term to on financial and the profitable in our efficiency previously, in level strengthen remains our level from let's operational and that mentioned order position drive With detail. more sustainable Therese Owen quarter higher a

to with up XX%, combined to of growth services expectations. million, quarter Total lower revenue new our due XX% $XXX slightly of billings net grew lower Calculated was combination ahead customer this a bookings. growth

up revenue, the RPO, We quarter our annual net XX%. performance growing recurring count quarter to $XXX We was new X,XXX. total Remaining obligation, the with up at current in or XX%, customer of RPO end closed added total of customers million, quarter, ARR, or with the XX%. bringing the XX

consistent in as enterprise renewal revenue Our our of with impacted rate the small the XX% quarter customers period. number at was a prior renewal rate

retention macro uncertainty. this as deals of to Partners activity. continue XXX% driving revenue XX% new at lower persistent in enable, and Strategic due and performance deals sales. continue higher to stable quarter experience we velocity were expansion Net represented net involved to levels customer large of globally expansion of of we drive both remained a as partner train XX% activity product

solid Select across revenue, partnership new our In several with represented performance previous closing XX% with in global of QX, total remained our deals the second quarter the quarter. consistent market. SAP

quarter, Non-GAAP our margin by XX% and marketing this margin non-GAAP gross with margin was operating and sales XX% consistent Non-GAAP G&A. across discipline expectations. margins. with XX%, gross subscription driven was to of line in operating Turning

$XX.X Non-GAAP income XX% a margin. BlackLine net representing non-GAAP net income attributable was million, to

income cash million with on a operating from $XX.X We income our free drove cash cash the XX%. with million in in flow our combined position margin generated bottom free flow cash the Our interest line. outperformance and flow in $XX of quarter healthy operating results

financial month. billion strategic due Finally, August. notes $X.X manage securities our opportunistic XXXX our marketable the capital cash, the considerable equivalents across note, XXXX coming this and our ended with optimally notably, current notes in evaluate to and M&A cash Of quarter execute providing Most structure. priorities, become we next flexibility

back expected market half in the to improvement in a demand As slight year. the we enter of we XXXX, see

However, closed a for and the back on see out we quarter second we current slightly now of the flatter based demand as the profile trends, half year.

are off the year adjusting our we and previous expectations such, reflect to of table the full range taking As high end this. our revenue

continued non-GAAP our Positively, and full margin are again year strength will income be we guidance. seeing net raising

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

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

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

BlackLine non-GAAP On our $X.XX again a we or are income $X.XX to to $XXX the net million bottom $XXX raising on to million line, per for guidance basis. attributable to share

diluted expected shares. share Our count average weighted is to be approximately XX.X million

our the In closing, across we business expect period. operating to as we navigate near-term drive further efficiency

will part this, level to objectives. long-term supporting of have As our appropriate demand of match market growth while we capacity ensure we the that

operator the the open I'll now your questions. ask to to take discussion

Baird. Our Instructions] with of from of question proceed question. your [Operator first line comes Rob the Oliver Please

sales, customers. had we have because some have reference in curious sales in guys when towards some for vertical you verticals this I to be big a and one mentioned of see of then fishes move now in And just reorg? essentially sounds a which and I had sounded two right Owen really that like to kind Where involve the begin you questions. should effort? Owen, I mentioned, you results does that we for your of would you know process? are great remarks around what Mark. prepared a follow-up exciting

from you. hear to good Rob, Thanks, Sure.

remarkable could then and those you I verticals. industry, further So and take we and you casualty have property and very and our in where tremendous we with experiences a that's in And of down the life that, let's you been financial have insurance example, down customers. take I think clientele, knowledge industry you the Therese become agents could say, can start into we organization the that into And that depth one have strength find business, that of insurance can much then for all those that what brokers. have or digging apparent the services, to drill as things and or is team from the so I the is and broadly, leadership

as they talk really domain quite in that conversations for engage us. to unique have a So our when with them the something customers ability go expertise meaty us, about broadly but their them, would then issues, I think, is with speaking are our is we differentiator with

just working more that's but stages to we're starting heading. So we or track are that very to early of be of in where the make directionally with all there'll sure parts that. closely we're organization But to to aligned come, our go-to-market

Okay. Great. that. then, I appreciate Mark, one And you. for

results the themselves. remarks the closed Obviously, about leverage. really your You talking for far by so speak operating

XX% I to above number so, year, shaking it the right And XX% out think that entered XX%. or was roughly guys now. You you're

So that relative infrastructure in costs leverage you opportunities some and fairly help just I sales there terms Thank How on should of and initiatives you about some particularly was can in others. we to continued that cost were branding, guess, fruit the clearly us feel marketing find low-hanging business, money? the of you. may some understand, the to

sustainable Look, Yes. of for and see and Owen Thanks, the focused which they're from operating earlier, most from model. efficiency, comments leverage can think productivity, are driving driving you our on is I Therese in and business which intensity we Rob. the all

particularly, areas like years, unit. the sales a last about area the we've capacity we've in of ahead been the talked several hiring companies, go-to-market One in of the lot over the this and is of curve, of

and the across this. business, G&A increase, we're be and But sales forward, again operating the the rehydrate. meet hiring and point less that we for of that the areas to see demand, the we some as and will the as we're to environment, of there'll product marketing, means in leverage and finding environment begun move at tech start demand side level in So part, current it most we've

to working hard deliver has this. help team very been The

very all so able currently on. And we're to to deliver focused given of these and initiatives that things and of results the really proud we're kinds be growth other efficiencies

comes Raymond next Our your question James. question. from of Sklar the of Alex Please proceed line with

a on attainment I force specific I for for Mark. in Mark if I want and strategic Therese, had FRA on trending. here And you. your BlackLine that any for Therese and how any strategic as two-part Can you solution. and there? put know basket ask products. I a quota guess, for products expand first, sales made up question level about you've to comments on little pre-consolidation more the elaborate I prepared second bit then for areas traction Thank a whether that opens appreciate changes ancillary remarks all you just into? the to the for

start. I'll Yes,

As got we did on the a skin everyone base. to they've know, in products products game to strategic for now the the strategic the put And sales deliver team. company, along sales with quota you else in

valuable at products, sort digital be this, age reinforcing customers so know to of we in have this sell any is And of drive around into for base the the transformation which could point made in the which to not opportunity value. we sort strategic quotas changes this year, of enhancement are and of great this to them for age a very margin our -- our

still focused on very moment, we're at products. So the all strategic

It's And some example and thanks rich product, think asking real And value we it and a delivers for of have a our very to asking quite been solution of this a while, them. for we customer-driven about for Alex, type customers have delivered innovation. FRA. great

of in and really solution less that use less You're with for you're initially is a and customers, processes to it's them platform than And the they close cases mid-market some FRA bigger got reporting. may the going. our help have exactly have interesting do their tools we think where right very particularly period-end automation We thought. some and in where

would to So you tell And I much take this will follow an down. on know as hour about as I be me Owen that at to and there more would love BeyondTheBlack. to more. Mark shut

doing this. color it seems like what Owen, you, were forward follow-up the hearing Can just it frame mid-market make that great next to MAP. you already Then are customers natural month. That's right. implementation one enabled sense program, kind what then All help you for? implementation for you. percent extension expedited partners a about look great be know of to if sell target on X-day think you with Thank And more of the really and going for can to

Yes.

Therese implementation. closer because all me a I'm and he's little So way the start, bit been going let then X-day parts also a of to to ask

we've enabled think will prospects I certainly than what we've to but talking with customers, like something that what it's able others be appropriate. to don't been we with so see seen this be, higher it's of We idea the originally with the do quickly know probably would as I is, important. partners, is being percentage far estimated. have might our where

I the Therese, has to And trying like pieces this. so all that to lot we're work through of now. right been closer day-to-day said, a

want from So up do you that? to pick

Absolutely.

the BlackLine products very on So it and or involved of like straightforward, the of the type first Implementing can be more just reach or be off, to be can clear. that depending someone this X-day customer. size purchases

So is XX intercompany very to global recs a company. for account implementation example, different for entities different mid-market be small an than going across

site. them And coming it's we up We've files and So to if on busy to the and right because with mid-market our happen. running. already other specific take And come is with things up from enabled companies actually things, work are that very the our the could instances. gotten all months not basically idea we through we've X-day interesting the only process. they this; that through MAP implementation getting now we they're then the end But customers,

In fact, days. in instance, one X did it in we

also trained. them get We

standard the increases that it but to immediate after hypercare do really and of just the to And first get so customer their appetite through them closes, going couple to value for it their sets comes more.

they success, else BlackLine. go, okay, we what this very do a early them can gets It works, and with

we them in relationships about for a like get X straight, day, the that are And I know When with again, days thing us face-to-face So Alex, build customers. room to other you really X with is good our conference them. with you this, helps like our relationships the that having hours it customers.

with initiative point, is So far we're how think what than going I I expand very think thought. initially that to bigger do Owen's pleased going. to it's And we

with line Enders Citi. Please Our the next Steve your of question question. of comes from proceed

has Maybe macro that's changed sales to things or start, what here? want what I of the today or just than anything in enterprise. on situation exactly lowered leading you're changing to I development, exactly kind the to maybe is cycles pipeline ask outlook different mid-market Are on guess guiding to before.

don't here Yes. think we're would spend, has that know more how a that weighing on where the people table think about the happening. There are from Look, certainly but I few around were, I tremendously our the decision-making and now sit changed still and conversation. watching they macro how that in prioritize there say their is we customers I prospects, sitting

every bit So longer. a bit more you it add little time to takes a little that, just

funnel at the look top when top feel we you of team, and are and look quickly how funnel the that takes pretty those But still the a them through else, as place. of about the in. that get again, coming at So the everything together how funnel like we it's good things I leadership

more And the process. certainly more CIO the in the in we're involved CFO so involved seeing process,

with And our so way we're continuing to them. that through work

value time prospects about our to with feel little I doesn't feel customers the great from spend some and the in the ways, it more the better they a while proposition bit that today, positive it's taking longer think a perspective them. BlackLine I that bring can BlackLine us, is think

way changed would a dramatically hoping quarter little were And on the year issue but as this I so to timing up you anything macro. cleared through would bit don't think working our hasn't say We're I of has sit a we a here it's it. little know. it that that that quite all yet, have happened for third I That the I do of by bit. us. think

kind guess, quarter. Okay. some management That's looking helpful this happened gears there I any bit, of there. I the highlighted how about of you're know change the guess switching areas. again on as changes that should we the but strategy both backfill little be any forward just of to you've past of of now what's well. a update strategy kind for context those Maybe that in kind changes thinking on those? the I change in Is that further already, going here some

me really with. start Yes. That's let a And good question.

of think a to you business we've enough team, to things you one not as do talked it's where broken. hardest fix the know go. to is that to want good leadership I as that to something isn't get in But

so to. busy time of are. a taking that's the And are execution it's what committed very disrupting now. we ourselves energy that right deal vision, we And very, our are we great but passion and on and That's to drive what

all feels nature, about. very one We that things the we're things team the to sharing customer good partners, product, segmentation, about our that some will of be We've been the it's make around strategy, we more all of strategic But I think leadership whether choices clear of choices want that making about footprint. around the aspects BeyondTheBlack. geographic of

in we going how execute and lot of forward. to move do. there's as be And so very organization a optimism we're what I think clear the trying we're we relentless in But to about

Our next JPMorgan. the from question proceed of Bora of your comes line Pinjalim Please question. with

macro have kind I remember, seems time in between segments it there you you might last the seeing last Did ask mid-market enterprise, want and the to that the different any go difference if back think point to I and you're is I it that kind as quarter? or was was like improve a been steady. Enterprise bit of same of said mid-market more lagging

At I would say high I the a dramatically changed wouldn't level, pretty that it's themes similar. Yes. quarter-over-quarter. say feel

bit little deals sure I I'm scrutiny and more buyers. But sit a looking the longer. there it's at I said, that not different. would mid-market from taking required, I more if more are or enterprise, As There's you're think that say approvals

coming still our from we parts to that event world where up just But that's optimistic from Western continue we'll very we're particularly is or of way work lagging registered, we through. see just like of just that where vantage my are have about But in Certainly, conversely, would weeks prospects the something point. we unbelievable to customers and which couple Europe. a be, Japan, have BeyondTheBlack X,XXX we them

And about where time excited get so to takes we're things there. but be might it adding also

keep relentlessly we And move going as to so we're forward. to as just can executing

kind question purely Are industry Got force. sales is or you the the verticalizing as a on motion? verticalization it. products thinking sales that well or the of One of of

things unique as are very leadership customers in solutions this with over they those turn and want particular and our help to aspects meet we that and need. working team specific partners But the sure Therese we of our to I'll I what and Therese have our that industries, to there second. customize make talking, are a to been unique

we've months to over last so X at particular been X, the talking that -- months very months. through this almost now busy X customers about And together X-plus

to to you their that to that unique we're that transcends going them particular so and will. is I help the a But industry, issues. do And there at can with look we if And our with think continue it customers. partners more belief that there's

well. the -- Germany issues manufacturer automobile U.S. the are same you So one auto an the as as in might Japan is the manufacturers same and as deal same with

you're And looking about know this. spending sure we to I But Therese, that's what of lot thinking so we're do. a make time

Yes, absolutely.

that the others. more building more functionalities So sales or industries some motion we motion There to valuable you product. focused features the plus is are and than just it are answer asked be that sales And latter. was will definitely if on

specific fit pretty so of example, for retail. of cool. Okay, has nicely requirements some that those actually banking same But are into requirements some kind

sure want apply we not to have what can do if our offerings, configurable, customizable to what more enhancements we we want it make then and than one a that take we make highly product it do industry, we make win. to So when to can that's

So be sure we some different the there that will industries. in needs modifications address make can order product to of specific

repurpose. and a configurable flexible to sure want that's do how helps. We to we it's want However, get Hope win. and very you make that

question of comes line with Please Bank of Koji the your next from Our America. Ikeda question. of proceed

the second the and to that quarter triangulation guidance think trend just of wanted rate really be. what And rest billings ask billing could kind for how quarter. growth really in exit of the I on hone to the to in about year, revenue trying fourth the performance of

revenue of anything qualitative be with sort either a or we from cadence to respect deferred else billings. perspective color renewal any or So should about would helpful, thinking there quantitative or be

Yes. Thanks, Koji.

Given of sort what balance manifesting. Those talked a the it really Europe environment, parts business, it indicators the that's trend we're seeing And most year where in macro the the transformation. for high to in QX that see and likely the also the ones Owen year, -- of are we wouldn't digital we leading impacting similar very deals, would in or out the about of kind be business coming expect including the needle. this of seen. mid-market, end, many are that large the sort of at we've but move and of

on sort I given, the but don't expectation a into our so remainder view year. of think of year, that to probably the environment a you'd guidance of revenue the flat we based the billings, we've pragmatic we guide as on through heading is see see And take that end the

mean, Thank When revenue. Mark. on little at helpful, bouncing rate on bit the you Is little the bit, a bit around super needs channel? been XX%, that. It's think over at look for And partnership XX%-plus above SAP. a follow-up growth here That's about one just we we quarters. how just happen of... do it growth to XX%, the this the sustained part a several little drive And I XX% to below what past there?

let me Yes, start.

Yes, yes. Thank you.

Koji. Thanks,

growth Sorry, on see material they ahead overall of interrupted. me company uncommon, not to a pretty bit as quarterly But start trend just comment. let was basis you this know, back-end It's can a even in SAP the last very where actually fluctuations quarter. The your I with loaded. be

also Those are the They large of business pipeline. parts the transformation. our carry large very strategic of deal our part digital

in the Owen so, this going And is parts at the least to compared in minute driving a I partnership, to performed other talk actually it as of has environment business. quite think SAP about well, but

end a this quarter, again year holding so and we nicely. saw standpoint, at And the in with of from partnership beginning what last up last it's

you say that. about to Owen, wanted something

of of top and can to Therese, And partnership make amount No, time other at critical that I against priority. is this we BlackLine. significant spending Mark, all think, to the us a you are as sure imagine, SAP myself leaders execute look,

do thing us as to around we for the world work that experience think consistent big is get to SAP. more the with I

sure do continue have of make other be we footprint. number in deepen with that partners countries, going we're will we relationships want well. sure the short make strong order, also, SAP making sure fact, to so European that we But And to in as that. And our leveraging we're in to Mark a I Therese, that and

this going work work critical about to the relationship. this continue as talked SAP, is and forward achieve we're and X, of potential to which partner we move ourselves full we that. is a But we absolutely that together it continue So Power to to

Next Matt question. Please question comes your the VanVliet with of from proceed line of BTIG.

a of more just could BlackLine sort reflective blue of there is color expanding you partners they've that here I about much other we expansion is a how kind in with exclusivity this on with additional details wanted to kind little can the Thanks. the us the partner or while of of SI past reseller see if And there, is of what there chip or of of you to get bit preference help kind your whether some invested because discussions talked potential were any agreement. other investments? their ecosystem. deals Any

Yes.

partners I structured and partners to pretty know, how I build the those relationships in a important And to understanding they're came that getting executed against. of and you that a way world, from So and as our thank of good what's I aligned actually sort believe you. and have consulting and best

that we to from we've can as our forward, our with BlackLine, drive move in clear incentives for think very have the with we're BlackLine the I to right and remarks, become in we of return. we prepared partners And make trying what So partners expect expect heard they what right the sure mutual you success.

doing had sort world. invested from next is resellers it's quite as And think it that's business I own relationship, a operate as move to their partner well own of process many bit not in this of of implementation, stage various a business In their this many the evolution doing outsourcing, will consultancies around in particular the these a call as They've longstanding but relationship world. with them parts the being of just us.

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partners move with moving that that we'll So we be And sure them. keep from the plans we plans together have forward this. to professionals And make with certified quite how our together. forward govern comprehensive we we we can sure make deliver will how them, engaging on create certainly, the everything how as we're frequently with to train offerings, we relationship things our BlackLine to their side and how to do we co-invest are

this that the make we're things relationship, right to this there's whole doing of partner for sure us So works partner myriad a way. channel

enough talked Okay. not own for point. liking for rates your renewal helpful. this then you overall about software Very but comparisons, at high And

little internally some And presumably and should your further? curious spending you're programs a with that, to potential. see is basis customers you're on upselling kind then putting improvements we rate improve frequent place sort in half on expect as net maybe more that, more with or that potentially incentives retention the So of maybe what of engaging to a time of dollar

but that's not my candidly, Thank enough. teams results retention and we've you. I into view, the think a a had strategically from both good we've think really good Look, perspective, from years. invested question. I success our over And customer from And good our perspective, expansion

the to to there's And a back no really go out I get and want door, hard customer door. the in front hell so you in them way fight

so have offer do sure that sure BlackLine to to, to customers going And that that have we make come we're make all that achieve the we to them. everything we to those

that our And rest are team, other things we about doing. are so X-day implementation We on driving Therese, customers. better for intent leadership there results the an talked the we of even as are But Mark, example. the

much on the for We're consolidating not the couple ring over some organization management sure those with we're we're more closely our teams us, And much months to to customers. sure we delivering BlackLine proactively our last to engaging promise. make our make to of customer the that phone customers sure call with they success account more aggressively for are of support make driving waiting to again, we're align

we new we're Day are from then through So want the that door, the hard customers really on full sure that. also working coming for make the value that getting to And they're X.

for over it's big but only a customers it's allow delight expand that not think and that what will to trying customer, effort to the to then we're so time. but right relationship And we for land to do, us a do thing our to them

on those adopt inside addition them globally ability rate, and can product penetrate using portfolio we impact Owen the have companies. is renewal But and retention course, absolutely will customer what show an biggest The their accounts. have Matt, fully our the help enterprise. higher to and impact the And that the XX% expansion transform Yes, to in driving digitally the within of said, for to dollar on just the is rate retention the strategic rate.

additions So to those are the rates. the big of sort

line next Meares question the Truist Joseph comes Our of from of Securities.

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can any Track Fast adds? had implementation reducing X-Day I reaccelerate And follow-up. is early Regarding then one implementations, that there customer evidence time actually

may see seen value. And having think customers, [Bobby that running release on it Well, about get mean, customers a our prospects. this, I is our that with and do enthusiasm talk up the press willing ability they then and [ph]. there, immediate certainly having it's D] get to have you competitive are then building differentiator, I to

Awesome.

sales And accretive earlier quick trending? one question. NRR you. an just are currently? to are But then those follow-up on And product great. Sounds strategic how Thank

Yes.

to over like and been even, them total year in Our see. typically sales That's has and two the very to strong we've the or range any of our XX% strategic seen range bookings target quarter. in XX% what product we last

would transformation, that like that of the big part see a XX% that is XX% we customers' range. that Given it's it and to to and at portfolio expanded

needed at to So wanted not to where QX XX% be. where it in landed, we or be

we're products. described of Owen many that things has greater adoption and penetration these drive So working of those through in sales to

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

wanted big just I picture to ask maybe a question.

year. just your out sizable you've to organization the confident wondering I the gave XXXX reach us you to last Day revenue window of in plan over -- know in to terms in the them? X guess returning years. just or to it had updating within so pertains targets changes last obviously, BeyondTheBlack? And some can X Investor are or terms month And there midterm numbers, for at the you maybe growth, months. I I'm as would You still some those particularly you few of

Yes.

well a So as the ago, innovation. it's as to strategic product there that less levers you our partner know, our year are at and targets, as believe SAP, than we we put targets literally we working still whether multiple have disposal that achieve the out with new channel, portfolio those

future we that. support steps items these growth of on and deliver for all envision taking we we're sure So the to make business, the

our going reaccelerating the foundation, are forward. good So focused and growth about we we feel on

that then gross we've do side, the when through the -- margin line item? expand mean dividends runway coming yet that the I not And lastly, you is do the you on to still that to Mark. seen percent. that think XX-plus I Thanks, mean, Is likely,

right. Yes. That's

into place back We migration have got we've Well, to not and first, that will a the us taking gotten to. take cloud. XXXX that on public

we for over through think, over until customers. it. at I least complete that halfway so We're all And substantially, or

year customers to or move migrate margin. to and higher We have through, a start next a we this number year gross then and to can of get

target midterm as target our well. of longer-term sort our that's So or

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

A couple strategic of follow-ups. here, products

levers as the you obviously, for to for around what intercompany core forward, intercompany, further if other have ICH. you to deals. just macro seeing adjusting And you difference big think of some those specifically? take ICH mentioned intercompany near-term for Intelligence, management a are products drive given love of continuing Would mean I that then pace adoption kind you in on do approach obviously of you're terms adoption of challenges to make get holistic think color a those that the financial In to that more Intercompany

all products? asking, are Just Specifically, IFM which about? or strategic asking you

Specific of IFM.

focused organizations. because business for got long the ideally customers And adopt multinational involved of is multiple continuing you've efficiencies process it's suited are across still is to get complex high business. these their fairly that It and automation. something drive areas really on in large It a to buying

just because an around appetite is to for key be growth. You've of got what number goes really on. it very, really but change a journey that to to have our I a of to expect part really a knew deals We great longer-term a that still have for digital goose that's company did contributor acceleration quarter, people wish well, we we IFM transformation have it so this and very and And how transformation. I do

of, any Got on and if full strategic touch introducing have the removing some have go quotas deal productivity momentum to funnel the running sense room would you top that at to on just products that love to well? if terms still on consider impact there's that or in selling be it. the as or of products general helpful. for any of then you're front follow-up the strategic you discussed That's sales there. would and on a overlay Obviously, go-to-market. seeing team guys And if I

our think products. to in end the Yes, at Year-to-date, there range room low is I sort to be of we target on go. continue still strategic

of continue to us out and need to convert see we to deals these the level for through customers' top salespeople the the close products and the year But funnel. participate, and pipeline. this at to for We move these interest

So and sales just programs will we're performance and intently that. customer, that focused on do communication

and their know gave using products. some value in products the that strategic we in that it just accelerating fascinating know are incredible we are usage Therese of the for not So customers products, they're product getting the particularly AR figures our that that where those growth

those it and it's deals. into hands out getting closing So those really

loaded for working to products early closed. company. We're products, hard we're strategic and get still year. strategic We good a We've back-end the So quota pipeline a the this idea. in got were those year was

from Quintero line of of Morgan Stanley. Our the comes next question Chris

now open. Your line is

I Owen, you specifics about ask there changes you to any the partner want commercial to how and the making to drive there? give network. Are of global expect you're make on accountability you're the some changes can greater to looking

I I So say? partnership Is accountability that are greater network? heard is you to the drive thought we the in global question how what looking

Correct. Yes.

of sure be years. of on to of think what, understanding I from many your each of what committed that to without this clear partners would fact, sides up in being a many, Lots Look, party call understands both they're very sign my people wedding Yes. that make over sort to. you owes experiences

very be And clear so best to that. about practices are

I we need that's that going summit. will all commitments and are to, to broader deeper through partners so weeks. I commit big we'll from that to process expect And the time, X, partners our And at next in this be that and to point of the because them. willing we And have the with those that more going expect productive make have particular over everyone. At that a wayside by relationships not those get that completed are we're fall and a then a partner able to and of we X they're number committing BeyondTheBlack, for

move only, on those. so And name prolong we'll from in something rather than

way And this towards around so time. our globe that's in the we're what all working at point

of Sachs. question of Adam Hotchkiss with from proceed Our Goldman question. Please next line comes your the

on be update about get allocation thinking great here. to Would how capital you're an

public been has where there activity M&A a of cases have couple private the in side space. I and think the up on picked

pretty the the capital opportunities with the other the far down better curve inorganically opportunities? continue you're curious or are portfolio allocation How to Just to profitability expand thinking about here. XX and in coming

we on some strong billion you decent Yes. you. sheet. and in balance It's a With that Thank competitor maturities couple are we've things a the out, a where fairly market own ways as sheet, weapon view. that dollar a our balance mentioned, of our very got as

CFO of continue we our number to move deals to around that that prove ability and and our strategy, inside conversation our inside the thesis validate the transformations. we've level strategic of office around a of Second get is, the to got raise

the the is office still transformation early. reminder, a of very as Just CFO

done as deals we And to it. validate in play and proven so BlackLine's have ability continues to spaces these those

So and world. will a make real we'll them, capabilities our we'll and that but where look, M&A, our can important drive be best very is X,XXX just view can targeted, for be that not in customers we the but buy at of value the that opportunistic, looking difference companies to growth biggest, we inside are revenue drive

we're sort of at so ability growth the And our use a M&A strategy. and forward as to moment leaning

Thanks. sense That's be be thinking you're to how you're hiring, sales Great. And at color appreciate helpful. how just where more a optimal Any like that's that And out headcount? on incremental current a around on on thoughts but your Okay. helpful. would strategic productivity perspective? about from it broadly, really I the quotas, Thanks. informing for zooming view then productivity would things great sales get

an Yes. year. We assertive into had benefit demand aggressive least the or last at hiring an the of market

is even focus into to the And opportunity on on on are incentive of reorienting ramped side that really the giving us one And and demand so some sales those and we've go-to-market to been what able most alignment of the we've programs now such of as hiring business, groups to more decelerate headcount be the productivity had. drive the efficient.

able to is moment, agile adapt market we is be we be will so flat, environment. that demand to the flat. demand And forward, as the and move hiring At our

to going sort modulate to that we're of so And continue way.

Our of Capital of from the Daniel question Jester line comes last BMO Markets.

Dan. was this the Thanks on wondering program for implementation catalyst us companies. Appreciate to is fast-track the This Aberasturi what I midsized Kyle was for together. just put program squeezing the in. for color

accounting We know to when it that mid-market companies resources. both are constrained and comes IT

better. contingency was really even that So this about serving

that considered And more up to and see have win. value quickly them and shortened we so a get was anything running time could -- them

actually like people to expand attention more they over they and Now with is the their able because relationships people probably thing something even And very to larger is also feel being is because rapidly. term, longer to the to companies this get think focused will the building be done then feel at BlackLine enjoy enjoy they I really like going journey there And supported. come. the the program interesting

want running If products you in days, to can up get more they X certainly and look something that at at point. [indiscernible],

would for closing I back Owen you. the conference to Thank Ryan, turn now like to Co-CEO remarks.

interest in Thank a BlackLiners, much behalf all and day. our have Talk so Please for on you. And your great you of thank of company. soon. support

for you concludes participating. Thank This today's conference call.

may You disconnect. now